Robinhood saddled with historic $70 million fine from financial regulators
The Financial Industry Regulatory Authority (FINRA) announced on Wednesday that it’s fining Robinhood almost $70 million to settle charges over issues it identified with the company’s stock trading service. The authority claims that the financial app company neglected its duty to supervise trades, maintain its own technology, and protect its customers. The fine is the largest in FINRA’s history and Robinhood has agreed to pay.
FINRA says since 2016 Robinhood has periodically provided false and misleading information on topics like whether customers were able to place trades on margin (using credit from Robinhood to buy shares), including displaying inaccurate information in its app on how much cash was in customers’ accounts.