This bill mandates the Securities and Exchange Commission (SEC) to establish rules for the electronic delivery of regulatory documents to investors. The SEC must propose these rules within 180 days and finalize them within one year of the Act's enactment, allowing various financial entities to satisfy their disclosure obligations electronically. The rules promulgated by the SEC must include several key investor protections. For investors who do not initially receive documents electronically, there must be an initial paper communication about electronic delivery, followed by a transition period not exceeding 180 days. Additionally, for up to two years after the transition, an annual paper notice must remind investors of their continuous ability to opt out and receive paper versions of documents at any time. Further requirements for the SEC's rules include setting standards for the content of initial communications and notices of website availability. The rules must also mandate measures to identify and remediate failed electronic deliveries , establish minimum readability and retainability standards for electronic documents, and ensure confidentiality of personal information for certain covered entities. Importantly, if the SEC fails to finalize the rules within the specified timeframe, covered entities are permitted to proceed with electronic delivery in accordance with the bill's provisions, which will be deemed to satisfy their regulatory obligations. The bill defines covered entities broadly to include investment companies, brokers, dealers, investment advisers, and other registered financial entities. Regulatory documents encompass a wide range of disclosures such as prospectuses, annual and semi-annual reports, proxy statements, and privacy notices. The Act also directs the SEC to review and amend existing rules to allow "in writing" requirements to be met electronically and requires self-regulatory organizations to adopt consistent rules.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-136.
Finance and Financial Sector
Business recordsComputers and information technologyCorporate finance and managementSecurities
Improving Disclosure for Investors Act of 2025
USA119th CongressHR-2441| House
| Updated: 6/4/2025
This bill mandates the Securities and Exchange Commission (SEC) to establish rules for the electronic delivery of regulatory documents to investors. The SEC must propose these rules within 180 days and finalize them within one year of the Act's enactment, allowing various financial entities to satisfy their disclosure obligations electronically. The rules promulgated by the SEC must include several key investor protections. For investors who do not initially receive documents electronically, there must be an initial paper communication about electronic delivery, followed by a transition period not exceeding 180 days. Additionally, for up to two years after the transition, an annual paper notice must remind investors of their continuous ability to opt out and receive paper versions of documents at any time. Further requirements for the SEC's rules include setting standards for the content of initial communications and notices of website availability. The rules must also mandate measures to identify and remediate failed electronic deliveries , establish minimum readability and retainability standards for electronic documents, and ensure confidentiality of personal information for certain covered entities. Importantly, if the SEC fails to finalize the rules within the specified timeframe, covered entities are permitted to proceed with electronic delivery in accordance with the bill's provisions, which will be deemed to satisfy their regulatory obligations. The bill defines covered entities broadly to include investment companies, brokers, dealers, investment advisers, and other registered financial entities. Regulatory documents encompass a wide range of disclosures such as prospectuses, annual and semi-annual reports, proxy statements, and privacy notices. The Act also directs the SEC to review and amend existing rules to allow "in writing" requirements to be met electronically and requires self-regulatory organizations to adopt consistent rules.