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




It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


Beth M.


February 23, 2024
Advisor Accepts Industry Bar Amid FINRA Probe into Outside Business Activities

John A. Dougherty, a veteran advisor with 23 years of experience, agreed to an AWC (Acceptance, Waiver, and Consent) after refusing to cooperate with a regulatory investigation into allegations of undisclosed outside business activities.

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.