A Wall Street administrator has ordered a Robinhood store to pay more than $ 70m in penalties for damages that he says are “extremely common” to his customers.
Finra announced Wednesday that it was fining Robinhood $ 57m, ordering it to pay $ 12.6m plus interest on its customers, the maximum penalty imposed on the finance director.
The fee is equal to the total amount spent by regulators throughout 2020.
Robinhood has been on the rise in daytime sales since the outbreak. Finra claims that the broker-dealer has provided misleading information to its clients, and that the technical weakness of the platform during the crisis of consumer fraud.
It also said that Robinhood allows thousands of customers to sell dangerous goods when it was “not appropriate” for them.
“This has sent a clear message – all Finra companies, regardless of size or type of business, must adhere to the rules governing the work of a broker,” said Jessica Hopper, head of the legal department at Finra. “Compliance with these rules is no longer necessary and cannot be discarded simply because of new activities or a desire to ‘break things’ and make adjustments later.
Robinhood responded, “Robinhood has invested heavily in platform stability, education promotion, and the establishment of our clients and legal and compliant groups. We are pleased to leave this issue and look forward to continuing to look after our customers and build democracy for all.”
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