U.S. Sen. Thom Tillis (R-NC) on Feb. 27 unveiled bipartisan legislation that would move the Securities and Exchange Commission’s (SEC’s) default communications standard from paper to paperless by permitting the electronic delivery of certain required disclosure documents.
“U.S. capital markets have embraced the digital age and rely on far less paper now than they did 20 years ago, and it is past time that we bring disclosure requirements into the 21st century,” Sen. Tillis said. “This common-sense legislation will heighten efficiency and cut down on paper while preserving investors’ ability to receive hard copies.”
Currently, the SEC allows the eDelivery 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, according to a bill summary provided by Sen. Tillis’ staff.
However, the SEC has not comprehensively updated this framework in over 20 years, the summary says.
Sen. Tillis sponsored the Improving Disclosure for Investors Act of 2024, S. 3815, alongside lead original cosponsor U.S. Sen. John Hickenlooper (D-CO) to require that the SEC promulgate rules that would allow the eDelivery of regulatory documents to investors.
“Today’s economy runs in the digital age and we need to catch up,” said Sen. Hickenlooper. “Cutting red tape is as simple as going paperless.”
The legislation, which has been endorsed by Fidelity Investments, Charles Schwab, the Investment Company Institute, and the Securities Industry and Financial Markets Association, is under consideration by the U.S. Senate Banking, Housing, and Urban Affairs Committee.