Acting U.S. Securities and Exchange Commission (SEC) Chairman Mike Piwowar said in an April 7, 2017 statement that the SEC is suspending enforcement of the costliest requirements of its conflict minerals rule.
The statement came following an April 3, 2017 U.S. District Court decision remanding the rule back to the SEC to address First Amendment violations. “Until these issues are resolved, it is difficult to conceive of a circumstance that would counsel in favor of enforcing Item 1.01(c) of Form SD,” Piwowar said in a statement [Item 1.01(c) contains the due diligence requirements].
Piowar’s statement referenced the costs of conducting due diligence inquiries, citing several sources including a March 16 letter from IPC.
Piwowar added that companies will not be required to conduct a due diligence review or an audit, which are both part of the process used to determine the origin of the minerals. However, companies will still need to furnish reports and do origin inquiries, as they have been doing.