Senators introduce bill promoting e-delivery of investment documents

investmentnews.com:

It may only be a bill about digitally delivering financial information, but at least it’s a step in a bipartisan direction. Sens. Thom Tillis, R-N.C., and John Hickenlooper, D-Colo., introduced the measure, Improving Disclosure for Investors Act of 2024, in the Senate Thursday. The bipartisan legislation, which has already been introduced in the House, requires the Securities and Exchange Commission to propose new rules allowing for the electronic delivery of regulatory documents to investors.

“U.S. capital markets have embraced the digital age and rely on far less paper now than they did 20 years ago, and it is past time that we bring disclosure requirements into the 21^st century,” Sen. Tillis said in a statement. “This commonsense legislation will heighten efficiency and cut down on paper while preserving investors’ ability to receive hard copies.”

Sen. Hickenlooper echoed Tillis’ comments from across the aisle, saying, “Today’s economy runs in the digital age, and we need to catch up. Cutting red tape is as simple as going paperless.”

The SEC currently permits electronic delivery of certain documents, subject to requirements that a registrant provides notice that the information is available electronically, the investor has adequate access to such information, and the registrant either obtains evidence to show actual delivery or obtains informed consent from the investor. In other words, there’s an “opt-in” requirement.

That said, the SEC has not seriously updated this framework in over two decades. The legislation introduced into the Senate this week requires the SEC establish a means for investors to “opt out” of electronic delivery at any time and receive paper documents.

Jonathan Swanburg, president of TSA Wealth