Summary prospectus may cause many to re‐consider e‐delivery and consent strategies

Purpose – This paper aims to describe current moves by the securities industry toward e‐consent and e‐delivery of prospectuses and other financial communications. Design/methodology/approach – The paper discusses the costs of the current paper‐based approach to investor disclosure, the growing use of the web by investors, and the potential savings from e‐communications and recommends best practices for persuading investors to provide e‐consent and accept e‐delivery. Findings – There is consensus that the current paper‐based approach to investor disclosure is too costly, cumbersome, and complex. Getting investors to cross over to the internet to accept e‐delivery requires an e‐marketing communications strategy personalized to each company and its demographics. Practical implications – With a strong e‐communications program, a mutual fund can meet the needs of today's online investors, reap significant bottom‐line benefits, and achieve greater environmental responsibility. Originality/value – The paper makes a strong argument for e‐communications, documents the cost savings that can be realized, and recommends implementation steps.