I 
117TH CONGRESS 
1ST SESSION H. R. 2620 
To amend the Securities Exchange Act of 1934 to prohibit mandatory pre- 
dispute arbitration agreements, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 16, 2021 
Mr. FOSTER (for himself, Mrs. CAROLYN B. MALONEY of New York, Mr. 
MEEKS, Mr. CASTEN, Ms. VELA´ZQUEZ, Mr. GARCI´A of Illinois, Ms. 
SCHAKOWSKY, and Ms. DEAN) introduced the following bill; which was 
referred to the Committee on Financial Services 
A BILL 
To amend the Securities Exchange Act of 1934 to prohibit 
mandatory pre-dispute arbitration agreements, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Investor Choice Act 
of 2021’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Investor confidence in fair and equitable re-
course is essential to the health and stability of the 
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securities markets and to the participation of retail 
investors in those markets. 
(2) Issuers, brokers, dealers, and investment 
advisers hold powerful advantages over investors, 
and mandatory arbitration clauses, including con-
tracts that force investors to submit claims to arbi-
tration or to waive the right of investors to partici-
pate in a class action lawsuit, leverage those advan-
tages to severely restrict the ability of defrauded in-
vestors to seek redress. 
(3) Investors should be free to— 
(A) choose arbitration to resolve disputes if 
they judge that arbitration truly offers them 
the best opportunity to efficiently and fairly set-
tle disputes; and 
(B) pursue remedies in court should they 
view that option as superior to arbitration. 
SEC. 3. ARBITRATION AGREEMENTS IN THE SECURITIES 
EXCHANGE ACT OF 1934. 
(a) IN GENERAL.—The Securities Exchange Act of 
1934 (15 U.S.C. 78a et seq.) is amended— 
(1) in section 6(b) (15 U.S.C. 78f(b)), by add-
ing at the end the following: 
‘‘(11) The rules of the exchange prohibit the 
listing of any security if the issuer of the security, 
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in the bylaws of the issuer, other governing docu-
ments, or any contract with a shareholder relating to 
the parties as issuer and shareholder, mandates ar-
bitration for any dispute between the issuer and the 
shareholders of the issuer, without regard to whether 
such a provision in the bylaws, documents, or con-
tract is otherwise permissible under title 9, United 
States Code.’’; and 
(2) in section 15 (15 U.S.C. 78o), by amending 
subsection (o) to read as follows: 
‘‘(o) 
LIMITATIONS
ON
PRE-DISPUTE
AGREE-
MENTS.—Notwithstanding any other provision of law, in-
cluding any provision of title 9, United States Code, it 
shall be unlawful for any broker, dealer, funding portal, 
or municipal securities dealer to enter into, modify, or ex-
tend an agreement with customers or clients of that entity 
with respect to a future dispute between the parties that— 
‘‘(1) mandates arbitration for that dispute; 
‘‘(2) restricts, limits, or conditions the ability of 
a customer or client of that entity to select or des-
ignate a forum for resolution of that dispute; or 
‘‘(3) restricts, limits, or conditions the ability of 
a customer or client of that entity to pursue a claim 
relating to that dispute in an individual or rep-
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resentative capacity or on a class action or consoli-
dated basis.’’. 
(b) APPLICATION TO EXISTING AGREEMENTS.— 
(1) IN GENERAL.—With respect to an agree-
ment described in section 15(o) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78o(o)), as amended 
by subsection (a) of this section, that was entered 
into before the date of enactment of this Act, any 
provision of that agreement that is prohibited by 
such section 15(o), as amended by subsection (a) of 
this section, is void. 
(2) ONGOING ARBITRATION.—A provision of an 
agreement prohibited by section 15(o) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 78o(o)), as 
amended by subsection (a) of this section, shall not 
be void under paragraph (1) if arbitration required 
by that provision was initiated by any party on or 
before the date of enactment of this Act. 
SEC. 4. ARBITRATION AGREEMENTS IN THE SECURITIES 
ACT OF 1933. 
Section 6 of the Securities Act of 1933 (15 U.S.C. 
77f) is amended by adding at the end the following: 
‘‘(f) 
LIMITATION
ON
ARBITRATION
REQUIRE-
MENTS.—A security may not be registered with the Com-
mission if the issuer of the security, in the bylaws of the 
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issuer, other governing documents, or any contract with 
a shareholder relating to the parties as issuer and share-
holder, mandates arbitration for any dispute between the 
issuer and the shareholders of the issuer, without regard 
to whether such a provision in the bylaws, documents, or 
contract is otherwise permissible under title 9, United 
States Code.’’. 
SEC. 5. ARBITRATION AGREEMENTS IN THE INVESTMENT 
ADVISERS ACT OF 1940. 
(a) IN GENERAL.—Section 205(f) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b–5(f)) is amended 
to read as follows: 
‘‘(f) Notwithstanding any other provision of law, in-
cluding any provision of title 9, United States Code, it 
shall be unlawful for any investment adviser to enter into, 
modify, 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— 
‘‘(1) mandates arbitration for that dispute; 
‘‘(2) restricts, limits, or conditions the ability of 
a customer or client of the investment adviser to se-
lect or designate a forum for resolution of that dis-
pute; or 
‘‘(3) restricts, limits, or conditions the ability of 
a customer or client of the investment adviser to 
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