SEC Posts New Form SD on Its Website
Issuers with conflict minerals necessary to production must provide a specialized disclosure report on the new Form SD by May 31st of each year
Last Friday, the SEC posted a new Form SD on its website. The SD form is used by companies to disclose requirements implemented under the Dodd-Frank Wall Street Reform and Consumer Protection Act which relates to any publicly traded company whose products are identified as containing one or more of the four conflict minerals (tantalum, tin, tungsten and gold also known as “3TG”) suspected to have originated in the DRC or surrounding countries.
Form SD was first made available on May 30, 2013 and was included in the final rule. It is not a “fill in the blank” type form, but is a list of instructions and guidance on what information must be submitted in supporting documents. The original Form SD was supposed to be used to disclose information about payments to US and foreign governments made by public companies engaged in the commercial development of oil, gas or minerals.
Companies are now discovering first hand that complying with the rule and filling out Form SD is not as straightforward as expected. Factor in the depth and complexity of global supply chains, language barriers, political obstacles, confidentiality concerns, supplier resistance plus the sensitive nature of the materials being traced and it is not surprising that over 75% of companies surveyed by PricewaterhouseCooper’s July 2013 report: “How Companies Are Preparing” are either inactive - waiting or unsure if the rule applies - or in the very early stages - beginning to identify products and suppliers of interest - of implementing their conflict minerals program.
If you wish to learn more about filling out Form SD or how to comply with Dodd-Frank 1502 please contact Source Intelligence today.