HR2441-119

What This Bill Does

The Improving Disclosure for Investors Act of 2025 directs the Securities and Exchange Commission to propose rules within 180 days and finalize them within one year so covered securities entities can satisfy required investor-document delivery obligations electronically. The bill makes electronic delivery a compliant method for documents required under securities laws, but it also requires an initial paper communication, a transition period of no more than 180 days for investors who are not already receiving all documents electronically, annual paper reminders for up to two years, an opt-out mechanism for paper copies, failed-delivery remediation, readability and retainability standards, and confidentiality measures for covered entities outside the core broker, adviser, and investment-company categories.

Who Benefits and How

Investment companies, broker-dealers, registered investment advisers, transfer agents, funding portals, and similar covered entities benefit from lower printing, mailing, and paper-handling costs for prospectuses, shareholder reports, account documents, proxy materials, privacy notices, and other regulatory documents. Retail investors who prefer digital communications benefit from faster delivery and online access to documents. The SEC benefits from a clear statutory mandate to modernize disclosure delivery rules and review remaining written-delivery requirements. Self-regulatory organizations benefit from conforming rule changes that align exchange and industry rules with electronic delivery.

Who Bears the Burden and How

The Securities and Exchange Commission must write and finalize electronic-delivery rules on a statutory deadline, review its existing rules for written-document requirements, and coordinate conforming changes. Self-regulatory organizations must review and revise rules that require paper or written delivery. Covered entities must manage initial paper notices, opt-out requests, website availability notices, failed electronic deliveries, readability and retention standards, and privacy protections. Retail investors who prefer paper must use the opt-out process and otherwise transition to electronic delivery after the notice period.

Key Provisions

• Requires the SEC to propose electronic-delivery rules within 180 days and finalize them within one year.
• Allows covered securities entities to satisfy regulatory document delivery obligations through electronic delivery.
• Requires initial paper communication, a transition period, and annual paper opt-out reminders for investors not already receiving all documents electronically.
• Provides an investor opt-out right to receive paper documents at any time.
• Requires failed-delivery remediation, readability, retainability, and confidentiality measures.
• Directs the SEC and self-regulatory organizations to review and revise rules that still require written or paper delivery.