On July 16, 2026, the Securities and Exchange Commission (SEC) proposed Regulation E-Delivery, which would allow registered funds, business development companies (BDCs), real estate investment trusts (REITs), investment advisers, broker-dealers, and other market participants to satisfy certain information delivery requirements under the federal securities laws through electronic delivery without first obtaining affirmative consent from investors or clients.
Applicable conditions would include the adoption of written policies and procedures reasonably designed to identify and remediate failed e-delivery and having an electronic address for the investor or client. If adopted, the proposal would make electronic delivery the default method for many required regulatory communications, while preserving the ability of investors and other recipients to request paper delivery.
A Shift from Consent-Based E-Delivery
Currently, required regulatory information is generally delivered in paper form unless the recipient affirmatively elects electronic delivery. The proposed rule would replace the SEC’s long-standing guidance-based e-delivery framework with a rule-based approach that sets out conditions for electronic delivery.
The SEC stated that the proposal is intended to make information more readily accessible to investors and reduce paper, printing, and postage costs for issuers, intermediaries, and investors.
Communications Covered by the Proposal
If adopted, the proposed rule would apply broadly to required regulatory information, including fund prospectuses, annual and semiannual shareholder reports, proxy statements, trade confirmations, Form CRS disclosures, and Form ADV Part 2 brochures.
Practical Implications for Funds and Market Participants
Regulation E-Delivery could materially reduce the operational burden and cost of delivering required investor communications by allowing electronic delivery to serve as the default method.
Funds, advisers, broker-dealers, and other market participants should evaluate how the proposed conditions apply to their existing disclosure delivery practices, particularly for recipients currently receiving paper materials.
The proposal also includes a transition process for investors and other recipients who currently receive regulatory disclosures in paper form. Under the proposed framework, those recipients would receive two paper notices advising them of the upcoming transition to electronic delivery and explaining their right to opt out and continue receiving paper communications.
Your Alston & Bird Investment Funds Group is available to help with any questions about the proposed Regulation E-Delivery.
If you have any questions, or would like additional information, please contact one of the attorneys on our Investment Funds team.
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