Overview

• Robinhood agreed to pay $45 million in civil penalties to settle SEC charges involving two of its broker-dealers, Robinhood Securities LLC and Robinhood Financial LLC.
• The violations included failures in reporting trading activity, maintaining records, addressing cybersecurity risks, and complying with short sale rules and identity theft protections.
• The SEC found that Robinhood Securities submitted inaccurate electronic blue sheet data for over 392 million transactions across five years.
• Both entities admitted to the findings, agreed to be censured, and committed to conducting internal audits on compliance with communication retention rules.
• Robinhood stated that most of the issues were historical and had already been addressed, expressing a commitment to regulatory compliance and innovation moving forward.