A number of reporting companies are still working diligently to comply with their obligations to file the initial Form SD, by May 31, 2014, under the SEC’s conflict-minerals rule.  As recently pointed out in a comment by Doug Harmon, however, the compliance “battle” will not cease with the filing of the Form SD in May.  It will be an achievement for a reporting company to complete the work regarding the initial Form SD filing obligation.  But a reporting company should be mindful that the assessment and filing obligation is an annual one.  Therefore, among the efforts to assess and (as necessary) make this year’s filing, a reporting company should be focusing on:

  • Institutionalizing or formalizing information and processes or procedures that will be useful in its compliance efforts in future years, and
  • Identifying changes in its businesses or operations in the future that may change the results of this year’s work regarding the Form SD.

OUR TAKE:  A reporting company should make an effort to evaluate and formalize its compliance work regarding this year’s Form SD to better enable the company to perform the necessary work for subsequent years.