TechFlow news — Robinhood Markets Inc.'s two subsidiaries have agreed to pay $26 million to settle allegations brought by the Financial Industry Regulatory Authority (FINRA), according to Bloomberg. FINRA accused Robinhood of failing to respond to red flags indicating potential misconduct and of not verifying the identities of thousands of customers.
The regulatory penalty follows another $45 million settlement in January between Robinhood Securities, Robinhood Financial, and the U.S. Securities and Exchange Commission (SEC). The SEC had charged the retail trading platform with failure to preserve records, delays in reporting suspicious activities, and other deficiencies.
Under the settlement terms, the two companies accept FINRA's findings without admitting or denying the allegations, and have committed to having remediated the issues.
