Robinhood settles $26 million fine with US Financial Industry Regulatory Authority

On March 8th, according to Bloomberg, two subsidiaries of Robinhood Markets Inc. have agreed to pay $26 million to settle charges brought by the Financial Industry Regulatory Authority (FINRA) in the United States. FINRA accuses Robinhood of failing to respond to warning signals of potential misconduct and failing to verify the identities of thousands of customers. The fine imposed by this brokerage industry regulatory agency follows another $45 million settlement agreement reached between Robinhood Securities and Robinhood Financial and the US Securities and Exchange Commission (SEC) in January. The SEC accuses this retail trading company of failing to keep records, failing to report suspicious activities on time, and having other issues. In the settlement agreement, the two companies accepted the FINRA investigation results but neither admitted nor denied the allegations, and agreed to commit to rectifying the relevant issues.