(The Center Square) – The Securities and Exchange Commission would need to propose rules that allow for the default electronic delivery of regulatory documents to investors if a North Carolinian’s proposal in the U.S. Senate becomes law.
Improving Disclosure for Investors Act of 2025, known also as Senate Bill 1877, is the product of Sen. Thom Tillis, R-N.C., three Republicans and three Democrats. The Securities and Exchange Commission, Tillis says, hasn’t updated its opt-in requirement in 20 years while transitions globabally have gone the route of paperless.
The legislation 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 electronic delivery and revert to paper documents at any time,” the senator says.
A statement from Charles Schwab says, “Default e-delivery is long-overdue, as a large majority of investors prefer the speed and convenience of receiving documents electronically. E-delivery allows Schwab to deliver our products at lower cost, avoids waste, and is environmentally friendly.”
Republican Sens. Ted Budd of North Carolina, Mike Rounds of South Dakota and Katie Britt of Alabama, and Democratic Sens. John Hickenlooper of Colorado, Jeanne Shaheen of New Hampshire and Gary Peters of Michigan were integral to the bill’s evolution.
“Today’s economy runs in the digital age, and we need to catch up,” Hickenlooper said. “Cutting red tape is as simple as going paperless.”
Tillis agreed.
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“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,” Tillis said. “Nearly 80% of surveyed Americans already utilize electronic delivery and this commonsense legislation will heighten efficiency and cut down on unwanted paper while still preserving investors’ ability to receive printed hard copies if they wish.”
The legislation is in the Committee on Banking, Housing, and Urban Affairs.