The AG's Authority in South Carolina

South Carolina Attorney General Alan Wilson and the SC Securities Division have authority under the South Carolina Uniform Securities Act (S.C. Code Ann. §35-1-101 et seq.) to investigate broker-dealer conflicts.

The Harm to South Carolina Investors

South Carolina's retiree and military veteran population has significant retirement savings managed through discount brokers, all subject to PFOF practices that benefit a company investing heavily in politicians who oversee financial regulation.

Alan Wilson has an estimated 875,000 South Carolina retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether South Carolina's chief law enforcement officer will protect the financial interests of South Carolina residents when federal regulators have failed to act.

The Griffin Political Context

South Carolina Attorney General Alan Wilson should be aware of the documented political investment Kenneth Griffin has made in South Carolina. Griffin has given more than $1.5 million in South Carolina-linked political contributions to Senators Lindsey Graham and Tim Scott — two of the most prominent Republican senators — and the Republican National Committee. 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 South Carolina consumer protection law by creating undisclosed conflicts of interest
• Whether South Carolina broker-dealers are meeting best execution obligations under state securities law
• Whether Citadel Securities' disclosures to South Carolina retail investors adequately describe the PFOF relationship
• Whether a multistate investigation coordinated through NASAA would be appropriate

Contact Alan Wilson

South Carolina residents can contact the Attorney General's office at https://www.scag.gov to request investigation of PFOF-related broker-dealer practices affecting South Carolina investors.