The Consumer Financial Protection Bureau (the “CFPB”) issued a final rule on July 10, 2017 that has received widespread attention. The rule, promulgated pursuant to section 1028(b) of the Dodd-Frank Act, generally regulates “arbitration agreements in contracts for specified consumer financial products and services.” More specifically, the rule prohibits the use of arbitration agreements by providers of certain financial products and services “to bar the consumer from filing or participating in a class action.” Despite the apparent wide sweep of the rule, it includes important exemptions for broker-dealers and investment advisers.
First, the rule expressly exempts from its prohibitions “broker-dealers and investment advisers, as well as their employees, agents, and contractors, to the extent regulated by the SEC.” Also, the rule exempts those “regulated by a State securities commissioner as a broker-dealer or investment adviser.” As a result of these exemptions, the use of arbitration agreements by broker-dealers and investment advisers will continue to be regulated by the SEC and state regulators. So far, the SEC has not exercised its authority under section 921 of the Dodd-Frank Act to restrict the use of arbitration agreements as the CFPB has done, and there is no indication it will do so soon.
 See e.g., Megan Leonhardt, Money Magazine, CFPB Just Issued a New Rule That Would Protect Consumers From Predatory Fine Print (July 11, 2017), available at http://time.com/money/4852123/cfpb-mandatory-arbitration-rule/; Maria LaMagna, MarketWatch, CFPB Announces Rule That Could Help Consumers Sue Financial Firms for Millions (July 11, 2017), available at http://time.com/money/4852123/cfpb-mandatory-arbitration-rule/; and Jessica Silver-Greenberg and Michael Corkery, The New York Times, U.S. Agency Moves to Allow Class-Action Lawsuits Against Financial Firms (July 10, 2017), available at https://www.nytimes.com/2017/07/10/business/dealbook/class-action-lawsuits-finance-banks.html.
 CFPB, Final Rule: Arbitration Agreements (July 10, 2017), available at https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/arbitration-agreements/ (hereinafter “Arbitration Rule”).
 Id. at p. 1.
 Id. at p. 478.
 Id. at p. 479.
 15 U.S.C. 78o(o) (authorizing the SEC to regulate broker-dealer arbitration agreements) and 15 U.S.C. 80b-5(f) (authorizing the SEC to regulate investment adviser arbitration agreements).