Kristen Malinconico
Senior Director, Center for Capital Markets Competitiveness, U.S. Chamber of Commerce
Published
April 17, 2025
In today’s fast-paced world, digital platforms have become essential for everyday tasks. From filing taxes to managing retirement plans, online solutions offer convenience and efficiency. Yet, it is long overdue for the Securities and Exchange Commission (SEC) to modernize its investment disclosure requirements to keep pace with the digital shift.
The Chamber supports H.R. 2441, the Improving Disclosure for Investors Act, a bipartisan bill sponsored by Representatives Bill Huizenga (R-MI), Brad Sherman (D-CA)*, Bryan Steil (R-WI)*, and Jake Auchincloss (D-MA)*, directing the SEC to adopt e-delivery as the default while allowing an opt-in for paper. This bill includes thoughtfully considered safeguards to ensure a smooth transition and protect investors.
Why e-delivery matters. Traditional mail delivery is increasingly outdated and inefficient with respect to investor communications. The Department of Labor (DOL), Social Security Administration, and Thrift Savings Plan have all adopted e-delivery as the default for communication with investors. According to the IRS, 95% of tax returns are e-filed, further showcasing how important online platforms have become for essential tasks.
Whereas retirement plans subject to DOL rules moved to e-delivery in 2020, the SEC still requires investment companies under its authority to send paper copies of disclosures unless investors opt for e-delivery. In today’s quick-moving economy, it is more important than ever for investors to receive timely communications regarding their savings. E-delivery improves investor involvement with savings, encourages active investment management, and provides customizable, clear information. Additionally, e-delivery is a better choice to protect investors from a rise in mail fraud.
Clearing up misconceptions. Despite the clear advantages to investors, opponents of e-delivery cling to the misconception that funds will not accommodate investors’ preference for paper statements. The legislation provides for a generous two-year transition period and clearly instructs the SEC that paper statements must remain an option for investors who prefer paper. A customer who does not have an e-mail address on file will receive a paper statement. In addition, investment companies will be required to remediate failed electronic deliveries.
Action. As Paul Atkins, now the SEC’s new Chairman, stated five years ago, e-delivery is “long overdue.” Modernizing investor disclosures at the SEC is a commonsense reform that will benefit investors through more timely, secure, and accessible communications. We encourage Congress to pass this legislation and for the SEC to prioritize this important policy improvement in its new agenda. The investor demand for e-delivery has only increased.
(* original co-sponsors)
About the author
Kristen Malinconico
Kristen Malinconico is Senior Director for the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness. She leads the Center’s portfolios for asset management, derivatives, and fiduciary issues.
