INDUSTRY: Measure gives SEC right to end mandatory arbitration
The House-passed financial reform bill includes a provision that addresses mandatory arbitration in securities contracts.
The House-passed financial reform bill includes a provision that addresses mandatory arbitration in securities contracts. The broad-reaching bill, HR 4173, would provide the SEC with the authority to prohibit or limit such arbitration through rule-making. The legislation also calls for a study of the costs associated with securities arbitration. For a look at the bill, visit thomas.loc.gov/.
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