#USA #Washington #Investment Company Institute #E-Delivery #Financial Disclosures

Investors Embrace Electronic Delivery for Financial Disclosures

A recent survey conducted by the Investment Company Institute (ICI) reveals a strong preference among investors for the electronic delivery of financial documents. As Congress and the Securities and Exchange Commission (SEC) contemplate new regulations that could facilitate this shift, the results highlight the growing alignment between modern technology use and investor expectations.

According to ICI’s findings, a substantial 88% of investors believe that electronic delivery, provided that individuals can still request paper documents at no charge, should be the standard option. This sentiment rings especially true among older investors, with 87% of those aged 65 and above supporting the proposal. Even among those who exclusively received paper documents, 79% expressed approval for transitioning to electronic formats. The data strongly suggests that nearly 70% of fund investors prefer electronic delivery regardless of the document type.

The ongoing push for e-delivery of financial documents is not just a convenience; it serves to enhance investor protections and streamline communication processes. Eric Pan, ICI's President and CEO, emphasized that adopting e-delivery aligns with how most Americans currently interact with information. “E-delivery makes information-sharing more timely, accessible, and efficient,” Pan stated, urging policymakers to recognize the logical benefits of this shift.

The survey itself, conducted in July 2025, utilized the AmeriSpeak® research panel, a well-curated sample designed to represent American households. Out of 1,132 participants, the data gathered from 400 mutual fund or ETF investors provides comprehensive insights into current investor behavior. Notably, 84% reported receiving at least some financial documents electronically, illustrating an established precedent for digital communication in financial matters. Furthermore, the data shows that a staggering 96% engage in online bookings for services such as restaurants, hotels, and travel, while 93% utilize online banking.

The legislative context further complicates this landscape. The Improving Disclosure for Investors Act of 2025, spearheaded by Congressman Bill Huizenga and supported by several co-sponsors, aims to authorize the SEC to permit electronic delivery of financial disclosures as the standard method. This legislative movement is critical, as it promises not only to modernize outdated systems but also to uphold the recommendations made in ICI's report, Reimagining the 1940 Act Key Recommendations for Innovation and Investor Protection. The report advocates for adapting regulatory frameworks to better meet need with the rapid pace of technological advancement.

The proactive steps toward e-delivery are indicative of a broader trend toward digitization across sectors, suggesting that financial institutions must quickly adapt to improve service deliverables. Given the overwhelming support from the investor community and the technological infrastructures already in place, the potential for a complete transition to e-delivery holds significant promise for enhancing investor experience and awareness.

In conclusion, the findings support the notion that as we navigate further into the digital age, adopting electronic communication in financial disclosures not only aligns with investor preferences but could very well set a new standard for efficiency and transparency in the market. It is crucial that the SEC and lawmakers heed these findings to realize the full benefits of electronic delivery and to cultivate a more informed and engaged investor base moving forward.