Bill > HR4129

This bill, known as the Tailoring for Main Street's Investors Act, proposes two main changes to investment adviser regulations. First, it creates an exemption from registration requirements for investment advisers of private funds (investment pools for wealthy or sophisticated investors) that manage less than $5 billion in U.S. assets, provided that all investors are either qualified purchasers, accredited investors, or licensed investment professionals. The exemption also requires that these private funds do not offer regular redemption rights to investors. The bill mandates that exempted advisers still submit reports to the Securities and Exchange Commission (SEC) every two years, with reporting requirements no more burdensome than current regulations. Second, the bill requires the SEC to modify reporting requirements for smaller investment advisers, allowing entities with less than $1 billion in assets to file their Form ADV (a comprehensive registration form for investment advisers) only once every two years instead of annually. Additionally, the bill directs the SEC to develop a simplified, shorter version of the Form ADV for these smaller investment advisory firms within 280 days of the bill's enactment. These provisions aim to reduce regulatory burden on smaller investment advisers while maintaining investor protections.

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https://www.congress.gov/bill/119th-congress/house-bill/4129/all-info