Investor Choice Act of 2026
Sponsored By: Representative Foster, Bill [D-IL-11]
Introduced
Summary
The Investor Choice Act of 2026 would end mandatory pre-dispute arbitration in many securities relationships. The bill targets contract clauses that force shareholders, investors, or clients into arbitration instead of allowing court or collective actions.
Show full summary
- Shareholders and issuers: It would bar a security from being listed or registered if the issuer's bylaws, governing documents, or any shareholder contract requires arbitration for issuer-shareholder disputes.
- Broker and dealer customers: It would make it unlawful for brokers, dealers, funding portals, and municipal securities dealers to enter into, modify, or extend customer agreements that mandate arbitration or limit a customer's choice of forum. Provisions in pre-existing agreements are void, except for arbitrations already started before enactment.
- Investment adviser clients: It would prohibit investment advisers from using agreements that mandate arbitration or restrict a client's ability to bring individual, representative, or class claims. Prior agreements with those clauses are void, with the same exception for ongoing arbitrations.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
No listings that force shareholder arbitration
If enacted, this would bar a national securities exchange from listing, and the SEC from registering, any security whose issuer requires shareholder disputes to go to pre-dispute arbitration. The ban would cover arbitration clauses in bylaws, governing documents, or shareholder contracts. This restriction would apply with respect to agreements entered into, modified, or extended after the date of enactment. Investors would keep access to court-based lawsuits and collective claims against issuers.
Ban on forced arbitration for customers
If enacted, this would make it unlawful for brokers, dealers, funding portals, municipal securities dealers, and investment advisers to put mandatory pre-dispute arbitration clauses in new or changed customer or client agreements. You would be able to choose court-based options, individual lawsuits, or class or representative actions instead. For agreements made before the law, arbitration clauses would be void unless arbitration was already started on or before the date of enactment. The rule would apply to agreements entered into, modified, or extended after the date of enactment.
Sponsors & CoSponsors
Sponsor
Foster, Bill [D-IL-11]
IL • D
Cosponsors
Rep. Velázquez, Nydia M. [D-NY-7]
NY • D
Sponsored 6/25/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov