Robinhood Markets lost a bid to immediately stop Massachusetts securities regulators from enforcing a new rule that holds brokers accountable to a fiduciary standard of care.
Superior Court Judge Kenneth Salinger denied Robinhood’s request for an injunction against the state rule but invited further argument from the online brokerage. “Robinhood will suffer no irreparable harm” if enforcement proceeds, Salinger said in an eight-page ruling.
The company said it’s pleased the court will address the validity of the measure.
“We stand behind our customers, and we look forward to continuing to democratize finance for all in Massachusetts and across the country,” Robinhood spokeswoman Jacqueline Ortiz Ramsay said in an email.
In December, Massachusetts Secretary of State William Galvin filed administrative charges accusing Robinhood of manipulating inexperienced investors and driving trading through the application’s design and notifications.
Last month, Robinhood filed a suit in a Massachusetts court to overturn the state’s fiduciary rule and end the case against its subsidiary, which is the first test of the Massachusetts fiduciary rule.
”Secretary Galvin is pleased with the victory and glad that Robinhood was not successful in blocking the Securities Division’s charges,” said his spokeswoman Debra O’Malley.
Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing
Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.
New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.
Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.
How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
