• New SEC Rules on Conflict Minerals Pose Significant Challenges for Reporting Companies
  • September 4, 2012 | Authors: H. Hamilton Hackney; Barbara A. Jones; Ira N. Rosner; Donald S. Stein
  • Law Firms: Greenberg Traurig, LLP - Boston Office ; Greenberg Traurig, LLP - Miami Office ; Greenberg Traurig, LLP - Washington Office
  • On August 22, 2012, the U.S. Securities and Exchange Commission (SEC) adopted final rules under Section 13(p) of the Securities Exchange Act of 1934 (Exchange Act) relating to the use of “conflict minerals” originating in the Democratic Republic of the Congo or an adjoining country (collectively, the DRC). Newlyadopted Rule 13p-1 (Rule) is expected to significantly impact issuers (registrants) that file reports with the SEC, as well as a number of other public and private companies along the supply chain. Initially proposed almost two years ago, the Rule was adopted by a 3-2 vote of the SEC and represents the culmination of a difficult debate among industry participants, professional associations, the legal and academic community, as well as public policy and human rights groups, on the appropriateness of extending the SEC’s mission to moral and humanitarian causes beyond America’s borders.