• SEC Adopts Dodd-Frank Conflict Minerals Rule
  • September 13, 2012 | Authors: Quentin Collin Faust; Dudley W. Murrey
  • Law Firm: Andrews Kurth LLP - Dallas Office
  • On August 22, 2012, the Securities and Exchange Commission (SEC) adopted its long-awaited, final conflict minerals rule. The rule implements the provisions of Section 13(p) of the Securities Exchange Act of 1934 (Exchange Act), which was added by Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 13(p) requires the SEC to adopt regulations requiring each SEC reporting issuer for which “conflict minerals” are necessary to the functionality or production of a product manufactured by the issuer or that the issuer contracts to have manufactured to disclose annually certain information regarding whether any such necessary conflict minerals originated in the Democratic Republic of the Congo (DRC) or one of the countries sharing an internationally recognized border with the DRC (with the DRC, Covered Countries). Section 1502, one of the aptly labeled “name-and-shame” laws, conscripts reporting issuers to serve in the effort to deny financing to armed groups identified as perpetrating serious human rights abuses in the Covered Countries. The designated conflict minerals are in wide use and, therefore, the rule is expected to apply to many SEC reporting issuers and industries.