Massachusetts Fiduciary Rule Upheld by Top Court
In Massachusetts, the state's highest court has decided in favor of the state's top securities regulator in a case that tested the state's fiduciary rule. In the August 25 decision, the Massachusetts Supreme Judicial Court agreed that the fiduciary rule is a legitimate use of Secretary of State William Galvin's authority under the state's Uniform Securities Act and "does not override the common-law protections available to investors." Robinhood challenged Galvin's authority back in 2021, after he lodged a case against the company in late 2020 that claimed it used questionable tactics to target new and often inexperienced investors. A Superior Court judge sided with Robinhood in March 2022, but Galvin appealed. The Supreme Judicial Court's ruling allows his case to advance. "This landmark decision affirms the fiduciary duty of brokers to their customers and vindicates the role of my Securities Division to principally, but aggressively protect investors and police broker-dealer misconduct," Galvin commented.
Read the full article on Think Advisor