Robinhood is fined $ 70 million for misleading customers and system outages.

Robinhood Financial, the huge online trading platform, was fined $ 70 million by the securities industry self-regulator on Wednesday for a series of flaws that the agency said hurt Robinhood’s clients.

The regulator, the Financial Industry Regulatory Authority, which is known as FINRA, said the fine, the largest it has ever imposed, covered issues such as false and misleading information, the damage suffered by customers due to system failures in March 2020 and customer approval. trading options when it was not “appropriate” for them to do so.

Despite the size of the fines, FINRA’s penalties can also help remove regulatory uncertainty that weighed on Robinhood’s plans to go public. It was expected to officially publish its initial public offering prospectus for several months.

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