Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

Robinhood reveals new investigation hours before its IPO

Robinhood reveals new investigation hours before its IPO

Regulators are investigating the fact that Robinhood CEO Vlad Tenev is not licensed by FINRA, Wall Street's powerful self-regulator, the online trading platform announced Tuesday.

News of the probe comes more than five months after CNN Business reported that Tenev, the public face of Robinhood, is not registered with FINRA, short for the Financial Industry Regulatory Authority. That's despite the fact that he presides over one of the nation's largest and most powerful online brokerages.

It also comes on the eve of a blockbuster initial public offering that could value Robinhood at $35 billion.

In a filing late Tuesday, Robinhood said it received a FINRA investigative request seeking documents and information related to its compliance with the agency's registration requirements for member personnel.

Robinhood said the FINRA investigation is related to the "non-registration status" of both Tenev and co-founder Baiju Bhatt, who now serves as chief creative officer.

"Robinhood is evaluating this matter and intends to cooperate with the investigation," the company said in the filing.

FINRA declined to comment on the matter, noting that its investigations are confidential. Robinhood did not respond to a request for comment.

Robinhood is expected to price its IPO on Wednesday and begin trading on the Nasdaq the following morning, CNN Business previously reported.

"Robinhood is facing lots of scrutiny in the run up to its IPO, and regulators are poring through its operations and structure," James Tierney, an assistant professor of law at the University of Nebraska College of Law, said in an email.

Tierney, who previously worked at the SEC on FINRA registration matters, said it's not surprising this scrutiny "extends to Tenev's registration status, given his prominent role as the public face" of the company.

Should Tenev be FINRA-registered?


The FINRA investigation comes after Senator Elizabeth Warren, in a February statement to CNN Business, called on regulators to examine whether executives like Tenev "should be licensed and trained on market rules and risks."

FINRA generally requires that the CEOs of registered broker-dealers be registered with the agency. The aim is to make sure these executives receive compliance training and demonstrate the competence required for leadership roles. Being registered with FINRA also allows the public to track any violations by licensed individuals via the agency's Broker Check tool.

Tenev is the CEO of Robinhood Markets, the parent company that is not registered with FINRA. (Robinhood Markets owns a broker-dealer and a clearing broker.)

The CEO of a parent company that owns a broker-dealer does not necessarily need to be registered.

At the time of the initial CNN report, Robinhood told CNN Business that Tenev does not directly oversee the FINRA-registered managers of the broker-dealer or the clearing broker, but declined to say who does.

Some experts expressed alarm at the fact that Tenev is not registered with FINRA, while others said it may not be a problem.

Latest run-in with FINRA


Some of Robinhood's rivals do have CEOs with FINRA licenses, while others do not. For instance, the CEOs of Charles Schwab (SCHW) and Robinhood rival Webull are registered with FINRA and have their Series 24 licenses as principals.

However, Square (SQ) CEO Jack Dorsey is not listed as being registered with FINRA. (In addition to its payment platform, Square's Cash App lets users invest in bitcoin and individual stocks).

The key may be just how involved Tenev is with Robinhood's day-to-day operations. Some of Tenev's prior comments suggest he holds a significant managerial role, including being involved in delicate negotiations with its clearinghouse during the GameStop trading turmoil in January.

In a late February letter to Sen. Warren, FINRA said that these determinations are "fact-specific" and require "careful assessment of the individual's activities."

The FINRA licensing investigation is just Robinhood's latest run-in with the regulator.

Last month, FINRA slapped the brokerage with its biggest-ever penalty and accused the company of harming millions of customers and giving investors "false or misleading information."

Robinhood neither admitted to nor denied the charges.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×