The SEC has long had a policy that effectively prohibited public companies from requiring arbitration of shareholder claims under the Securities Act[1] and Securities Exchange Act.[2] Last month, the SEC announced a change to that policy. In its September 17, 2025 Policy Statement, the SEC stated that, effective September 19, 2025, “the presence of an issuer-investor mandatory arbitration provision will not impact decisions [on] whether to accelerate the effectiveness of a registration statement under the Securities Act.”

The SEC’s Policy Statement eliminates one of the most significant impediments to public companies requiring arbitration for securities claims. But it leaves unresolved several important issues concerning the viability and impact of issuer-investor arbitration clauses.  Continue Reading SEC Changes Policy on Issuer-Investor Arbitration Provisions With Important Implications for Securities Class Actions