Would ban broker-dealers and investment advisers from specifying in their agreements with clients how future disputes between them should be resolved, whether by arbitration or in court. At present, anyone who opens an account at virtually any broker-dealer is required to sign an account agreement that includes a provision stating that any disputes be resolved by arbitration (that is, out of court). The proposed legislation would change this, making three things unlawful:
1. It would prohibit broker-dealers and investment advisors from requiring that customers arbitrate their disputes;
2. The bill would make it unlawful to limit an investor's choice of forum for dispute resolution;
3. It would prohibit broker-dealers and investment advisors from restricting customer rights to pursue class action lawsuits.
Economy