{"id":13866,"date":"2025-01-14T01:56:03","date_gmt":"2025-01-14T01:56:03","guid":{"rendered":"https:\/\/infundpros.com\/?p=13866"},"modified":"2025-01-14T01:56:03","modified_gmt":"2025-01-14T01:56:03","slug":"robinhood-to-pay-biggest-fine-among-more-than-100mn-imposed-by-sec","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=13866","title":{"rendered":"Robinhood to pay biggest fine among more than $100mn imposed by SEC"},"content":{"rendered":"<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Simply sign up to the <!-- -->US financial regulation<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=781f1720-62f9-4aff-9b53-7d036a8f1309&amp;concept-id=5aa772ee-40a2-4c20-87be-8925d54d6ba6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Robinhood has agreed to pay fines of $45mn to cover data breach and record-keeping failures \u2014 one of a series of penalties levied by US regulators on Monday against financial groups, including units of Blackstone and KKR.<\/p>\n<p>The online broker paid the biggest penalty in a group of settlements announced by the Securities and Exchange Commission that totalled more than $100mn in fines. <\/p>\n<p>Robinhood\u2019s failures included a 2021 data breach that exposed millions of customers\u2019 email addresses and names as well as record-keeping issues including failures to properly record its positions involving fractional share trades \u2014 a popular service among younger, less affluent traders. <\/p>\n<p>The $45mn payout comes with the broker poised to record a fifth consecutive quarter of profitability. In the three months to September, Robinhood reported net income of $150mn.<\/p>\n<p>The company said it was pleased to resolve the issues, which it described as historical. <\/p>\n<p>\u201cWe are well-positioned to continue leading the industry in developing the innovative products and services our customers want and need,\u201d Lucas Moskowitz, Robinhood\u2019s general counsel, said in a statement. \u201cWe look forward to working with the SEC under a new administration.\u201d <\/p>\n<p>The SEC on Monday also announced that 12 investment advisers and broker dealers agreed to pay more than $63mn to settle charges of record-keeping violations stemming from the use of unofficial messaging systems. <\/p>\n<p>The move marks the SEC\u2019s latest crackdown on Wall Street for messaging malpractice under chair Gary Gensler. Enforcement actions had so far focused on banks, which have agreed to pay billions of dollars in fines over \u201coff-channel\u201d communications.<\/p>\n<p>\u201cWhen firms fall short of those obligations, the consequences go far beyond deficient document productions; such failures implicate the transparency and the integrity of the markets and their participants, like the firms at issue here,\u201d Sanjay Wadhwa, acting director of the SEC\u2019s enforcement division, said on Monday.<\/p>\n<p>The firms\u2019 staff, including supervisors and senior managers, used \u201coff-channel\u201d communications for records they were legally obliged to maintain, the SEC said.<\/p>\n<p>Three Blackstone units collectively agreed to pay the largest penalty of $12mn, followed by KKR at $11mn. Charles Schwab agreed to a sum of $10mn, while Apollo Capital Management, a collection of three Carlyle Group divisions and TPG Capital Advisors each separately agreed to pay $8.5mn.<\/p>\n<p>Santander US Capital Markets and PJT Partners agreed to the pay the smallest penalties: $4mn and $600,000, respectively. <\/p>\n<p>Apollo, KKR and TPG declined to comment. Blackstone, Charles Schwab and Santander said they were \u201cpleased\u201d to have resolved this matter. The other groups did not immediately respond to a request for comment. <\/p>\n<p>In Blackstone\u2019s case, senior managing directors from at least December 2019 shared information about investment advice and placing securities trades for clients on \u201cunapproved\u201d platforms, according to SEC filings.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/781f1720-62f9-4aff-9b53-7d036a8f1309\" target=\"_blank\" rel=\"noopener\" rel=\"nofollow\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stay informed with free updates Simply sign up to the US financial regulation myFT Digest &#8212; delivered directly to your inbox. Robinhood&#8230;<\/p>\n","protected":false},"author":1,"featured_media":13867,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-13866","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Robinhood to pay biggest fine among more than $100mn imposed by SEC | inFundPros<\/title>\n<meta name=\"description\" content=\"Stay informed with free updatesSimply sign up to the US financial regulation myFT Digest -- delivered directly to your inbox.Robinhood has agreed to pay\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=13866\" \/>\n<meta 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