H.R. 4129 — Tailoring for Main Street’s Investors Act

This section establishes an exemption from investment adviser registration requirements for any investment adviser that acts solely as an adviser to private funds (i.e., funds excluded from the Investment Company Act definition of investment company) and has assets under management in the United States of less than $5 billion, provided (1) each investor in such funds is a qualified purchaser, accredited investor, or—if the SEC determines appropriate—a licensed investment professional associated with a national securities association; and (2) none of the funds offers investors redemption or similar liquidity rights except in extraordinary circumstances. Advisers exempted under this provision must maintain records and file reports with the SEC every two years, with requirements no greater or more burdensome than those applicable to exempt reporting advisers under current law.

This section reduces the Form ADV filing frequency to once every two years (from annually), beginning on the date of enactment, for SEC-registered investment advisers with less than $1 billion in assets as of the end of their most recent fiscal year. The section further directs the SEC to develop a short-form version of Form ADV for such advisers not later than 280 days after enactment.