Congressional Bill Would Ban Mandatory Arbitration for Advisor, Broker Clients
The Investor Choice Act introduced in Congress last week would prohibit registered investment advisors, broker-dealers and securities dealers from using customer contracts that contain forced arbitration agreements or prohibit investors from joining a class action lawsuit. The measure would give investors the freedom to choose between resolving disputes through arbitration or court action. It has won the endorsement of the North American Securities Administrators Association and comes at a time when investor and consumer groups are pushing back against the securities industry's use of forced arbitration clauses.
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