Getty ImagesKey FactsThe Massachusetts Secretary of State’s office, which regulates securities brokers in the state, filed a complaint Wednesday alleging Robinhood violated a new state law requiring investment brokers to prioritize their clients’ best interests. The state also dinged the app for its dozens of outages over the last year, some of which prevented customers from making trades for hours at a time. The Secretary of State’s office asked Robinhood to hire an independent compliance consultant and threatened to impose financial sanctions on the company. That’s the number of Robinhood customer accounts in Massachusetts, according to the Secretary of State. Further ReadingMassachusetts Regulators File Complaint Against Robinhood (Wall Street Journal)20-Year-Old Robinhood Customer Dies By Suicide After Seeing A $730,000 Negative Balance (Forbes)Robinhood Has Lured Young Traders, Sometimes With Devastating Results (New York Times)

Source: Forbes December 16, 2020 18:56 UTC