On July 16, 2026, the Securities and Exchange Commission (“SEC”) proposed Regulation E-Delivery (the “Proposal”), which would allow investment advisers to meet certain delivery obligations under federal securities laws through electronic means without first obtaining the recipient’s affirmative consent. Currently, required regulatory information is delivered in paper form unless the recipient affirmatively elects electronic delivery. The Proposal would replace the SEC’s long-standing guidance with a rule that establishes conditions for electronic delivery.

Principal Elements of the Proposal

Scope of Covered Information and Parties: The Proposal addresses the electronic delivery of “covered information” by “covered entities” to “covered recipients.” Covered Information is information a registered investment adviser is required to deliver under federal securities laws. Covered Information includes Form ADV Part 2 Brochures, marketings and testimonial disclosures, agency cross transaction disclosures, and custody rule account statement notices. Covered entities are persons with delivery obligations, including investment advisers. Covered recipients are recipients of the information (ex: current and prospective clients).

Definition of “Electronic Delivery” and Electronic Address”: The Proposal defines “electronic delivery” to mean the delivery of covered information to a covered recipient’s electronic address. Electronic addresses include an email address, phone number, or other means of electronic communication capable of receiving electronic delivery.

Default Electronic Delivery Permitted: The Proposal permits, but does not require, covered entities to use electronic delivery as the default method of delivery for covered information, subject to the conditions below.

General Electronic Delivery Requirements: To use electronic delivery, an investment adviser must meet three conditions: (1) the Covered Recipient has provided an electronic address; (2) the Covered Entity has given prominent notice that covered information will be sent to that address; and (3) the Covered Recipient has not opted out of electronic delivery. The Proposal would also include requirements related to timing, delivery methods, and opt-out rights.

Permissible Methods of Electronic Delivery: An investment adviser would be able to use two methods of electronic delivery, depending on the type of information being provided: (1) direct delivery, and (2) a statement of availability.

1. Direct Delivery: For covered information that does not include personal financial information (PFI), an investment adviser may deliver such information electronically directly to the covered recipient’s electronic address.
2. Statement of Availability: For covered information that includes PFI, an investment adviser would be required to send a statement of availability to the covered recipient’s electronic address, such as an email containing a link to the website where the information can be accessed. This method of electronic delivery would also be permitted for covered information that does not include PFI.

Transition Process for Covered Recipients Receiving Paper: A registered investment adviser seeking to transition existing paper recipients to default electronic delivery must send an initial paper notice at least 180 days before the transition date, followed by a follow-up notice 30 days before such date. The notices must indicate the upcoming transition, specify the electronic address where covered information would be provided, and explain opt-out rights. If a recipient updates or confirms an address after the initial notice, the follow-up notice is not required.

The Proposal remains subject to public comment and may change before adoption. In the meantime, investment advisers should begin to evaluate how electronic delivery may impact their existing processes. Stark & Stark is available to advise on matters related to proposed Regulation E-Delivery.