After hearing arguments from both sides today, the Massachusetts Supreme Judicial Court is mulling over whether the state secretary has the power to impose fiduciary responsibilities on broker-dealers, consisting of complainant Robinhood Financial.
Under the Massachusetts Uniform Securities Act, G. L. c. 110A, the secretary of the commonwealth can supply statutory defenses to customers and financiers that are not readily available to them at typical law. As such, the Massachusetts securities regulator, William Galvin, executed a policy called the “fiduciary responsibility guideline,” under which a broker-dealer or its representatives would presume particular fiduciary responsibilities, consisting of when offering suggestions and guidance to retail financiers.