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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      House Committee on Financial Services
    IntroducedAugust 2nd, 2013

What is it?

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. 

Impact

If enacted, the bill would likely mean an increase in finance-related cases in state courts.

Cost

A CBO cost estimate is not currently available.

AKA

Investor Choice Act of 2013

Official Title

To amend the Securities Exchange Act of 1934 to prohibit mandatory pre-dispute arbitration agreements, and for other purposes.

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