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.
Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.
Markets have always been unpredictable. What has changed is the amount of information investors are trying to process and the growing role advisors play in helping clients avoid emotional decisions
Six apartment deals, one "big account," and $2.7M in undocumented insider loans. Now the lawsuit lands
The Illinois order refers to Brandon Ellington’s investment program as a “Ponzi-like scheme.”
But the Amazon executive chair seems to want it both ways, arguing that taxing the ultra-wealthy won't help struggling Americans.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
