![]() ![]() Robinhood went public in July 2021, trading on the Nasdaq under the ticker symbol HOOD. The Silicon Valley darling - which launched in 2013 and grew its following amid an investing surge and cryptocurrency boom during the COVID-19 pandemic - is a commission-free trading platform, meaning users can invest in everything from exchange-traded funds (ETFs) to Dogecoin without going through a traditional brokerage. The investing app is a favorite among everyday traders who congregate in online forums like Reddit’s r/WallStreetBets, and currently has around 11.4 million monthly active users. If you are at all interested in investing, you’ve almost certainly heard of Robinhood. Start investing with a $10 sign-up bonus for opening an account and linking your bank account See expert ratings of stocks and funds to help inform your investment choices You can learn investing in clear and simple language Roach.For a limited time only, make a deposit and they'll double it up to $75 We have found no evidence of willful or fraudulent conduct by Robinhood, which has fully cooperated with the investigation,” said Mr. “This agreement reflects the ongoing efforts by state securities regulators to protect investors and make sure that they are treated fairly by financial services firms. One year post-settlement, Robinhood is expected to confirm to Alabama, the lead state, that it has fully complied with the recommendations of the independent compliance consultant. Robinhood has engaged an independent compliance consultant and has generally implemented the recommended remedial measures. However, the company will provide a FINRA-ordered compliance implementation report to the settling states. Under the terms of the settlement, Robinhood neither admits nor denies the allegations. The settlement lists numerous violations committed by Robinhood, including the negligent dissemination of inaccurate information to customers, insufficient customer identification programs, failure to supervise essential technology, inadequate system for handling customer inquiries, lack of due diligence in approving certain option accounts, and failure to report all customer complaints to FINRA and state securities regulators. Robinhood repeatedly failed to serve its clients, but this settlement makes clear that Robinhood must take its customer care obligations seriously and correct these deficiencies," said NASAA President Andrew Hartnett. "Today's multistate agreement represents states at their best – working together for the benefit of main street investors. Weaknesses in Robinhood's monitoring and reporting tools, along with inadequate customer service and escalation protocols, were also noted. ![]() ![]() Furthermore, investigators discovered deficiencies in Robinhood's approval processes for options and margin accounts prior to March 2021. At the time, hundreds of thousands of investors were depending on the Robinhood app for trading. The probe was initiated in response to a series of Robinhood platform outages in March 2020. The proceedings began with an investigation launched by state securities regulators in Alabama, Colorado, California, Delaware, New Jersey, South Dakota, and Texas. Main street investors, as highlighted in the agreement, include individual consumers, small local businesses, small independent investment firms, and retail customers. Virgin Islands will benefit from a $200,000 share of the settlement. Lieutenant Governor Tregenza Roach announced that the U.S. This development comes as Robinhood faces allegations over operational and technical shortcomings that disadvantaged main street investors. ![]()
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