NASAA Announces Support for Investor Choice Act of 2019

The North American Securities Administrators Association, Inc. (NASAA) announced its support for the Investor Choice Act of 2019 (S. 2992) in a June 2020 letter to the bill’s sponsor, United States Senator Jeff Merkley. NASAA is made up of securities administrators in all 50 states, Canada, and Mexico. NASAA describes its mission as protecting consumers who purchase securities or investment advice. Its members have authority to investigate investor complaints, enforce state securities laws, and educate investors about their rights.

The Investor Choice Act would prohibit broker-dealers and other investment industry professionals from including mandatory arbitration requirements and prohibitions on class action lawsuits in contracts that many investor customers enter into to receive investment services. These provisions in customer agreements force investors to give up important legal rights to work with a financial professional. Arbitration requirements mean investors give up the right to bring claims in court and have a judge or jury resolve the dispute. Class action waivers make it difficult or impossible for investors with small or relatively small claims to obtain relief because the costs of individual cases often are greater than the potential recovery. For many investors who are the victims of fraud or other financial misconduct but who have relatively small claims, class action waivers mean that the defendant will never be held accountable for illegal acts.

For more information, this link will bring you to the text of the Investor Choice Act. Click here to learn more about NASAA.

This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon Investments.

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Cody Berne

Cody Berne is an attorney at Stoll Berne in Portland. Cody’s practice focuses on representing investors who lost money because of fraud and other misconduct, class actions, and business litigation. He is a member of the Public Investors Advocate Bar Association and the Oregon Trial Lawyers Association.


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Legal Disclaimer

The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.