February 21, 2014
(Editor’s Note: This post is an excerpt from an article appearing in Practitioner Insights on WestlawNext)
When preparing a risk factor disclosure for an annual report on Form 10-K, issuers pay particular attention to new developments and regulations that may materially affect the company. Since public companies are required to make conflict minerals-related filings beginning in May 2014, some issuers have updated their 10-K risk factors to include new warnings about the potentially adverse impact of such rules.
The SEC’s final rules on conflict minerals were a hot topic among public companies in 2013. Some legally challenged the rules, alleging that they were “arbitrary and capricious” under the Administrative Procedures Act, but the rules survived the challenge.