The U.S. SEC proposes new electronic delivery rules to drive full digitization of securities information disclosure

ME News message, July 16 (UTC+8), the U.S. Securities and Exchange Commission (SEC) announced the proposal of a new Regulation E-Delivery rule. The rule plans to expand the scope of electronic methods in securities information disclosures, allowing institutions such as issuers, brokers, and investment advisers to, by default, provide investors with information required by regulations through electronic channels.

Under the proposal, future electronic delivery will become the default method for transmitting securities information, while also preserving investors’ right to proactively request paper documents. At present, U.S. securities regulatory filings are generally still sent in paper form unless investors explicitly choose to receive them electronically. This SEC proposal will change that model: under relevant conditions, institutions would not need to obtain investors’ explicit consent in advance before adopting electronic delivery.

Regulation E-Delivery covers a broad range of information, including: prospectuses for funds and other issuers; funds’ annual and semiannual shareholder reports; shareholder proxy voting statements (Proxy Statements); trade confirmation documents; Form CRS investor relationship disclosures; Form ADV Part 2 adviser brochures, and more. The SEC said that electronic delivery not only improves the efficiency of obtaining information, but also enhances investors’ experience with accessing, saving, and interacting with disclosure documents.

For investors who are still receiving paper regulatory documents, the SEC proposes setting up a transition mechanism. If an investor is converted to electronic delivery, institutions must send two paper notices to inform them of the conversion arrangements and the 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. (Source: ODAILY)