The Florida Office of Financial Regulation's Authority
Florida's Office of Financial Regulation has jurisdiction to investigate PFOF practices under Florida securities law (Chapter 517, F.S.). Given Griffin's $50 million donation to DeSantis, there are serious questions about whether Florida regulators can act independently — making federal and multistate action all the more critical for Florida investors.
The Harm Requiring Regulatory Response
Florida is now Kenneth Griffin's home state after he relocated Citadel's headquarters to Miami. Florida retail investors — from Panhandle retirees to Miami day traders — route orders through Citadel Securities, generating enormous profits for a company whose CEO has spent $57 million on Florida political figures. The conflict of interest between Griffin's political giving and the absence of Florida regulatory action is acute.
What State Regulators Should Do
The Florida Office of Financial Regulation, Division of Securities, in coordination with the Florida Attorney General's office, should:
- Open an investigation into whether broker-dealers serving Florida 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 Florida residents
- Contact NASAA to explore multistate coordination
- Issue investor education guidance about PFOF practices and how Florida investors can protect themselves
- Consider rulemaking under state securities law to require enhanced disclosure of PFOF arrangements affecting Florida retail investors
Contacting the Florida Office of Financial Regulation
Florida investors and advocates can contact the Florida Office of Financial Regulation, Division of Securities at https://flofr.gov to report concerns and request regulatory action on PFOF practices affecting Florida residents.