What Is SEC Form F-6?
SEC Form F-6 is a regulatory record that all investment firms must take a look at in with the Securities and Exchange Rate (SEC) within the match that they need to offer American Depositary Receipts (ADRs) issued by the use of a depositary towards the deposit of the securities offered by the use of a global issuer.
Key Takeaways
- SEC Form F-6 is a filing required by the use of investment firms within the match that they need to offer American Depositary Receipts (ADRs) of a global issuer.
- An ADR is a certificate issued by the use of a U.S. depository monetary establishment that represents a specified number of shares of a global company’s stock; the ADR trades on U.S. stock markets as any house shares would.
- Depositary shares represented by the use of ADRs are essentially shares of a global company traded on U.S. exchanges.
- In another country companies without end record their shares as ADRs throughout the U.S. to be able to attract a greater breadth of patrons and build up their status throughout the corporate global.
Understanding SEC Form F-6
In short, Form F-6 lists shares of global securities on a U.S. business, along with wisdom such since the issuer of the receipt and the name of the global stocks it represents. You will need to recognize that the associated fee and liquidity profiles deviate from an ADR’s global counterpart, as a result of the fact that the two comparable entities trade on separate exchanges.
SEC Form F-6 is mandated beneath the Securities Act of 1933. It is without end referred to as the “Truth in Securities” law because of this fashion discloses crucial details about a company’s securities in granular component. In higher words, this fashion is a tool used throughout the SEC’s broader advertising and marketing marketing campaign to arm patrons with additional information and stamp out securities fraud.
Form F-6 is near to very similar to Form F-6EF, which moreover registers ADRs with the SEC. However, the “EF” in Form F-6EF designates that the form is “auto-effective” upon filing, this means that that the SEC considers the securities to be registered upon receipt.
Eligibility Prerequisites for Use of Form F-6
Consistent with the form’s actual language:
F-6 is also used for the registration beneath the Securities Act of 1933 (the “Securities Act”) of Depositary Shares evidenced by the use of American Depositary Receipts (“ADRs”) issued by the use of a depositary towards the deposit of the securities of a global issuer (regardless of the physically location of the certificates) if the following prerequisites are met:
- The holder of the ADRs is entitled to withdraw the deposited securities at any time subject only to:
- Brief delays led to by the use of ultimate transfer books of the depositary or the issuer of the deposited securities or the deposit of shares in connection with balloting at a shareholders’ meeting, or the price of dividends
- The price of fees, taxes, and an an identical charges
- Compliance with any laws or governmental laws with regards to ADRs or to the withdrawal of deposited securities
- The deposited securities are offered or purchased in transactions registered beneath the Securities Act or in transactions that can be exempt therefrom if made in america
- As of the filing date of this registration remark, the issuer of the deposited securities is reporting pursuant to the periodic reporting prerequisites of section 13(a) or 15(d) of the Securities Exchange Act of 1934 or the deposited securities are exempt therefrom by the use of Rule 12g3-2(b) (§240. l2g3-2(b) of this chapter) till the issuer of the deposited securities concurrently data a registration remark on another form for the deposited securities.
Simple tips on how to File SEC Form F-6
Firms must report Form F-6 in an virtual structure all through the SEC’s Virtual Knowledge Accumulating, Analysis and Retrieval (EDGAR) gadget. This allows patrons, regulators, and each and every different occasions to in short and easily get entry to the guidelines within the match that they so want it. Registration fees and filing fees apply.
3 Must haves to File Form F-6
- ADR holders must most often be entitled to withdraw the underlying securities at any time
- The securities to be deposited towards the issuance of ADRs must each be registered beneath the Securities Act or gained in exempt transactions (e.g., secondary market purchases)
- The issuer of the underlying securities must be an Exchange Act reporting company or exempt from Exchange Act registration by the use of the reason why of Rule 12g3-2(b).
