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Robinhood Pays $65 Million to End a Key Probe, But Others Fester

Dec. 17, 2020, 5:10 PM

Robinhood Markets will pay $65 million to settle allegations that it failed to properly inform clients it sold their stock orders to high-frequency traders and other firms, putting a major compliance headache behind the brokerage even as new ones emerge.

The Securities and Exchange Commission fine stems from Robinhood’s decision to removed disclosures from its web site that detailed how it made money, the regulator said in a Thursday statement. The brokerage -- known for its immensely popular smart-phone app that offers commission-free trading -- hid from 2015 to late 2018 that its biggest source of revenue was funneling ...