On September 17, 2025, the SEC issued a Policy Statement stating that the presence of a mandatory arbitration provision in a corporation’s governing documents will not affect decisions about accelerating effectiveness of registration statements.

In the Press Release announcing the policy, Chairman Paul S. Atkins stated:

“While many people will express views on whether a company should adopt a mandatory arbitration provision, the Commission’s role in this debate is to provide clarity that such provisions are not inconsistent with the federal securities laws.”

You can read a thoughtful discussion about the policy statement, including a historical perspective about merit versus disclosure regulation, in this blog post by Gary Brown of Nelson Mullins Riley & Scarborough titled “Blame FDR, not Atkins, for the SEC’s Policy Statement on Arbitration Provisions.”

Gary is also a SEC Institute workshop leader and chairs PLI’s Understanding the Securities Law conference.

As always, your thoughts and comments are welcome!