guidance on potential trump memorandum for suspension of conflict minerals rule

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Guidance on Potential Trump Memorandum for Suspension of Conflict Minerals Rule

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Today’s Presenters

Jonathan HughesAssent ComplianceDirector, Business Development







Today’s Presenters

Michael LittenbergRopes & Gray LLPPartner







Organization Overviews

Assent Compliance provides best-in-class compliance solutions that help organizations with their global, environmental and human

rights compliance strategies.

Ropes & Gray is a preeminent global law firm, with more than 1,200 legal

professionals serving clients worldwide from centers of business, technology

and government.







Agenda

Memorandum Summary

Other Conflict Mineral Regulations & Guidelines

Other Legal & Administrative Considerations

Other Potential Conflict Mineral Requirements

Take-Aways

Q&A and Open Discussion

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INTRODUCTION







Assent Product SuitesOur Market Leading Platform

Ethical Sourcing

Materials Management

Supplier Information Management

InspectionsConfigurable Surveys & Declarable Substance

Lists







Feature PresentationPRESENTER, TITLE & COMPANY Feature Presentation







Memorandum Summary

The Guardian published an alleged leaked Presidential Memorandum on Dodd-Frank Section 1502◆ https://www.theguardian.com/us-news/2017/feb/08/trump-administration-order-conflict-

mineral-regulations

Quick Facts◆ This text of alleged Memorandum is temporary waiver, not a repeal of the rule

◆ The ability to trigger this temporary waiver requires a determination that it is in the national security interest of the United States

◆ There is wide belief that such a determination is likely to be challenged in court

◆ The Secretaries of State & Treasury have 180 days to propose an alternative plan






https://www.theguardian.com/us-news/2017/feb/08/trump-administration-order-conflict-mineral-regulations




Executive Order Summary

Here is a direct quote:

SEC. 3 Secretary's’ Plan. The Secretary of State and the Secretary of Treasury shall propose to the President a plan for addressing human rights violations and funding of armed groups in the Democratic Republic of the Congo or an adjoining country. The plan could include targeting persons and entities engaged in violations of law and negative human rights impacts, consistent Section 13 of the Exchange Act. The Secretaries shall submit their plan to the President within 180 of the date of this Order.







In addition to the previously mentioned drivers, there are additional legal and administrative factors to take into consideration:

◆ Recent SEC chair statement

◆ The Financial Choice Act

◆ Court case

Other Legal & Administrative Considerations







Other Conflict Mineral Regulations & Guidelines

There still may be a need for alignment with the following:

◆ European Union’s conflict minerals regulation

◆ Emerging Chinese conflict minerals guidance/regulation

◆ Massachusetts, Maryland & California state level requirements

◆ European Union’s Non-Financial Reporting Directive







Other Potential Conflict Mineral Requirements

◆ Commercial customer requirements

◆ Corporate social responsibility programs

◆ External stakeholder pressure including NGOs,

socially responsible investors and consumers

Drivers that may require conflict minerals information to be collected throughout the supply chain and reported:







Take-Aways

A signed Memorandum has not yet been issued. The rule is still in place as of today and conflict mineral filings are still due at the end of May 2017.

For now, companies should stay the course on their existing conflict mineral compliance efforts. Even if a memorandum similar in nature to the one leaked by the Guardian is issued, many companies will continue to request CMRTs and voluntarily report on their websites.

In the event of a temporary waiver, companies will need to consider the other compliance drivers discussed in determining their course of action.

Assent and Ropes & Gray are monitoring legislative and other developments closely. We will keep you informed as new information becomes available.







Q&A

1 What might a legal challenge look like if this Memorandum is issued? What might the timeline look like?







Q&A

2 If a Memorandum is signed before May 31st, does my company still need to submit a Form SD?







Q&A

3What are the State level requirements in Maryland, Massachusetts and California?

Will they still be in effect if the Memorandum is issued?







Q&A

4 What happens to the CMRT if the Memorandum is signed?







Q&A

5 When will the EU Conflict Minerals Regulation take effect and how might it affect me as a U.S. issuer?







Q&A

6 When will companies have to publish disclosures under the EU Non-Financial Reporting Directive? How might that affect global supply chains?







Q&A Discussion

Additional Questions







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guidance on potential trump memorandum for suspension of conflict minerals rule

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