House Panel Passes E-Delivery Bill

By Melanie Waddell

News April 27, 2023 at 12:42 PM

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The long-awaited bipartisan legislation requiring the Securities and Exchange Commission to write a rule allowing financial firms to deliver their documents in digital format passed the House Financial Services Committee on Wednesday.

The bill, the Improving Disclosure for Investors Act, H.R. 1807, was introduced by Reps. Bill Huizenga, R-Mich., and Jake Auchincloss, D-Mass.

The Investment Company Institute applauded the bill's passage.

The bill "would modernize our capital markets by directing the SEC to permit financial firms to deliver regulatory documents to investors through electronic means," Eric Pan, president and CEO of ICI, said Thursday in a statement. "Recognizing this widespread preference would make it easier for investors to find the information most relevant to them."

E-delivery, Pan continued, "will make our disclosure framework more effective and improve the retail investment experience for millions of Americans. We thank the committee members for their support of this bill and look forward to seeing the legislation progress through the House of Representatives."

Fidelity Investments added in its own statement that the bill "would enable customers to receive critical investment documents in a more secure, accessible, engaging and less wasteful manner, while preserving choice and the option to receive paper for those who prefer it."

Fidelity said it looks forward to seeing the bill "continue to advance in Congress and become law."

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