HR2441-119

1. Short title This Act may be cited as the Improving Disclosure for Investors Act of 2025.

2. Electronic delivery 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. Rules, regulations, amendments, or interpretations the Commission promulgates pursuant to subsection (a) shall: With respect to investors that do not receive all regulatory documents by electronic delivery, provide for— delivery of an initial communication in paper form regarding electronic delivery; a transition period not to exceed 180 days until such regulatory documents are delivered to such investors by electronic delivery; and 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. Set forth requirements for the content of the initial communication described in paragraph (1)(A). 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 (g)(3)(B). Provide a mechanism for investors to opt out of electronic delivery at any time and receive paper versions of regulatory documents. Require measures reasonably designed to identify and remediate failed electronic deliveries of regulatory documents. Set forth minimum requirements regarding readability and retainability for regulatory documents that are delivered electronically. 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. Section 101(c) of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001(c)) shall not apply with respect to a regulatory document delivered in accordance with this section. 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. If the Commission fails to finalize the rules, regulations, amendments, or interpretations required under subsection (a) before the date specified in such subsection— a covered entity may deliver regulatory documents using electronic delivery in accordance with subsections (b) and (c); and such electronic delivery shall be deemed to satisfy the obligation of the covered entity to deliver regulatory documents required under the securities laws. The Commission shall— 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 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. 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). This subsection shall not apply to a rule or regulation issued pursuant to a Federal statute if that Federal statute specifically requires delivery of paper documents to investors. In this section: The term Commission means the Securities and Exchange Commission. The term covered entity means— 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; 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; 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))); 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))); 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))); 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))); 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 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))). The term electronic delivery, with respect to regulatory documents, includes— the direct delivery of such regulatory document to an electronic address of an investor; the posting of such regulatory document to a website, and direct delivery of an appropriate notice of the availability of the regulatory document to an electronic address of the investor; or any other electronic method reasonably designed to ensure receipt of such regulatory document by the investor. The term regulatory documents includes— prospectuses meeting the requirements of section 10(a) of the Securities Act of 1933 (15 U.S.C. 77j(a)); summary prospectuses meeting the requirements of— section 230.498 of title 17, Code of Federal Regulations; or section 230.498A of title 17, Code of Federal Regulations; statements of additional information, as described under section 270.30e–3(h)(2) of title 17, Code of Federal Regulations; 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)); notices meeting the requirements under section 270.19a–1 of title 17, Code of Federal Regulations; confirmations and account statements meeting the requirements under section 240.10b of title 17, Code of Federal Regulations; proxy statements meeting the requirements under section 240.14a–3 of title 17, Code of Federal Regulations; privacy notices meeting the requirements of Regulation S–P under subpart A of part 248 of title 17, Code of Federal Regulations; affiliate marketing notices meeting the requirements of Regulation S–AM under subpart B of part 248 of title 17, Code of Federal Regulations; and 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. 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)). The term self-regulatory organization means— 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 the Municipal Securities Rulemaking Board. The term website means an internet website or other digital, internet, or electronic-based information repository, including a mobile application.