A Conflict Minerals Rule at Last? Resources to Prepare for Compliance
July 3, 2012
Yesterday, the SEC announced that it will be holding an open meeting on Wednesday, Aug. 22 to, among other things, consider whether to adopt a Conflict Minerals rule. The SEC is required to adopt this highly controversial rule under Section 1502 of Dodd-Frank. The SEC put out its proposing release for the rule more than 18 months ago, on Dec. 15, 2010. Most recently, in late June of this year, a group of 58 House members sent a letter to the SEC demanding that it adopt the Conflict Minerals rule.
By the SEC’s own estimates, the Conflict Minerals rule will affect to varying degrees several thousand public companies. The rule also is expected to indirectly affect many times that number of domestic and foreign private companies that are part of the public company supply chain.
At this point, it is premature for companies to begin to ramp up their compliance procedures in anticipation of the final rule, which has not yet been published. However, for the substantial number of companies that have not closely followed the rule-making process, OECD policy statements or relevant industry initiatives, now is the time to start getting up to speed.
Authored by Michael R. Littenberg and
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