SEC Proposes Making Electronic Delivery Default for Investor Documents, 60-Day Comment Period Begins

The US Securities and Exchange Commission proposed today making electronic delivery the default method for sending regulatory documents to investors, replacing the current paper-based system. Under the proposed Regulation E-Delivery, issuers, broker-dealers and investment advisers could deliver disclosures electronically without first obtaining investor consent, though investors retain the right to receive paper copies free of charge.

The proposal applies to a broad range of documents including prospectuses, proxy statements, trade confirmations and adviser brochures. For sensitive documents containing personal financial information, firms would provide secure electronic notifications rather than sending data directly by email. Existing investors currently receiving paper communications would receive two advance notices before the transition to digital delivery, allowing them to opt out. The SEC opened a 60-day public comment period following Federal Register publication.