Electronic delivery would replace paper as default for investor documents

What does this do?

The bill would make email and websites the standard way financial firms deliver required documents, such as prospectuses, account statements, trade confirmations, proxy statements, and privacy notices. The SEC would have 180 days to propose rules and one year to finalize them, and it would have to update any rules requiring documents to be sent "in writing." The bill does not change what documents must be sent or when.

Who does it affect?

The bill mainly affects people who own mutual funds, stocks, or other investments through brokers, investment advisers, and funds, and the firms that serve them. Stock exchanges and industry self-regulatory groups would also have to update their rules.

Why does it matter?

Investors who prefer paper would need to opt out to keep receiving it, which could matter for people without reliable internet access or email. Investors now getting paper mail would first receive a paper letter, then a transition period of up to 180 days, then yearly paper reminders for up to two years that they can switch back.

What does it cost, and who pays?

• Firms could save on printing
• Firms could save on mailing