Robinhood · Robinhood Customer Agreement · View original document ↗

Securities Lending Authorization (Margin Accounts)

Medium severity Medium confidence Explicitdocumentlanguage Unique · 0 of 343 platforms
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Document Record

What it is

When you have a margin account, Robinhood is authorized to lend your securities to other parties, including for short selling, and the specific securities you deposited may not be returned to you.

This analysis describes what Robinhood's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This provision authorizes use of securities held in margin accounts for third-party lending purposes, including short selling, which means customers' holdings may be used in ways that could affect market prices of those securities, and customers may receive substitute securities rather than their original holdings.

Interpretive note: The full scope of disclosure obligations applicable to securities lending from retail margin accounts continues to evolve under SEC and FINRA guidance.

Clause Stability Stable

0
Changes
3
Months Monitored
Apr 9, 2026
First Seen
May 22, 2026
Last Seen
This clause type exists across 967 other provisions on other platforms.

Consumer impact (what this means for users)

Margin account customers authorize Robinhood to lend their securities to third parties, including for short sale purposes; the agreement states that customers may receive equivalent rather than identical securities upon return, and the lent securities may not benefit from the same corporate actions or protections as directly held securities.

What you can do

⚠️ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.
  • Close Your Account
    To avoid securities lending, downgrade your account from margin to cash through the Robinhood app account settings. Cash account securities are not subject to the lending authorization in the margin agreement.

How other platforms handle this

Target Medium

Target reserves the right to change these Terms at any time. We will post notification of changes to these Terms on this page. Your continued use of the Target Services after any changes to these Terms constitutes your acceptance of the new Terms.

GitHub Medium

We reserve the right, at our sole discretion, to amend these Terms of Service at any time and will update these Terms of Service in the event of any such amendments. We will notify our Users of material changes to this Agreement, such as price changes, at least 30 days prior to the change taking eff...

Yelp Medium

We may modify the Terms from time to time. The most current version of the Terms will be located here. You understand and agree that your access to or use of the Service is governed by the Terms effective at the time of your access to or use of the Service. If we make material changes to these Terms...

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▸ View Original Clause Language DOCUMENT RECORD
"
You authorize us to lend, either to ourselves or to others, any securities held in your margin account. Securities lent may be used by the borrower for any purpose, including short selling. When securities in your account are lent, you may not receive the same securities back and may instead receive securities of the same class and quantity.

— Excerpt from Robinhood's Robinhood Customer Agreement

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

REGULATORY LANDSCAPE: Securities lending from customer margin accounts is governed by SEC Rule 15c3-3 (the customer protection rule), FINRA rules regarding use of customer assets, and SEC guidance on fully paid lending programs. Customers must receive adequate disclosure of securities lending practices under applicable broker-dealer conduct standards. GOVERNANCE EXPOSURE: Medium. Securities lending from margin accounts is a standard broker-dealer practice authorized under applicable rules, but the breadth of the authorization and the potential for conflicts of interest require adequate disclosure. Customers who hold securities in margin accounts may not be aware that their holdings are being lent. JURISDICTION FLAGS: US federal securities law governs this provision uniformly across states. However, tax implications of substitute payments in lieu of dividends received when securities are on loan may affect customers across jurisdictions differently. CONTRACT AND VENDOR IMPLICATIONS: The securities lending authorization should be cross-referenced against the company's fully paid lending program disclosures, if any, to ensure consistency. Any revenue generated from securities lending that is not shared with customers should be disclosed in accordance with applicable FINRA and SEC guidance. COMPLIANCE CONSIDERATIONS: Compliance teams should confirm that the securities lending authorization is adequately disclosed in margin account onboarding and that any conflict-of-interest disclosures required by FINRA Rule 2010 and applicable SEC guidance are current. Assess whether substitute payment tax treatment is disclosed to affected customers.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • SEC
    The SEC regulates securities lending practices by broker-dealers under Rule 15c3-3 and related customer protection rules.
    File a complaint →

Applicable regulations

CCPA/CPRA
California, USA
Connecticut Data Privacy Act Amendments
US-CT
CAN-SPAM
United States Federal
FCRA
United States Federal
FTC Act Section 5
United States Federal
GLBA
United States Federal
Indiana Consumer Data Protection Act
US-IN
Kentucky Consumer Data Protection Act
US-KY
TCPA
United States Federal
Universal Opt-Out Mechanism Expansion 2026
US

Provision details

Document information
Document
Robinhood Customer Agreement
Entity
Robinhood
Document last updated
May 5, 2026
Tracking information
First tracked
March 6, 2026
Last verified
May 12, 2026
Record ID
CA-P-002637
Document ID
CA-D-00050
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
42fdece1ce06bb1213691f7474d4463025e28fcf4db4d7ada943d32d7009952a
Analysis generated
March 6, 2026 20:25 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Robinhood
Document: Robinhood Customer Agreement
Record ID: CA-P-002637
Captured: 2026-03-06 20:25:05 UTC
SHA-256: 42fdece1ce06bb12…
URL: https://conductatlas.com/platform/robinhood/robinhood-customer-agreement/securities-lending-authorization-margin-accounts/
Accessed: June 8, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does Robinhood's Securities Lending Authorization (Margin Accounts) clause do?

This provision authorizes use of securities held in margin accounts for third-party lending purposes, including short selling, which means customers' holdings may be used in ways that could affect market prices of those securities, and customers may receive substitute securities rather than their original holdings.

How does this clause affect you?

Margin account customers authorize Robinhood to lend their securities to third parties, including for short sale purposes; the agreement states that customers may receive equivalent rather than identical securities upon return, and the lent securities may not benefit from the same corporate actions or protections as directly held securities.

Is ConductAtlas affiliated with Robinhood?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Robinhood.