Robinhood Under Investigation Over Communications Compliance (1)

Robinhood Markets Inc. said regulators are investigating the firm’s compliance with recordkeeping requirements, including employees’ use of “off-channel communications.”

The firm is cooperating with probes by the enforcement divisions of the Securities and Exchange Commission and Financial Industry Regulatory Authority, Menlo Park, California-based Robinhood said Wednesday in a quarterly filing.

The SEC is also looking into whether the brokerage followed rules about trade reporting related to securities lending and fractional share trading, according to the filing.

Last year, regulators reached settlements with a group of big banks in a sprawling investigation into how the firms monitored their employees’ communications ...