If you aren’t familiar with the Improving Disclosure for Investors Act of 2024, S. 3815, you aren’t alone. It’s been in the legislative pipeline for some time, but surprisingly few people know about it. This legislation, which would change the rules for delivery of investor documents and undermine the print resale income for many print distributors, has already passed the House of Representatives and is moving on to the Senate.
This legislation bad for print resellers, and urgent action is needed. The current default for investor documents is paper delivery (a significant source of income for many resellers), but S. 3815 would change the law to allow investment firms to “default” investors into receiving electronic delivery (e-delivery) instead. This would eliminate income from the resale of high-volume products such as investment disclosures and account statements.
Bad for Print Resellers, Bad for Investors
This is bad for investors, too. While the argument is made that a significant majority of Americans prefer electronic delivery, there are millions of people in key demographics who either have no Internet access or who are smartphone-dependent, making it difficult to access and analyze the financial information they need to make critical decisions.
It is important that distributors advocate with their legislators to protect their income streams and ensure that investors continue to receive these mandatory communications in the format they prefer. Indeed, as the Printing United Alliance states on its Action Alerts page, switching the default to e-delivery overrides the choices investors have already made to receive printed communications and potentially forces them into a system they didn’t choose.
Taking Away Information Access
Why do so people still choose printed document delivery?
· They prefer the security of a paper trail.
· Paper statements are easier to read and understand.
· People who receive paper statements are more likely to review their accounts, making it easier to notice fees, catch mistakes, and spot fraud.
Furthermore, while Internet access is often taken for granted, there are still millions of end-users for whom e-delivery could have a negative impact. For example, 10% of those 65 and older, and 7% of those with a high school education or less say they do not access the Internet. In addition, 17% of those 65 and older, 19% of Black Americans, and 22% of Hispanic Americans are smart-phone dependent. It’s difficult to read complex financial documents on a mobile phone screen!
Thus, instead of improving disclosure, as the legislation claims it would do, S. 3815 stands to significantly reduce effective disclosure for millions of investors.
Please send a message to your Senators today asking them to vote “no” to S. 3815. Thank you for your advocacy on this important issue!
Bill Prettyman is CEO of Wise, Alpharetta, GA. Wise manufacturers industrial/prime labels and tags, traditional forms, and digitally printed products and services for resale only. For more information, visit www.wbf.com or email Bill at [email protected].
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