SIFMA Calls on SEC to Modernize E-Delivery Rules

SIFMA urged the SEC to modernize its electronic delivery rules by making e-delivery the default and exempting securities disclosures from E-Sign’s written consent requirements.

In a letter to SEC Chair Paul Atkins, SIFMA emphasized that the SEC’s electronic delivery guidance—largely unchanged since the mid-1990s and complicated by overlapping E-Sign Act requirements—imposes unnecessary burdens on firms and creates confusion for investors. SIFMA pointed to widespread household internet access, near-universal mobile adoption, and strong investor support for e-delivery as clear evidence that modernization is overdue.

To align delivery rules with current market realities, SIFMA recommended that the SEC:

1. Make Electronic Delivery the Default. SIFMA proposed allowing firms to make e-delivery the default after a transition period with clear notice, while ensuring paper remains available on request. SIFMA argued that default e-delivery would speed access, cut costs, and better protect sensitive data.
2. Address duplicative requirements such as separate consent or receipt confirmations if delivery is made to a valid electronic address with monitoring in place. SIFMA urged flexibility for institutional investors through a "pull" model.
3. Make technology-neutral rules that support email, portals, apps, and future innovations with accessibility features such as translations and screen-reader compatibility.
4. Exempt Delivery Requirements from E-Sign. SIFMA asked the SEC to use its authority under the E-Sign Act to exempt securities law disclosure obligations from the statute’s written-consent process. SIFMA argued that the current multi-step system confuses investors, discourages adoption, and creates unnecessary compliance burdens. SIFMA said removing the mandate would simplify procedures, cut costs, and align securities disclosure rules with approaches already taken by other regulators. SIFMA underscored that such an exemption would not weaken investor protections but would instead eliminate a substantial barrier to electronic commerce.