Bill Overview
Title: Investor Justice Act of 2022
Description: This bill establishes grants for investor advocacy clinics. To qualify, clinics associated with a law school or a tax-exempt organization must provide free legal representation to investors with securities arbitration and mediation claims pending before a registered national securities association.
Sponsors: Sen. Cortez Masto, Catherine [D-NV]
Target Audience
Population: Retail investors with securities arbitration and mediation claims
Estimated Size: 200000
- The bill targets investors engaging in securities arbitration and mediation claims.
- These individuals typically fall under retail investors rather than institutional investors, as institutions would likely seek private legal recourse.
- The focus is on those who cannot afford legal representation, indicating lower to middle-income investors.
- There are numerous individual investors across global markets, especially in developed economies.
- Retail investors are prominent in countries with active stock markets like the USA and other G20 nations.
Reasoning
- The Investor Justice Act targets individual retail investors involved in securities arbitration who cannot afford legal representation.
- Many of these individuals are likely financially savvy but may struggle with the complexities of securities law and processes.
- The policy will have a varying degree of impact based on the complexity of the cases and the personal circumstances of the investors.
Simulated Interviews
School Teacher (Chicago, IL)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I don’t have the resources to fight a big brokerage firm on my own.
- If I could get legal help, I might actually have a chance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Retired (Miami, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Having professional legal support would greatly ease my stress and effort in pursuing this claim.
- I can’t afford to lose more money on legal fees without a guarantee of success.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 3 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Software Developer (New York, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- Accessing free legal aid means I can hold my brokerage accountable without affecting my savings for legal fees.
- It's reassuring to know there might be support for people like me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 0 | 0 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Freelance Graphic Designer (San Francisco, CA)
Age: 52 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- The stress of managing an arbitration without proper legal advice weighs heavy.
- Having law school clinics available would be a relief.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 0 | 0 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Junior Financial Analyst (Austin, TX)
Age: 28 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- I’m wary of entering legal disputes because they seem daunting.
- Free legal assistance would help me resolve issues more confidently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 0 | 0 |
| Year 5 | 0 | 0 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Independent Filmmaker (Los Angeles, CA)
Age: 41 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Legal help would be invaluable in promoting ethically aware investment practices.
- Currently feel a bit outmatched by the financial institution.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 0 | 0 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Healthcare Worker (Seattle, WA)
Age: 48 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- Clarity and support in legal matters would lessen my anxiety and financial strain.
- I don’t have much disposable income for legal battles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 0 | 0 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Construction Worker (Denver, CO)
Age: 55 | Gender: male
Wellbeing Before Policy: 3
Duration of Impact: 8.0 years
Commonness: 2/20
Statement of Opinion:
- Legal aid from the clinics would help me reclaim some dignity and possibly my lost funds.
- I’ve felt hopeless in pursuing this case.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 5 | 3 |
| Year 3 | 4 | 3 |
| Year 5 | 0 | 0 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Retired Teacher (Boston, MA)
Age: 67 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 6.0 years
Commonness: 3/20
Statement of Opinion:
- Being able to access legal support would be a huge relief as it levels the playing field somewhat.
- I’ve felt ignored by the investment firm.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Accountant (Houston, TX)
Age: 30 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- I believe in resolving issues on my own, but free legal help would certainly offload some burden.
- It would give me more confidence against well-resourced platforms.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 0 | 0 |
| Year 5 | 0 | 0 |
| Year 10 | 0 | 0 |
| Year 20 | 0 | 0 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $52000000 (Low: $42000000, High: $62000000)
Year 3: $54000000 (Low: $44000000, High: $64000000)
Year 5: $57000000 (Low: $47000000, High: $67000000)
Year 10: $61000000 (Low: $50000000, High: $72000000)
Year 100: $61000000 (Low: $50000000, High: $72000000)
Key Considerations
- Number of eligible clinics could affect overall budget demands.
- Potential for grant renewal and adjustments over time will impact long-term costs.
- Variation in investor claim activities year-over-year may influence demand for clinic services.