Would anything that transpired be considered illegal or is it up to the SEC to decide? I always go the impression that the maze of regulation could be used to punish anyone for any trade if they so wanted.
Thats a legal, contractual agreement type question. Ask a lawyer. You can review the broerage agreement you agreed to when you opened robinhood account. They probably sent it via email . But it is the most regulated industry in America. And they have a brokerage agreement you agree to. It is usually 200 pages long and the best lawyers in the world write the language. "Same as terms of service"
If you agree to their rules you are good.
What they did was rude. And shitty.
They probably cannot be sued actually. Most firms have you agree to arbitration with a panel of industry professionals and they are all friends.
Good luck suing city hall!
There could be a lawsuit. Maybe not. I am not a lawyer.
Also before they made this rule about blocking the stock...
They probably called their lawyers. To see if they could.
I wonder if that works for international investors? In my country you cannot agree to a contract that forces you to renounce defending your rights in court in case they are infringed, if you do that clause becomes nulls. I do not have the money to try, but would be interesting to know.
SIPC insurance $500k protection against fraud/corruption/ failure.
Includes max of $250k for cash from the FDIC .
You need the receiving institution to physically enter the request to request a PULL investment account out via ACAT transfer. 3-7 biz days to transfer an account with matching registration into the receiving institution. (Sometimes no signature electronically, sometimes wet signature on paperwork)
If robinhood fails.. SIPC steps in. It might be messing, you need an employee to manually complete the ACAT process . If it fails there won't be employees to do that?
If SIPC takes over, it will be chaos. Might be frozen for liquidation / lawsuits.
I have no more answers to give. A wild situation .
Would anything that transpired be considered illegal or is it up to the SEC to decide? I always go the impression that the maze of regulation could be used to punish anyone for any trade if they so wanted.
Thats a legal, contractual agreement type question. Ask a lawyer. You can review the broerage agreement you agreed to when you opened robinhood account. They probably sent it via email . But it is the most regulated industry in America. And they have a brokerage agreement you agree to. It is usually 200 pages long and the best lawyers in the world write the language. "Same as terms of service"
If you agree to their rules you are good. What they did was rude. And shitty.
They probably cannot be sued actually. Most firms have you agree to arbitration with a panel of industry professionals and they are all friends.
Good luck suing city hall!
There could be a lawsuit. Maybe not. I am not a lawyer.
Also before they made this rule about blocking the stock...
They probably called their lawyers. To see if they could.
I wonder if that works for international investors? In my country you cannot agree to a contract that forces you to renounce defending your rights in court in case they are infringed, if you do that clause becomes nulls. I do not have the money to try, but would be interesting to know.
Can other brokerages, say Fidelity or TradeStar pull your shares from a failed institution of Robinhood?
or is it a lengthy recovery process to get your shares sold from a failed brokerage?
SIPC insurance $500k protection against fraud/corruption/ failure. Includes max of $250k for cash from the FDIC .
You need the receiving institution to physically enter the request to request a PULL investment account out via ACAT transfer. 3-7 biz days to transfer an account with matching registration into the receiving institution. (Sometimes no signature electronically, sometimes wet signature on paperwork)
If robinhood fails.. SIPC steps in. It might be messing, you need an employee to manually complete the ACAT process . If it fails there won't be employees to do that?
If SIPC takes over, it will be chaos. Might be frozen for liquidation / lawsuits.
I have no more answers to give. A wild situation .