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Robinhood to pay $70 million for misleading customers and outages, the largest FINRA penalty ever

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Robinhood will pay roughly $70 million in penalties for its systemwide outages and misleading communication and trading practices, the Financial Industry Regulatory Authority said Wednesday.

The settlement regards the technical failures Robinhood experienced in March of 2020, Robinhood’s lack of due diligence before approving customers to place options trades and purveying misleading information to customers about aspects like trading on margin. The stock market was diving that month in especially wild trading amid the outbreak of the COVID-19 pandemic.

FINRA — a self-regulatory organization that oversees brokerage firms and their registered representatives — said it fined Robinhood…



Source cnbc.com

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