FINRA Transitions to E-Delivery Framework for Investor Communications

The FINRA Board of Governors approved rule updates permitting member firms to establish electronic delivery ("e-delivery") as the default method for mandated investor communications.

In a blog post, FINRA President and CEO Robert Cook explained that under the "FINRA Forward" modernization initiative, the new framework reflects shifting investor preferences and technological advancements. He noted that while federal securities laws historically necessitated an "opt-in" model for electronic communications, recent data—including findings from the FINRA Foundation’s National Financial Capability Study—indicate that a majority of investors now prefer digital disclosures. Mr. Cook said this action aligns with similar shifts by the Department of Labor and the Social Security Administration toward digital-first communication.

Mr. Cook highlighted that the transition offers benefits such as timely access to information, reduced waste, and enhanced security against mail theft. He emphasized, however, that the framework preserves investor choice; firms using the default model must provide customers with appropriate notice, the opportunity to opt for paper delivery, and procedures to remediate failed electronic deliveries. 

Mr. Cook clarified that the updated guidance applies specifically to FINRA rules and is optional for member firms, who may continue existing delivery practices if preferred. He stated that FINRA plans to file the proposed rule changes with the SEC and publish a Regulatory Notice to implement the framework. He noted that if the SEC separately permits e-delivery as a default, firms would be permitted to follow SEC guidance for FINRA compliance purposes.