Conflicting Financial Interests

An executive branch employee is prohibited by a Federal criminal statute from participating personally and substantially in a particular Government matter that will affect his own financial interests, as well as the financial interests of -

his spouse or minor child
his general partner
an organization in which he serves as an officer, director, trustee, general partner or employee, and
a person with whom he is negotiating for or has an arrangement concerning prospective employment.

Several kinds of financial interests are exempt from this prohibition. These include direct or imputed financial interests in securities that are worth $15,000 or less and financial interests in diversified mutual funds and unit investment trusts, regardless of their value.

Agencies may, by supplemental regulation, prohibit or restrict the holding of certain financial interests by all or a group of agency employees. A few agencies extend such restrictions to the employee's spouse and minor children.

Reference: 18 U.S.C. § 208; 5 C.F.R. §§ 2635.401-403; 5 C.F.R. Part 2640.