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The Massachusetts Securities Division is seeking to revoke Robinhoodâs broker-dealer license to prevent it from doing business in the commonwealth after charging it for encouraging inexperienced investors to place unnecessarily risky trades, per a Thursday filing. Concurrently, Robinhood is suing to prevent the regulator from proceeding with its administrative complaint, arguing that the regulatorâs new fiduciary rule exceeds its authority under state and federal law.
Previously, the Massachusetts regulator sued Robinhood in an administrative case in December 2020 for targeting novice investors and exposing them to âunnecessary trading risksâ by allegedly violating state laws and regulations by failing to protect customers and safeguard its system. According to the Wall Street Journal, in an amended complaint, the regulator said that Robinhood has âcontinued a pattern of aggressively inducing and enticing trading among its c