{"id":45328,"date":"2021-07-01T11:47:02","date_gmt":"2021-07-01T08:47:02","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=45328"},"modified":"2025-09-01T10:33:55","modified_gmt":"2025-09-01T07:33:55","slug":"robinhood-to-pay-record-finra-settlement-fine","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/robinhood-to-pay-record-finra-settlement-fine\/","title":{"rendered":"Robinhood to pay record FINRA settlement fine"},"content":{"rendered":"<p>Robinhood, a crypto-friendly broker, will pay $70 million to settle a dispute with the U.S. Financial Industry Regulatory Authority (FINRA). It is the largest fine ever imposed by the regulator.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">JUST IN: We have fined Robinhood $57 million and ordered the firm to pay approximately $12.6 million in restitution, plus interest, to thousands of harmed customers.<\/p>\n<p>Learn more \u25b6\ufe0f <a href=\"https:\/\/t.co\/h0s18ZAEtA\">https:\/\/t.co\/h0s18ZAEtA<\/a><\/p>\n<p>(1\/7) <a href=\"https:\/\/t.co\/tkRG78bJM0\">pic.twitter.com\/tkRG78bJM0<\/a><\/p>\n<p>\u2014 FINRA (@FINRA) <a href=\"https:\/\/twitter.com\/FINRA\/status\/1410251804198199305?ref_src=twsrc%5Etfw\">June 30, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Of this amount, $57 million is the fine the firm will pay to the regulator. Another $12.6 million Robinhood will pay to affected users as restitution.<\/p>\n<p>The broker reached a settlement, but did not admit or deny the allegations. As FINRA stated, the company &#8220;agreed with the regulator&#8217;s findings&#8221;.<\/p>\n<p>FINRA stressed that the size of the sanctions reflects the seriousness of the firm\u2019s misconduct. According to the regulator, since 2016 Robinhood &#8220;negligently provided clients with false or misleading information.&#8221;<\/p>\n<p>&#8220;[The misinformation] concerned a range of key issues related to clients&#8217; participation in margin trades, the amount of cash on user accounts, purchasing power or &#8216;negative purchasing power&#8217; of clients, the risk of loss of funds when making certain option trades, and the likelihood of a margin call,&#8221; according to FINRA&#8217;s statement.<\/p>\n<p>The regulator noted frequent technical outages in the app from 2018 to 2021. The most serious incident FINRA highlighted was the outage in early March 2020.<\/p>\n<p>FINRA also stressed that Robinhood concealed important information from the watchdog. In particular, it did not notify the agency of &#8220;tens of thousands&#8221; of customer complaints.<\/p>\n<p>Earlier Robinhood <a href=\"https:\/\/forklog.com\/en\/news\/robinhood-values-finra-settlement-at-26-6-million\">valued the settlement with FINRA at $26.6 million<\/a>.<\/p>\n<p>Earlier reports indicated that Robinhood <a href=\"https:\/\/forklog.com\/en\/news\/media-robinhood-delays-ipo-amid-sec-review-of-crypto-trading-service\">delayed its planned June 2021 <span data-descr=\"initial public offering\" class=\"old_tooltip\">IPO<\/span><\/a> due to the U.S. Securities and Exchange Commission examining its cryptocurrency business.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/twitter.com\/ForkLog\" target=\"_blank\" rel=\"nofollow noopener\">Twitter<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto-friendly broker Robinhood will pay $70 million to settle a dispute with the U.S. Financial Industry Regulatory Authority (FINRA). This is the largest fine ever imposed by the regulator.<\/p>\n","protected":false},"author":1,"featured_media":45329,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1312,1234,26],"class_list":["post-45328","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-finra","tag-robinhood","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"44","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/45328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=45328"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/45328\/revisions"}],"predecessor-version":[{"id":45330,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/45328\/revisions\/45330"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/45329"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=45328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=45328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=45328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}