Statement on Massachusetts Securities Division Complaint
Today, the Massachusetts Securities Division said it would seek to revoke Robinhood’s license in Massachusetts, which would prevent millions of Bay Staters from accessing our service.
We love Massachusetts and our Massachusetts customers and we fully intend to continue serving them for the long term. Robinhood has helped bring millions more people into our financial system, and the Massachusetts Securities Division’s attempt to prevent Massachusetts residents from choosing how they invest is elitist and against everything we stand for. We don’t believe our customers are naive as the Massachusetts Securities Division paints them to be. Showing a list of companies in a certain sector is not a recommendation. Giving people information about the movement of the stocks they own or watch is not a recommendation.
The complaint reflects the old way of thinking: That new, younger, and more diverse investors don’t have a place in the markets. By trying to block Robinhood, the division is attempting to bring its residents back in time and reinstate the financial barriers that Robinhood was founded to break down. We will stand with our customers to enable them to have the investing experience they want. We will not succumb to unfounded, politicized allegations and unreasonable demands from the Massachusetts Securities Division. We welcome the opportunity to correct the record on both the facts and the law, and expect to prevail in state court.
We filed in Massachusetts State Court a complaint and motion for preliminary injunction to prevent the Massachusetts Securities Division from proceeding with their administrative case against Robinhood Financial. The Massachusetts Securities Division’s new Fiduciary Rule exceeds its authority under both Massachusetts state law and federal law. You can find our complaint here and motion for preliminary injunction here.