Broker Robinhood to pay $70 million for 'systemic supervisory failures'

FILE PHOTO: The Robinhood App is displayed on a screen

WASHINGTON (Reuters) - Online broker Robinhood Financial LLC has been ordered to pay $70 million for 'systemic supervisory failures' that harmed thousands of consumers in the process, an industry regulator announced Wednesday.

The firm will pay a $57 million penalty and $12.6 million in restitution to harmed consumers. The penalty was the largest ever issued by the Financial Industry Regulatory Authority (FINRA), according to the agency. The regulator said the firm misled consumers and exposed them to excessively risky trading tools, and also failed consumers when its services suffered multiple outages.

(Reporting by Pete Schroeder)

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