United States

SEC Proposal Addresses Disclosure of Payments Made By Resource Extraction Issuers

Dec 18, 2015
From the Financial Reporting Network

On December 11, the SEC voted to propose Rule 13q-1 and an amendment to Form SD that would require resource extraction issuers that are required to file annual reports with the SEC under the Securities Act to disclose annually on Form SD payments made to the U.S. federal government or foreign governments for the commercial development of oil, natural gas, or minerals. The issuer also would be required to disclose payments made by a subsidiary or entity controlled by the issuer.

The proposed rules, which are mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, would promote greater transparency about payments related to resource extraction and would require disclosure at the project level, similar to the approach adopted in the European Union and proposed in Canada. Rule 13q-1 was initially adopted by the Commission on August 22, 2012, but it was subsequently vacated by the U.S. District Court for the District of Columbia.

The initial public comment period ends January 25, 2016. Reply comments, which may respond to only issues raised in the initial comment period, are due on February 16, 2016.

Read Proposed SEC Rule