Proposal Directing SEC to Allow Electronic Delivery Reintroduced in Senate
Senator Thom Tillis (R-NC) and several cosponsors have reintroduced the Improving Disclosure for Investors Act. The bill would require the Securities and Exchange Commission (SEC) to issue guidance allowing the delivery of regulatory documents by electronic delivery. Investors would be able to opt out of electronic delivery at any time and receive paper versions of regulatory documents.
The proposal directs the SEC to issue regulations updating electronic delivery rules within one year of enactment. The rules would require that investors who do not receive all regulatory documents by electronic delivery be provided with
- A delivery of an initial communication in paper form regarding electronic delivery
- A transition period not to exceed 180 days until such regulatory documents are delivered to such investors by electronic delivery
- And during a period not to exceed two years following the transition period, delivery of an annual notice in paper form solely reminding such investors of the ability to opt out of electronic delivery at any time and receive paper versions of regulatory documents
Regulatory documents include such things as prospectuses, annual and semi-annual reports to investors, proxy statements, privacy notices, confirmations and account statements, and other regulatory documents required to be delivered by covered entities to investors under the securities laws and rules and regulations of the SEC and self-regulatory organizations.
