SEC adopts its long-awaited conflict minerals rule
05 September 2012SEC Update
On August 22, over two years after enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), and over one year beyond its statutory rulemaking deadline, the SEC adopted its final rule implementing the “conflict minerals” provision set forth in Section 1502 of the Dodd-Frank Act. Section 1502 added Section 13(p) to the Securities Exchange Act of 1934, which requires annual disclosures by SEC-reporting companies if conflict minerals are necessary to the functionality or production of products they manufacture or contract to manufacture. Such companies are required to disclose in a special report whether any of those conflict minerals originated in the Democratic Republic of the Congo or an adjoining country. If the conflict minerals originated in any of those countries, the companies will have to include in their report a description of the measures they took to exercise due diligence on the source and chain of custody of the conflict minerals. To implement these requirements, the SEC adopted new Exchange Act Rule 13p-1 and a new Form SD for the “specialized disclosure report” required by the new rule.