12.12.19
House, Senate Bills Would Ban Mandatory Arbitration in Broker, Advisor Client Contracts
by: Mark, Jr. Schoeff
Bills have been introduced in the House and Senate to ban mandatory arbitration agreements and the prohibition of class-action lawsuits in broker and investment advisor client contracts, marking the first time the legislation has been floated in both chambers. The measures, however, lack Republican support, dimming their prospects, especially in the Republican-controlled Senate. The Dodd-Frank bill allowed the SEC to ban mandatory arbitration in broker and advisor contracts. The agency has not acted on that authority.
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