Conflict Minerals Redux: SEC Order Affirms Corp Fin’s Statement
Late this afternoon (Friday, May 2), the SEC issued an Order staying only the portions of Exchange Act Rule 13p-1 and Form SD that require issuers to disclose the “conflict free” status of the materials used in their products. In doing so, the SEC denied the motion filed by the National Association of Manufacturers, Chamber of Commerce, and Business Roundtable for a stay of the entire rule.
The Commission stated that a stay of these portions of the rule avoids the risk of First Amendment harm pending further proceedings. The Commission also stated that staying only these portions of the rule furthers the public’s interest in having issuers comply with the remainder of the rule, which was mandated by Congress and upheld by the Court of Appeals. View the Order here.
The prudent issuer will be prepared to file Form SD by June 2, 2014.