Qualified Person liabilities... What do you know?
Qualified persons or third party firms acting on behalf of one or more qualified persons, or QP's of the registrant itself, take on liability for the information they have provided/reviewed through the written registration statement included with each Technical Report Summary. A QP is deemed to be an expert and must provide their consent as an exhibit to the filing. QP's would be subject to liability as an expert:
For any untrue statement, or
For omission of a material fact required to be contained in the Technical Report Summary, or
For providing information that is misleading
This liability currently exists for:
Expert authors of reports referenced in the registration statements
Named persons that prepare the current reserve estimates (under IG 7)
If you are a QP, there are some strategies to limit your liability under the Securities Act:
Be careful about what you take responsibility for and what you sign-off on
Have co-author QPs signing off on their sections where they are the experts
Third-party QPs have their firm sign the Technical Report Summary and the consents
Have non-QP experts provide reports that you can rely on and make sure their information is represented fairly
-Have them consent to the use of their expert reports
Have the registrant prepare the information for the Technical Report Summary that is allowed under S-K 1300
If you are acting as a qualified person or firm for a filing with the SEC, knowing the rules around such a commitment is important. Mining Plus has the answers for any questions regarding qualified person liability, so contact us with any questions here today.