SEC Sends Proposed Electronic Delivery Rule to White House

The Securities and Exchange Commission submitted its electronic delivery rule to the White House for final regulatory review that could change how investment funds deliver investor disclosures.

Electronic Delivery of Information Under the Federal Securities Laws was submitted this week to the Office of Information and Regulatory Affairs, the final stop in the federal rulemaking process before publication. While the filing offers no details about the proposal itself, its arrival at the OIRA signals the SEC is nearing a formal proposal on one of the asset management industry’s longest-running priorities.

SEC Chair Paul Atkins has made electronic delivery reform a regulatory objective since being confirmed in April 2025, directing SEC staff this year to develop a framework that would make digital delivery the default method for providing fund disclosures to investors. Agency officials have since indicated the proposal is expected to be technology-neutral, allowing firms to use evolving digital communication tools, rather than tying compliance to a single format or document type.

The initiative represents a shift from the SEC’s previous attempts to modernize investor communications. A decade ago, the commission abandoned a narrower proposal that would have required electronic delivery of shareholder reports after disputes over projected industry savings.

This time, regulators appear to be pursuing a broader overhaul.

Congress has also repeatedly considered, including during the current Congress, legislation establishing electronic delivery as the default for investment disclosures. A provision in the INVEST [Incentivizing New Ventures and Economic Strength Through Capital Formation] Act, which passed the House of Representatives but faces an uncertain future in the Senate, includes a provision to establish electronic delivery as the default for investment disclosures.

Decisions about paper or electronic statements are also being considered on the retirement front. A provision in the SECURE 2.0 Act of 2022, for example, requires retirement plans to provide at least one paper benefit statement per year for defined contribution plans and one every three years for defined benefit plans, starting with plan years that begin on or after January 1, 2026. Participants can still opt out of paper delivery in favor of electronic.

The Department of Labor proposed a rule earlier this year that would require the annual paper statement, but in response to industry concerns, the department vowed not to take enforcement action against plan administrators that comply in good faith with the proposed rule until the rule is finalized.

Industry groups have long pressed the SEC to replace paper delivery with a default electronic system, arguing mandatory paper mailings impose hundreds of millions of dollars in unnecessary printing and postage costs.

For example, the Securities Industry and Financial Markets Association and other industry groups wrote a letter to the Senate Committee on Banking asking for swift passage of the INVEST Act, insisting that a majority of retail investors prefer the communication method, citing survey data.

The bill includes several opportunities for investors to opt out and instead receive paper statements.

The Investment Company Institute estimated last year that a default e-delivery regime could save the industry as much as $800 million annually.

White House review typically lasts up to 90 days, although it can be extended once by an additional 30 days. Once completed, the SEC is expected to publish the proposal for public comment, a period that typically lasts between 30 and 60 days.