US SEC Proposes New Electronic Delivery Rules to Fully Digitize Securities Information Disclosure

Odaily Odaily News The U.S. Securities and Exchange Commission (SEC) has announced the proposal of new Regulation E-Delivery rules, aiming to expand the use of electronic methods for delivering securities information. This would allow issuers, broker-dealers, and investment advisors to provide regulatory-required information to investors through electronic channels by default.

According to the proposal, electronic delivery would become the default method for transmitting securities information in the future, while retaining the right of investors to actively request physical paper documents.

Currently, U.S. securities regulatory documents are typically still sent in paper form unless investors explicitly choose to receive them electronically. This SEC proposal would change that model; under certain conditions, institutions could adopt electronic delivery without obtaining the investor's explicit consent in advance.

Regulation E-Delivery covers a wide range of information, including: prospectuses for funds and other issuers; annual and semi-annual shareholder reports for funds; proxy statements; trade confirmations; Form CRS investor relationship disclosures; and Form ADV Part 2 investment advisor brochures, among others.

The SEC stated that electronic delivery can not only improve the efficiency of information access but also enhance investors' ability to access, preserve, and interact with disclosure documents.

For investors who currently still receive paper regulatory documents, the SEC proposes a transition mechanism. If an investor is to be switched to electronic delivery, institutions must send two paper notices informing them of the conversion arrangement and their option to opt out of electronic delivery. The proposal will be open for a 60-day public comment period after it is published in the Federal Register.