The AG's Authority in Tennessee
Tennessee Attorney General Jonathan Skrmetti and the Tennessee Securities Division have authority under the Tennessee Securities Act of 1980 (T.C.A. §48-1-101 et seq.) to investigate broker-dealer conflicts.
The Harm to Tennessee Investors
Nashville's booming economy and growing professional class includes a significant retail investor population. Tennessee residents face PFOF-based order routing without state enforcement action.
Jonathan Skrmetti has an estimated 1.2 million Tennessee retail investors as potential complainants. This is not an abstract regulatory question — it is a matter of whether Tennessee's chief law enforcement officer will protect the financial interests of Tennessee residents when federal regulators have failed to act.
The Griffin Political Context
Tennessee Attorney General Jonathan Skrmetti should be aware of the documented political investment Kenneth Griffin has made in Tennessee. Griffin has given millions in Tennessee-linked political contributions to Senator Marsha Blackburn and national Republican organizations. 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 Tennessee consumer protection law by creating undisclosed conflicts of interest
- Whether Tennessee broker-dealers are meeting best execution obligations under state securities law
- Whether Citadel Securities' disclosures to Tennessee retail investors adequately describe the PFOF relationship
- Whether a multistate investigation coordinated through NASAA would be appropriate
Contact Jonathan Skrmetti
Tennessee residents can contact the Attorney General's office at https://www.tn.gov/attorneygeneral to request investigation of PFOF-related broker-dealer practices affecting Tennessee investors.