The New Mexico Regulation and Licensing Department, Securities Division's Authority

New Mexico Attorney General Raúl Torrez and the Securities Division have authority under the New Mexico Securities Act (NMSA §58-13B-1 et seq.) to investigate broker-dealer practices.

The Harm Requiring Regulatory Response

New Mexico has a significant Native American and Hispanic population with limited access to financial literacy resources. Retail investors in these communities face PFOF practices without adequate protection.

What State Regulators Should Do

The New Mexico Regulation and Licensing Department, Securities Division, in coordination with the New Mexico Attorney General's office, should:

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

Contacting the New Mexico Regulation and Licensing Department, Securities Division

New Mexico investors and advocates can contact the New Mexico Regulation and Licensing Department, Securities Division at https://www.rld.nm.gov/securities to report concerns and request regulatory action on PFOF practices affecting New Mexico residents.