Investor Arbitration Talk ‘Worthwhile’ But No Priority: Clayton

By Andrew Ramonas

Prohibiting shareholder lawsuits against companies is “worthwhile to discuss” but isn’t a short-term priority for the SEC, Chairman Jay Clayton said March 8.

Clayton, an independent appointed by President Donald Trump, said he doesn’t have a “definitive view” on whether the Securities and Exchange Commission should alter its longstanding policy against allowing mandatory arbitration clauses in initial public offerings. The chairman’s remarks at an SEC Investor Advisory Committee meeting are his latest effort to rein in recent talk that the commission may act soon on the matter.

“This is a complex issue that invokes divergent and deeply ...