Category Archives: Arbitration

The SEC Urged to End Mandatory Arbitration Clauses within Investment Advisory Client Agreements

June 04, 2013

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), which was signed into law on July 21, 2010, provides the U.S. Securities and Exchange Commission (“SEC”) with the authority under the Investment Advisers Act of 1940 to prohibit or impose conditions upon the use of pre-dispute, mandatory arbitration clauses within investment advisory client agreements.

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Proposal for SEC to Study Use Mandatory Arbitration Clauses in Investment Advisory Agreements

June 20, 2009

As noted in the proposal, “Financial Regulatory Reform: A New Foundation,” released by the U.S. Treasury Department earlier this week, the Obama Administration is calling for legislation to be passed giving the U.S. Securities and Exchange Commission (“SEC”) clear authority to prohibit the use of mandatory arbitration clauses by broker-dealers and registered investment advisers with retail customers.

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