FINRA Orders Robinhood Financial to Pay $3.75 Million in Restitution to Customers

On March 7, 2025, FINRA issued a news release announcing that it had ordered Robinhood Financial to pay $3.75 million to its customers and that it had assessed fines in the amount of $26 million against the firm and its affiliates for violation of numerous FINRA Rules.  The violations alleged by FINRA included alleged conduct related to (i) disclosures involving the “collaring” of market orders by converting them to limit orders, (ii) failing to implement anti-money laundering programs, (iii) failing to establish a reasonable customer identification program, and (iv) various failures to supervise and failures to respond to “red flags.”  Robinhood Financial and Robinhood Securities consented to the findings, without admitting or denying FINRA’s charges.