Tailoring for Main Street’s Investors Act

Section 2 creates an exemption from registration for certain private fund advisers with assets under management in the United States of less than $5,000,000,000, provided their investors meet specific criteria and the funds do not offer standard redemption or liquidity rights. This could reduce regulatory burdens for qualifying advisers.

Section 3 allows covered entities with less than $1,000,000,000 in assets to file Form ADV only once every two years instead of more frequently. This cuts down paperwork requirements for smaller entities.

Section 3 also requires the Commission to develop a short form version of Form ADV for entities with less than $1,000,000,000 in assets. This could make the filing process simpler for those smaller entities.

Section 2 outlines that exempted private funds do not offer investors redemption or similar liquidity rights except in extraordinary circumstances. This means everyday people or investors who put money into these funds may have a harder time getting their money out quickly.

Section 2 and Section 3 reduce the frequency of required reporting and filings to once every two years for certain advisers and entities. Less frequent oversight could mean less transparency for the public regarding these financial operations.