This may not offer any consolation to companies who expended time and money to comply with the US Securities and Exchange Commission Dodd Frank Section 1502 conflict minerals disclosure. Reuters published an article stating that the SEC themselves spent close to $3 million on developing and defending the mandate.
The costs were presented to the House of Representatives financial services panel at the request of House Financial Services Chairman Jeb Hensarling in a March 16 letter that was obtained by Reuters. The cost breakdown outlined is:
- Staff time writing the rule – about $2.1 million since July 2010, representing about 17,000 staff hours.
- Legal defense costs – about $520,000 and 4,000 staff hours.
- Updating SEC’s systems for the conflict mineral disclosure reports – about $128,000.