The SEC Proposes E-delivery Regulation: What Firms Need to Know

For years, regulators and industry participants have argued that investor communication rules have failed to keep pace with how investors actually consume information. While electronic delivery has become the preferred channel for most investors, regulatory requirements have continued to treat paper delivery as the default.

The End of Opt-In

For decades, e-delivery has required affirmative opt-in, with paper as the default. Although initiatives such as Notice and Access (NAA) and Rule 30e-3 chipped away at this model, paper delivery is still the standard. A shift to default e-delivery wouldn't just be another step towards reducing paper—it would flip the default entirely, replacing the current opt-in requirement for e-delivery with an opt-in for paper instead.

FINRA has already moved. In December 2025, it approved a proposal making e-delivery the default for broker-dealers, while preserving investors' right to opt out and receive paper. Together, the FINRA initiative and the SEC proposal signal growing regulatory alignment around a future where electronic delivery becomes the default and paper delivery becomes an investor choice rather than a regulatory requirement.

Why the Industry is Ready

The SEC's proposal reflects years of industry advocacy, legislative interest, and changing investor expectations. Groups such as SIFMA and the Investment Company Institute have argued that electronic delivery better aligns with investor behavior while reducing unnecessary printing, mailing, and administrative costs.

Legislative efforts such as the Improving Disclosure for Investors Act reflect the same bipartisan interest, and survey data routinely confirms that investors are comfortable with digital delivery.

This shift may sound significant, but the industry is not starting from scratch. Many broker-dealers already rely heavily on e-delivery and NAA; in fact, BetaNXT’s current clients typically have an 80/20 split between those methods and paper delivery. We have the technology, preference management, campaign execution, call center support, and compliance safeguards needed to help firms manage the transition thoughtfully and at scale.

Prepare Now for Default E-Delivery

Although final requirements remain subject to SEC action, firms now have greater visibility into the likely direction of regulatory change. The period between proposal and final adoption presents an opportunity to assess readiness, address operational gaps, and develop implementation plans before compliance timelines begin. Our latest whitepaper, "The Shift to E-delivery: Preparing Brokers and Proxy Service Providers for the Future," outlines what firms should focus on to get ahead of this shift:

• A rollout strategy that segments clients by product type and engagement activity
• Educational materials for customers new to e-delivery, sustained over a transition period
• Enhancements to online access systems and data infrastructure
• Updated compliance processes and written supervisory procedures
• Adequate support readiness, including call center capacity

How BetaNXT Helps

As firms evaluate the potential impact of the SEC's proposed framework, many are assessing whether existing communication infrastructure can support broader electronic delivery requirements.

BetaNXT's platform was built digital-first, so clients aren't limited to email. Our platform is already built to support notifications through portal, email, push, or text while adequately tracking evidence of delivery. This modernized infrastructure powers the full range of investor and client communications, from regulatory documents like proxy statements and prospectuses to correspondence like statements and confirmations. That same infrastructure powers the campaigns we run for clients—including consent solicitation, paper suppression, and shareholder notices—all backed by call center support and electronic preference management capture. Every campaign comes with compliance safeguards to ease the transition. The result is a structured path to e-delivery adoption, without leaving investors behind.

Let's Talk

With a formal SEC proposal now published and the comment period complete, default e-delivery has moved from a regulatory concept to an active rulemaking process. While final requirements remain subject to SEC action, firms that begin planning now will be better positioned to reduce implementation risk, improve investor experiences, and accelerate adoption when final rules are issued.

Contact us to learn how BetaNXT can help your organization prepare for the transition.