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Resource Disclosure Extraction Provisions Reboot


As highlighted here, House Republicans plan to “take the ax to the Securities and Exchange Commission’s disclosure rule for resource extraction, which adds an unreasonable compliance burden on American energy companies that isn’t applied to their foreign competitors. This rule, which closely mimics a regulation already struck down by the courts, would put American businesses at a competitive disadvantage.”

The rule – based on Section 1504 of Dodd-Frank titled “Disclosure of Payments by Resource Extraction Issuers” – has been highlighted on these pages literally since 2009 (see here).

The usual suspects are aghast and have stated that “not only do [the administration and Congress] think corruption is perfectly acceptable, but that they intend to become proactive enablers of corruption.”


This post re-boots a post originally published on FCPA Professor on July 16, 2010 that highlighted the following issues:

  • certain members of Congress introduced versions of the “feel good” bill beginning in 2008 and 2009, but these bills never got “out of committee.”
  • at the last minute, Section 1504 was inserted into the massive Dodd-Frank Act as a “miscellaneous provision”
  • substantively Section 1504 resurrected a policy issue that prior Congresses wrestled with for years in passing the FCPA and sensibly put to rest.

Financial Reform Bill Contains Major Compliance Headache

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