[Federal Register Volume 77, Number 82 (Friday, April 27, 2012)]
[Rules and Regulations]
[Pages 25015-25024]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-10122]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 77, No. 82 / Friday, April 27, 2012 / Rules
and Regulations
[[Page 25015]]
BUREAU OF CONSUMER FINANCIAL PROTECTION
5 CFR Chapter LXXXIV
[Docket No. CFPB-2012-0016]
RIN 3209-AA15
Supplemental Standards of Ethical Conduct for Employees of the
Bureau of Consumer Financial Protection
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Interim final rule with request for public comment.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Consumer Financial Protection (CFPB or Bureau),
with the concurrence of the Office of Government Ethics (OGE), is
issuing this interim final rule for employees of the Bureau. This rule
supplements the Standards of Ethical Conduct for Employees of the
Executive Branch (OGE Standards) issued by OGE and is necessary because
it addresses ethical issues unique to the Bureau. The rule establishes
restrictions on outside employment and business activities;
prohibitions on the ownership of certain financial interests;
restrictions on seeking, obtaining or renegotiating credit and
indebtedness; prohibitions on recommendations concerning debt and
equity interests; disqualification requirements based on credit or
indebtedness; prohibitions on purchasing certain assets; and
restrictions on participating in particular matters involving outside
entities.
DATES: This interim final rule is effective June 26, 2012. Written
comments are invited and must be received on or before June 26, 2012.
ADDRESSES: You may submit comments, identified by Docket No. CFPB-2012-
0016, by any of the following methods:
Electronic: http://www.regulations.gov. Follow the
instructions for submitting comments.
Mail/Hand Delivery/Courier: Monica Jackson, Office of the
Executive Secretary, Consumer Financial Protection Bureau, 1700 G
Street NW., Washington, DC 20552.
Instructions: All submissions must include the agency name and
docket number or Regulatory Information Number (RIN) for this
rulemaking. In general, all comments received will be posted without
change to http://www.regulations.gov. In addition, comments will be
available for public inspection and copying at 1700 G Street NW.,
Washington, DC 20552, on official business days between the hours of 10
a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect
the documents by telephoning (202) 435-7275.
All comments, including attachments and other supporting materials,
will become part of the public record and subject to public disclosure.
Sensitive personal information, such as account numbers or social
security numbers, should not be included. Comments will not be edited
to remove any identifying or contact information.
FOR FURTHER INFORMATION CONTACT: Amber Vail at (202) 435-7305 or Amy
Mertz Brown at (202) 435-7256 at the Office of General Counsel,
Consumer Financial Protection Bureau.
SUPPLEMENTARY INFORMATION:
I. Background
On August 7, 1992, OGE published the OGE Standards. See 57 FR
35006-35067, as corrected at 57 FR 48557, 57 FR 52483, and 60 FR 51167,
with additional grace period extensions for certain existing provisions
at 59 FR 4779-4780, 60 FR 6390-6391, and 60 FR 66857-66858. The OGE
Standards, codified at 5 CFR part 2635, effective February 3, 1993,
established uniform standards of ethical conduct that apply to all
executive branch personnel.
Section 2635.105 of the OGE Standards authorizes an agency, with
the concurrence of OGE, to adopt agency-specific supplemental
regulations that are necessary to properly implement its ethics
program. The Bureau, with OGE's concurrence, has determined that the
following supplemental regulations are necessary for successful
implementation of its ethics program in light of the Bureau's unique
programs and operations.
II. Analysis of the Regulations
Section 9401.101 General
Section 9401.101 explains that the regulations contained in part
9401 (CFPB Ethics Regulations) apply to employees of the Bureau and
supplement the OGE Standards. The section also includes cross-
references to other ethics restrictions applicable to employees--
including the regulations concerning executive branch financial
disclosure, financial interests, post-Government restrictions, outside
earned income and employment and affiliation limitations, and employee
responsibilities and conduct--as well as implementing Bureau guidance
and procedures issued in accordance with the OGE Standards.
