,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #biih  ,,in ,,the ,,house ,,of  
,,representatives  ,august #b1 #bjac    
,mr4 ,ellison introduced the following  
bill2 which was referred to the         
,committee on ,financial ,services  ,a  
,,bill  ,to amend the ,securities       
,exchange ,act of #aicd to prohibit     
mandatory pre-dispute arbitration       
agreements1 and for other purposes4  #a4
 ,short title ,this ,act may be cited as
 the ,investor ,choice ,act of #bjac4   
#b4 ,findings ,congress makes the       
following findings3  7#a7 ,investor     
confidence in fair and equitable        
recourse is essential to the health and 
stability of the securities markets and 
to the participation of retail investors
 in such markets4  7#b7 ,brokers1       
dealers1 and investment advisers hold   
powerful advantages over investors1 and 
mandatory arbitration clauses1 including
 contracts that force investors to      
submit claims to arbitration or to waive
 their right to participate in class    

actions1 leverage these advantages to   
severely restrict the ability of        
defrauded investors to seek redress4    
7#c7 ,investors should be free to choose
 arbitration to resolve disputes if they
 judge that arbitration truly offers    
them the best opportunity to efficiently
 and fairly settle disputes1 and        
investors should also be free to pursue 
remedies in court1 should they view that
 option as superior to arbitration4  #c4
 ,arbitration agreements in the         
,securities ,exchange ,act of #aicd     
,section #ae7o7 of the ,securities      
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#gho7o77 is amended to read as follows3 
7o7 ,limitations on pre-,dispute        
agreements ,notwithstanding any other   
provision of law1 it shall be unlawful  
for any broker1 dealer1 funding portal1 
or municipal securities dealer to enter 
into1 modify1 or extend an agreement    
with customers or clients of such entity
 with respect to a future dispute       
between the parties to such agreement   

that--  7#a7 mandates arbitration for   
such dispute2  7#b7 restricts1 limits1  
or conditions the ability of a customer 
or client of such entity to select or   
designate a forum for resolution of such
 dispute2 or  7#c7 restricts1 limits1 or
 conditions the ability of a customer or
 client to pursue a claim relating to   
such dispute in an individual or        
representative capacity or on a class   
action or consolidated basis4  4  #d4   
,arbitration agreements in the          
,investment ,advisers ,act of #aidj     
,section #bje7;f7 of the ,investment    
,advisers ,act of #aidj 7#ae ,u4,s4,c4  
#hj;b-#e7;f77 is amended to read as     
follows3  7f7 ,notwithstanding any other
 provision of law1 it shall be unlawful 
for any investment adviser to enter     
into1 modify1 or extend an agreement    
with customers or clients of such entity
 with respect to a future dispute       
between the parties to such agreement   
that--  7#a7 mandates arbitration for   
such dispute2  7#b7 restricts1 limits1  

or conditions the ability of a customer 
or client of such entity to select or   
designate a forum for resolution of such
 dispute2 or  7#c7 restricts1 limits1 or
 conditions the ability of a customer or
 client to pursue a claim relating to   
such dispute in an individual or        
representative capacity or on a class   
action or consolidated basis4  4  #e4   
,effective date ,this ,act1 and the     
amendments made by this ,act1 shall take
 effect on the date of the enactment of 
this ,act and shall apply to any        
agreement created1 modified1 or extended
 after the date of enactment of this    
,act4