The Securities and Exchange Commission (SEC) is reviewing proposed changes to modernize electronic delivery requirements for investor communications. The proposed framework would expand the ability of financial firms to use electronic delivery as the default method for certain regulatory documents, while preserving investors’ ability to request paper copies.
Although the SEC has not finalized these changes, financial representatives and advisors can begin preparing today by reviewing their clients’ current eDelivery enrollment preferences.
ESI E-Delivery Enrollment Report
To support this effort, financial representatives and advisors have access to the ESI E-Delivery Enrollment Report in Wealthscape. This report can be generated on an ad-hoc basis and provides account-level information regarding clients’ current electronic delivery elections.
The report includes information such as:
- Email address of record
- Delivery preferences for statements and regulatory inserts
- Trade confirmations and prospectuses
- Tax documents and shareholder reports
- Other eligible electronic communications
Financial representatives and advisors are encouraged to familiarize themselves with this resource and review their clients’ current delivery preferences.
Where to Find the Report in Wealthscape
Navigate to Report and search for the ESI E-Delivery Enrollment Report.
An Opportunity to Help Clients Save Today
Under current NFS brokerage account practices, clients receiving paper statements are assessed a $5.00 quarterly fee, or $20 annually.
By proactively reviewing the ESI E-Delivery Enrollment Report, advisors may identify accounts where a valid email address is already on file, but the client continues to receive paper statements.
These situations provide an opportunity to contact clients, discuss the benefits of electronic delivery, and assist interested clients with updating their delivery preferences.
For clients who elect electronic statements, the potential benefits include:
- Avoiding the $5.00 quarterly paper statement fee
- Faster access to account statements and other documents
- Reduced paper mailings
- Convenient electronic access to important account information
Important: Having a valid email address on file does not automatically constitute consent to electronic delivery under current requirements. Financial representatives and advisors should follow existing procedures for establishing or updating client eDelivery elections.
Looking Ahead
While the SEC continues evaluating changes to electronic delivery requirements, becoming familiar with available reporting tools will help financial representatives and advisors prepare for potential changes and identify opportunities to improve the client experience today.
We encourage all financial representatives and advisors to explore the ESI E-Delivery Enrollment Report in Wealthscape and consider incorporating an eDelivery preference review into routine client servicing activities.
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