AF&PA: SEC Proposed Rule 30-e3 Would Disconnect Many Americans from Critical Financial Information

Dec 11, 2015

WASHINGTON – American Forest & Paper Association (AF&PA) President and CEO Donna Harman today issued the following statement regarding the bipartisan Congressional letter led by Reps. Bruce Poliquin (R-ME) and Kyrsten Sinema (D-AZ) sent today to the Securities and Exchange Commission (SEC) urging the agency to rescind Proposed Rule 30e-3. The rule would eliminate the current default requirement for financial companies to transmit information to their investors in paper form. If adopted, financial institutions would issue a one-time notice to investors that financial reports regarding their holdings will be shifted to electronic delivery unless they take action by requesting to receiving financial information by mail.

“Internet connectivity is second nature to many, but there are still significant portions of the U.S. population where this is not the case. Thirty percent of American adults do not have Internet access at home, and 45 percent of seniors don’t own a computer. And surveys confirm that the vast majority of investors prefer to receive financial information in printed form. The SEC proposal not only would cause confusion for those who suddenly stop seeing important printed shareholder reports, it also would abandon those without reliable Internet access.

“Paper provides the broadest access to all investors, and therefore, should continue to be the method of delivery when investors fail to choose another option. AF&PA thanks Representatives Poliquin and Sinema for working to ensure investors can receive important financial documents easily and securely.”  

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Editor’s Note
The complete letter is available here.