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Massachusetts State and Robinhood

What's happening?

In December 2020, Massachusetts regulators filed a complaint against Robinhood Financial alleging Robinhood has fallen short of the new Massachusetts fiduciary standard. On April 15th, 2021, the Massachusetts Securities Division (the same state regulatory agency that oversees brokerages like Robinhood) 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.

Does this impact the money in my account?

No, this decision by Massachusetts does not impact your funds.

Is Robinhood going away for Massachusetts customers?

We love Massachusetts and our Massachusetts customers and we fully intend to continue serving them for the long term. We welcome the opportunity to correct the record on both the facts and the law, and expect to prevail in this matter.

If I’m currently a Massachusetts resident, can I still trade?

Yes. You still have access to your Robinhood account as usual. The pending litigation does not have any impact on your account.

Does this impact customers in any other states?

No. There is no impact for customers who are not residents of Massachusetts.

Reference No. 20210415-1607209-4813160
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