SEC-registered investment companies would be required to disclose when they divest in companies doing business in Sudan under the provisions of the Sudan Accountability and Divestment Act, according to a proposed SEC regulation.
The act, signed by President Bush on Dec. 31, allowed pension plans and mutual funds to divest holdings in key companies doing business in Sudan without facing fiduciary lawsuits. The law authorizes divestment from companies involved in Sudan’s military, power production, petroleum and mining-related industries, leaving it up to a fund to determine that the company is involved in one of the targeted enterprises. The law also required the SEC to establish regulations on the divestment disclosures by April 29.
The public will have 30 days to comment on the proposed disclosure regulations after publication in the Federal Register, the SEC news release said.