SEC Form 24F-2NT

What Is SEC Form 24F-2NT?

SEC Form 24F-2NT is a filing used to inform the Securities and Exchange Commission (SEC) of the sale of extra securities. Investment management companies, for example, mutual funds, must file SEC Form 24F-2NT when they sell a greater number of shares than initially stated in their registration filings.

Understanding SEC Form 24F-2NT

SEC Form 24F-2NT fills in as a manner for an investment management company to change and refresh its original shares-related sales prediction. The company gives this prediction in its initial registration filing with the SEC.

SEC Form 24F-2NT is connected with SEC Form 24F-2. Form 24F-2 is a required form that must be presented consistently by open-end management investment companies. Unit investment trusts and face-amount certificate companies must likewise file SEC Form 24F-2.

The information listed on SEC Form 24F-2NT incorporates the amount of extra shares to be registered and the retroactive registration date for the extra shares. Like different types of SEC filings, the completed SEC Form 24F-2NT must be submitted in an electronic format. The system for this electronic filing is the SEC's Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. Anybody, either an individual or an organization, can access this system online and download required forms and materials through the website for free.

Benefits of SEC Form 24F-2NT

SEC Form 24F-2NT gives investment companies a method for selling extra securities while staying in compliance with SEC rules and regulations. It gives a single place to record these sales and send them to the SEC. The ability to file online likewise assists the forms with being handled and distributed all the more rapidly.

Analysis of SEC Form 24F-2NT

SEC Form 24F-2NT likewise has a few downsides. It very well may be more straightforward for certain companies to file this information alongside Form 24F-2 rather than as a separate form. In spite of the fact that companies file SEC Form 24F-2NT electronically, the form itself is derived from old paper forms in light of requirements dating back to 1940. At long last, there is a more broad contention that SEC requirements like Form 24F-2NT impose over the top costs on businesses.

Requirements of SEC Form 24F-2NT

SEC Form 24F-2NT permits a company to stay consistent by telling the SEC of the sale of extra shares. It is required in the event that a closed-end mutual fund or unit investment sells a greater number of shares than originally stated.

SEC Form 24F-2NT, similar to the connected SEC Form 24F-2, is one of the various filings required under the Investment Company Act of 1940. A filing is an official, formal document or financial statement submitted to the SEC. It must contain accurate, honest, and complete revelations and information that satisfy SEC requirements.

Large numbers of the forms required by the SEC are direct consequences of the Investment Company Act of 1940.

Congress passed the Investment Company Act of 1940 to guarantee legitimate monitoring and oversight of investment companies operating in the public market. The SEC is the government entity accused of upholding that legislation and guaranteeing that investment companies comply with all applicable federal regulations.

The Investment Company Act of 1940 likewise explains a scope of different orders directing how an investment company must operate and conduct business. That incorporates the requirement that a board of directors must be laid out and kept up with, with the majority of those board individuals thought about independent. The act additionally places limitations and limitations on investment strategies, for example, the utilization of leverage. The Investment Company Act of 1940 additionally explicitly addresses the divulgences the investment company is required to give.

Genuine Example of SEC Form 24F-2NT

On December 3, 2020, Legg Mason Partners Equity Trust filed a SEC Form 24F-2NT covering the period ending September 30, 2020. The securities for which the form was filed incorporated the QS S&P 500 Index Fund and the ClearBridge All Cap Value Fund. Different funds on the form were the QS Global Dividend Fund, the ClearBridge International Small Cap Fund, and the ClearBridge Small Cap Value Fund. Legg Mason reported selling securities worth $222,855,675 during the fiscal year under section 24(f). Simultaneously, the company reclaimed or repurchased securities valued at $398,519,949.

Features

• The form fills in as a manner for an investment management company to change and refresh its original shares-related sales prediction.
• SEC Form 24F-2NT gives investment companies a method for selling extra securities while staying in compliance with SEC rules and regulations.
• SEC Form 24F-2NT is a filing used to inform the Securities and Exchange Commission (SEC) of the sale of extra securities.