Robinhood Markets Inc, the online brokerage at the center of this year’s retail trading frenzy, disclosed on Thursday previously unreported regulatory risks in its long-awaited initial public offering filing.
Amid an increasingly hostile climate in Democrat-led Washington, Robinhood’s growing regulatory attention could be a turn off for some potential investors.
Aside from fines, Robinhood noted that government probes could result in business restrictions, increased compliance controls, changes to products and services and brand damage.