SEC Orders Robinhood Financial, LLC to Pay $65M Civil Penalty.

On April 16, 2021, the Securities and Exchange Commission entered an order stating that from 2015 through September 2018, Robinhood made material misrepresentations and omissions relating to its revenue sources, specifically its receipt of payment from certain principal trading firms, for routing Robinhood customer orders to them and relating to certain statements about the execution quality Robinhood achieved for its customers’ orders. The Commission also found that Robinhood’s customers received inferior execution prices compared to what they would have received from Robinhood’s competitors, caused in large part by the high payments for order flow resulting in Robinhood’s failure to satisfy its duty of best execution. The commission ordered Robinhood to pay a civil money penalty of $65,000,000. See, https://www.sec.gov/litigation/admin/2021/34-91590.pdf.