Improving Disclosure for Investors Act of 2025
This bill requires the Securities and Exchange Commission (SEC) to propose and finalize rules to allow entities to deliver regulatory documents to investors electronically. The SEC must establish a mechanism for investors to opt out of electronic delivery and receive paper documents instead. If the SEC does not finalize rules within one year after enactment, the bill allows for electronic delivery of these documents.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2441 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2441
To provide for the electronic delivery of certain regulatory document
required under the securities laws.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 27, 2025
Mr. Huizenga (for himself, Mr. Sherman, Mr. Steil, and Mr. Auchincloss)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To provide for the electronic delivery of certain regulatory document
required under the securities laws.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Disclosure for Investors
Act of 2025''.
SEC. 2. ELECTRONIC DELIVERY.
(a) Promulgation of Rules.--Not later than 180 days after the date
of the enactment of this section, the Securities and Exchange
Commission shall propose and, not later than 1 year after the date of
the enactment of this section, the Commission shall finalize, rules,
regulations, amendments, or interpretations, as appropriate, to allow a
covered entity to satisfy the entity's obligation to deliver regulatory
documents required under the securities laws to investors using
electronic delivery.
(b) Required Provisions.--Rules, regulations, amendments, or
interpretations the Commission promulgates pursuant to subsection (a)
shall:
(1) With respect to investors that do not receive all
regulatory documents by electronic delivery, provide for--
(A) delivery of an initial communication in paper
form regarding electronic delivery;
(B) a transition period not to exceed 180 days
until such regulatory documents are delivered to such
investors by electronic delivery; and
(C) during a period not to exceed 2 years following
the transition period set forth in subparagraph (B),
delivery of an annual notice in paper form solely
reminding such investors of the ability to opt out of
electronic delivery at any time and receive paper
versions of regulatory documents.
(2) Set forth requirements for the content of the initial
communication described in paragraph (1)(A).
(3) Set forth requirements for the timing of delivery of a
notice of website availability of regulatory documents and the
content of the appropriate notice described in subsection
(f)(3)(B).
(4) Provide a mechanism for investors to opt out of
electronic delivery at any time and receive paper versions of
regulatory documents.
(5) Require measures reasonably designed to identify and
remediate failed electronic deliveries of regulatory documents.
(6) Set forth minimum requirements regarding readability
and retainability for regulatory documents that are delivered
electronically.
(7) For covered entities other than brokers, dealers,
investment advisers registered with the Commission, and
investment companies, require measures reasonably designed to
ensure the confidentiality of personal information in
regulatory documents that are delivered to investors
electronically.
(c) Rule of Construction.--Nothing in this section shall be
construed as altering the substance or timing of any regulatory
document obligation under the securities laws or regulations of a self-
regulatory organization.
(d) Treatment of Revisions Not Completed in a Timely Manner.--If
the Commission fails to finalize the rules, regulations, amendments, or
interpretations required under subsection (a) before the date specified
in such subsection--
(1) a covered entity may deliver regulatory documents using
electronic delivery in accordance with subsections (b) and (c);
and
(2) such electronic delivery shall be deemed to satisfy the
obligation of the covered entity to deliver regulatory
documents required under the securities laws.
(e) Other Required Actions.--
(1) Review of rules.--The Commission shall--
(A) within 180 days of the date of enactment of
this Act, conduct a review of the rules and regulations
of the Commission to determine whether any such rules
or regulations require delivery of written documents to
investors; and
(B) within 1 year of the date of enactment of this
Act, promulgate amendments to such rules or regulations
to provide that any requirement to deliver a regulatory
document ``in writing'' may be satisfied by electronic
delivery.
(2) Actions by self-regulatory organizations.--Each self-
regulatory organization shall adopt rules and regulations, or
amend the rules and regulations of the self-regulatory
organization, consistent with this Act and consistent with
rules, regulations, amendments, or interpretations finalized by
the Commission pursuant to subsection (a).
(3) Rule of application.--This subsection shall not apply
to a rule or regulation issued pursuant to a Federal statute if
that Federal statute specifically requires delivery of written
documents to investors.
(f) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the
Securities and Exchange Commission.
(2) Covered entity.--The term ``covered entity'' means--
(A) an investment company (as defined in section
3(a)(1) of the Investment Company Act of 1940 (15
U.S.C. 80a-3(a)(1))) that is registered under such Act;
(B) a business development company (as defined in
section 2(a) of the Investment Company Act of 1940 (15
U.S.C. 80a-2(a))) that has elected to be regulated as
such under such Act;
(C) a registered broker or dealer (as such terms
are defined, respectively, in paragraphs (4) and (5) of
section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)));
(D) a registered municipal securities dealer (as
defined in section 3(a)(30) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a)(30)));
(E) a registered government securities broker or
government securities dealer (as such terms are
defined, respectively, in paragraphs (43) and (44) of
section 3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)));
(F) a registered investment adviser (as defined in
section 202(a)(11) of the Investment Advisers Act of
1940 (15 U.S.C. 80b-1(a)(11)));
(G) a registered transfer agent (as defined in
section 3(a)(25) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)(25))); or
(H) a registered funding portal (as defined in the
second paragraph (80) of section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a))).
(3) Electronic delivery.--The term ``electronic delivery'',
with respect to regulatory documents, includes--
(A) the direct delivery of such regulatory document
to an electronic address of an investor;
(B) the posting of such regulatory document to a
website and direct electronic delivery of an
appropriate notice of the availability of the
regulatory document to the investor; and
(C) an electronic method reasonably designed to
ensure receipt of such regulatory document by the
investor.
(4) Regulatory documents.--The term ``regulatory
documents'' includes--
(A) prospectuses meeting the requirements of
section 10(a) of the Securities Act of 1933 (15 U.S.C.
77j(a));
(B) summary prospectuses meeting the requirements
of--
(i) section 230.498 of title 17, Code of
Federal Regulations; or
(ii) section 230.498A of title 17, Code of
Federal Regulations;
(C) statements of additional information, as
described under section 270.30e-3(h)(2) of title 17,
Code of Federal Regulations;
(D) annual and semi-annual reports to investors
meeting the requirements of section 30(e) of the
Investment Company Act of 1940 (15 U.S.C. 80a-29(e));
(E) notices meeting the requirements under section
270.19a-1 of title 17, Code of Federal Regulations;
(F) confirmations and account statements meeting
the requirements under section 240.10b of title 17,
Code of Federal Regulations;
(G) proxy statements meeting the requirements under
section 240.14a-3 of title 17, Code of Federal
Regulations;
(H) privacy notices meeting the requirements of
Regulation S-P under subpart A of part 248 of title 17,
Code of Federal Regulations;
(I) affiliate marketing notices meeting the
requirements of Regulation S-AM under subpart B of part
248 of title 17, Code of Federal Regulations; and
(J) all other regulatory documents required to be
delivered by covered entities to investors under the
securities laws and the rules and regulations of the
Commission and the self-regulatory organizations.
(5) Securities laws.--The term ``securities laws'' has the
meaning given the term in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)).
(6) Self-regulatory organization.--The term ``self-
regulatory organization'' means--
(A) a self-regulatory organization, as defined in
section 3(a)(26) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)(26)); and
(B) the Municipal Securities Rulemaking Board.
(7) Website.--The term ``website'' means an internet
website or other digital, internet, or electronic-based
information repository, such as a mobile application, to which
an investor of a covered entity has been provided reasonable
access.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 39 - 11.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-136.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-136.
Placed on the Union Calendar, Calendar No. 105.
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