,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #biib  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #e1 #bjai,mr4 
,m]kley 7= himself1 ,mr4 ,durb91 ,mr4   
,blum5?al1 ,ms4 ,w>r51 ,mr4 ,m55dez1 &  
,mr4 ,:iteh\se7 introduc$ ! foll[+ bill2
 :i* 0 read twice & ref]r$ to !         
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs  ,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 ( #bjai4  #b4      
,f9d+s ,congress f9ds ! foll[+3  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 ^?     
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 ( inve/ors to         

p>ticipate 9 a class action lawsuit1    
lev]age ^? advantages to sev]ely re/rict
 ! ability ( defraud$ inve/ors to seek  
r$ress4  7#c7 ,inve/ors %\ld be free    
to-- 7,a7 *oose arbitration to resolve  
disputes if !y judge t arbitration truly
 (f]s !m ! be/ opportunity to effici5tly
 & fairly settle disputes2 &  7,b7      
pursue rem$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 7#ae  
,u4,s4,c4 #gh;a et seq47 is am5d$--     
7#a7 9 section #f7;b7 7#ae ,u4,s4,c4    
#gh;f7b771 by add+ at ! end ! foll[+3   
7#aa7 ,! rules ( ! ex*ange prohibit !   
li/+ ( any security if ! issu] ( !      
security1 9 ! bylaws ( ! issu]1 o!r     
gov]n+ docum5ts1 or any contract ) a    
%>ehold] relat+ to ! p>ties z issu] &   
%>ehold]1 m&ates arbitration = any      
dispute betwe5 ! issu] & ! %>ehold]s ( !
 issu]4  2 &  7#b7 9 section #ae 7#ae   
,u4,s4,c4 #gho71 by am5d+ subsection 7o7

 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 ( t entity ) respect to a     
future dispute betwe5 ! p>ties t--  7#a7
 m&ates arbitration = t dispute2  7#b7  
re/ricts1 limits1 or conditions !       
ability ( a cu/om] or cli5t ( t entity  
to select or designate a =um =          
resolution ( t dispute2 or  7#c7        
re/ricts1 limits1 or conditions !       
ability ( a cu/om] or cli5t ( t entity  
to pursue a claim relat+ to t 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 #ae7o7 ( 
! ,securities ,ex*ange ,act ( #aicd 7#ae
 ,u4,s4,c4 #gho7o771 z am5d$ by         
subsection 7a7 ( ?is section1 t 0 ent]$ 
into be=e ! date ( enactm5t ( ?is ,act1 

any provision ( t agreem5t t is         
prohibit$ by su* section #ae7o71 z am5d$
 by subsection 7a7 ( ?is section1 is    
void4  7#b7 ,ongo+ arbitration ,a       
provision ( an agreem5t prohibit$ by    
section #ae7o7 ( ! ,securities ,ex*ange 
,act ( #aicd 7#ae ,u4,s4,c4 #gho7o771 z 
am5d$ by subsection 7a7 ( ?is section1  
%all n be void "u p>agraph 7#a7 if      
arbitration requir$ by t provision 0    
initiat$ by any p>ty on or be=e ! date (
 enactm5t ( ?is ,act4  #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] 
( ! security1 9 ! bylaws ( ! issu]1 o!r 
gov]n+ docum5ts1 or any contract ) a    
%>ehold] relat+ to ! p>ties z issu] &   
%>ehold]1 m&ates arbitration = any      
dispute 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 ( !        
inve/m5t advis] ) respect to a future   
dispute betwe5 ! p>ties to t agreem5t   
t--  7#a7 m&ates arbitration = t        
dispute2  7#b7 re/ricts1 limits1 or     
conditions ! ability ( a cu/om] or cli5t
 ( ! inve/m5t advis] to select or       
designate a =um = resolution ( t        
dispute2 or  7#c7 re/ricts1 limits1 or  
conditions ! ability ( a cu/om] or cli5t
 ( ! inve/m5t advis] to pursue a claim  
relat+ to t 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 7#ae    
,u4,s4,c4 #hj;b-#e7;f771 z am5d$ by     

subsection 7a7 ( ?is section1 t 0 ent]$ 
into be=e ! date ( enactm5t ( ?is ,act1 
any provision prohibit$ by su* section  
#bje7;f71 z am5d$ by subsection 7a7 (   
?is section1 is void4  7#b7 ,ongo+      
arbitration ,a provision ( an agreem5t  
prohibit$ by section #bje7;f7 ( !       
,inve/m5t ,advis]s ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;b-#e7;f771 z am5d$ by     
subsection 7a7 ( ?is section1 %all n be 
void "u p>agraph 7#a7 if arbitration    
requir$ by t provision 0 initiat$ by any
 p>ty on or be=e ! date ( enactm5t ( ?is
 ,act4  #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