WASHINGTON: An industry regulator stated Wednesday that online broker Robinhood Financial LLC has been fined US$70 million for’systemic supervisory failures’ that impacted thousands of consumers. The company will pay a penalty of US$57 million and compensation of US$12.6 million to aggrieved customers. According to the Financial Industry Regulatory Authority (FINRA), the fine was the agency’s biggest ever. Consumers were deceived and exposed to excessively dangerous trading instruments, according to the regulator, and consumers were also let down when the firm’s services had several breakdowns.
(Pete Schroeder contributed reporting.)
Reuters is the source of this information./n
