Robinhood Seeks SEC Approval for Employee-Only Fund to Invest in Stocks, Real Estate

Robinhood is seeking to establish an investment fund exclusively for employees, according to a media report.

BlockBeats, a cryptocurrency-focused outlet, reported July 17 that Robinhood has asked the US Securities and Exchange Commission to approve a special investment club called the Robinhood Employee Fund.

The fund would allow employees to pool money and invest together in stocks, real estate and other asset classes.

Robinhood said the fund is intended to improve its competitiveness in recruiting and retaining employees.

Investment funds are generally subject to strict regulations aimed at protecting investors. Robinhood has asked the SEC to exempt the vehicle from some of those rules, while maintaining that it would continue to comply with core requirements such as anti-fraud provisions and audits.

Major financial firms including Goldman Sachs, Blackstone and KKR already operate similar employee investment funds. Robinhood appears to be seeking to provide employees with comparable investment opportunities through an internal vehicle.