Robinhood pays $26 million in fines to settle with the Financial Industry Regulatory Authority

ChainCatcher news, according to Bloomberg, two subsidiaries of Robinhood Markets Inc. have agreed to pay $26 million to settle charges brought by the Financial Industry Regulatory Authority (FINRA). FINRA accused Robinhood of failing to respond to warning signs of potential misconduct and failing to verify the identities of thousands of customers.

The fine from this brokerage industry regulator follows another $45 million settlement reached by Robinhood Securities and Robinhood Financial with the Securities and Exchange Commission (SEC) in January. The SEC accused the retail trading company of failing to maintain records, not reporting suspicious activities in a timely manner, and other issues.

In the settlement agreement, both companies accepted the findings of the FINRA investigation but neither admitted nor denied the charges, and agreed to commit to rectifying the related issues.