Robinhood to Pay $26 Million to Settle Finra Allegations

Two units of Robinhood Markets Inc. agreed to pay $26 million to settle Financial Industry Regulatory Authority allegations that it failed to respond to red flags about potential misconduct and didn’t verify the identities of thousands of customers.

The fine from the broker-dealer industry regulator comes on the heels of a separate $45 million settlement by Robinhood Securities and Robinhood Financial in January with the US Securities and Exchange Commission, which accused the retail trading firm of failing to preserve records and not reporting suspicious activity on time, among other problems.

“Today’s action reminds Finra members that compliance with ...