SEC Adopts Rules Requiring Payment Disclosures by Resource Extraction Issuers

The SEC adopted final Securities Exchange Act Rule 13q-1 and amended Form SD in order to 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 and minerals. After an extended comment period, the final rule was "adopted mostly as proposed, with a few significant changes based on feedback from commenters and other developments since the Proposing Release was issued."

In a separate order, the SEC determined that the current reporting requirements of the European Union's Accounting and Transparency Directives (as implemented in a European Union or European Economic Area member country), Canada's Extractive Sector Transparency Measures Act, and the United States' Extractive Industries Transparency Initiative are "substantially similar" to the SEC's resource extraction rules, subject to certain conditions.

The final rule and amendment to Form SD will become effective 60 days after their publication in the Federal Register. Resource extraction issuers are required to comply with the rule and amendment for fiscal years ending on or after September 30, 2018.