Robinhood will pay a fine of $10,2M for damaging investors.

Robinhood will pay a fine of $10,2M for damaging investors.

Altcoin news, News

Robinhood Financial LLC must pay up to $10.2 million in penalties for “operational and technical failures” that harmed main street investors.

The penalty was decided after an inquiry into Robinhood’s operational shortcomings, led by state securities regulators in Alabama, Colorado, California, Delaware, New Jersey, South Dakota, and Texas.

In March 2020, disruptions on the Robinhood platform affected traders, and before March 2021, Robinhood had issues with its review and approval procedures for options and margin accounts, flaws in its monitoring and reporting tools, and occasionally prevented traders from using the platform.

NASAA President Andrew Hartnett stated that Robinhood repeatedly failed to serve its clients, but this settlement makes clear that Robinhood must take its customer care obligations seriously and correct these deficiencies.

FINRA charged Robinhood $70 million for harming clients through outages and critical system failures. One year after the settlement date, Robinhood will attest to the lead state that it is in full compliance with the FINRA-ordered independent compliance consultant’s recommendations or has otherwise instituted measures that are more effective at addressing the recommendations.

Compiled by Coinbold