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SEC won’t bar arbitration mandates in IPOs

SEC Chair Paul Atkins.
SEC Chair Paul Atkins. Photo: Anna Moneymaker/Getty Images

The move to easing the IPO registration processes comes as appointees of the Trump administration embrace a business-friendly stance.

The SEC has historically blocked or discouraged initial public offerings (IPOs) that have mandatory arbitration provisions in their registration statements. That is about to change, thanks to a policy statement issued by the agency.

Companies seeking to go public can now force shareholders to resolve lawsuits through arbitration rather than