Robinhood, Under Cloud After User’s Suicide, Scraps UK Launch

Investment platform Robinhood announced on Tuesday that it has decided to scrap the launch of its investment app in the U.K., according to a report by The Guardian.

• In an email sent to about 250,000 people on Robinhood’s waiting list in the U.K., the firm said, “A lot has changed in the world over the past few months, and we’ve made the difficult decision to postpone our U.K. launch indefinitely.”
  
• The firm’s email added that it would also close the waitlist and shutter its U.K. website shortly.
  
• Robinhood’s decision to scrap its U.K. launch was announced almost a year after it was granted a license to operate as a broker in the country. While the app managed to attract more users to its platform amid the pandemic, recent reports relating to the suicide of a 20-year old Robinhood trader have raised questions on whether it provides adequate consumer protection.
  
• While Robinhood allows people to simply log on and make complex trades on its platform, a lack of understanding about the products traded can often put customers in a dire situation, as illustrated by a recent report by the New York Times.