H.R. 9462: Investor Choice Act of 2026

This bill would change federal securities laws to limit the use of mandatory arbitration clauses in agreements between certain financial firms and their customers or shareholders.

What it would do

• It would make it unlawful for broker-dealers, funding portals, municipal securities dealers, and investment advisers to use contracts that require customers or clients to settle future disputes through arbitration.
• It would also prohibit agreements that limit a customer’s or client’s ability to:
  • choose the forum where a dispute is heard, or
  • bring claims individually, in a representative capacity, or as part of a class or consolidated action.
• For public companies, it would prevent a stock exchange from listing a security if the issuer’s bylaws, governing documents, or shareholder contracts require arbitration for disputes between the issuer and shareholders.
• It would make existing contract terms void if they conflict with the new rules, except that arbitration already started before the bill’s enactment could continue.
• The new rules would generally apply to agreements entered into, modified, or extended after the bill becomes law.

Plain-English effect

In practical terms, the bill would give investors and clients more freedom to decide whether they want to use arbitration or go to court when they have a dispute with a broker, investment adviser, or issuer. It would stop firms from requiring arbitration in advance as a condition of doing business under the covered securities laws.

Relevant Companies

• GS — Goldman Sachs, as a broker-dealer and investment adviser, could need to revise customer agreements that include mandatory arbitration provisions.
• MS — Morgan Stanley, as a major broker-dealer and wealth manager, could be affected by restrictions on mandatory arbitration in client agreements.
• BLK — BlackRock, as an investment adviser, could need to change client contract terms if they include covered arbitration clauses.
• SCHW — Charles Schwab, as a broker-dealer and financial services firm, could be affected by limits on arbitration provisions in customer agreements.
• IBKR — Interactive Brokers, as a brokerage firm, could need to update agreements with customers if they require mandatory arbitration.