What Is SEC Form S-6?
SEC Form S-6 is an initial registration statement filed with the U.S. Securities and Change Charge (SEC), which unit investment trusts (UITs) use to test in securities they issue.
A unit investment imagine is a type of investment company that gives a suite portfolio, typically of stocks and bonds, as redeemable units to investors for a specific period. It is designed to supply capital appreciation and/or dividend income for investors. Against this to mutual value vary, UITs have a discussed expiration date in step with what investments are held in their portfolio, and when the portfolio terminates, investors download their pro-rata portion of the UIT’s internet assets.
Key Takeaways
- SEC Form S-6 is an SEC filing required for registering and issuing shares of unit investment trusts (UITs).
- UITs are pooled investments that have discussed expiration words and are issued by means of an initial public offering to investors.
- SEC Form S-6 details the comparable knowledge that an investor in a UIT requires, similar to a mutual fund’s prospectus.
Working out SEC Form S-6
SEC Form S-6 is often referred to as the Registration Observation underneath the Securities Change Act of 1933 for unit investment trusts (UITs). (Form N-8B-2 is for UITs registered underneath the Investment Company Act of 1940.) Since unit investment trusts offer a suite portfolio to investors, usually at the side of the standard stocks and bonds for a specific period, all securities must be registered for the SEC to have a complete assessment of the investment and securities basket.
The Securities Change Act of 1933, the “truth in securities” regulation, requires that the ones registration forms expose essential knowledge upon registration of a company’s securities. SEC Form S-6 helps the SEC succeed in the targets of this act by way of requiring that investors download pertinent knowledge relating to securities introduced and to prohibit fraud inside the sale of the introduced securities. In this method, the S-6 is very similar to the prospectus that is required by way of mutual fund companies.
The five-page form is available on the SEC web page, and the Securities and Change Charge maintains a whole tick list of all recent securities registered by way of the ones UITs. In the one month of December 2020, 130 SEC Form S-6s have been filed. The ones built-in a few entries by way of Fitzgerald Promoting and advertising and marketing & Communications, Invesco Unit Trusts, Guggenheim Defined Portfolios, and other unit investment trusts.
Example of an SEC Form S-6 Filing
On Oct. 7, 2020, First Consider Portfolios LP filed an SEC Form S-6 to test in FT 8993, which consists of a “single portfolio known as FTP Innovative Generation Portfolio Assortment,” which seeks above-average capital appreciation. Inside the form, First Consider outlined the elements of the security, at the side of the following elements:
- Value table
- Observation of internet assets
- Agenda of investments
- Information about the full series
- Portfolio
- Likelihood components
- Public offering
- Distribution of units
- Expenses and prices
- Tax status
- Rights of unitholders
- Income and capital distributions
- Knowledge on the sponsor, trustee, and evaluator
