Robinhood cancels UK launch of its investment app
Controversial investment app Robinhood has delayed its UK launch indefinitely as it wrestles with pressure from US politicians after one of its customers killed himself.
Robinhood claims to be “democratising finance” for millions of new traders by making it possible to buy and sell financial products without paying a commission or depositing a minimum sum.
But it has come under intense pressure in the US after Alex Kearns, a 20-year-old student, killed himself last month, apparently in the mistaken belief that he had lost $730,000 (£575,000) by using the app.
As of last week, the app had a waiting list of more than 250,000 people in the UK ahead of a launch planned for this year.
But in an email to people on the waiting list, Robinhood hinted that it had delayed its plans to respond to the scrutiny it is facing in its domestic market.
“We’re saddened to share that we’ve made the difficult decision to postpone our UK launch indefinitely,” said Robinhood, which has 13 million users and was valued at $8.6bn in a recent fundraising exercise.
“We’ll be closing our waitlist and taking down our UK website shortly.“The world has changed a lot over the past several months and we’re adapting with it.
“On a company level, we’ve come to recognise that our efforts are currently best spent on strengthening our core business in the US and making further investments in our foundational systems.
“Although our global expansion plans are on hold for now, we will continue our work to democratise finance for all and we look forward to the day when we can bring this mission to the UK.”
Robinhood received approval from the Financial Conduct Authority to enter the UK market last year but missed an initial target of spring for its launch.
Some of its British employees will now move to the US while a skeleton team will remain in the UK, where the business is led by Wander Rutgers, a former executive of money transfer platform TransferWise.
• In the UK and Ireland, Samaritans can be contacted on 116 123 or email jo@samaritans.org or jo@samaritans.ie. In the US, the National Suicide Prevention Lifeline is 1-800-273-8255. In Australia, the crisis support service Lifeline is 13 11 14. Other international helplines can be found at www.befrienders.org.