Robinhood Financial, the giant online trading platform, was fined $70 million by the securities industry self-regulator on Wednesday for a series of setbacks that the agency said hurt Robinhood’s customers.
The regulator, the Financial Industry Regulatory Authority, known as Finra, said that the fine – the largest it has ever imposed – covers issues such as misinformation and fraud. misunderstanding, the loss suffered by the client as a result of the system shutdown in March 2020 and the client being approved to trade options when it is not “appropriate” to do so.
Regardless of the size of the fine, Finra’s sanctions could also help reduce the regulatory uncertainty that has weighed on Robinhood’s plans to go public. It has been expected to officially publish the prospectus for the initial public offering in a few months.