Robinhood Markets Inc, the online trading platform operator, is facing new regulatory investigations ahead of its initial public offering (IPO) on Thursday.
In a regulatory filing on Tuesday, Robinhood disclosed that the Financial Industry Regulatory Authority (FINRA) is investigating the company’s compliance with the regulator’s registration requirements for individuals engaged in the securities business.
FINRA is particularly looking into the fact that Robinhood CEO Vlad Tenev and Chief Creative Officer Baiju Bhatt failed to register with the regulator. Tenev and Bhatt co-founded the online trading platform.
According to Robinhood, it “received a FINRA investigative request seeking documents and information related to its compliance with FINRA registration requirements for member personnel, including related to the FINRA non-registration status of Mr. Tenev and Mr. Bhatt.”
The company added that it is” evaluating this matter and intends to cooperate with the investigation.”
In addition, Robinhood revealed that FINRA, the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and several state regulators are investigating its employees’ trading subject to the Early 2021 Trading Restrictions.
