The AG's Authority in Hawaii
Hawaii Attorney General Anne Lopez and the Hawaii Securities Enforcement Branch have jurisdiction under the Hawaii Uniform Securities Act (H.R.S. Chapter 485A) to investigate broker-dealer practices affecting Hawaii residents.
The Harm to Hawaii Investors
Hawaii retail investors face the same PFOF harms as mainland investors but with additional disadvantages: higher cost of financial services due to geographic isolation, and limited access to investor advocacy resources.
Anne Lopez has an estimated 250,000 Hawaii retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether Hawaii's chief law enforcement officer will protect the financial interests of Hawaii residents when federal regulators have failed to act.
The Griffin Political Context
Hawaii Attorney General Anne Lopez should be aware of the documented political investment Kenneth Griffin has made in Hawaii. Griffin has given contributions through national Republican organizations to national Republican organizations. 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 Hawaii consumer protection law by creating undisclosed conflicts of interest
- Whether Hawaii broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to Hawaii retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact Anne Lopez
Hawaii residents can contact the Attorney General's office at https://ag.hawaii.gov to request investigation of PFOF-related broker-dealer practices affecting Hawaii investors.