Zero-commission brokerage Robinhood Financial has reached another settlement in connection with disruptions on its platform, this time with Vermont regulators, according to news reports.
The company agreed to pay $640,000 in a settlement reached with the Vermont Department of Financial Regulation, in connection with Mach 2020 outages on its brokerage app, Bloomberg reports.
At least 40 customers in Vermont have complained to the regulator, it said, according to the news service.
The regulator also concluded that the company lacked an adequate process for approving advanced options and margin trading, Bloomberg writes.
“The settlement resolves historical matters that do not reflect Robinhood today,” a Robinhood spokeswoman told Bloomberg.
Robinhood’s outages were also one of the targets in the $70 million settlement the company reached with the Financial Industry Regulatory Authority last year.
As part of the settlement, the industry’s self-regulator ordered Robinhood to pay $5 million in restitution to customers who were unable to make trades during these outages, as reported.
In addition, Massachusetts Secretary of the Commonwealth William Galvin charged Robinhood in December 2020 in connection with around 80 outages on the firm’s platform from the start of 2020 through the end of November that year, as reported.
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