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Utah Regulatory Action

Utah Division of Securities: What Utah Financial Regulators Should Do About Citadel

The Utah Division of Securities, Department of Commerce has jurisdiction to investigate Citadel Securities' payment for order flow practices affecting an estimated 590,000 Utah retail investors. Here is what state regulators should do — and why.

The Utah Division of Securities's Authority

Utah Attorney General Derek Brown and the Utah Division of Securities have authority under the Utah Uniform Securities Act (Utah Code Ann. §61-1-1 et seq.) to investigate broker-dealer practices.

The Harm Requiring Regulatory Response

Utah's tech sector ('Silicon Slopes') has created a growing population of retail investors. Utah's strong culture of financial planning and investment makes retail investors particularly vulnerable to undisclosed PFOF harms.

What State Regulators Should Do

The Utah Division of Securities, Department of Commerce, in coordination with the Utah Attorney General's office, should:

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

Contacting the Utah Division of Securities

Utah investors and advocates can contact the Utah Division of Securities, Department of Commerce at https://securities.utah.gov to report concerns and request regulatory action on PFOF practices affecting Utah residents.

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