Investor Choice Act of 2024

The Investor Choice Act of 2024 prohibits brokers, dealers, and investment advisers from requiring investors to use mandatory arbitration or waive class action rights in contracts. It amends key securities laws (the Securities Exchange Act, Securities Act, and Investment Advisers Act) to ban clauses that force disputes into arbitration or restrict court access. Existing agreements with such clauses become void unless arbitration was already initiated before the law passed. This directly affects retail investors and financial firms by ensuring investors can choose between arbitration and court, and pursue class actions when appropriate.