The Alaska Division of Banking and Securities's Authority

Alaska Attorney General Treg Taylor and the Alaska Division of Banking and Securities have authority to investigate broker-dealer practices affecting Alaska residents under AS 45.55. A referral to NASAA for coordinated multistate action would amplify Alaska's leverage.

The Harm Requiring Regulatory Response

Alaska's isolated retail investor population—many managing permanent fund dividends and retirement accounts—depends on online brokers routed through Citadel Securities. The opacity of PFOF arrangements means Alaska investors cannot assess the true cost of their trades.

What State Regulators Should Do

The Alaska Division of Banking and Securities, in coordination with the Alaska Attorney General's office, should:

• Open an investigation into whether broker-dealers serving Alaska residents are meeting best execution obligations under state securities law
• Issue a formal inquiry to major PFOF-dependent brokers about their routing arrangements with Citadel Securities and the execution quality they achieve for Alaska residents
• Contact NASAA to explore multistate coordination
• Issue investor education guidance about PFOF practices and how Alaska investors can protect themselves
• Consider rulemaking under state securities law to require enhanced disclosure of PFOF arrangements affecting Alaska retail investors

Contacting the Alaska Division of Banking and Securities

Alaska investors and advocates can contact the Alaska Division of Banking and Securities at https://www.commerce.alaska.gov/web/dbs to report concerns and request regulatory action on PFOF practices affecting Alaska residents.