Robinhood fined $70m for harming customers via misleading information

Wall Street’s industry regulator fined Robinhood Financial 70 million dollars on June 30 for “systemic” failures, including systems outages, providing “false or misleading” information, and weak options trading controls, saying those factors combined harmed millions of the app’s customers.

The Financial Industry Regulatory Authority fine is the latest hit to Robinhood’s reputation. The broker, which has been credited with democratizing trading, is under scrutiny by federal and state policymakers following this year’s meme-stock fiasco which raised questions over the California firm’s business model, risk management and customer treatment.

However, the sweeping agreement, which resolves alleged violations dating back to September 2016, likely paves the way for the firm to move forward quickly with a planned initial public offering that has been delayed due to meme-stock backlash and other regulatory queries.

Source: https://news.cgtn.com/news/2021-07-01/Robinhood-fined-70m-for-harming-customers-via-misleading-information-11xugj5lmUg/index.html

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