On October 19, 2012, the National Association of Manufacturers and the
U.S. Chamber of
Commerce petitioned the D.C. Circuit Court of Appeals to
request that the SEC's scheme of disclosure related to
so-called "conflict minerals" utilized in products of
issuers "be modified or set aside, in whole or in
part".
The disclosure scheme is embodied in new Rule 13p-1 and Form SD under the Securities
Exchange Act of 1934, adopted by the SEC on August 22, 2012. (See
our
Client Alert dated August 27, 2012 for a summary of Rule 13p-1
and the disclosure scheme.)
The barebones Petition did not identify any substantive reason
for the challenge to the Rule and the statutory provision pursuant
to which it was adopted (Section 1502 of the Dodd-Frank Act).
It was widely expected that this Rule (and others promulgated and
to be promulgated under Dodd-Frank) would be the subject of
litigation seeking to overturn it or blunt its effects. However,
the filing of the Petition should not be viewed as any assurance
that this Rule will be invalidated, or even stayed while the matter
is pending. Therefore, issuers affected by the Rule should continue
to take steps toward timely compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
