Our recent Client Alert discusses the SEC’s newly issued Policy Statement clarifying that mandatory arbitration provisions in a company’s governing documents will not delay the effectiveness of registration statements for securities offerings. This marks a shift in the SEC’s approach; previously, concerns were expressed that such provisions were potentially inconsistent with the federal securities laws. The Policy Statement indicates the SEC’s view that these arbitration provisions do not conflict with federal securities laws and emphasizes that the staff will focus on the adequacy of disclosures about such provisions in considering whether to take a registration statement effective. Additionally, it highlights the interplay between federal and state laws regarding the enforceability of arbitration agreements, advising companies to consult legal experts on potential implications.