RIA Compliance Blog
The Securities and Exchange Commission recently proposed a new rule, Regulation E-Delivery, that looks to broaden the ability of financial industry professionals to deliver required compliance and regulatory information and documents to clients and proposed clients. If adopted, the proposed rule would modernize the regulatory framework by superseding the SEC’s current guidance for e-delivery while providing new requirements and conditions for electronic delivery.
As proposed, Reg E-Delivery addresses the e-delivery of “covered information” to a “covered recipient” by a registered investment adviser, broker-dealer, or mutual fund. A “covered recipient” would include customers, clients, and investors, or similarly positioned persons.[1]“Covered information” is defined as any information required to be delivered to a “covered recipient” under Federal securities law.
Reg E-Delivery proposes replacing traditional mail as the default method of delivery in certain circumstances. Subject to certain disclosure requirements, covered entities could rely on Reg E-Delivery to satisfy regulatory delivery obligations where the recipient has provided an email address, and the recipient has not opted out of electronic delivery.
How a covered entity is allowed to electronically deliver will depend on the nature of the information transmitted, namely, whether the information contains personal financial information (“PFI”). If the delivered information contains PFI, a covered entity would be limited to delivering a statement of availability electronically. The statement of availability would direct the recipient to a portal or website where the information could be safely accessed. If the delivered information was free from PFI, then the covered entity could deliver the information directly, such as an attachment to an email, or could provide a statement of availability.
Reg E-Delivery would create additional disclosures regarding the ability to receive paper versions of the information, the recipient’s ability to opt out of electronic delivery going forward, and would require direction for how the recipient could request updates free of charge. Reg E-Delivery does not propose to alter the timing of any delivery requirements and covered entities would still need to comply with any timing obligations set forth in the Federal securities laws. Additionally, covered entities would be required to adopt written policies and procedures to identify and addressed failed electronic delivery attempts and takes steps to remediate the failed delivery.
The public comment period is open for 60 days following the proposal of Reg E-Delivery. If adopted, Reg E-Delivery contains an 180-day process for covered entities to transition from paper delivery to electronic delivery. The transition process would require multiple written notices to be delivered prior to the transition with the notices containing certain provisions regarding the recipient’s abilities under Reg E-Delivery.
Parker MacIntyre provides legal and compliance services to investment advisers, broker-dealers, registered representatives, hedge funds, and issuers of securities, among others. Our Investment Adviser Group assists financial service providers with complex issues that arise in the course of their business, including complying with federal and state laws and rules. Please visit our Investment Adviser Practice Group page for more information.
[1] Electronic Delivery of Information Under the Federal Securities Laws, 56 C.F.R. pt. 240, 270, and 303 (proposed July 17, 2026), pp. 25