,i #aafth ,,congress #ast ,session ,h4 ,r4 #eccf ,,in ,,the ,,house ,,of ,,representatives ,december #f1 #bjai,mr4 ,foster 7for himself1 ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york1 ,mr4 ,meeks1 ,mr4 ,casten of ,illinois1 ,mr4 ,lynch1 ,ms4 ,schakowsky1 ,mr4 ,mc,govern1 ,mr4 ,clay1 ,ms4 ,dean1 and ,mr4 ,heck7 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 predispute arbitration agreements1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,investor ,choice ,act of #bjai4 #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 a class action1 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 court should they view that option as superior to arbitration4 #c4 ,arbitration agreements in the ,securities ,exchange ,act of #aicd 7a7 ,in general ,the ,securities ,exchange ,act of #aicd is amended-- 7#a7 by amending section #ae7o7 7#ae ,u4,s4,c4 #gho7o77 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 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 2 and 7#b7 in section #f7;b7 7#ae ,u4,s4,c4 #gh;f7b771 by adding at the end the following3 7#aa7 ,mandatory arbitration ,the rules of the exchange prohibit the listing of any security if such issuer1 in its bylaws1 other governing documents1 or any contract with a shareholder related to the parties as issuer and shareholder mandates arbitration for any disputes between the issuer and the shareholders of the issuer4 4 7b7 ,application to existing agreements 7#a7 ,in general ,with respect to an agreement described in section #ae7o7 of the ,securities ,exchange ,act of #aicd that was entered before the date of the enactment of this ,act1 any provision prohibited by section #ae7o7 of the ,securities ,exchange ,act of #aicd is void4 7#b7 ,ongoing arbitration ,a provision prohibited by section #ae7o7 of the ,securities ,exchange ,act of #aicd shall not be void under paragraph 7#a7 if arbitration required by such provision was initiated by any party on or before the date of the enactment of this subsection4 #d4 ,arbitration agreements in the ,securities ,act of #aicc ,section #f of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg;f7 is amended by adding at the end the following3 7f7 ,limitation on arbitration requirements ,a security may not be registered with the ,commission if the issuer of such security1 in its bylaws1 or other governing documents1 or any contract with a shareholder related to the parties as issuer and shareholder mandates arbitration for any disputes between the issuer and the shareholders of the issuer4 4 #e4 ,arbitration agreements in the ,investment ,advisers ,act of #aidj 7a7 ,in general ,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 7b7 ,application to existing agreements 7#a7 ,in general ,with respect to an agreement described in section #bje7;f7 of the ,investment ,advisers ,act of #aidj that was entered before the date of the enactment of this ,act1 any provision prohibited by section #bje7;f7 of the ,investment ,advisers ,act of #aidj is void4 7#b7 ,ongoing arbitration ,a provision prohibited by section #bje7;f7 of the ,investment ,advisers ,act of #aidj shall not be void under paragraph 7#a7 if arbitration required by such provision was initiated by any party on or before the date of the enactment of this subsection4 #f4 ,application ,except as otherwise stated1 the amendments made by this ,act shall apply with respect to any agreement entered into1 modified1 or extended after the date of the enactment of this ,act4