Online stock-trading platform Robinhood is facing a wave of regulatory scrutiny, including several investigations by authorities concerning its options-trading practices and outages its platform suffered last year. Two of its subsidiaries are in settlement talks with the Financial Industry Regulatory Authority (FINRA) related to these probes.

Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...