SEC to Move Forward with Conflict Minerals Rule
Despite the U.S. Court of Appeals for the District of Columbia Circuit’s (“the Court”) recent ruling, U.S. Securities and Exchange Commission (“SEC”) Chair Mary Jo White announced that the SEC will continue to carry out most of its Conflict Minerals final rule. The final rule, which forces companies to publicly reveal whether or not they have used conflict minerals from the Democratic Republic of the Congo or neighboring countries and file the disclosure on an SEC-issued form, was ruled by the Court as a violation of the U.S. Constitution’s First Amendment.
During her testimony at the April 29th “Oversight of the SEC’s Agenda, Operations, and FY 2015 Budget Request” hearing, White stated the Court’s ruling does not justify postponing the bulk of the final rule since the majority of Conflict Minerals was upheld. Additionally, White mentioned the SEC’s staff will likely release explanatory guidance for companies to apply Conflict Minerals based on the ruling.
In the meantime, further proceedings on the case will be handled by the district court.