Key Takeaways Shares of Robinhood are falling Monday morning as markets react to fines announced late on Friday.The Financial Industry Regulatory Authority said Friday that it fined Robinhood $26 million,

Robinhood Financial and Robinhood Securities — have to pay $26 million to settle Financial Industry Regulatory Authority (“FINRA”) allegations for failing to respond to red flags about potential misconduct and not verifying the identities of thousands of customers.

Robinhood is paying $29.75 million to settle FINRA’s investigations. The investigations were based on the company’s compliance with and supervision of the regulations. FINRA’s recent report says the settlement amount includes a $26 million civil fine and 3.