What We Know About Robinhood's Newest Probes

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Ahead of Robinhood's IPO, the fintech company said it received inquiries from the Financial Industry Regulatory Authority and the Securities & Exchange Commission.

The company is facing a probe related to employee trading in so-called momentum stocks before it enacted a trading restriction in January.

Related: What Politicians Are Saying About Robinhood

"These matters include inquiries related to whether any employee trading in these securities may have occurred in advance of the public announcement of the Early 2021 Trading Restrictions on January 28, 2021, " the company stated in its filing.

Robinhood also said that it received a request on FINRA non-registration of the CEO of its parent company, Vlad Tenev.

Back in February, Tenev's registration status was brought up by Senator Elizabeth Warren who pressed FINRA for details on registration requirements. 

At the time, FINRA--in a letter sent to lawmakers--said that executives who are in the "management of the member's banking or security business" should be held to register with the agency. 

In its filing, Robinhood said that it is evaluating this matter and intends to cooperate with the investigation. 

Back in June, Wall Street regulator FINRA fined Robinhood around $70 million for “systematic supervisory failures.”

Related: FINRA Fines Robinhood Around $70 Million: How the Company Responded

Robinhood is expected to raise $2.3 billion from its IPO following its debut on the public markets on Thursday, July 29.

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