U.S. SEC Proposes New E-Delivery Rules to Drive Full Digitalization of Securities Information Disclosure

Odaily Odaily reports that 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 in securities information disclosure. The rules would allow issuers, broker-dealers, investment advisers, and other entities to default to providing regulatory-required information to investors through electronic channels.

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

Currently, U.S. securities regulatory documents are typically delivered in paper form unless investors have explicitly opted for electronic receipt. The SEC's proposal would change this model: under certain conditions, institutions would be able to adopt electronic delivery without first obtaining explicit investor consent.

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

The SEC stated that electronic delivery not only enhances the efficiency of information access but also improves investors' ability to access, retain, and interact with disclosure documents.

For investors who 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 following its publication in the Federal Register.