Dodd–Frank Wall Street Reform and Consumer Protection Act (Section 1502 – Conflict Minerals)

United States of America Current 2010

Passed by US Congress, the Act introduced rules that are to be adopted by the US Securities & Exchange Commission and other federal agencies. The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into federal law in 2010, with implementation rules being adopted since that time. The Act made significant changes to existing US financial regulation. The rules of the Act feature specialized disclosure provisions, including Section 1502, requiring [some] annual report issuers to disclose their connections with conflict minerals, and whether those minerals originated in the Democratic Republic of Congo or adjoining countries. The rule requires a report that includes a description of the measures taken to exercise due diligence on the source and ‘chain of custody’ of the minerals, and which must be independently audited and certified. Among other practices, issuers subject to the rule will conduct an assessment of their supply chain activities to determine the source of their conflict minerals. Section 1504 requires annual report issuers that commercially develop oil, natural gas, or minerals to disclose certain payments made to the US or a foreign government. The information must be provided in an interactive format, and the Securities & Exchange Commission must compile the information online.

Scope

Social & Governance

Industry sectors covered by the instrument

All/none specified

Organizations covered by the instrument

All organizations except those in the public sector

Issuer type

Finance/Treasury

Type of instrument

Legislation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

Project Partners