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SEC flips delivery default
The Securities and Exchange Commission proposed Regulation E-Delivery on July 16, 2026 to make electronic delivery the default method for many required investor communications under federal securities laws.
“The Securities and Exchange Commission (SEC) on Thursday proposed Regulation E-Delivery, a new law that would allow issuers, broker-dealers, and investment advisors to use electronic delivery for information delivery requirements under federal securities law”
Under the proposal, issuers, broker-dealers, investment advisers and other regulated entities could satisfy delivery requirements by electronically providing required documents without first obtaining affirmative consent, while preserving investors’ ability to continue receiving paper copies upon request.
SEC Chair Paul Atkins said, "Today, the Commission took an important step toward allowing the financial services industry to harness technology for the benefit of everyday American investors," describing the move as a step toward "a regulatory framework suitable for the modern era."
The SEC said the change would generally supersede its decades-old guidance-based approach to electronic delivery and that the proposal would be open for public comment for 60 days after publication in the Federal Register.
The proposal would also include a transition process requiring two paper notices before recipients currently on paper are moved to e-delivery by default.
Costs, safeguards, and opt-out
The SEC framed the proposal as a way to reduce paper, printing and postage expenses, saying electronic delivery could provide investors with "more timely, interactive and personalized disclosures" while cutting costs for issuers and market intermediaries.
The rule would flip the current standard by requiring an opt-out for electronic communications, with registrants able to rely on e-delivery when they have provided an electronic address, made a prominent disclosure, and the investor has not opted out.
For disclosures that include personal financial information, the SEC proposal would require a "statement of availability" so the information is provided as a notice that it is available electronically in a manner reasonably designed to safeguard the PFI.
The National Law Review described the SEC’s approach as not adopting an "access equals delivery" model, instead allowing a firm to default to e-delivery only if it discloses the types of information, informs investors of the electronic address, and the investor has not opted out.
When delivery fails, the SEC proposal would require written policies and procedures to identify and remediate failed delivery, including watching for bounce-backs and other signals that an electronic address is invalid.
Industry pushback and impact
The American Forest & Paper Association warned that the SEC’s Regulation E-Delivery proposal would represent a major shift away from paper as the default for critical financial disclosures and said it is "deeply concerned by today's proposal."
“The Securities and Exchange Commission is floating a rule that would flip the default method for sending investors their required disclosures, moving the industry away from paper mailings and toward electronic delivery as the standard practice”
AF&PA argued that for "seniors, rural communities and individuals with limited or unreliable digital access," paper is not a preference but "an essential, trusted and secure way to receive and retain important information."
In contrast, the Investment Company Institute said the proposed digital shift would replace an outdated paper-based framework and that its research shows funds and their shareholders could save $3 billion to $4 billion over five years from transitioning to e-delivery.
ICI President and CEO Eric J. Pan said, "The vast majority of fund shareholders, including 87% of seniors, support this regulatory change," and the rule would align disclosure requirements with how Americans prefer to receive information in the 21st century.
The SEC’s proposal would also exempt covered information from the consumer-consent requirements of the federal E-SIGN Act and would rescind Rule 30e-3 under the Investment Company Act of 1940, according to InvestmentNews.
