Bill > S1877

This bill directs the Securities and Exchange Commission (SEC) to develop comprehensive rules for the electronic delivery of regulatory documents by financial entities, known as "covered entities" (which include investment companies, brokers, dealers, investment advisers, and other financial service providers). The bill requires the SEC to propose rules within 180 days and finalize them within one year, establishing a framework that allows these entities to deliver documents electronically while protecting investor interests. Specifically, the rules must include provisions for initial paper communication about electronic delivery, a transition period for investors, an opt-out mechanism, measures to identify failed electronic deliveries, and minimum standards for document readability and retention. The bill also mandates that the SEC review and update existing rules to accommodate electronic delivery, ensuring that self-regulatory organizations align their regulations accordingly. Importantly, the proposed rules aim to modernize document delivery methods while maintaining investor protections, allowing more efficient communication between financial entities and investors through digital platforms. The bill explicitly preserves the substance and timing of existing regulatory document requirements and provides a flexible approach to electronic document transmission that respects both technological advancements and investor preferences.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/1877/all-info