
Robinhood Forced to Pay $10M Settlement to State Securities Regulators for Investor Failures
Robinhood, the popular multifaceted trading platform, has agreed to pay a $10.2 million fine to the California Department of Financial Protection and Innovation (DFPI) for operational and technical failures that negatively impacted investors. The fine comes after a two-year investigation by the North American Securities Administrators Association (NASAA) into Robinhood’s system outages and service unavailability that cost users several trading opportunities. Regulators accused Robinhood of negligent dissemination of inaccurate information to customers and failing to establish an adequate customer identification program. The company also failed to supervise technology pivotal to providing core customer broker-dealer services and to report customer grievances