SEC halts some enforcement of conflict minerals rule amid review

The U.S. Securities and Exchange Commission said on Friday it is suspending enforcement of the costliest requirements of its "conflict minerals" rule, after a court remanded it back to the regulator because part of it violates the U.S. Constitution. Acting SEC Chairman Mike Piwowar, a Republican, said he has asked staff for a recommendation on how to proceed with the rule, which requires companies to disclose if their products contain certain minerals from a war-torn part of Africa. For now, he added, 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...

The move sparked backlash from SEC Democratic Commissioner Kara Stein, who accused Piwowar of acting beyond his authority to gut the meat of a rule mandated by Congress, adopted by the SEC and reviewed by the courts. “It is unprecedented for one commissioner, acting alone and without official notice and comment, to engage in de facto rulemaking," she said.