A bill introduced in the Senate yesterday would make electronic delivery the default for investor communications.
The “Improving Disclosure for Investors Act of 2025” was introduced by Senator Thom Tillis (R-NC) and is backed by a bipartisan group of senators, including John Hickenlooper (D-CO), Mike Rounds (R-SD), Jeanne Shaheen (D-NH), Ted Budd (R-NC), Gary Peters (D-MI) and Katie Britt (R-AL).
A companion bill in the House has already advanced through the House Financial Services Committee and is making its way to the House floor.
The bill would require the Securities and Exchange Commission (SEC) to propose rules establishing e-delivery as the default for shareholder disclosure documents. But it stipulates that investors should still be able to opt out of e-delivery and receive paper documents at any time they choose.
“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 in a press release.
A survey conducted by the Securities Industry and Financial Markets Association (SIFMA), which supports the bill, found that 85% of investors would be comfortable with default e-delivery, and the support is high across age groups, including seniors.
e-delivery would save companies money, by reducing expenses associated with printing, mailing and archiving paper materials. Advocates say those savings would then be passed on to participants.
It would also be more eco-friendly, reducing the amount of paper the industry uses each year. According to the Environmental Paper Network, which voiced support for the bill, paper delivery of investor documents results in 830 million printed pages every year, which consumes 101,000 trees and produces the emissions equivalent of nearly 7,000 cars.
Advocates also say e-delivery is faster and more convenient for consumers, many of whom are already accustomed to managing their finances online.
Several other organizations have come forward in support of the bill, including Charles Schwab, LPL Financial and Fidelity Investments.
“Default e-delivery is long-overdue, as a large majority of investors prefer the speed and convenience of receiving documents electronically.”
Charles Schwab statement
“E-delivery has been shown to be a more secure, effective, and timely way to receive critical investment information,” Fidelity said in a statement. “We look forward to continuing to work with Congress and the SEC to advance this common-sense reform.”
“Default e-delivery is long-overdue, as a large majority of investors prefer the speed and convenience of receiving documents electronically,” Charles Schwab said in a statement. “E-delivery allows Schwab to deliver our products at lower cost, avoids waste, and is environmentally friendly.”
LPL Financial noted in a statement that disclosures can be available on demand, interactive, and are easier to navigate. “The visually impaired and savers whose first language is not English can benefit from features of digital communications, including translation options. And for those who want paper delivery, the ability to receive one at any point assures continued access.”
The Investment Company Institute (ICI) is also in favor of the bill, calling it a big step forward for modernization and applauding the senators who are backing the bill.
“Their leadership in enhancing the retail investment experience will make U.S. capital markets even stronger,” Eric J. Pan, ICI president and CEO, said in a statement. “We urge the swift passage of this legislation.”
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Corey Dahl is assistant editor with PropertyCasualty360.com. Previously, Corey was the editor of Colorado Builder magazine andS enior Manager of Content Strategy & Development at Charles Schwab.