(Bloomberg) — Robinhood Securities LLC and Robinhood Financial LLC agreed to pay $45 million in civil penalties to settle a series of U.S. Securities and Exchange Commission claims, the regulator said Monday.
“Today's order finds that two Robinhood firms failed to comply with a number of important regulatory requirements, including failure to accurately report trading activity, comply with short selling rules, timely submit suspicious activity reports, maintaining books and records and protecting customer information.” Sanjay Wadhwa, the SEC's acting director of enforcement, said in a statement.
Robinhood said it was pleased to resolve the issues.
“As the SEC's order acknowledges, most of these are historical issues that our broker-dealers have dealt with before,” Lucas Moskowitz, Robinhood's general counsel, said in a statement. “We are well positioned to continue to lead the industry in developing the innovative products and services that our customers want and need to participate in the US and global financial markets. We look forward to working with the SEC under a new administration.”