OTC Markets Group Applauds the Introduction of ESOP Fairness Act Legislation

NEW YORK, Feb. 12, 2020 /PRNewswire/ -- OTC Markets Group Inc. , operator of financial markets for 10,000 U.S. and global securities, applauds the February 11th introduction of the bipartisan ESOP Fairness Act (S.3270) (H.R.5851) by Senators Thom Tillis (R-NC) and Gary Peters (D-MI) and Representatives Mike Kelly (R-PA-16) and Brian Higgins (D-NY-26). 

Employee Stock Ownership Plans ("ESOPs") provide a streamlined pathway for employees to take an ownership stake in their companies.  ESOPs add value to corporate equity, aid employee retention and ultimately promote small company growth and employee retirement savings. Current IRS regulations impose additional requirements that significantly restrict the ability of many small public companies not traded on a national securities exchange to offer ESOPs to their employees.

The newly proposed ESOP Fairness Act would put the hundreds of qualified U.S.-based companies and community banks that meet established financial standards, such as those traded on the OTCQX Best Market, on par with exchange listed companies by allowing them to fully access the benefits of public company ESOPs.

"We thank Senators Tillis and Peters, and Representatives Kelly and Higgins, for introducing the ESOP Fairness Act.  Their thoughtful legislation stands to make ESOPs more effective for hundreds of smaller companies and community banks, to benefit their many thousands of employees across the country," said Dan Zinn, General Counsel for OTC Market Group. "ESOP reform remains an important area where legislators can effect positive change to improve public markets for small U.S. companies and make employee equity ownership more inclusive.  Modernizing existing ESOP law to include an updated definition of an 'established securities market' will allow companies traded on the OTCQX Market to further invest in their long-term growth."

About OTC Markets Group Inc. (OTCM)

OTC Markets Group Inc. operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for 10,000 U.S. and global securities.  Through OTC Link® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services.  We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

OTC Link ATS and OTC Link ECN are SEC regulated ATSs, operated by OTC Link LLC, member FINRA/SIPC.

Subscribe to the OTC Markets RSS Feed

Media Contact:
OTC Markets Group Inc. (OTCM), +1 (212) 896-4428, media@otcmarkets.com

OTC Markets Group logo. (PRNewsFoto/OTC Markets Group) (PRNewsfoto/OTC Markets Group Inc.)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/otc-markets-group-applauds-the-introduction-of-esop-fairness-act-legislation-301003813.html

SOURCE OTC Markets Group Inc. (OTCM)

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.