Robinhood Markets Inc (NASDAQ:HOOD) will pay $45 million to settle charges from the US Securities and Exchange Commission (SEC) over record-keeping and trade reporting failures, the regulator announced.
The SEC found Robinhood Securities and Robinhood Financial breached multiple rules, including accurate trade reporting, timely suspicious activity filings, and compliance with short sale regulations.
The firm also admitted to improperly retaining communications via messaging apps and provided incomplete trading data, known as blue sheets.
Regulators criticised Robinhood for failing to address cybersecurity risks adequately.