Wednesday, 31 August 2011

The Cardin-Ludgar provision to help eliminate corruption in frontier markets

Frontier markets recieved a big boost with passage of the Wall Street Reform Conference Report. In this the Senate approved a measure, authored by U.S. Senator Benjamin L. Cardin, Chairman of the Commission on Security and Cooperation in Europe, and Senator Richard Lugar to increase transparency in the oil, gas and mining industries.

The Cardin-Lugar Energy Security Through Transparency provision will add stability to markets through greater information and predictability and help protect investors from undue risks associated with corrupt or unstable governments in oil-rich or mineral-wealthy countries.

The provision requires extractive companies listed on U.S. stock exchanges to disclose, in their SEC filings, payments made to governments for oil, gas and mining.

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