SIC codes are an important way to classify businesses and industries in the United States. For investment companies, knowing your proper SIC code is crucial for legal, reporting, and operational purposes. In this article, we will look at the key SIC codes used for major types of investment companies and explain what each code means. Proper SIC classification helps investment companies comply with regulations, connect with the right vendors and partners, and analyze industry trends. By reviewing the codes for investment advisors, private equity firms, venture capital companies, hedge funds, and other investment vehicles, readers will gain a clearer understanding of this classification system and why it matters for the investment industry.
SIC 6722 – Management Investment Offices, Open-End
Companies classified under SIC 6722 are open-end management investment offices, such as many mutual funds. This code applies to open-end funds that are willing to redeem their shares at any time. Many mutual fund companies fall under this SIC classification, as they allow investors to buy or sell fund shares on a daily basis. Key factors for SIC 6722 are being open-ended and professionally managed.
SIC 6726 – Unit Investment Trusts
Unit investment trusts have SIC code 6726. These trusts raise money from investors through an initial public offering and use the proceeds to build a fixed portfolio of securities. The portfolio then follows a set termination date when assets are liquidated and proceeds are returned to shareholders. UITs have a set portfolio without ongoing active trading, unlike mutual funds that actively adjust holdings.
SIC 6282 – Investment Advice
Companies offering investment advisory services, portfolio management for individuals and institutions, and other customized investment guidance are classified as SIC code 6282. This applies to registered investment advisors, financial planners, wealth management firms, and certain divisions within banks and investment companies.
SIC 671 – Holding and Other Investment Offices
SIC 671 is a broad category that covers holding companies, corporate investment offices, and other investment functions. Holding companies that own controlling stakes in other companies often classify under 671. Corporate subsidiaries that manage investment portfolios for their parent company also fall under this SIC code.
SIC 6221 – Commodity Contracts Brokers and Dealers
Investment firms and broker-dealers trading commodity contracts, futures, and financial derivatives receive an SIC classification of 6221. This includes commodities brokers, futures commission merchants, introducing brokers, commodity trading advisors, and other firms dealing in commodity contracts.
SIC codes are an important classification system for different types of investment companies, including major categories such as open-end and closed-end funds, unit investment trusts, financial advisors, holding companies, and commodities dealers. Knowing the proper SIC code for your investment firm helps with regulatory reporting, finding the right service providers, analyzing industry trends, and connecting with partners. The specific codes covered help highlight key distinctions between different types of investment companies and their primary activities.