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SEC Issues Staff View, Reconsideration of Conflict Minerals Rule to Implementation
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SEC Issues Staff View, Reconsideration of Conflict Minerals Rule to Implementation
Summary - SEC Acting Chair Michael S. Piwowar directed the SEC staff to reconsider whether the 2014 guidance on the conflict minerals rule is still appropriate and whether any additional relief is appropriate. This was announced by Mr. Piwowar in a public statement.
According to the statement, in April 2014, the Court of Appeals for the D.C. Circuit held that a portion of the disclosure required by the SEC’s Conflict Minerals Rule violated the First Amendment. Shortly thereafter, the then-Director of the Division of Corporation Finance issued guidance regarding compliance with the rule in light of the court’s decision and the Commission issued an order staying the effect of the compliance date for those portions of the rule found to be unconstitutional. The case was subsequently remanded to the district court for further consideration. The litigation remains ongoing and the SEC staff’s guidance remains in effect.
In the interim, the temporary transition period provided for in the rule has expired. The reporting period beginning January 1, 2017, is the first reporting period for which no issuer falls within the terms of that transition period. In light of this, as well as the unexpected duration of the litigation, Acting SEC Chair Piwowar directed the SEC staff to consider whether the 2014 guidance is still appropriate and whether any additional relief is appropriate in the interim.
Mr. Piwowar encourages interested parties to submit detailed comments and request that they be submitted within the next 45 days.
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