U.S. Securities and Exchange Commission adopts 'conflict minerals' rule.

• Jurisdiction: Derecho Internacional
• Date: 01 April 2013
• Author: Crook, John R.

In August 2012, the U.S. Securities and Exchange Commission (SEC), by a three-to-two vote, adopted a rule (1) pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act requiring companies listed on U.S. stock exchanges to disclose publicly their use of "conflict minerals" originating in the Democratic Republic of the Congo or adjoining countries. (2) Competition for tantalum, tin, gold, tungsten, and other minerals used in jewelry, cell phones, and other electronic products has been a persistent source of conflict in the Congo. Proceeds from their exploitation have financed rival armed groups and militias. (3)

Mary Schapiro, the SEC's chair, introduced the new rule in a statement at the commission meeting where it was adopted. A substantial excerpt follows:

When Congress passed the Dodd-Frank Act, it directed the Commission to adopt a rule requiring companies to disclose their use of conflict minerals from the Democratic Republic of the Congo and adjoining countries. The statute explains that the exploitation and trade of conflict...