North Charlotte Today

Senators Thom Tillis and John Hickenlooper have brought forth the Improving Disclosure for Investors Act of 2024, a bipartisan bill aimed at modernizing investor disclosure practices. The legislation mandates the Securities and Exchange Commission (SEC) to propose rules that would enable the electronic delivery of regulatory documents to investors.

Senator Tillis emphasized the importance of updating disclosure requirements, stating, "U.S capital markets have embraced the digital age... it is past time that we bring disclosure requirements into the 21st century."

Echoing this sentiment, Senator Hickenlooper highlighted the necessity of adapting to the digital era, asserting, "Cutting red tape is as simple as going paperless."

Fidelity Investments praised the bipartisan effort, with a spokesperson stating, "In the 21st century American investors deserve a more engaging, secure, and timely standard to receive information... This legislation preserves the right of retail investors to receive paper, and provides robust consumer protections through any transition to eDelivery."

Charles Schwab also commended the Senators for their work on the legislation, noting that default e-delivery is long overdue and aligns with the preferences of a majority of investors.

The Investment Company Institute (ICI) lauded the Improving Disclosure for Investors Act of 2024, emphasizing that it will allow millions of investors to receive information electronically, in line with their preferences. ICI CEO and President Eric J. Pan urged Congress to pass the legislation promptly.

Similarly, the Securities Industry and Financial Markets Association (SIFMA) expressed support for electronic delivery becoming the default means for delivering investor communications, while still offering the option of paper delivery for those who prefer it.

The bipartisan legislation addresses the need for the SEC to update its framework for electronic document delivery, which has not been comprehensively revised in over 20 years. The bill would give investors the ability to opt out of electronic delivery and receive paper documents at any time.

The full text of the bill can be accessed for further details and information.