Massachusetts securities regulators on Thursday asked that Robinhood Financial LLC’s registration as a broker-dealer in the state be revoked to prevent the popular online brokerage from doing business there.
The regulators said Robinhood has “continued a pattern of aggressively inducing and enticing trading among its customers,’’ in a follow-up filing to a complaint filed by the state against the company in December.
The state pointed to recent decisions by Robinhood, including its promotion giving customers cash rewards based on new deposits, as demonstrative of “a firm culture which has not changed” after the filing of the December complaint. It added that Robinhood’s actions pose “a substantial and continued risk to Massachusetts investors.”
In a response, Robinhood said in a blog post Thursday that “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,” the company said.