Last Friday, Rep. Keith Ellison (D-Minn) introduced the “Investor Choice Act” into the House of Representatives, a bill that proposes to ban broker-dealers, investment advisers, funding portals and municipal securities dealers from including mandatory arbitration clauses in their customer and client agreements. While Dodd-Frank explicitly authorized the Securities and Exchange Commission to ban such arbitration clauses to protect investors, fhe SEC has not yet acted on its authority and Commisssioner Walter recently stated publicly that the SEC was unlikely to do so in 2013. While I suspect this bill has little to no chance of getting passed, it may prompt the SEC to act in 2014.
Last 5 posts by Jill Gross
- Updates on current and former FINRA Dispute Resolution executives - December 15th, 2014
- Symposium at Cardozo Asking (and perhaps Answering) "Is Mediation a Sleeping Beauty? - October 15th, 2014
- PIABA Releases Study Criticizing Lack of Diversity of FINRA Arbitrator Pool - October 7th, 2014
- Linda Fienberg To Retire from FINRA Dispute Resolution - October 7th, 2014
- Second Circuit Holds Forum Selection Clause Trumps FINRA Arbitration Requirement - August 21st, 2014