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house Bill H.R. 2998

Ensuring Investors Have Access to the Judicial System

Argument in favor

Levels the playing field for investors. Preserves investor choice. Ends gaps in investor protections.

Argument opposed

Would damage a functional securities arbitration process. Assumes choice as a benefit.

What is House Bill H.R. 2998?

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. 


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

Cost of House Bill H.R. 2998

A CBO cost estimate is not currently available.


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.

bill Progress

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

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