📑SEC Regulates Impact of Arbitration Provisions on Registrations
Acceleration of Effectiveness of Registration Statements of Issuers With Certain Mandatory Arbitration Provisions
Summary
The Securities and Exchange Commission ("Commission") is issuing this statement to inform the public that the presence of a provision requiring arbitration of investor claims arising under the Federal securities laws will not impact decisions regarding whether to accelerate the effectiveness of a registration statement. Accordingly, when making such decisions, the staff will focus on the adequacy of the registration statement's disclosures, including disclosure regarding the arbitration provision.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The regulation establishes a significant policy for the Securities and Exchange Commission (SEC) stating that the inclusion of mandatory arbitration provisions will not affect the acceleration of registration statements. This allows businesses to proceed with registrations without fear and ensures that their disclosures are adequate, which impacts their financial strategies.