What does Section 1502 of the Dodd-Frank Act require?
What does Section 1502 of the Dodd-Frank Act require?
Section 1502 of the Dodd-Frank Act requires all Securities and Exchange Commission (SEC) reporting companies to disclose whether their products contain minerals from the Democratic Republic of the Congo (DRC), or one of its neighboring countries.
Can the SEC make and issue rules?
Jumpstart Our Business Startups (JOBS) Act The JOBS Act requires the SEC to write rules and issue studies on capital formation, disclosure, and registration requirements. The JOBS Act aims to help businesses raise funds in U.S. capital markets by minimizing regulatory requirements.
What minerals are conflict minerals?
“Conflict minerals,” as defined by the US legislation, currently include the metals tantalum, tin, tungsten and gold, which are the extracts of the minerals cassiterite, columbite-tantalite and wolframite, respectively. Downstream companies often refer to the extracts of these minerals as 3TG.
Where are conflict minerals mined?
Conflict minerals mined in the DRC may pass through numerous locations in neighboring countries as they are shipped to processing facilities. These countries are: Sudan, Central Africa Republic, Uganda, Congo Republic, Angola, Tanzania, Rwanda, Burundi, Democratic Republic of Congo, Zambia and Angola.
What laws does the SEC enforce?
In addition to the Securities Exchange Act of 1934, which created it, the SEC enforces the Securities Act of 1933, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Sarbanes–Oxley Act of 2002, and other statutes.
Where can I find SEC rules?
The current Unified Agenda of Federal Regulatory and Deregulatory Actions can be found at www.reginfo.gov.
What is the Dodd-Frank Act on conflict minerals?
Dodd-Frank Act – Conflict minerals (section 1502) ■ The Dodd-Frank Act includes reporting requirements for SEC registrants about the source of conflict minerals . ■ Companies must make a reasonable determination whether products involve specified materials from the region. ■ The Act ’s intent is to reduce violence in the region
What does the SEC’s new rule on conflict minerals mean for You?
As of April 7, the Securities and Exchange Commission (SEC) ruled that U.S. corporations will no longer be required to conduct a due diligence review or an audit regarding sourcing of conflict minerals, Reuters reported. The rule regarding the disclosure of sourcing was established in 2010 as part of the Dodd-Frank Wall Street reform law.
What are conflict minerals and why do they matter?
In 2010, Congress passed the Dodd-Frank Act, which directs the Commission to issue rules requiring certain companies to disclose their use of conflict minerals if those minerals are “necessary to the functionality or production of a product” manufactured by those companies. Under the Act, those minerals include tantalum, tin, gold or tungsten.
What are the conflict minerals under Section 1502?
Introduction. Under Section 1502, the term “conflict minerals” includes tantalum, tin, gold, or tungsten. Congress enacted Section 1502 because of concerns that the exploitation and trade of conflict minerals by armed groups is helping to finance conflict in the DRC region and is contributing to an emergency humanitarian crisis.
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