Massachusetts securities regulators on Thursday asked that Robinhood Financial LLC registration as a broker-dealer in the state be revoked to prevent the popular online brokerage from conducting business there.
The regulators stated that Robinhood has “continued a pattern of aggressively inducing and enticing trading among its clients,” in a follow-up filing to a complaint filed by the state in opposition to the company in December.
The state pointed to recent decisions by Robinhood, including its promotion of providing clients with cash rewards based on new deposits, as demonstrative of “a firm culture which has not changed” after the filing of the December complaint. It added that Robinhood’s actions pose “a substantial and on-going risk to Massachusetts investors.”
In a response, Robinhood stated in a blog post on Thursday that “the complaint reflects the old way of thinking: That new, younger, and more diverse investors don’t have a place in the markets.”