Still No News on Whether the SEC Will Restrict Mandatory Pre-dispute Arbitration Under Section 921 of Dodd-Frank

As previously discussed here six months ago, Section 921 of the Dodd-Frank Act provided the Securities Exchange Commission (“SEC”) with the discretionary rulemaking authority to restrict mandatory pre-dispute arbitration.  Such restriction could have a profound impact on customer-broker disputes allowing investors to proceed in court rather than the FINRA forum.  Although Dodd-Frank is now approaching its 3 year anniversary, the SEC has yet to issue any rules on this issue.  According to the SEC’s website, the SEC rulemaking pursuant to Section 921 is still an “upcoming activit[y].”  So stay tuned.