Section 9401.102 Definitions
Section 9401.102 defines terms and phrases used throughout these
supplemental regulations. Many of the definitions reference terms
defined in the OGE Standards or in the Consumer Financial Protection
Act of 2010 (CFPA) (12 U.S.C. 5301 et seq.).
The terms ``credit'' and ``Director'' are statutory terms taken
from the CFPA. See 12 U.S.C. 5481(7), 5481(10).
This regulation broadly defines the term ``debt or equity
interest'' to include without limitation, ``secured and unsecured
bonds, debentures, notes, securitized assets, commercial papers, and
preferred and common stock.'' It extends to any right to acquire or
dispose of any such debt or equity interest and to beneficial or legal
interests derived from a trust. However, the term does not include
deposit accounts (e.g., savings accounts, checking accounts,
certificates of deposit, money market accounts), credit union shares,
future interests created by someone other than the employee or the
employee's spouse or dependent child, or a right as a beneficiary of an
estate that has not been settled.
The term ``dependent child'' has the same meaning as in OGE's
financial disclosure regulations at 5 CFR 2634.105(d).
The term ``Designated Agency Ethics Official'' (DAEO) means the
individual appointed by the Director to coordinate and manage the
ethics program. It also includes the Alternate DAEO and a
[[Page 25016]]
designee of the DAEO or Alternate DAEO, unless a particular provision
in these supplemental regulations states otherwise.
The term ``domestic partner'' includes an individual with whom an
employee has a close, committed, personal, and financially
interdependent relationship in which both parties have agreed to be
responsible for each other's common welfare and share financial
obligations, and who for at least six months have shared the same
regular and permanent residence and intend to do so indefinitely, or
would have a common residence but for an assignment abroad or other
employment-related, financial or similar obstacle. The definition of
``domestic partner'' in these supplemental regulations is the same as
the one used to determine whether an individual is eligible to receive
benefits under the Bureau's Domestic Partner Health Insurance Subsidy
Program.
The term ``employee'' includes all Bureau employees, including
special Government employees.
The phrase ``entity supervised by the Bureau'' means a person that
is subject to the Bureau's supervision authority pursuant to 12 U.S.C.
5514(a)(1) or 5515(a) and in regulations promulgated thereunder, as
identified on a list to be maintained and regularly updated by the
Bureau.
The terms ``indebted'' and ``indebtedness'' refer to a legal
obligation under which an individual or borrower received money or
assets on credit, and now owes payment.
The term ``indebted to an entity'' means an obligation to make
payments to that entity as a result of an indebtedness, whether
originally made with that entity or with another entity. This includes
without limitation a servicer on a mortgage to whom payments are made.
The term ``participate'' means to participate personally and
substantially and has the meaning set forth in the OGE Standards at 5
CFR 2635.402(b)(4).
The terms ``particular matter,'' ``particular matter involving
specific parties,'' ``person,'' and ``special Government employee''
have the same meanings as in the OGE Standards and in OGE's regulations
on post-employment conflict of interest at 5 CFR 2635.402(b)(3),
2641.201(h), 2635.102(k) and 2635.102(l), respectively.
The term ``spouse'' means an employee's husband or wife by lawful
marriage, but does not include a legally separated spouse when the
employee and spouse live apart, there is an intention to end the
marriage or separate permanently, and the employee has no control over
the legally separated spouse's debt or equity interests.
Section 9401.103 Prior Approval for Outside Employment
This section requires employees to obtain written approval prior to
engaging in certain outside employment and activities. This prior
approval requirement will be an integral part of the Bureau's ethics
program. The prior approval requirement is necessary to ensure that an
employee's participation in certain outside employment or activities
does not adversely affect Bureau operations or place the employee at
risk of violating applicable Federal conduct statutes and regulations.
In addition, prior approval is necessary to avoid the appearance that
an outside employment or activity was obtained through a misuse of the
employee's official position and to address a number of other ethics
concerns.
Because the Bureau engages in enforcement, supervisory and
regulatory functions across the consumer financial services sector,
requiring prior approval is necessary to ensure that a reasonable
person will not question the integrity of Bureau programs and
operations. The Bureau would be hindered in fulfilling its mission if
members of the public did not have confidence in employees' ability to
act impartially while performing their official duties.
