Doddfrank wall street reform and consumer protection act. Understanding your obligations under sec 1502 of the dodd frank act. Rittal, as a leading manufacturer of enclosures worldwide, is also a supplier to u. The conflict minerals disclosure rules, issued by the u. The relevant rule is included in section 1502 of the doddfrank wall street reform and consumer protection act. For decades the trade in minerals, precious stones. The conflict minerals are gold, columbitetantalite. Contrary to the dodd frank act, covering only minerals sourced in the democratic republic of congo and adjacent countries, the european rules will be global in. Apr 11, 2017 recent reports show conflict mineral reports are not only costly, but may also be ineffective as such minerals exist worldwide, and not just in the drc as the dodd frank rule suggests. In the case of conflict minerals, the form asks whether 3tgs are present in the products composition and, if they are, if. Kg is not subject to reporting under the dodd frank act.
We are adopting a new form and rule pursuant to section 1502 of the doddfrank wall street reform and consumer protection act relating to the use of conflict minerals. Overview of section 1502 of df act the doddfrank act, signed into law on july 21, 2010, includes a little known section 1502. The eu conflict minerals regulation, which will apply across the eu on 1 january 2021, has been largely inspired by the us doddfrank act 2010, which itself entered into force in 2014. To help mitigate violence in the congo, the us congress has passed legislation which is designed to force companies to disclose whether or not their products contain conflict minerals. These actions range from completion of new form sd to due diligence and completion of an audited conflict minerals report. Securities and exchange commission 17 cfr parts 240 and 249b. Implementation of us doddfrank act rule on conflict minerals. Doddfrank act section 1502 regarding drc conflict minerals. The dodd frank acts section 1502 on conflict minerals. New compliance management system aims to help companies report on conflict minerals under us doddfrank act. Section 1502 of the doddfrank act and the conflict minerals rule were intended to discourage public companies from using those materials in their products. Pdf determinants of conflict minerals disclosure under the dodd. Companies that file with the united states securities and exchange. Building on insights from deloitte experts in the us, the below outline draws comparisons and provides valuable insights regarding the 2010 doddfrank acts.
In august 2012, the united states securities and exchange commission sec approved the final rule regarding the sourcing of conflict minerals as defined in the doddfrank wall street reform and consumer protection act, section 1502. Overview this is the conflict minerals report for under armour, inc. It is the sense of congress that the exploitation and trade of conflict minerals originating in the democratic republic of the congo is helping to finance conflict characterized by extreme. The dodd frank wall street reform and consumer protection act, passed by the us congress in july 2010, includes a provision section 1502 aimed at stopping the national army and rebel groups in the drc from illegally using profits. Under armour is committed to compliance with all applicable laws and regulations, ethical and responsible conduct in its operations and respect for the rights of all individuals. Disclosures on conflict minerals background section 1502 of the dodd frank act is intended to make transparent the finances derived from mining that support illegal armed groups in central africa. Doddfrank act, of preventing the exploitation of conflict minerals for the purpose. On august 22, 2012, the sec adopted its final rule implementing section 1502 of the doddfrank wall street reform and consumer protection act, which we refer to as the conflict minerals rule or the final rule. Doddfrank act conflict minerals congress enacted section 1502 of the doddfrank act 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. The good news is the commerce department published a list of all known conflict mineral processing facilities worldwide as required by section 1502d3c of the doddfrank wall street reform and consumer protection act. Dodd frank act conflict minerals section 1502 conflict minerals doddfrank act section 1502 of the dodd frank act was enacted to address he exploitation and trade of tin, tungsten and tantalum the 3ts and gold by armed groups, which is helping to finance conflict in the democratic republic of congo drc and contributing to an emergency humanitarian crisis.
