U.S. Sen. Thom Tillis (R-NC) recently proposed a bipartisan bill that would set electronic delivery as the default means for delivering investor communications, while giving investors the power to choose paper delivery if preferred.
“U.S capital markets have embraced the digital age and rely on far less paper now than they did 25 years ago, and it is past time that we bring disclosure requirements into the 21st century,” Sen. Tillis said on Monday. “Nearly 80 percent of surveyed Americans already utilize electronic delivery and this common-sense legislation will heighten efficiency and cut down on unwanted paper while still preserving investors’ ability to receive printed hard copies if they wish.”
Currently, the Securities and Exchange Commission (SEC) permits electronic delivery of certain documents, subject to requirements that a registrant provides notice that the information is available electronically, the investor has adequate access to such information, and the registrant either obtains evidence to show actual delivery or obtains informed consent from the investor.
However, the SEC has not updated this framework in more than 20 years.
If enacted, the Improving Disclosure for Investors Act of 2025, S. 1877, would require the SEC to establish a means for investment disclosure documents to be delivered electronically by default, while still providing a clear pathway for investors to opt out of e-delivery and revert to paper documents at any time, according to Sen. Tillis’ staff.
The lawmaker sponsored S. 1877 on May 22 alongside six original cosponsors, including U.S. Sens. John Hickenlooper (D-CO) and Mike Rounds (R-SD).
“Today’s economy runs in the digital age, and we need to catch up,” said Sen. Hickenlooper, the bill’s lead original cosponsor. “Cutting red tape is as simple as going paperless.”
The measure has garnered support from the Securities Industry and Financial Markets Association, the Investment Company Institute, Fidelity Investments, Charles Schwab, LPL Financial, and the Environmental Paper Network