SEC Form N-Q

What Is SEC Form N-Q?

The term SEC Form N-Q alludes to a document that registered management investment companies were required to submit to the Securities and Exchange Commission (SEC) in order to uncover their complete portfolio holdings. Form N-Q, which is additionally called the Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company form, was commonly utilized by investment companies, for example, mutual fund firms to reveal their holdings. It was required according to sections of the Investment Company Act of 1940 and the Securities Exchange Act of 1934. SEC Form N-Q must be filed two times during a company's fiscal year. The form was supplanted by form N-PORT.

Understanding SEC Form N-Q

SEC Form N-Q is called the Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company form. It was a mandatory filing required by the SEC, as outlined in Section 30(b) of the Investment Company Act of 1940 and Sections 13(a) and 15(d) of the Securities Exchange Act of 1934.

All registered investment companies and trusts were required to file semiannual and annual reports with the SEC and the companies' shareholders. Mutual fund companies, however, were not required to mail their SEC Form N-Q reports straightforwardly to shareholders. SEC Form N-Q was submitted electronically two times every year. These periods fell within the 60-day period after the end of the first and third quarters of the company's fiscal year. Companies that experience and file for a brief or continuing hardship were exempt from these requirements.

Investors interested in reviewing their investment company's holdings can look for its N-Q filings on Electronic Data Gathering, Analysis, and Retrieval.

Companies were required to include the following information on SEC Form N-Q filings:

• The name of the company
• The company's complete mailing address
• Individual holdings
• Principal amount or number of shares of each holding
• Fair value of each holding

Proponents of portfolio holding disclosure accepted that SEC Form N-Q helped investors settle on better and more informed conclusions about their personal investments. The SEC likewise utilized the information gave on these filings to assist with formulating regulations, disclosure surveys, as well as jobs in inspection, and policymaking.

Special Considerations

Small business investment companies (SBICs) were not required to file SEC Form N-Q. Companies that fall into this category are generally exclusive and licensed by the Small Business Administration (SBA). These organizations must submit SEC Form N-5, which is otherwise called the Registration Statement of Small Business Investment Companies under The Securities Act of 1933 and the Investment Company Act of 1940.

A company must be registered under the Small Business Investment Act of 1958 or have the endorsement of the Small Business Administration (SBA) to present a license application in order to qualify for N-5 filings.

SEC Form N-Q Vs. SEC Form N-PORT

The SEC adopted new and amended reporting requirements in 2016 that pertain to investment companies registered under the Investment Company Act of 1940. The updates are intended to modernize investment company reporting. One of the proposed changes is to eliminate SEC Form N-Q and supplant it with SEC Form N-PORT for registered investment companies other than money market funds.

This new form gives the SEC more modern information about a fund's portfolio holdings (not later than 30 days after the end of every month) along with additional insights into how a portfolio manages risk, liquidity, and the utilization of derivatives.

Form N-Q was originally scheduled to be supplanted on Aug. 1, 2019. That date was delayed to permit revisions to the new form. The deferral likewise allowed the investment industry an opportunity to turn out to be more informed and OK with the transition. The amended date for the rescission of Form N-Q was reported to be May 1, 2020. According to the SEC, companies that begin filing SEC Form N-PORT are no longer required to complete SEC Form N-Q.

Features

• SEC Form N-Q was a mandatory filing required by the SEC for registered management investment companies, for example, mutual fund firms.
• The SEC supplanted SEC Form N-Q with SEC Form N-PORT in order to receive additional refreshed information from investment firms.
• SEC Form N-Q was required no later than 60 days after the end of the first and third quarters of a company's fiscal year.
• Small business investment companies and those that apply for and receive a hardship were exempt from filing the form.
• It was utilized to unveil an investment company's complete portfolio holdings.