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What would you like to know
- Investor Choice Law prevents companies from requiring customers to resolve their claims through arbitration instead of class actions.
- The Enabling States to Protect Seniors From Bad Actors Act shifts the Senior Investor Protection Grant program to the SEC.
- Another bill would make SPACs liable for making false or misleading forward-looking statements.
The House financial services committee on Wednesday evening passed a series of bills dealing with compulsory pre-litigation arbitration, protecting the elderly and limiting fees paid to sponsors of special-purpose acquisition companies.
The Investor Choice Act, HR 2620, which was introduced by Rep. Bill Foster, D-Ill., Passed by a vote of 27-23 and prohibits brokers and investment advisers from including mandatory arbitration clauses binding before disputes in their agreements with customers. .
House Financial Services Committee Chair Maxine Waters, D-Calif., Said during the markup on Wednesday that the investor choice law corrects “long-standing and deeply unfair practices of forcing clients to resolve their claims through arbitration rather than a class action. “
The financial services committee, she said, “will continue to focus on protecting retail investors as we recover from the pandemic.”
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The committee also approved on Wednesday the law allowing states to protect the elderly from bad actors, HR 5914, which would transfer responsibility for the administration of the grant program for the protection of senior investors established by section 989A of the Dodd-Frank Act from the Consumer Financial Protection Bureau to the Securities and Exchange Commission.
Presented by Representative Josh Gottheimer, DN.J., the bill, according to Waters, creates “a grant program within the Securities and Exchange Commission to strengthen the capacity of state securities regulators to protect the elderly and their retirement savings “.
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