The SEC votes on the final minerals rule
The Securities and Exchange Commission (SEC) voted 3-2 in favour of adopting a final rule on what is widely referred to as “Conflict Minerals”.
This rule meets the requirements of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and focuses on the disclosure and reporting obligations regarding companies’ use of conflict minerals in products they manufacture.
The SEC’s original proposals have been revised to make the obligations that companies face less onerous. As an example they are allowing a two year window, and four years for smaller companies, in which they can disclose that they cannot determine whether or not conflict minerals in their products originated in the Democratic Republic of the Congo (DRC) or adjoining countries.
Global trade organisation IPC says that the final rule addresses around 80% of their concerns, including a unified reporting schedule, while admitting compliance will still be a significant burden for industry. IPC intend to publish guidance later this year.
No doubt this announcement will launch as season of seminars and webinars on the subject.