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Robinhood and the Terrible, Horrible, No Good, Very Bad Week | Murtha Cullina

To embed, copy and paste the code into your website or blog: On December 17, 2020, the United States Securities and Exchange Commission (the “SEC”) announced that a fine of $65,000,000 had been assessed against Robinhood Financial, LLC (“Robinhood”), a leader in the FinTech industry. The SEC also announced that Robinhood had agreed to the entry of a cease-and-desist order (the “Order”) against it prohibiting certain practices including, most notably, failing to adequately disclose “order flow” payments going forward.  This SEC action was just a part of a challenging week for Robinhood, which found itself on the receiving end of an Administrative Complaint filed by the Massachusetts Securities Division on unrelated matters (covered here by my colleague Anthony Leone).  

JDSupra: Robinhood and the Terrible, Horrible, No Good, Very Bad Week

On December 17, 2020, the United States Securities and Exchange Commission (the “SEC”) announced that a fine of $65,000,000 had been assessed against Robinhood Financial, LLC (“Robinhood”), a leader in the FinTech industry. The SEC also announced that Robinhood had agreed to the entry of a cease-and-desist order (the “Order”) against it prohibiting certain practices including, most notably, failing to adequately disclose “order flow” payments going forward.  This SEC action was just a part of a challenging week for Robinhood, which found itself on the receiving end of an Administrative Complaint filed by the Massachusetts Securities Division on unrelated matters (covered here by my colleague Anthony Leone).  

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