Consumer and Investor Advocates, Former Senior SEC Officials, Warn Congress Against Flawed E-Delivery Bill

A coalition of consumer advocates, investor protection organizations, and former SEC officials sent a letter to the Senate, warning against the passage of industry-favored legislation that would permit financial firms to override investor preferences and push the toward receiving investment disclosures electronically.

The legislation, which has been aggressively pushed for nearly two years by trade associations representing the largest Wall Street firms, passed the House of Representatives largely along party lines earlier this year after the House voted to add it as an amendment to a much larger Republican authored securities bill known as the Expanding Access to Capital Act. The House e-delivery bill was subsequently introduced in the Senate and has been pending in the Senate Banking Committee for several months.

The coalition letter reflects a broadening of opposition to the aggressive industry measure, which passed the House despite opposition from several prominent consumer protection organizations, including AARP and CFA.