Key facts
- The SEC proposed a rule to allow electronic delivery of investor disclosures.
- The change aims to make information more accessible and align with current technology.
- Companies would no longer need investor consent for electronic delivery.
- The proposal is subject to a two-month public comment period.
The U.S. Securities and Exchange Commission (SEC) has proposed a new rule that would permit the electronic delivery of investor disclosures. This initiative is intended to make information more accessible to investors, brokerages, and investment fund advisers, aligning with the current technological landscape.
SEC Chairman Paul Atkins stated that a default to paper delivery should be a relic in an era of advanced technologies like artificial intelligence and blockchain. Currently, companies must obtain consent before providing disclosures electronically. The proposed rule would shift this default, allowing companies to offer e-delivery without explicit prior consent, potentially leading to cost savings.
The proposal is now open for a two-month notice-and-comment period, during which the public can submit feedback before a final decision is made on the rule.