Robinhood fined $45 million by SEC for multiple securities violations

According to a statement released by the US Securities and Exchange Commission (SEC), Robinhood Securities LLC and Robinhood Financial LLC have agreed to pay a total of $45 million in civil fines for violating more than 10 securities laws. Violations include failure to submit suspicious activity reports in a timely manner, inadequate implementation of identity theft protection measures, failure to address known cybersecurity vulnerabilities, and failure to properly maintain customer communication records. In addition, Robinhood Securities has been charged separately for not providing complete securities trading data and failing to comply with Reg SHO rules. These issues occurred between 2019 and 2023. The SEC stated that both companies have acknowledged some of the investigation results and agreed to accept penalties.