SEC Form N-4

What Is SEC Form N-4?

SEC Form N-4 is a filing with the Securities and Exchange Commission (SEC) that must be presented by all insurance company separate accounts organized as unit investment trusts offering variable annuity contracts. SEC Form N-4 is required under the Securities Act of 1933 and the Investment Company Act of 1940 and is meant to give investors information about variable annuity contracts so they can determine whether to invest in them.

Understanding SEC Form N-4

Part An of SEC Form N-4, the prospectus, must contain plainly written information about the investment that the average investor, who might not have a specific background in finance or law, can understand. Part A contains a general description of the registrant and a general description of variable annuity contracts as well as information about accumulation unit values, deductions, annuity period, death benefit, purchases and contract value, redemptions, taxes and legal proceedings.

Part B gives additional information that isn't required to be part of the prospectus, however that might be important to certain investors, like general information and history, underwriters and calculation of performance data.

Finally, Part C contains financial statements and shows, directors and officers of the investor, number of contract owners and other required information.

Form N-4's primary purpose is regulatory in nature. While many official reports can assist financial analysts with gathering helpful information that can be utilized in the security selection process, a significant part of the content on Form N-4 is technical and necessary for legal and oversight purposes. Being a profoundly regulated industry, insurance entities often need to file many documents to maintain their great standing according to regulators and policymakers.

Features

SEC Form N-4 is intended to assist investors with determining in the event that they ought to invest in certain contracts.
Each part of SEC Form N-4 must have the required information filled in.
SEC Form N-4 is presented by insurance companies offering variable annuities.