The\u00a0Securities and Exchange Commission\u00a0on Monday said two related\u00a0Robinhood\u00a0broker-dealers agreed to pay $45 million in combined penalties to settle\u00a0administrative charges\u00a0that they violated more than 10 separate securities law provisions related to their brokerage operations.<\/p>\n
The violations by Robinhood Securities LLC and Robinhood Financial LLC are related to failures to report suspicious trading in a timely manner, failing to implement adequate identity theft protections and failing to adequately address unauthorized access to Robinhood computer systems, the SEC said.<\/p>\n
The two Robinhood entities also had longstanding failures to maintain and preserve electronic communications, failed to retain copies of operational databases, and failed to maintain some customer communications as legally required between 2020 and 2021, according to the agency.<\/p>\n
The SEC said that Robinhood Securities alone failed for more than five years \u201cto provide complete and accurate securities trading information, known as blue sheet data\u201d to the agency.<\/p>\n
According to an SEC order made public Monday, \u201cDuring the [Electronic Blue Sheets] Relevant Period, in response to requests from the Commission, Robinhood Securities made at least 11,849 EBS submissions to the Commission that contained inaccurate information or omissions, resulting from eleven types of errors.\u201d<\/p>\n
\u201cThose errors resulted in the misreporting of EBS data for at least 392 million transactions,\u201d the order said.<\/p>\n
Sanjay Wadhwa, the acting director of the SEC\u2019s Division of Enforcement, in a statement, said, \u201cIt is essential to the Commission\u2019s broader efforts to protect investors and promote the integrity and fairness of our markets that broker-dealers satisfy their legal obligations when carrying out their various market functions.\u201d<\/p>\n
\u201cToday\u2019s order finds that two Robinhood firms failed to observe a broad array of significant regulatory requirements, including failing to accurately report trading activity, comply with short sale rules, submit timely suspicious activity reports, maintain books and records, and safeguard customer information,\u201d Wadhwa said.<\/p>\n
Robinhood Markets General Counsel Lukas Moskowitz, in a statement, said, \u201cWe are pleased to resolve these matters. As the SEC\u2019s order acknowledges, most of these are historical matters that our broker-dealers have previously addressed.\u201d<\/p>\n
\u201cWe are well-positioned to continue leading the industry in developing the innovative products and services our customers want and need to participate in U.S. and global financial markets,\u201d Moskowitz said. \u201cWe look forward to working with the SEC under a new administration.\u201d\u00a0<\/p>\n<\/p>\n
The\u00a0Securities and Exchange Commission\u00a0on Monday said two related\u00a0Robinhood\u00a0broker-dealers agreed to pay $45 million in combined penalties to settle\u00a0administrative charges\u00a0that they violated more than 10 separate securities law provisions related to their brokerage operations. The violations by Robinhood Securities LLC and Robinhood Financial LLC are related to failures to report suspicious trading in a timely manner, […]<\/p>\n","protected":false},"author":0,"featured_media":13928,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-13927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=13927"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/13927\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/13928"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=13927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=13927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=13927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}