(Reuters) – Securities regulators in Massachusetts were expected to file a complaint on Wednesday against Robinhood Financial LLC, according to a document reviewed by the Wall Street Journal, the newspaper said on Wednesday.
The administrative complaint reviewed by the Journal from the enforcement arm of the Massachusetts Securities Division said the popular trading platform violated state laws and regulations by failing to protect its customers and their assets.
According to the Journal the state said Robinhood exposed Massachusetts investors to “unnecessary trading risks” by “falling far short of the fiduciary standard” adopted this year that requires broker-dealers to act in their clients’ best interest.
Robinhood in a statement said it had not seen the complaint but will continue to work closely and cooperatively with all regulators.
(Reporting by Alden Bentley; editing by Jonathan Oatis)