,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #eccf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,decemb] #f1 #bjai,mr4
 ,fo/] 7= himself1 ,mrs4 ,c>olyn ,b4    
,maloney ( ,new ,york1 ,mr4 ,meeks1 ,mr4
 ,ca/5 ( ,ill9ois1 ,mr4 ,lyn*1 ,ms4     
,s*ak[sky1 ,mr4 ,mc,govern1 ,mr4 ,clay1 
,ms4 ,dean1 & ,mr4 ,heck7 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        
pr$ispute arbitration agreem5ts1 & = o!r
 purposes4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,inve/or ,*oice ,act (  
#bjai4  #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 a class action1 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\rt %\ld !y  
view t option z sup]ior to arbitration4 
#c4 ,arbitration agreem5ts 9 !          
,securities ,ex*ange ,act ( #aicd  7a7  
,9 g5]al ,! ,securities ,ex*ange ,act ( 
#aicd is am5d$-- 7#a7 by am5d+ section  
#ae7o7 7#ae ,u4,s4,c4 #gho7o77 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 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 
2 &  7#b7 9 section #f7;b7 7#ae         
,u4,s4,c4 #gh;f7b771 by add+ at ! end ! 
foll[+3  7#aa7 ,m&atory arbitration ,!  
rules ( ! ex*ange prohibit ! li/+ ( any 
security if su* issu]1 9 its bylaws1 o!r
 gov]n+ docum5ts1 or any contract ) a   
%>ehold] relat$ to ! p>ties z issu] &   
%>ehold] m&ates arbitration = any       
disputes betwe5 ! issu] & ! %>ehold]s ( 
! issu]4  4  7b7 ,application to exi/+  
agreem5ts  7#a7 ,9 g5]al ,) respect to  
an agreem5t describ$ 9 section #ae7o7 ( 
! ,securities ,ex*ange ,act ( #aicd t 0 
ent]$ be=e ! date ( ! enactm5t ( ?is    
,act1 any provision prohibit$ by section
 #ae7o7 ( ! ,securities ,ex*ange ,act ( 

#aicd is void4  7#b7 ,ongo+ arbitration 
,a provision prohibit$ by section #ae7o7
 ( ! ,securities ,ex*ange ,act ( #aicd  
%all n be void "u p>agraph 7#a7 if      
arbitration requir$ by su* provision 0  
initiat$ by any p>ty on or be=e ! date (
 ! enactm5t ( ?is subsection4  #d4      
,arbitration agreem5ts 9 ! ,securities  
,act ( #aicc ,section #f ( ! ,securities
 ,act ( #aicc 7#ae ,u4,s4,c4 #gg;f7 is  
am5d$ by add+ at ! end ! foll[+3  7f7   
,limitation on arbitration requirem5ts  
,a security may n be regi/]$ ) !        
,commission if ! issu] ( su* security1 9
 its bylaws1 or o!r gov]n+ docum5ts1 or 
any contract ) a %>ehold] relat$ to !   
p>ties z issu] & %>ehold] m&ates        
arbitration = any disputes betwe5 !     
issu] & ! %>ehold]s ( ! issu]4  4  #e4  
,arbitration agreem5ts 9 ! ,inve/m5t    
,advis]s ,act ( #aidj  7a7 ,9 g5]al     
,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  7b7 ,application to exi/+ agreem5ts  
7#a7 ,9 g5]al ,) respect to an agreem5t 
describ$ 9 section #bje7;f7 ( !         
,inve/m5t ,advis]s ,act ( #aidj t 0     
ent]$ be=e ! date ( ! enactm5t ( ?is    
,act1 any provision prohibit$ by section
 #bje7;f7 ( ! ,inve/m5t ,advis]s ,act ( 
#aidj is void4  7#b7 ,ongo+ arbitration 
,a provision prohibit$ by section       
#bje7;f7 ( ! ,inve/m5t ,advis]s ,act (  

#aidj %all n be void "u p>agraph 7#a7 if
 arbitration requir$ by su* provision 0 
initiat$ by any p>ty on or be=e ! date (
 ! enactm5t ( ?is subsection4  #f4      
,application ,except z o!rwise /at$1 !  
am5dm5ts made by ?is ,act %all apply )  
respect to any agreem5t ent]$ into1     
modifi$1 or ext5d$ aft] ! date ( !      
enactm5t ( ?is ,act4