The Conflict Minerals Rule: Practical Guidance and Roadmap to Implementation

Summary: On August 22, 2012, pursuant to Release No. 34-67716 (Release), the SEC adopted Rule 13p-1 (Conflict Minerals Rule) and Exchange Act Form SD. Together, these provide a three-step framework for analyzing the need for specified disclosures pertaining to the use of identified “Conflict Minerals” originating from “Covered Countries” in manufactured products. Our September 6, 2012 client alert includes the definitions of “Conflict Minerals” and “Covered Countries,” as used in this article, and also describes the three-step framework for the applicability of, and disclosures required by, the Conflict Minerals Rule. This alert does not repeat the substantive disclosure and audit requirements of the Conflict Minerals Rule discussed in detail in our previous alert. Rather, it highlights the guidance set forth in the Release regarding how certain determinations under the rule should be made, and provides practical steps an issuer can implement now to be prepared for the upcoming compliance deadline.