Provision record
Robinhood · Robinhood Margin Account Rules · View original document ↗

Fully Paid Securities Lending Authorization

High severity High confidence Explicit document language Common · 296 of 352 platforms
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Document Record

What it is

If you participate in Robinhood's securities lending program, Robinhood may lend your stocks or other securities to other parties, and while on loan those securities are not covered by SIPC insurance, though collateral is provided.

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 Robinhood to lend securities you own to third parties, which removes SIPC insurance protection on those securities while they are on loan and introduces counterparty risk associated with the borrower.

Clause Stability Stable

0
Changes
5
Months Monitored
May 12, 2026
First Seen
May 22, 2026
Last Seen
This clause type exists across 4186 other provisions on other platforms.

Consumer impact (what this means for users)

Participating users' fully paid securities may be lent to third-party borrowers, including Robinhood affiliates, and those securities lose SIPC coverage during the loan period; users receive collateral but bear exposure to the adequacy of that collateral arrangement.

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▸ View Original Clause Language DOCUMENT RECORD
"
By participating in the Securities Lending Income Program, you authorize Robinhood to lend your fully paid and excess margin securities to borrowers, including Robinhood affiliates and third parties. You understand that when your securities are on loan, they will not be covered by SIPC protection, although Robinhood will provide collateral to protect the market value of your securities.

Excerpt from Robinhood's Margin Account Rules

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

REGULATORY LANDSCAPE: Securities lending of customer fully paid securities by broker-dealers is governed by FINRA Rule 4330, which requires written customer authorization, maintenance of 100% collateral, and specific disclosure obligations.

Insight

Unlock the full institutional analysis

Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.

Applicable agencies

  • Securities And Exchange Commission (sec)
    Regulates securities markets and investment platforms. Can investigate broker-dealers, investment advisers, and trading platforms for violations of securities laws.
    Who can file: Anyone with knowledge of a possible securities law violation
    What you need: Description of the potential violation, names of individuals or companies involved, relevant dates, and any supporting documents or evidence
    What to expect: Tips are reviewed by SEC staff. The SEC may open an investigation but is not required to take action on every tip. Whistleblowers may be eligible for financial awards if the tip leads to enforcement.
    File a complaint →
  • Consumer Financial Protection Bureau (cfpb)
    Regulates consumer financial products and services. Can investigate companies for unfair, deceptive, or abusive financial practices including improper fees, billing errors, and data misuse.
    Who can file: Anyone who has used a consumer financial product or service in the US
    What you need: Account number or details, dates of transactions or events, description of the issue, and any supporting documents
    What to expect: The company must respond within 15 days. The CFPB forwards your complaint and may use it in enforcement actions. Individual compensation is possible in some cases.
    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 Margin Account Rules
Entity
Robinhood
Document last updated
May 5, 2026
Tracking information
First tracked
March 15, 2026
Last verified
May 12, 2026
Record ID
CA-P-010922
Document ID
CA-D-00052
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
71437511b2ed24920093d597ba4748833f9cd349af943fefda81a8347e5b73c1
Analysis generated
March 15, 2026 10:58 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Robinhood
Document: Robinhood Margin Account Rules
Record ID: CA-P-010922
Captured: 2026-03-15 10:58:05 UTC
SHA-256: 71437511b2ed2492…
URL: https://conductatlas.com/platform/robinhood/robinhood-margin-account-rules/provision/CA-P-010922/fully-paid-securities-lending-authorization/
Accessed: Aug. 18, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Robinhood's Fully Paid Securities Lending Authorization clause do?

This provision authorizes Robinhood to lend securities you own to third parties, which removes SIPC insurance protection on those securities while they are on loan and introduces counterparty risk associated with the borrower.

How does this clause affect you?

Participating users' fully paid securities may be lent to third-party borrowers, including Robinhood affiliates, and those securities lose SIPC coverage during the loan period; users receive collateral but bear exposure to the adequacy of that collateral arrangement.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 296 platforms. See the full comparison.

Is ConductAtlas affiliated with Robinhood?

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