How will the Dodd-Frank Wall Street Reform and Consumer Products Act affect your appraisal practice?
The “Act” know as “Dodd-Frank” places Securities and Exchange Commission (SEC) reporting requirements upon manufacturers if their products may contain materials or be derived from, minerals that have been identified as “Conflict Minerals.”
This section is codified as “17 CFR Parts 240-249(b)”
“Conflict minerals” is the term that encompasses conflict diamonds, also known as “blood diamonds.” BUT — The phrase goes far beyond that of diamonds and other gemstones.
Gold – found in jewelry and electronics,
Columbite – Tantalite, tantalum; found in electronics
Cassiterite – tin – in plating and solder
Wolframite – tungsten – in wire, electrodes, lighting, heating and welding.
Manufacturers are required to monitor and document their supply chain to ensure that their products do not contain conflict minerals. The sources must be noted and recorded.
This impact your appraisal practice in several ways:
First: If you are a prime contractor, or a named subcontractor to any federal agencies, you will be asked must provide a statement certifying that you are in compliance with the Dodd-Frank Act, in relation to “conflict/prohibited minerals.”
You may also need to provide this certification even if you are a unnamed subcontractor.
Second: If you appraise any items that contain any of the minerals noted above, you must take the Dodd-Frank Act into consideration.
There are plenty of hidden challenges in this complex world of valuation science including Federal laws that impact us every day.
Here are just a few ….
Learn more about how NAC handles this challenge, and keep up with the latest appraisal business and marketing news at: www.SuccessfulAppraising.com