The AG's Authority in North Carolina
North Carolina Attorney General Jeff Jackson and the NC Securities Division have authority under the North Carolina Securities Act (G.S. Chapter 78A) to investigate broker-dealer conflicts affecting state residents.
The Harm to North Carolina Investors
Charlotte is America's second-largest banking center. North Carolina retail investors are served by major banks and discount brokers, all of which route orders to Citadel Securities. The state's significant Black and Latino retail investor population deserves equal protection from undisclosed PFOF harms.
Jeff Jackson has an estimated 2 million North Carolina retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether North Carolina's chief law enforcement officer will protect the financial interests of North Carolina residents when federal regulators have failed to act.
The Griffin Political Context
North Carolina Attorney General Jeff Jackson should be aware of the documented political investment Kenneth Griffin has made in North Carolina. Griffin has given more than $5 million in North Carolina-linked political contributions to Senator Thom Tillis and the Republican Governors Association. 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 North Carolina consumer protection law by creating undisclosed conflicts of interest
- Whether North Carolina broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to North Carolina retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact Jeff Jackson
North Carolina residents can contact the Attorney General's office at https://www.ncdoj.gov to request investigation of PFOF-related broker-dealer practices affecting North Carolina investors.