Broadridge Announces Broker-Dealer Solution for SEC Rule 30e-3

The website will launch on January 1, 2019, and will help broker-dealers manage shareholder preferences.

Broadridge Financial Solutions, a provider of technology-driven solutions to broker-dealers, announced the launch of a new solution today. The product will allow firms to effectively implement the Securities and Exchange Commission (SEC) Rule 30e-3 and reduce the delivery costs of reporting.

At present, brokerages need to mail their complete reports to shareholders. As can be expected, this costs money on paper, stamps and postage fees. Plus you have to rely on the postal system, which is not always so reliable.

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However, under SEC Rule 30e-3, certain broker-dealers will be able to make their reports and other materials available online in order to meet their reporting obligations, instead of mailing the individual reports to shareholders.

In total, the SEC estimates this will save more than $230 million annually on paper, printing and postage resources. This new delivery option will be available from January 1, 2021. However, broker-dealers must alert shareholders of their intention to switch to this method from January 1, 2019, and give their shareholders the ability to opt-out of the online delivery method during this two-year period.

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Broadridge Launches

This is where Broadridge’s new solution comes into play. According to the statement, the solution allows firms to manage their shareholder preferences during this two year notification period.

The solution, which is available to Broadridge’s more than 1,000 broker-dealer clients, will provide firms with a centralized website to help manage the delivery preferences, which can be accessed by shareholders via unique identification numbers which are tied to their accounts. The website – – will launch on January 1, 2019.

Michael Liberatore the President, Mutual Fund and Retirement Solutions at Broadridge Financial Solutions
Michael Liberatore
Source: LinkedIn

“SEC Rule 30e-3 is a logical next step to reduce costs of paper, printing, and postage.  Under the rule, fund companies and broker-dealers are also permitted to include key information from the reports along with the notice,” said Michael Liberatore, head of Broadridge’s Mutual Funds and Retirement Solutions business.

“This can make the notice more user-friendly, more informative, and more engaging – thus leading to more e-delivery.  Enhancing the notice also provides a better branding experience for funds and brokers. It can be a ‘win win’ for shareholders and the industry alike.”

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