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SEC proposes rules on resource extraction disclosures and use of derivatives

  • SEC document Image

Dec 11, 2015

The SEC has issued two proposed rules: (1) “Disclosure of Payments by Resource Extraction Issuers” and (2) “Use of Derivatives by Registered Investment Companies and Business Development Companies.”

The proposed rule on resource extraction disclosures is being released in response to a mandate of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposal “would require resource extraction issuers to disclose payments made to the U.S. federal government or foreign governments for the commercial development of oil, natural gas or minerals.” Such disclosures would be required if (1) the issuer must file annual reports with the SEC in accordance with the Securities Exchange Act or (2) the payments are made by entities or subsidiaries that the issuer controls. Comments on this proposed rule are due by January 25, 2016. For more information, see Deloitte's related journal entry as well as the press release on the SEC’s Web site.

The proposed rule on use of derivatives would “place restrictions on funds, such as mutual funds and exchange-traded funds . . . that would limit their use of derivatives and require funds to put in place risk management measures resulting in better protection for investors.” Comments on this proposed rule are due 90 days after the date of its publication in the Federal Register. For more information, see the press release on the SEC’s Web site.

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