Last month we discussed the publication of the Final ESOP Diversification Regulations. While the diversification regulations generally do not apply to closely held ESOPs, the regulations could create some challenges for Thinly Traded ESOP Companies.

Final Regulations Issued on ESOP Diversification Rules provides another review and notes that the Final ESOP Diversification Regulations are similar to the 2008 Proposed ESOP Diversification Regulations. It also provides some background information on some changes related to investment funds holding employer securities.