Massachusetts regulators sought the revocation of Robinhood ‘s broker-dealer license after charging that it encourages inexperienced investors to place risky trades without limits, while the online brokerage sued to invalidate a new rule underlying the case. Massachusetts Secretary of State Bill Galvin sought the revocation in a revised administrative case announced shortly after Robinhood sued in state court in Boston to challenge a fiduciary standard of conduct his office adopted last year. Robinhood, which is seeking to go public through an initial public offering, in a blog post called the regulator “elitist” and said it was seeking to “reinstate the financial barriers that Robinhood was founded to break down.” Galvin announced the case against Menlo Park, California-based Robinhood in December, before the social media-driven rally in stocks like GameStop, driven by retail investors using Robinhood and other apps, drove up their shares’ prices. Galvin, the state’s top securities regulator, accused Robinhood of using aggressive tactics to attract inexperienced investors and failing to prevent outages on its platform. He alleged the app-based service used strategies that treated trading like a game to lure young, inexperienced customers, including by having confetti rain down for each trade made on its app . The… Read full this story
- 19 state attorney generals sue Education Secretary Betsy DeVos
- 14 states sue EPA over chemical safety regulations rollback
- Kenya freezes licences of 27 betting firms including SportPesa
- Green crackers make Sivakasi see red
- Impeachment, war, and rally crowds: Trump made 49 false claims last week
- New state laws for the new year: California limits gun rights, minimum wages increase
- How the US could block the Comcast/Time Warner Cable merger
- Facial Recognition Startup Clearview AI Is Struggling To Address Complaints As Its Legal Issues Mount
- Clearview AI Once Told Cops To “Run Wild” With Its Facial Recognition Tool. It's Now Facing Legal Challenges.
- Background checks and bump stock bans: 2020 Democrats on gun control
Massachusetts regulators seek to revoke Robinhood's license; brokerage sues have 306 words, post on www.gadgetsnow.com at April 16, 2021. This is cached page on Technology Breaking News. If you want remove this page, please contact us.