SEC eyes e-delivery as the default over paper

An SEC proposal would make paperless distribution of investor material the default method of delivery.

Regulation E-Delivery proposes conditions under which issuers, broker-dealers, investment advisers, and others could electronically deliver information to investors required under federal securities laws without first obtaining affirmative consent.

The proposal, according to a news release, includes a transition process for investors and others who now receive regulatory information in paper format. Under the proposed rule, recipients would receive two paper notices if they are being transitioned to e-delivery, including information about how to opt out of e-delivery. The change would allow the SEC to take “another stride toward a regulatory framework suitable for the modern era, a key pillar of my agenda,” SEC Chairman Paul Atkins said in the release. “In an age of artificial intelligence and blockchain technology, a default to paper delivery should be a relic, not a standard.”

E-delivery offers more personalized, interactive, timely, and efficient experiences than paper delivery, along with savings in paper, printing, and postage costs, the SEC said. 

Public comment on the proposal will remain open for 60 days following publication in the Federal Register.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.