American "internet celebrity broker" Robinhood (HOOD.US) will pay $45 million to settle SEC charges.

The U.S. Securities and Exchange Commission (SEC) stated on Monday that "internet-famous broker" Robinhood Markets (HOOD.US) has agreed to pay $45 million to settle charges by the SEC regarding its record-keeping, trade reporting, and other violations. Regulators found that Robinhood Securities LLC and Robinhood Financial LLC violated numerous requirements, such as accurately reporting trade activity, timely submitting reports of suspicious activity, maintaining records, and complying with short-selling rules. Robinhood has also become the latest brokerage firm to admit to violations, as employees used instant messaging applications and other "off-channel" communication platforms to retain work-related communications. The company acknowledged these mistakes and flawed trade data. Regulators also found that Robinhood failed to adequately address cybersecurity risks. Robinhood's general counsel, Lucas Moskowitz, stated that the company is pleased to have resolved these issues. Moskowitz said in a statement, "We have the capability to continue leading the industry in developing innovative products and services that customers want and need. We look forward to working with the SEC under the leadership of the new U.S. administration."