Robinhood Financial Attracts Close Attention of FINRA
Financial Regulatory Service, FINRA, has started an investigation against Robinhood Financial due to a violation of registration rules by the company’s CEO Vlad Tenev. The firm received the notification on July 26.
FINRA has sent a request to Robinhood Financial to provide registration documents for the firm, including confirmation of the status of CEO Vlad Tenev and his co-founder Baiju Bhatt.
The company intends to facilitate the investigation in every possible way and provide all the necessary documentation.
Although the CEO of Robinhood Financial did not previously have a licence from FINRA, this investigation has just begun.
Robinhood will now be under the regulators’ close attention, especially after the announcement that the stock trading company will go public soon.
According to FINRA’s requirements, companies who trade securities have to go through registration and a series of proficiency tests.
The investigation aims to provide brokers with a basic understanding of the securities trading industry’s rules and expertise, according to the regulator.
Recently, the US Securities and Exchange Commission (SEC) accused Loci Inc. and its CEO John Wise of fraud and conducting an unregistered securities sale of LOCIcoin in 2017 and 2018.