On Thursday, the US Securities and Exchange Commission approved a new rule that will tighten the rules for companies like copper mining companies and other firms that produce precious metals.
The rule, which was first reported by The Hill, requires companies to file annual reports disclosing all their purchases and sales of precious metals and their use of those metals.
And it makes it a felony for companies to hide the actual amount of gold they’ve been using.
“The goal of this rule is to ensure that the public has access to the most complete and accurate information about the market value of precious metal assets,” said Commissioner Mary Jo White in a statement.
“We are committed to providing transparency to our customers and our shareholders.”
The rule will go into effect immediately, and the SEC will also issue new guidelines on what is and isn’t a “material misstatement” and “material false statement” about the value of assets.
The agency also requires companies that buy precious metals to give shareholders an update on how much they’ve spent on the investment.
The company must also provide shareholders a financial statement showing how much it paid for the precious metal.