The AG's Authority in Rhode Island
Rhode Island Attorney General Peter Neronha and the DBR Securities Division have authority under the Rhode Island Uniform Securities Act (R.I. Gen. Laws §7-11-101 et seq.) to investigate broker-dealer practices.
The Harm to Rhode Island Investors
Rhode Island retail investors — many in Providence's manufacturing and healthcare sectors — rely on discount brokers for retirement savings and face undisclosed PFOF arrangements.
Peter Neronha has an estimated 195,000 Rhode Island retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether Rhode Island's chief law enforcement officer will protect the financial interests of Rhode Island residents when federal regulators have failed to act.
The Griffin Political Context
Rhode Island Attorney General Peter Neronha should be aware of the documented political investment Kenneth Griffin has made in Rhode Island. Griffin has given contributions through national Republican organizations to national Republican committees. 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 Rhode Island consumer protection law by creating undisclosed conflicts of interest
- Whether Rhode Island broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to Rhode Island retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact Peter Neronha
Rhode Island residents can contact the Attorney General's office at https://riag.ri.gov to request investigation of PFOF-related broker-dealer practices affecting Rhode Island investors.