The AG's Authority in Connecticut
Connecticut Attorney General William Tong has been active in financial consumer protection and could pursue PFOF claims under the Connecticut Unfair Trade Practices Act (CUTPA). The Connecticut Banking Department has securities enforcement authority under C.G.S. §36b-2.
The Harm to Connecticut Investors
Connecticut is home to numerous hedge funds and sophisticated investors in Greenwich and Stamford — but retail investors statewide use the same discount brokers and are subject to the same PFOF practices. The irony is that Connecticut's wealthy financial professionals understand PFOF's harm while ordinary residents are unprotected.
William Tong has an estimated 700,000 Connecticut retail investors — with disproportionate wealth and trading activity given the state's proximity to Wall Street as potential complainants. This is not an abstract regulatory question — it is a matter of whether Connecticut's chief law enforcement officer will protect the financial interests of Connecticut residents when federal regulators have failed to act.
The Griffin Political Context
Connecticut Attorney General William Tong should be aware of the documented political investment Kenneth Griffin has made in Connecticut. Griffin has given millions through national Republican organizations that compete for Connecticut's federal seats to national Republican Senate committees. This political context does not determine what the AG should do — but it is relevant to understanding why federal and state regulators have been slow to act, and why an independent state investigation would be meaningful.
What the AG Should Investigate
- Whether PFOF arrangements between major discount brokers and Citadel Securities violate Connecticut consumer protection law by creating undisclosed conflicts of interest
- Whether Connecticut broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to Connecticut retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact William Tong
Connecticut residents can contact the Attorney General's office at https://portal.ct.gov/AG to request investigation of PFOF-related broker-dealer practices affecting Connecticut investors.