,,ii  #aafth ,,congress  #ast ,session  
,s4 #biib  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,december #e1  
#bjai,mr4 ,merkley 7for himself1 ,mr4   
,durbin1 ,mr4 ,blumenthal1 ,ms4 ,warren1
 ,mr4 ,menendez1 and ,mr4 ,whitehouse7  
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,banking1 ,housing1 and   
,urban ,affairs  ,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 #bjai4  #b4 ,findings ,congress 
finds the following3  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 those 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
 the right of investors to participate  
in a class action lawsuit1 leverage     
those advantages to severely restrict   
the ability of defrauded investors to   
seek redress4  7#c7 ,investors should be
 free to-- 7,a7 choose arbitration to   
resolve disputes if they judge that     
arbitration truly offers them the best  
opportunity to efficiently and fairly   
settle disputes2 and  7,b7 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 7#ae ,u4,s4,c4 #gh;a et   
seq47 is amended--  7#a7 in section     
#f7;b7 7#ae ,u4,s4,c4 #gh;f7b771 by     
adding at the end the following3  7#aa7 
,the rules of the exchange prohibit the 
listing of any security if the issuer of
 the security1 in the bylaws of the     
issuer1 other governing documents1 or   

any contract with a shareholder relating
 to the parties as issuer and           
shareholder1 mandates arbitration for   
any dispute between the issuer and the  
shareholders of the issuer4  2 and  7#b7
 in section #ae 7#ae ,u4,s4,c4 #gho71 by
 amending subsection 7o7 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 that entity with respect to a future 
dispute between the parties that--  7#a7
 mandates arbitration for that dispute2 
7#b7 restricts1 limits1 or conditions   
the ability of a customer or client of  
that entity to select or designate a    
forum for resolution of that dispute2 or
  7#c7 restricts1 limits1 or conditions 
the ability of a customer or client of  
that entity to pursue a claim relating  
to that 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 #ae7o7 of
 the ,securities ,exchange ,act of #aicd
 7#ae ,u4,s4,c4 #gho7o771 as amended by 
subsection 7a7 of this section1 that was
 entered into before the date of        
enactment of this ,act1 any provision of
 that agreement that is prohibited by   
such section #ae7o71 as amended by      
subsection 7a7 of this section1 is void4
  7#b7 ,ongoing arbitration ,a provision
 of an agreement prohibited by section  
#ae7o7 of the ,securities ,exchange ,act
 of #aicd 7#ae ,u4,s4,c4 #gho7o771 as   
amended by subsection 7a7 of this       
section1 shall not be void under        
paragraph 7#a7 if arbitration required  
by that provision was initiated by any  
party on or before the date of enactment
 of this ,act4  #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 the security1 in the   
bylaws of the issuer1 other governing   
documents1 or any contract with a       
shareholder relating to the parties as  
issuer and shareholder1 mandates        
arbitration for any dispute 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 the investment  
adviser with respect to a future dispute
 between the parties to that agreement  

that--  7#a7 mandates arbitration for   
that dispute2  7#b7 restricts1 limits1  
or conditions the ability of a customer 
or client of the investment adviser to  
select or designate a forum for         
resolution of that dispute2 or  7#c7    
restricts1 limits1 or conditions the    
ability of a customer or client of the  
investment adviser to pursue a claim    
relating to that 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 7#ae ,u4,s4,c4  
#hj;b-#e7;f771 as amended by subsection 
7a7 of this section1 that was entered   
into before the date of enactment of    
this ,act1 any provision prohibited by  
such section #bje7;f71 as amended by    
subsection 7a7 of this section1 is void4
  7#b7 ,ongoing arbitration ,a provision
 of an agreement prohibited by section  

#bje7;f7 of the ,investment ,advisers   
,act of #aidj 7#ae ,u4,s4,c4            
#hj;b-#e7;f771 as amended by subsection 
7a7 of this section1 shall not be void  
under paragraph 7#a7 if arbitration     
required by that provision was initiated
 by any party on or before the date of  
enactment of this ,act4  #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 enactment of 
this ,act4