Robinhood Fails in Bid to Block Massachusetts Fiduciary Rule (1)

Robinhood Markets Inc. failed in its attempt to block a Massachusetts fiduciary rule that thrust duties of care and loyalty on broker-dealers, the Supreme Judicial Court said Friday.

Secretary of the Commonwealth William F. Galvin may enforce his Fiduciary Duty Rule, which raises broker-dealers’ fiduciary standard to a similar level as the one applying to investment advisers.

The secretary has “expansive authority” to clarify the legislature’s intent Massachusetts Uniform Security Act, the opinion said. After a “comprehensive investigation at the national level,” the secretary concluded that “the fiduciary duty rule best ensured that MUSA’s protections aligned with investors’ expectations in ...