SEC's E-Delivery Modernization Could Save Investors Billions
The Investment Company Institute (ICI) has endorsed the SEC’s proposal to make electronic delivery of shareholder information the default method, calling it a necessary update that aligns with modern investor behavior. The shift is expected to save billions in costs for funds and their shareholders over five years while preserving investors' right to choose paper delivery at no cost. The ICI supports key elements such as reasonable safeguards for personal data and steps to address failed electronic deliveries, but also recommends enhancements like allowing online access as equivalent to direct delivery. The organization highlights that 88% of fund investors support e-delivery when given the option to request physical copies free of charge. These changes are expected to reduce operational costs, minimize environmental impact from paper waste, and improve overall investor experience. The ICI also urged the SEC to reform processing fee structures currently inflating delivery costs for funds. The organization is calling on regulators to finalize the rule swiftly so that investors can begin realizing these benefits as soon as possible.