Preparation underway for doddfrank conflict mineral disclosures. The doddfrank act requires that all publicly traded companies subject to sec rules report annually on the presence of certain minerals, characterized as conflict minerals, including tin, tantalum, tungsten or gold, in the. Yet, media reports and business examples show the rule has been effective in stemming the flow of funds at least to armed groups in the drc, while increasing. Securities and exchange commission rules adopted in connection. Conflict minerals resource center to help company compliance. Dodd frank wall street reform and consumer protection act relating to the use of conflict minerals. Pdf this paper examines conflict minerals disclosure cmd as mandated by the doddfrank act. In accordance with our ethical and social responsibility, and our commitment to the. Doddfrank act conflict minerals reporting requirements as of september 2012 section 1502 of the doddfrank wall street reform and consumer protection act doddfrank act, passed in july 2010, is an attempt to stop rebel groups in the democratic republic of the congo drc. Combating conflict minerals through regulation samantha poon. Mar 31, 2014 after the dodd frank act was signed into us federal law in 2010, demand for 3t minerals from congolese mines slowed right down, according to fidel bafilemba, who works as a field researcher for. Section 1502 added section p to the securities exchange act of 1934, which requires the commission to promulgate rules requiring issuers with conflict minerals that are necessary to the functionality or production of a product manufactured. In this spirit, section 1502 of the doddfrank wall street. This section requires all companies traded and listed on the usamerican stock exchange market to disclose information on the use of conflict minerals, notably.
Doddfrank wall street reform and consumer protection act the doddfrank act. For over a decade, the trade in conflict minerals has fueled human rights abuses and promoted insecurity in eastern democratic republic of the congo drc. With the repeal of the doddfrank act 2010 imminent, it is an opportune time to reflect on whether consumerdriven governance initiatives such as the conflict minerals provision have a role to play in reducing armed conflict. Conflict minerals 2 by section 1502 of the doddfrank wall street reform and consumer protection act short. Form sd2 under the securities exchange act of 1934 exchange act. Implications and lessons learned from the us doddfrank act introduction on 17 may 2017, the eu parliament and eu council adopted new import regulations on conflict minerals under regulation 2017821. Sec adopts rules under doddfrank requiring disclosure regarding use of conflict minerals. Section 1502 of the doddfrank wall street reform and consumer protection act, and the. Conflict minerals compliance statement section 1502 of the dodd. Securities and exchange commission sec approved the final conflict minerals rule under the dodd frank act, to implement reporting and disclosure.
Securities and exchange commission sec approved the final conflict minerals rule under the doddfrank act, to implement reporting and disclosure. Section 1502 of the us dodd frank act global witness. However, centuries of colonization, imperialism, and civil strife has scarred what should be a thriving society. Dodd frank act conflict minerals responsible jewellery. The trade in natural resources finances conflict and human rights abuses all over the world. Section 1502 of the us dodd frank act global witness global. This paper examines conflict minerals disclosure cmd as mandated by the doddfrank act. A form sd is a disclosure document used for financial and nonfinancial reporting under various provisions of the doddfrank act. We rely on a thorough content analysis conducted by the. Summary of conflict minerals rule overview section 1502 of the doddfrank wall street reform and consumer protection act the doddfrank act addressed concerns that proceeds from the trade and exploitation of certain minerals originating in several central african countries were helping to finance extraordinary violence in the. The list includes all known processing facilities that process the minerals tin, tantalum, tungsten, or gold. Nov 18, 20 a form sd is a disclosure document used for financial and nonfinancial reporting under various provisions of the dodd frank act. We not procure conflict minerals or any of their derivatives directly from smelters, steel works, or other sources located in the conflict region.
Dodd frank wall street reform and consumer protection act, section 1502. Global trade news alert new eu conflict minerals regulation. Under the act, those minerals include tantalum, tin, gold or tungsten. Sec suspends conflict mineral rule enforcement supply chain. On august 22, 2012, the sec adopted the final rule implementing section 1502 of the dodd frank act, the conflict minerals rule, aimed at reducing a significant source of funding for armed groups that are committing human rights abuses and contributing to the conflict in the democratic republic of the congo. Dodd frank act conflict minerals reporting requirements as of september 2012 section 1502 of the dodd frank wall street reform and consumer protection act dodd frank act, passed in july 2010, is an attempt to stop rebel groups in the democratic republic of the congo drc. Pdf checklist for company compliance with us conflict minerals rules. Determinants of conflict minerals disclosure under the doddfrank. In august 2012, in response to violations of human rights related to mining of certain minerals from the conflict region in the eastern part of the democratic republic of congo drc, the u. Disclosures on conflict minerals background section 1502 of the doddfrank act is intended to make transparent the finances derived from mining that support illegal armed groups in central africa.
Section 1502 of the doddfrank act, known as the conflict minerals rule, requires publicly traded companies to report annually the presence of conflict minerals in manufactured products. The conflict minerals provisioncommonly known as section 1502 of the dodd frank actrequires u. Summary of conflict minerals rule squire patton boggs. Conflict minerals 101 disclaimer obligations under sec 1502. Kg is not subject to reporting under the doddfrank act. Aug 22, 2012 in 2010, congress passed the doddfrank 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. How conflict minerals funded a war that killed millions, and.
