In a major policy reversal, the Securities and Exchange Commission has said it will no longer block stock market listings for businesses that require disputes to be settled through arbitration rather than the courts.
The move, unveiled on Wednesday, is part of chair Paul Atkins’ push to “make IPOs great again” by cutting compliance costs and reducing legal exposure.
Atkins argued that fewer hurdles would encourage more companies to list in the United States, while Commissioner Hester Peirce said investors could decide for themselves how to price in mandatory arbitration.