A capital markets reform bill passed by the House on Thursday includes a provision that would allow electronic delivery to become the default mechanism for providing certain regulatory documents to investors, further reducing the amount of physical mail handled by the financially beleaguered U.S. Postal Service.
The legislation is the latest example of the federal government cutting into the Postal Service’s core business.
Section 205 of the INVEST Act directs the Securities and Exchange Commission to finalize a rule, within a year of enactment, permitting investment companies to switch to electronic-only delivery for financial information that is legally required to be sent to clients in hardcopy form. Customers would be able to opt to receive paper documents if they want.
The SEC currently allows electronic delivery of certain documents if a registered institution provides notice that the information is available electronically and clients voluntarily opt in.
Proponents said modernizing disclosure requirements makes the financial system more efficient, reduces waste and is more secure from theft than physical mail.
