Robinhood Financial is dealing with a study over CEO Vlad Tenev’s failure to join up because of the Financial business Regulatory Authority , certainly one of Wall Street’s top regulators, the web broker disclosed in regulatory filings tuesday. The company stated it received an demand that is“investigative from Finra on Monday.
Under consideration is Robinhood’s conformity with “Finra enrollment demands,” specially the status of Tenev and their co-founder, Baiju Bhatt. Finra desires papers and information, Robinhood stated.
“Robinhood is assessing this matter and promises to cooperate utilizing the research,” the company stated within the papers.
The research by Finra is brand new though it was once stated that Tenev lacked a Finra permit. It's certain to include scrutiny to Robinhood’s company methods since the popular stock that is online platform makes to get general public. The fintech provides cryptocurrency trading for seven major coins, including fan favorite DOGE.
Finra requires employees “engaged within the securities company” to register and pass a few exams that test their “competence” within the securities industry. It’s a stopgap designed to “ensure” agents have knowing that is“minimum expertise,” according to Finra.
The keeping company, maybe not its trading subsidiary, Robinhood Financial into the past, Robinhood has argued that Tenev is exempt from Finra enrollment because he could be CEO of Robinhood Markets.