Massachusetts court rejects Robinhood's challenge to state investment advice rule

  • 📰 SaltWire Network
  • ⏱ Reading Time:
  • 29 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 63%

Business News News

Business Business Latest News,Business Business Headlines

By Nate Raymond BOSTON (Reuters) - Massachusetts' top court on Friday handed state securities regulators a major victory in their enforcement action ...

STORY CONTINUES BELOW THESE SALTWIRE VIDEOSBOSTON - Massachusetts' top court on Friday handed state securities regulators a major victory in their enforcement action against online brokerage Robinhood by holding that a state fiduciary duty rule that is central to the case is valid.

That case has been on hold while Galvin appealed a judge's March 2022 ruling invalidating a rule stating that broker-dealers have a fiduciary obligation to provide investment advice without regard to the interests of anyone but their customers. Galvin alleged that the Menlo Park, California-based company used strategies that treated trading like a game to lure young, inexperienced customers and encourage them to engage in risky trading through its online platform, including by having confetti rain down on the user's screen for each trade made on its app.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 45. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

How this portfolio manager taking profits and buying defensive stocks ahead of a recessionBrianne Gardner of Raymond James is expecting a mild recession later this year or early next year
Source: globeandmail - 🏆 5. / 92 Read more »