Svmuu News: The U.S. Securities and Exchange Commission (SEC) announced a proposed rule, “Regulation E-Delivery,” which aims to expand the use of electronic means for securities disclosure and allow issuers, broker-dealers, investment advisors, and other institutions to provide investors with regulatory information via electronic channels by default.
Under the proposal, electronic delivery will become the default method for transmitting securities information, while investors will retain the right to request paper documents upon request.
Currently, U.S. securities regulatory documents are typically still sent in paper form unless investors explicitly opt for electronic receipt. The SEC’s proposal will change this model; provided certain conditions are met, institutions will be able to use electronic delivery without first obtaining the investor’s explicit consent.
Regulation E-Delivery covers a wide range of information, including: prospectuses for mutual funds and other issuers; annual and semi-annual shareholder reports for mutual funds; proxy statements; trade confirmation documents; Form CRS investor relationship disclosures; and Form ADV Part 2 investment advisor prospectuses, among others.
The SEC states that electronic delivery not only improves the efficiency of information access but also enhances investors’ ability to access, retain, and interact with disclosure documents.
For investors who currently still receive regulatory documents in paper form, the SEC proposes to establish a transition mechanism. If an investor is to be switched to electronic delivery, the firm must send two paper notices informing the investor of the transition arrangements and the option to opt out of electronic delivery. The proposal will be open for a 60-day public comment period following its publication in the Federal Register.