Massachusetts securities regulators on Thursday requested that Robinhood Monetary LLC’s registration as a broker-dealer within the state be revoked to forestall the favored on-line brokerage from doing enterprise there.
The regulators mentioned Robinhood has “continued a sample of aggressively inducing and engaging buying and selling amongst its prospects,’’ in a follow-up submitting to a grievance filed by the state in opposition to the corporate in December.
The state pointed to latest choices by Robinhood, together with its promotion giving prospects money rewards based mostly on new deposits, as demonstrative of “a agency tradition which has not modified” after the submitting of the December grievance. It added that Robinhood’s actions pose “a considerable and continued danger to Massachusetts traders.”
In a response, Robinhood mentioned in a weblog submit Thursday that “the grievance displays the previous mind-set: That new, youthful, and extra various traders don’t have a spot within the markets.”
“By making an attempt to dam Robinhood, the division is trying to convey its residents again in time and reinstate the monetary limitations that Robinhood was based to interrupt down,” the corporate mentioned.