SEC to modernize disclosure delivery; investors keep paper option
S. 1877 — Improving Disclosure for Investors Act of 2025 · Filed by Thom Tillis (R-NC) · 10 cosponsors · Introduced May 22, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill directs the SEC to create rules allowing investment firms, brokers, advisers, and other securities entities to deliver required regulatory documents (prospectuses, account statements, proxy statements, privacy notices, etc.) to investors electronically instead of on paper. Firms must give investors an initial paper notice, a transition period of up to 180 days, and the right to opt out and receive paper copies at any time. The SEC has 180 days to propose rules and one year to finalize them.
Why we flagged it
The bill modernizes how securities firms deliver mandatory disclosures by permitting electronic methods while preserving investor choice and substantive protections. It is a procedural efficiency measure, not a deregulation or carve-out.
What the text implies
- Firms may reduce paper-delivery infrastructure costs significantly; investors who do not actively opt out will receive documents electronically by default after transition period, shifting burden of choice to investor action rather than firm action.
- SEC must review all existing rules requiring 'written' delivery and amend them to permit electronic satisfaction; this broad review could affect disclosure rules beyond those explicitly named in the bill.
The full analysis lists 4 implications of this text.
Who stands to gain
investment companies and mutual funds; broker-dealers; registered investment advisers