U.S SEC Moves to Make Digital Investor Notices the New Default

The U.S. Securities and Exchange Commission (SEC) on Thursday, proposed a new rule that could make electronic delivery the default way investors receive important financial information. 

According to the official release, this proposal, called Regulation E-Delivery, would affect issuers, broker-dealers, investment advisers, and other financial market participants in the United States. 

The SEC said the rule would make information easier to access by allowing digital delivery without first getting investor consent, while still allowing people to request paper documents. 

A shift from paper to digital delivery

The proposal is reportedly expected to change how companies currently send required information to investors. 

Under the existing system, documents are generally sent on paper unless a person first agrees to receive them electronically. If the new rule is adopted, firms would be able to send several required disclosures electronically by default, as long as they follow the conditions set by the regulator. 

The SEC said the proposed rule is designed to reflect how people now use technology to receive and find information. Investors already use digital platforms for many parts of their daily lives, and the agency believes financial disclosures can also be delivered in a way that is quicker and easier to access. 

Electronic delivery could also give investors a better way to interact with important information. Digital documents can be easier to search, store, access, and keep for future use. The SEC said electronic delivery could also support more timely, personalized, interactive, and efficient ways of providing disclosures compared with paper documents. 

More investor documents could go digital

According to the release, the proposal would cover a wide range of information that investors receive from financial firms and issuers. 

This includes fund and other issuer prospectuses, annual and semi-annual shareholder reports, proxy statements, trade confirmations, Form CRS disclosures, and Form ADV Part 2 brochures. 

The SEC expects lower delivery costs

The SEC also expects to move away from paper to reduce some costs. Companies and financial market intermediaries could spend less on paper, printing, and postage. The agency said these savings could eventually benefit investors. It also argued that the current paper-first system can create costs linked to a delivery method that may no longer match how many people prefer to receive information. 

SEC Chairman Paul S. Atkins said the proposal would help the financial services industry make better use of modern technology when communicating with investors.

“In an age of artificial intelligence and blockchain technology, a default to paper delivery should be a relic, not a standard,” Atkins said.

Investors can still choose paper

Investors who currently receive required information by mail would also have a transition period. Under the proposal, people who would be moved to electronic delivery would receive two paper notices. These notices would explain the planned change and tell recipients that they can choose to continue receiving information on paper.

The proposed rule would generally replace the SEC’s decades-old, guidance-based approach to electronic delivery. Instead of companies needing to get permission before switching from paper to digital delivery, the proposal would create a clearer system for electronic delivery while keeping paper available to those who request it.

The public will have 60 days to submit comments after the proposal is published in the Federal Register. The SEC will review the feedback before deciding whether to adopt the rule.

If approved, Regulation E-Delivery would mark a major change in how required financial information reaches investors. The system would move from paper being the starting point to digital delivery becoming the default, while still giving investors the choice to receive important documents in paper form.

SEC also prepares wider crypto rules

Meanwhile, the regulator is also working on a broader crypto regulatory framework. It is preparing a proposal on crypto assets as Congress continues work on the CLARITY Act.

Per to the agency’s recent regulatory agenda, the SEC’s Division of Corporation Finance is considering rules on the offer and sale of crypto assets, with a proposed rule targeted for July 2026.

Also Read: Patrick McHenry Explains Why the US Needs CLARITY Act