House Committee Approves Bill To Prohibit BDs and Advisors From Mandating Arbitration

Posted on November 23rd, 2021 at 1:10 PM
House Committee Approves Bill To Prohibit BDs and Advisors From Mandating Arbitration

From the Desk of Jim Eccleston at Eccleston Law:

The House of Representatives’ Financial Services Committee has passed a bill intended to prohibit mandatory arbitration commonly employed by broker-dealers and advisory firms. 

The Investor Choice Act, H.R. 2620, restricts broker-dealers and investment advisors from mandating pre-dispute binding arbitration clauses in their client agreements. According to Maxine Waters, Chairwoman of the Financial Services Committee, the Investor Choice Act addresses “long-standing and deeply unfair practices of forcing customers to resolve their claims through arbitration instead of as part of a class action.” 

The committee also passed the Empowering States to Protect Seniors from Bad Actors Act, H.R. 5914, which would transfer responsibility for managing the Senior Investor Protection Grant Program from the Consumer Financial Protection Bureau (CFPB) to the Securities and Exchange Commission (SEC). The bill organizes an interdivisional task force within the SEC to examine grant applications and administer the program. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, arbitration, house of representatives

Return to Archive

TESTIMONIALS

Previous
Next

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.

 

May 15, 2024
NFA Issues Order Against 50.ai Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against 50.ai Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.