Doddfrank act conflict minerals reporting requirements. With the repeal of the dodd frank act 2010 imminent, it is an opportune time to reflect on whether consumerdriven governance initiatives such as the conflict minerals provision have a role to play in reducing armed conflict. Determinants of conflict minerals disclosure under the dodd. Doddfrank wall street reform and consumer protection act relating to the use of conflict minerals. In august 2012, the united states securities and exchange commission sec approved the final rule regarding the sourcing of conflict minerals as defined in the dodd frank wall street reform and consumer protection act, section 1502. Section 1502 added section p to the securities exchange act of 1934, which requires the commission to promulgate rules. Sec adopts rules under doddfrank requiring disclosure.
Conflicminerals disclosure provisions of the doddfrank act. In 2010, congress legislated section 1502 of the dodd frank act, which requires companies to disclose whether any of the products manufactured or contracted to be manufactured by the company contains conflict minerals that originate in the democratic republic of congo drc or any of the adjoining parties. Conflict minerals an evaluation of the doddfrank act and. Conflict minerals doddfrank act conax technologies. New compliance management system aims to help companies report on conflict minerals under us dodd frank act. Sec to issue a conflict minerals disclosure rule that requires issuers. Securities and exchange commission sec under the doddfrank act, require public companies to disclose certain information annually if they manufacture or contract to manufacture products and minerals specified in the rules. Scope of conflict mineral disclosure requirements doddfrank. Jun 23, 2014 in 2010, congress legislated section 1502 of the dodd frank act, which requires companies to disclose whether any of the products manufactured or contracted to be manufactured by the company contains conflict minerals that originate in the democratic republic of congo drc or any of the adjoining parties. Securities and exchange commission sec adopted final rules to implement reporting and disclosure requirements related to conflict minerals, as directed by the doddfrank wall street reform and consumer protection act of 2010. Doddfrank wall street reform and consumer protection act, section 1502.
Uganda to improve law enforcement related to trafficking and smuggling. Recent reports show conflict mineral reports are not only costly, but may also be ineffective as such minerals exist worldwide, and not just in the drc as the dodd frank rule suggests. Of course, like rohs and reach and any number of other regulations, you may not be subject to the regulations specifically, but you will be involved in supply chain. On august 22, 2012, pursuant to the doddfrank act, the sec adopted final 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. The rules apply to issuers that i file reports with the sec under section a or section 15d of the securities exchange act of 1934 the exchange act and ii manufacture or. Under armour, the company or we, us or our for calendar year 2016 in accordance with section 1502 of the doddfrank wall street reform and. Section 1502 of the doddfrank wall street reform and consumer protection act. In the case of conflict minerals, the form asks whether 3tgs are present in the products composition and, if they are, if the 3tgs are from known safe or conflict free origins.
Pdf determinants of conflict minerals disclosure under the. Pdf doddfrank wall street reform and consumer protection act. The democratic republic of congo drc is a vast country with a diverse groups of peoples and an immense wealth of natural resources. Supporters of the doddfrank conflict minerals statute and the sec. The dodd frank act requires that all publicly traded companies subject to sec rules report annually on the presence of certain minerals, characterized as conflict minerals, including tin, tantalum, tungsten or gold, in the. Thank you for your inquiry regarding the obligations concerning the american bill h. On august 22, 2012, the sec adopted the final rule implementing section 1502 of the doddfrank act, the conflict minerals rule, aimed at reducing a significant source of funding for armed groups that are committing human rights abuses and contributing to the conflict in. Our company is watching the american efforts to ban and monitor exploitation and. Determinants of conflict minerals disclosure under the dodda. Street reform and consumer protection act doddfrank act includes a provision for disclosures on conflict materials in or near the democratic republic of the congo 15 u. Public law 111203july 21, 2010 doddfrank wall street reform and consumer protection act anorris on dsk5r6shh1prod with public laws verdate nov 24 2008 00. We rely on a thorough content analysis conducted by the responsible sourcing network on a sample of 122.
1587 293 195 267 758 437 174 22 866 368 528 786 327 468 1109 499 969 1195 688 595 836 1381 1175 965 513 1054 39 910 1324 1342 341 901 140 95 533 958 1454 862 1265