Robinhood agreed to pay the penalty and restitution to harmed customers to settle the matter. It did not admit or deny the regulator’s charges. However, it consented to the entry of FINRA’s findings in the settlement agreement.
In December last year, Robinhood agreed to pay $65 million to settle the SEC charges alleging that it misled its customers.
The Commission investigated the company’s business practices and found that it made false claims about its revenue source and trade executions quality in its communications with customers between 2015 and 2018. The SEC also found that Robinhood falsely claimed between October 2018 and June 2019 that its execution quality matched or beat that of its competitors. The company settled the matter without admitting or denying the SEC charges.
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