Robinhood to pay $70 million for harming clients, supervisory failures, says U.S. regulator

FILE PHOTO: The Robinhood App is displayed on a screen in this photo illustration January 29, 2021. REUTERS/Brendan McDermid/Illustration

WASHINGTON (Reuters) - Online broker Robinhood Financial LLC has been ordered to pay $70 million for 'systemic supervisory failures' and causing 'significant harm' to millions of customers with misleading or false information and outages, an industry regulator said on Wednesday.

The firm will pay $12.6 million in restitution to thousands of consumers as well as a $57 million fine, the largest financial penalty ever issued by the Financial Industry Regulatory Authority (FINRA), the regulator said.