Senator Katie Britt Joins Bipartisan Effort to Update Investor Disclosure laws

U.S. Senator Katie Britt recently joined forces with a bipartisan group of colleagues, including Senator Thom Tillis, to introduce the Improving Disclosure for Investors Act of 2025 in Washington, D.C. The primary objective of this legislation is to modernize investor disclosure by mandating the Securities and Exchange Commission (SEC) to propose regulations that would facilitate the default electronic delivery of regulatory documents to investors.

Senator Britt emphasized the importance of adapting investor communications to the evolving digital landscape of capital markets. She stressed that the proposed legislation aims to provide investors with more efficient and convenient access to financial information since the majority already prefer electronic delivery for receiving disclosure documents. By promoting electronic delivery, the bill seeks to streamline processes, save time, reduce costs for financial entities, and enhance the overall experience for consumers.

While the SEC currently allows electronic delivery of specific documents, these services are subject to certain conditions. Registrants must notify investors about the availability of information electronically, ensure investors have sufficient access to the data, and either confirm actual delivery or obtain informed consent from investors (referred to as the “opt-in” requirement).

Senator Tillis echoed the sentiment, emphasizing the need to bring disclosure requirements up to date with the digital age. Citing a survey that revealed approximately 80% of Americans already utilize electronic delivery, Senator Tillis highlighted the bill’s goal of promoting efficiency, reducing paper waste, and offering investors the option to receive physical copies of documents if they prefer.

The legislation addresses the fact that the SEC has not made comprehensive updates to the existing framework in over two decades. It mandates the SEC to establish a mechanism for electronic delivery of investment disclosure documents by default while also ensuring that investors can opt out of electronic delivery and revert to paper copies at any time. The bill aims to balance the benefits of electronic delivery with the flexibility of traditional paper delivery, catering to changing investor preferences and technological advancements.

Industry experts such as the Securities Industry and Financial Markets Association (SIFMA) have lauded the bipartisan effort to modernize investor communication. SIFMA emphasized the environmental benefits, speed, and convenience of electronic delivery, citing survey results that indicate a strong preference for e-delivery among retail investors of all demographics.

Another endorsement came from Eric J. Pan, CEO, and President of the Investment Company Institute (ICI). Pan commended the bipartisan sponsors for advancing legislation that aligns with investor preferences and modernizes information delivery methods. The ICI believes that the Improving Disclosure for Investors Act will enhance the retail investment experience and strengthen U.S. capital markets.

Furthermore, LPL Financial expressed support for the legislation, highlighting the advantages of electronic delivery, including on-demand access, interaction, ease of navigation, and environmental friendliness. The company emphasized that digital communications can benefit a wide range of investors, from the visually impaired to non-native English speakers.

In addition to her involvement in the Improving Disclosure for Investors Act, Senator Britt has been actively working to reduce regulatory burdens and modernize regulations for local financial institutions. She recently co-sponsored the Credit Union Board Modernization Act, which aims to eliminate outdated federal laws requiring in-person monthly meetings for credit union boards. Senator Britt’s efforts underscore her commitment to supporting Main Street communities in Alabama and ensuring that financial institutions can operate efficiently.