A bipartisan group of lawmakers has introduced a bill in the House allowing investment companies to deliver regulatory documents to investors electronically.
The Improving Disclosure for Investors Act is sponsored by U.S. Reps. Bill Huizenga (R-MI), Jake Auchincloss (D-MA), Bryan Steil (R-WI), and Wiley Nickel (D-NC).
“The Improving Disclosure for Investors Act is a commonsense reform that is designed to modernize disclosure requirements and bring them into the modern era,” Huizenga said. “By allowing disclosures through electronic means, it will reduce costs and increase efficiency while still providing investors the ability to continue with paper delivery if that is their preferred method.”
Currently, the Securities and Exchange Commission (SEC) permits the electronic delivery of certain documents under federal securities laws, subject to certain requirements. However, the SEC has not comprehensively updated this framework in over 20 years.
“This commonsense, bipartisan legislation is the next step in the decades-long process of modernizing the SEC’s electronic delivery rules while providing strong investor protections. This pro-business bill puts an end to the enormous amount of waste from paper being sent through the mail just to be thrown away. I’m thrilled to join Rep. Huizenga in co-leading this bill,” Nickel said.
Last week, the SEC announced a proposal that would require electronic submissions for nearly all forms, filings, and other materials.
“We live in an increasingly digital world. Investors want easier access to their disclosure documents. Our public policies have failed to keep up with the speed of business. The Improving Disclosures to Investors Act acknowledges that electronic disclosures are often the preferred option for investors. This is a commonsense solution to modernize a dated policy,” Steil said.