SEC Commissioners Want Delay in Conflict Minerals Rule
With the U.S. Court of Appeals for the District of Columbia Circuit previously declaring part of a provision unconstitutional, the U.S. Securities and Exchange Commission’s (“SEC”) Daniel Gallagher and Michael Piwowar seek a delay in the entire Conflict Minerals rule’s effectiveness.
Per the controversial portion of the SEC’s final rule, companies are required to publicly disclose any use of conflict minerals from the Democratic Republic of the Congo or neighboring countries. Conflict Minerals also mandates issuers to file for the same period notwithstanding when their fiscal year ends.
Releasing a joint statement on the matter, the SEC Commissioners believe a full stay of the rule is necessary. With the district court handling the case’s additional proceedings, Gallagher and Piwowar think the entire rule could be ruled invalid. In its statement, the commissioners remarked that a “full stay of the effective and compliance dates of the conflict minerals rule would not fix the damage this rule has already caused, but it would at least stanch some of the bleeding.”
Currently, the SEC as a whole has yet to publicly respond to the ruling.