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Maine Regulatory Action

Maine Office of Securities: What Maine Financial Regulators Should Do About Citadel

The Maine Office of Securities, Department of Professional and Financial Regulation has jurisdiction to investigate Citadel Securities' payment for order flow practices affecting an estimated 230,000 Maine retail investors. Here is what state regulators should do — and why.

The Maine Office of Securities's Authority

Maine Attorney General Aaron Frey and the Maine Office of Securities have authority under the Maine Uniform Securities Act (32 M.R.S.A. §10101 et seq.) to investigate broker-dealer conflicts.

The Harm Requiring Regulatory Response

Maine's large retiree and fishing industry populations include many retail investors managing savings through national discount brokers, all subject to undisclosed PFOF practices.

What State Regulators Should Do

The Maine Office of Securities, Department of Professional and Financial Regulation, in coordination with the Maine Attorney General's office, should:

  • Open an investigation into whether broker-dealers serving Maine 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 Maine residents
  • Contact NASAA to explore multistate coordination
  • Issue investor education guidance about PFOF practices and how Maine investors can protect themselves
  • Consider rulemaking under state securities law to require enhanced disclosure of PFOF arrangements affecting Maine retail investors

Contacting the Maine Office of Securities

Maine investors and advocates can contact the Maine Office of Securities, Department of Professional and Financial Regulation at https://www.maine.gov/pfr/securities to report concerns and request regulatory action on PFOF practices affecting Maine residents.

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