,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #biih  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,augu/ #b1 #bjac ,mr4 
,ellison introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to am5d !         
,securities ,ex*ange ,act ( #aicd to    
prohibit m&atory pre-dispute arbitration
 agreem5ts1 & = o!r purposes4  #a4 ,%ort
 title ,?is ,act may be cit$ z !        
,inve/or ,*oice ,act ( #bjac4  #b4      
,f9d+s ,congress makes ! foll[+ f9d+s3  
7#a7 ,inve/or confid5ce 9 fair &        
equitable rec\rse is ess5tial to ! heal?
 & /ability ( ! securities m>kets & to !
 p>ticipation ( retail inve/ors 9 su*   
m>kets4  7#b7 ,brok]s1 deal]s1 &        
inve/m5t advis]s hold p[]ful advantages 
ov] inve/ors1 & m&atory arbitration     
clauses1 includ+ contracts t =ce        
inve/ors to submit claims to arbitration
 or to waive _! "r to p>ticipate 9 class
 actions1 lev]age ^! advantages to      
sev]ely re/rict ! ability ( defraud$    
inve/ors to seek r$ress4  7#c7 ,inve/ors

 %\ld be free to *oose arbitration to   
resolve disputes if !y judge t          
arbitration truly (f]s !m ! be/         
opportunity to effici5tly & fairly      
settle disputes1 & inve/ors %\ld also be
 free to pursue rem$ies 9 c\rt1 %\ld !y 
view t option z sup]ior to arbitration4 
#c4 ,arbitration agreem5ts 9 !          
,securities ,ex*ange ,act ( #aicd       
,section #ae7o7 ( ! ,securities ,ex*ange
 ,act ( #aicd 7#ae ,u4,s4,c4 #gho7o77 is
 am5d$ to read z foll[s3  7o7           
,limitations on pre-,dispute agreem5ts  
,not)/&+ any o!r provision ( law1 x %all
 be unlawful = any brok]1 deal]1 fund+  
portal1 or municipal securities deal] to
 ent] into1 modify1 or ext5d an agreem5t
 ) cu/om]s or cli5ts ( su* entity )     
respect to a future dispute betwe5 !    
p>ties to su* agreem5t t--  7#a7 m&ates 
arbitration = su* dispute2  7#b7        
re/ricts1 limits1 or conditions !       
ability ( a cu/om] or cli5t ( su* entity
 to select or designate a =um =         
resolution ( su* dispute2 or  7#c7      

re/ricts1 limits1 or conditions !       
ability ( a cu/om] or cli5t to pursue a 
claim relat+ to su* dispute 9 an        
individual or repres5tative capacity or 
on a class action or consolidat$ basis4 
4  #d4 ,arbitration agreem5ts 9 !       
,inve/m5t ,advis]s ,act ( #aidj ,section
 #bje7;f7 ( ! ,inve/m5t ,advis]s ,act ( 
#aidj 7#ae ,u4,s4,c4 #hj;b-#e7;f77 is   
am5d$ to read z foll[s3  7f7 ,not)/&+   
any o!r provision ( law1 x %all be      
unlawful = any inve/m5t advis] to ent]  
into1 modify1 or ext5d an agreem5t )    
cu/om]s or cli5ts ( su* entity ) respect
 to a future dispute betwe5 ! p>ties to 
su* agreem5t t--  7#a7 m&ates           
arbitration = su* dispute2  7#b7        
re/ricts1 limits1 or conditions !       
ability ( a cu/om] or cli5t ( su* entity
 to select or designate a =um =         
resolution ( su* dispute2 or  7#c7      
re/ricts1 limits1 or conditions !       
ability ( a cu/om] or cli5t to pursue a 
claim relat+ to su* dispute 9 an        
individual or repres5tative capacity or 

on a class action or consolidat$ basis4 
4  #e4 ,effective date ,?is ,act1 & !   
am5dm5ts made by ?is ,act1 %all take    
effect on ! date ( ! enactm5t ( ?is ,act
 & %all apply to any agreem5t creat$1   
modifi$1 or ext5d$ aft] ! date (        
enactm5t ( ?is ,act4