The Investor Choice Act of 2026 would prohibit mandatory arbitration clauses in agreements between investors and securities firms. Specifically, it would ban brokers, dealers, and investment advisers from requiring customers to arbitrate disputes instead of going to court, and it would prevent companies from blocking investors from pursuing class action lawsuits. The bill also requires stock exchanges to refuse listing any company whose bylaws or shareholder agreements mandate arbitration for disputes with shareholders. These prohibitions would apply to new agreements signed after the bill becomes law, while existing mandatory arbitration clauses would be voided except for cases where arbitration had already been initiated before the law took effect. The bill affects retail investors, brokerage firms, investment advisers, and publicly traded companies that currently use mandatory arbitration to limit investor lawsuits.
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