Investors had complained that the “conflict minerals” rule tucked into Dodd-Frank costs too much money to ferret out the source through the supply chain. Conflict minerals help arm rebel groups in Africa.
U.S. President Donald Trump is planning on issuing an executive order which targets a Dodd-Frank rule that requires companies to disclose whether their products contain “conflict minerals” from parts of war-torn Africa.
This is what has been revealed by a source familiar with the administration’s thinking.
The 2010 Dodd-Frank Act explicitly provides the U.S. President the authority to order the Securities and Exchange Commission to temporarily suspend or revise the rule for two years, if it is in the interest of the national security of the United States.
Sources preferred the cover of anonymity since the matter isn’t pubic and since they were not authorised to speak to the media.
The plan for this executive order comes on the heel of another executive order issued by the White House last week that targets broader Dodd-Frank rules which were put into place following the 2008 financial crisis.
Although this order did not in particular single out any one rule, but however called on the Treasury Secretary to consult with other regulators, including the SEC, and to come back with a report outlining potential regulatory changes, including changes in legislation.
Significantly, another Dodd-Frank SEC disclosure rule that requires oil, gas and mining companies to disclose payments made to foreign governments, was repealed by the Republican controlled Congress last week.
The conflict minerals rule is one of several disclosures that formed part of the Dodd-Frank riles which were unrelated to the financial crisis of 2008.
This rule was pushed by human rights groups to want consumers and investors to know that the products that they purchase are mined from the Democratic Republic of Congo, in the hope that such knowledge will curb the funding of armed rebels.
Vested interests and business groups had however opposed the move saying the politically-charged information is irrelevant in making a financial decision. Further, they have also complained that tracing the minerals to their source, through the supply chain costs too much money for companies