Robinhood Enters Wealth Management With “Recommendations” Engine

Posted on November 1st, 2021 at 10:52 AM
Robinhood Enters Wealth Management With “Recommendations” Engine

From the Desk of Jim Eccleston at Eccleston Law:

Robinhood Financial has begun piloting a new wealth-management tool, known as its “Recommendations” engine. According to a company statement, the online tool asks investors a series of questions regarding “self-reported risk tolerance as well as income and financial goals.”

According to the company, Robinhood officials have been working diligently with regulators to ensure the product’s adherence to suitability rules of the Financial Industry Regulatory Authority (FINRA) with respect to any investment or strategy recommendations, regardless of how those recommendations are delivered. 

While discussing Robinhood’s quarterly earnings with analysts, company executives did not mention the online tool, but relayed the firm’s overarching goal of venturing beyond commission-free trading. Industry experts have recognized Robinhood’s entrance into wealth management as a plan to maintain its client base of primarily younger investors as they grow and attain additional assets. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, robinhood, wealth management

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