A new report from the Investment Company Institute has found that investors overwhelmingly prefer the electronic delivery of financial documents.
The survey, Americans’ Views on E-Delivery of Financial Documents, found that investors prefer e-delivery and feel the practice provides significant cost savings both for funds and for investors. Investors’ confidence in, reliance on, and experience with technology and electronic communication support a policy change from the Securities and Exchange Commission (SEC) to allow for financial documents to be delivered electronically as the default delivery method.
“E-delivery of financial documents to investors is consistent with how Americans receive, analyze and communicate information in all other parts of their lives in the 21st century. E-delivery makes information-sharing more timely, accessible, and efficient,” ICI president & CEO Eric Pan said. “We urge policymakers to deliver this commonsense policy change and make available its full benefits to investors.”
The survey found that 88 percent of fund investors agreed that e-delivery as a default, but allowing for paper documents if requested was a good idea. Investors 65 and older supported e-delivery default by 87 percent. And 79 percent of fund investors who reported they only receive paper copies of financial documents supported an e-delivery default. About 70 percent of fund investors preferred e-delivery regardless of the document type.
The majority of Americans said they already receive documents electronically and engage online, with 84 percent of fund investors saying they receive at least some of their financial documents electronically and 96 percent of fund investors engaging online to make car, restaurant, hotel or plane reservations, and 93 percent engaging in online banking.
The Improving Disclosure for Investors Act introduced by U.S. Reps. Bill Huizenga (R-MI), Brad Sherman (D-CA), Bryan Steil (R-WI) and Jake Auchincloss (D-MA) directs the SEC to permit financial firms to make delivery of regulatory documents to investors through electronic means the default.