Robinhood Paying $65 Million Settlement to SEC Over Lack of Client Disclosure
Robinhood Financial has fallen afoul of the Securities and Exchange Commission (SEC). The regulator has accused the company of failing to disclose the extent of its arrangements with high-speed traders, which in turn put its other clients at a disadvantage. Robinhood has agreed to pay $65 million to settle the matter.
According to an SEC announcement on Thursday, from 2015 to late 2018 the company "made misleading statements and omissions in customer communications, including in FAQ pages on its website, about its largest revenue source when describing how it made money -- namely, payments from trading firms in exchange for Robinhood sending its customer orders to those firms for execution."
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Source Fool.com
