07.16.26

SEC Proposes E-Delivery as Default

by: Patrick Donachie

The U.S. Securities and Exchange Commission (SEC) has proposed making electronic delivery the default method for providing regulatory documents to investors, replacing the current paper-first approach. Under the proposal, broker-dealers, investment advisors and other registrants could send required disclosures electronically without prior consent, provided investors receive clear notice, supply an electronic address and have the option to opt out and request free paper copies. Sensitive personal financial information would require secure access through a statement of availability rather than direct email. SEC Chair Paul Atkins said the change would reduce printing and mailing costs, lower expenses for investors and modernize communications. The proposal is open for public comment for 60 days before any final rule is adopted.

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