Proposal Directing SEC to Allow Electronic Delivery Advances Out of Committee

A bill introduced by Congressman Bill Huizenga (R-MI), has been passed out of the House Financial Services Committee. H.R. 1807, the Improving Disclosure for Investors Act of 2023, 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 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.