Robinhood Judge Won’t Block Massachusetts Fiduciary Rule
(Bloomberg) — 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.
Massachusetts Secretary of State William Galvin has filed administrative charges accusing Robinhood of manipulating inexperienced investors and driving trading through the application’s design and notifications.
Nora Chan, a Robinhood spokeswoman, didn’t immediately respond to an email seeking comment.