Tailoring for Main Street’s Investors Act

Key Points

• This bill would allow investment firms that manage less than $5 billion in private funds to skip the standard SEC registration process. To qualify, the firm must only work with wealthy or professional investors, and those investors cannot be allowed to withdraw their money easily.
• Investment firms with less than $1 billion in assets would only have to file their main disclosure paperwork every two years instead of every year. This change is intended to reduce the time and money these smaller companies spend on government forms.
• The SEC would be required to create a new, shorter version of the standard disclosure form for these smaller firms. This 'short form' would make it simpler for businesses to report their activities to the government without the complexity required for giant Wall Street banks.
• Even if they are exempt from full registration, these firms would still have to keep basic records and provide reports to the SEC every two years. This allows the government to maintain some oversight while lowering the daily workload for the companies.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.