Online trading platform Robinhood has agreed to pay $29.75 million to resolve several Financial Industry Regulatory Authority (FINRA) investigations into its supervisory and compliance practices.
The settlement includes a $26 million civil penalty and $3.75 million in restitution to customers, FINRA announced March 7.
Robinhood was criticized for failing to "respond to red flags of potential misconduct," which resulted in violations related to anti-money laundering, supervision and disclosure.
FINRA's investigation revealed that Robinhood Financial failed to effectively supervise its clearing system, despite notable processing delays due to increased trading activity between March 2020 and January 2021.