Regulatory Alerts2025-09-19 | 2025-18238Added
Acceleration of Effectiveness of Registration Statements of Issuers With Certain Mandatory Arbitration Provisions
The Securities and Exchange Commission issued a policy statement declaring that the presence of an issuer-investor mandatory arbitration provision will not impact decisions to accelerate the effectiveness of registration statements under the Securities Act. The Commission determined that the Federal Arbitration Act favors such provisions and that federal securities statutes do not override this federal policy, meaning the staff will not deny acceleration based solely on the inclusion of an arbitration clause. Consequently, when reviewing acceleration requests, the staff will focus exclusively on the adequacy of the registration statement's disclosures, including those regarding the arbitration provision itself.
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