The U.S. Securities and Exchange Commission (SEC) has proposed a new rule, Regulation E-Delivery, that would allow issuers, brokers, and investment advisers to deliver required securities disclosures electronically by default, the agency announced on July 17. The move aims to modernize and digitalize how investors receive key information, replacing paper-based defaults with electronic delivery.
Scope of the proposal
The proposed rule covers a wide range of mandatory disclosures, including fund prospectuses, annual and semi-annual shareholder reports, proxy statements, trade confirmations, Form CRS investor relationship disclosures, and Form ADV Part 2 advisory brochures. If adopted, investors would automatically receive these documents via electronic channels unless they specifically request paper copies.
Public comment period
The proposal is set to be published in the Federal Register, after which the SEC will open a 60-day public comment period. Market participants and investors are invited to provide feedback before the rule can be finalized. The SEC's initiative reflects a broader push toward digital transformation in financial regulation, aiming to reduce costs and improve access to information.