SEC's proposed e-delivery rule could disadvantage senior investors

The Securities and Exchange Commission has issued a proposal to default to electronic delivery for all mandatory financial disclosures, such as prospectuses and trade confirmations, unless investors explicitly request paper. Current practice requires investors to opt in to e-delivery; the new rule would reverse that, requiring paper-dependent investors to respond to mailed notices to retain their preferred format. Advocates note potential cost savings for issuers, but opponents warn that older investors, who often lack confidence with online tasks, may overlook or mishandle the opt-out process.

Studies show a significant share of senior internet users are uneasy with digital transactions, and dropping the paper option could lead to higher dropout rates. Additionally, the electronic system could expose users to phishing risks that regulators have long warned against. The comment period remains open until Sept. 21, inviting stakeholders to weigh in on preserving paper access.