Robinhood Fined $70 Million For Significant Harm To Customers Ahead Of IPO forbes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forbes.com Daily Mail and Mail on Sunday newspapers.
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Q: I would like to create and manage a fund for
investments in various securities of public and private companies
in Massachusetts. Do I need to register as an investment adviser
with the Securities and Exchange Commission ( SEC ) and
the Massachusetts Securities Division?
A: The SEC and the Massachusetts Securities
Division considers an investment adviser to be any person who, for
compensation, renders investment advice or provides financial
planning services that includes investment advice about the
advisability of investing in, purchasing, or selling securities.
What You Need to Know
The state has accused Robinhood of using overly aggressive tactics to lure investors.
Robinhood filed a lawsuit in mid-April to stop the state s case and to overturn the Massachusetts fiduciary rule.
It’s unclear where the judge will go with the fiduciary rule, according to a Galvin spokesperson.
A Massachusetts judge on Thursday denied Robinhood’s attempt to prevent the state’s securities division from proceeding in an administrative case against the brokerage firm. However, the fate of Massachusetts’ fiduciary rule is unclear.
Robinhood filed a lawsuit in mid-April to overturn Massachusetts’ fiduciary rule and prevent the state’s securities division from proceeding in its administrative case.
advisor or
adviser in marketing materials, disclosures, customer agreements, websites, on business cards or on social media while operating in the capacity of a BD’s RR (not as an IA);
13
32 percent of BDs that allowed RRs to use the title had no prerequisite for the RRs’ use of that title (
e.g., requiring the RR to be dually registered as both an RR and IA representative).
14
38 percent of BDs surveyed did not have E&O insurance to cover investor losses.
15
16
2. Reg BI Survey, Phase Two & Examinations, 2021
The Committee plans to conduct Phase Two of the Reg BI Survey this summer, and also expects that the States will begin to conduct Reg BI examinations (both remotely, and onsite); those exams may include the Reg BI Survey or occur independent of the Reg BI Survey. It appears that originally, the Committee planned to gather the Phase Two survey results and then roll-out the Reg BI examination modules to the States – more on modules below – but as we all know by