In response to a letter sent by Democrats on the House Financial Services Committee, Securities and Exchange Commission Chairman Jay Clayton has committed to holding a public vote by the full Commission on any decision regarding the inclusion of forced arbitration clauses in corporate governance documents.
“While I’m pleased that Chairman Clayton took my letter so seriously, and wrote a detailed response, I’m still very disappointed that he has not committed to opposing the use of forced arbitration clauses in company bylaws should this come up for a Commission vote,” Rep. Carolyn Maloney (D-N.Y.), a co-author of the initial correspondence, said in reaction to Clayton’s April 24 response.
