Robinhood Settles With Vermont Regulators Over Outages

Posted on March 21st, 2022 at 1:22 PM
Robinhood Settles With Vermont Regulators Over Outages

From the Desk of Jim Eccleston at Eccleston Law:

Robinhood Markets Inc. has agreed to a $640,000 settlement with Vermont regulators over recent outages on Robinhood’s trading platform as well as inadequate supervision of accounts.


Robinhood continues to face regulatory scrutiny relating to outages on its trading platform in March 2020, when volatility skyrocketed at the beginning of the pandemic. According to a statement from the Vermont Department of Financial Regulation, at least 40 customers across the state complained to the regulator or Robinhood.


Vermont regulators additionally found that Robinhood’s automated process for approving customer applications failed to accurately determine whether clients should be permitted to engage in advanced options and margin trading. Robinhood’s stock has fallen nearly 64% since the firm’s initial public offering (IPO) in July 2021.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston law, stocks, robinhood

Return to Archive

TESTIMONIALS

Previous
Next

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

May 14, 2025
SEC Charges Crypto Promoter in $198 Million Fraud Scheme

The Securities and Exchange Commission (“SEC”) has charged Ramil Palafox for orchestrating a massive securities fraud scheme through his now-defunct company, PGI Global (Praetorian Group International Corporation).

May 13, 2025
Merrill's Investment Solutions Chief Outlines Growing Role for Alternatives in Client Portfolios

At Merrill and Bank of America Private Bank, alternative investments have become a core focus of portfolio construction, according to Financial Planning.

May 12, 2025
FINRA Clarifies Proposed Changes to Outside Activities Rule

FINRA released a statement this week addressing misconceptions surrounding its proposed updates to the rules governing outside business activities by associated persons of broker-dealers.