API Applauds House Resolution Rejecting New SEC Rule that Puts America at a Competitive Disadvantage and Harms Workers
WASHINGTON, February 1, 2017 – Today API applauded the House’s action to reject the Securities and Exchange Commission’s (SEC) rule implementing Section 1504 of the Dodd-Frank Act, which fails to strike the right balance between its intention to expand disclosure and protecting the competitiveness of Americans companies, and in turn harming American workers.
On January 31, 2017, API President and CEO Jack Gerard sent this letter to House leaders Speaker Paul Ryan and Democratic Leader Nancy Pelosi. The American Petroleum Institute (API) strongly supports H.J.Res. 41, providing for congressional disapproval under the Congressional Review Act (CRA) of the Securities and Exchange Commission (SEC) rule relating to “Disclosure of Payments by Resource Extraction Issuers” (Section 1504 rule). API strongly supports transparency. Unfortunately, the Section 1504 rule fails to strike the right balance between its intended disclosure requirement purposes and protecting the competitiveness of U.S.-publicly listed companies, hurting American workers and investors.
Section 1504 is regulatory overreach by the previous Administration using U.S. securities laws to address an issue, revenue transparency, which undermines the SEC mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
The proposed 1504 model aims to establish a high degree of industry transparency related to payments made to governmental entities within a country.
This paper examines the proposed implementation of section 1504 of the Wall Street Reform and Consumer Protection Act (“Act”). The Securities Exchange Commission (“Commission” or “SEC”) has issued a request for comment in advance of developing a final rule. See Energy Tomorrow Blog podcast notes for "The Impacts of Section 1504 of the Dodd-Frank Act" and EnergyTomorrow Blog article: "For Fair Disclosure."