SEC - Conflict minerals position 

May 2:  The Securities and Exchange Commission (SEC) addressed a recent federal appeals court decision and the rule requiring companies to disclosure conflict minerals-related information.


The U.S. Court of Appeals for the D.C. Circuit found that the SEC conflict minerals rule violated the First Amendment by requiring companies to report to the SEC and report on their websites when their products have not been found to be free of conflict materials from the Democratic Republic of the Congo (DRC) and adjoining countries.

Read the D.C. Circuit’s decision [PDF 177 KB].

SEC response

The SEC chair this week stated that the SEC will continue to implement most of the rule’s provisions because the appeals court decision does not justify delaying the effective date.

  • Companies will need to comply with the conflict minerals rule’s due diligence and reporting requirements.
  • An independent private-sector audit will be required only if a company voluntarily elects to describe a product as “DRC conflict free.”

The SEC’s Division of Corporation Finance expects companies to file Form SD and disclosures required by the conflict minerals rule on or before the June 2, 2014 due date for 2013 reporting (because this year, May 31, 2014, falls on Saturday).

The SEC staff will consider the need to provide additional interpretive guidance before the reporting deadline.

Read a May 2014 report [PDF 473 KB] prepared by KPMG LLP: Defining Issues: SEC Discusses Conflict Minerals Rule and Court Ruling

KPMG observation

The SEC on May 2, 2014, announced an order staying the effective date for compliance with the conflict mineral rules.

Read the SEC press release

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