Electronic Delivery of Information Under the Federal Securities Laws
Key claim: The SEC proposes Regulation E-Delivery so covered entities can satisfy federal securities-law delivery requirements by electronic means without first obtaining affirmative consent, subject to specified conditions, while rescinding the alternative investment-company shareholder-report transmission rule and amending proxy and tender-offer dissemination rules.
Abstract
(Proposed Rule · Securities and Exchange Commission) The Securities and Exchange Commission (the “SEC” or the “Commission”) is proposing Regulation E-Delivery. The proposed rule sets forth conditions for covered entities to deliver covered information to covered recipients electronically without first obtaining their affirmative consent. The proposed rule further establishes conditions under which the Commission would consider delivery requirements under the Federal securities laws to be satisfied by electronic delivery. The Commission also is proposing to rescind the rule providing alternative means for registered investment companies to satisfy shareholder report transmission requirements, and to amend rules addressing the dissemination of proxy materials and tender offer materials.
Why this matters
Electronic delivery has long required affirmative investor consent under SEC guidance from the 1990s; flipping the default to e-delivery would materially reduce printing and mailing costs for funds, issuers, and intermediaries while shifting the burden onto investors who prefer paper. The rescission of the fund shareholder-report transmission rule and amendments to proxy and tender-offer dissemination mechanics also touch core investor communications, so the proposal reshapes how retail investors receive disclosures across the securities-law framework.