May institutions make part 620 reports available to shareholders electronically rather than on paper?
Yes, provided the shareholder specifically agrees to receive only an electronic copy. (See § 620.2(c).) The agreement to accept electronic rather than paper reports is made between each individual shareholder and the institution; a majority of the shareholders cannot make the decision for everyone. Furthermore, informing shareholders through paper or other types of communication that part 620 reports may be obtained on the institution’s Web site or by calling the institution does not satisfy the requirement for a shareholder to agree to receive only electronic copies. Institutions that wish to communicate or transact business electronically with their shareholders should refer to our electronic commerce (e-commerce) rules at part 609. Our Web site also contains some useful information on e-commerce. (The e-commerce link is available on the FCA Web site on the FCS Information page.) Additionally, recent changes to § 620.4(a) require annual reports to be posted on a System institution’s