Paragraph (a) requires that an employee obtain prior written
approval from the employee's supervisor and the concurrence of the DAEO
before engaging in outside employment, except to the extent the Bureau
has issued an instruction or internal directive exempting an activity
or class of activities from this requirement. Under paragraph (d), an
employee must submit a new request for approval when the scope of the
approved activity changes or when the employee's position changes.
Paragraph (b) broadly defines ``employment'' to include any form of
non-Federal employment or business relationship involving the provision
of personal services other than in the discharge of official duties,
regardless of whether the services are compensated. It includes outside
teaching, speaking, or writing.
A note following paragraph (b) pertains to the special approval
requirement in both 18 U.S.C. 203(d) and 205(e) for certain
representational activities otherwise covered by the conflict of
interest restrictions on compensation and activities of employees in
claims against and other matters affecting the Government. The note
explains that in addition to the regulatory approval required in this
section, an employee who wishes to act as agent or attorney for or
otherwise represent his or her parents, spouse, child, or a person for
whom or for an estate for which he or she is serving as guardian,
executor, administrator, trustee, or other personal fiduciary in such
matters must obtain the approval of the Government official responsible
for the employee's appointment to the federal service.
Paragraph (c) sets out the standard to be applied by the employee's
supervisor and the DAEO in acting on requests for prior approval of
outside employment. Approval will be granted only upon a determination
that the outside employment is not expected to involve conduct
prohibited by statute, the OGE Standards, or these supplemental
regulations.
Under paragraph (e), the DAEO may issue instructions or internal
directives governing the submission of requests for approval of outside
employment that may exempt categories of employment from the prior
approval requirement of this section based on a determination that
employment within those categories generally would be approved and is
not likely to involve prohibited conduct or create an appearance of
lack of impartiality.
Section 9401.104 Additional Rules Concerning Outside Employment for
Covered Employees
This section supplements Sec. 2635.802 of the OGE Standards by
prohibiting covered employees from engaging in compensated outside
employment for any entity supervised by the Bureau or for an officer,
director, or employee of such entity. This regulation addresses
situations unique to covered employees, including those who are
involved in the supervision of entities offering or providing a
consumer financial product or service, and prohibits activity that may
interfere with the objective and impartial performance of an employee's
official duties. This regulation is based in part on 18 U.S.C. 1909,
which prohibits national bank examiners from performing any service for
compensation for any bank or banking or loan association, or any
officer, director, or employee thereof.
For purposes of this section, the term ``covered employee'' means
all employees serving in an examiner or attorney position, specified
persons within the Office of Research and the Office of Enforcement,
all Public Financial Disclosure Report filers, and other employees
specified in a Bureau order or directive who the DAEO
[[Page 25017]]
determines should be covered by the rule.
Section 9401.105 Additional Rules Concerning Outside Employment for
Bureau Attorneys
Employees serving in an attorney position are subject to
restrictions in addition to the prior approval of outside employment
requirement in Sec. 9401.103 and the prohibited outside employment
restriction in Sec. 9401.104. This section prohibits all such
individuals from practicing law outside of their official duties where
they may in fact or in appearance take a legal position in conflict
with the interests of the Bureau. Bureau attorneys are prohibited from
interpreting a statute, regulation, or rule administered by the Bureau
as part of the outside practice of law. The regulation in this section
is consistent with the rules of professional conduct governing the
attorney-client relationship. It is a necessary supplement to the OGE
Standards because it specifically addresses the unique and sensitive
relationship between an attorney and a client, which for Bureau
attorneys is the Bureau.
Paragraph (b) contains an exemption allowing an employee to
represent himself or herself unless the employee participated
personally and substantially in the matter as part of his or her
official duties or the matter is the subject of the employee's official
responsibility.
Section 9401.106 Prohibited Financial Interests
Paragraph (a) prohibits an employee or the employee's spouse or
minor child from owning or controlling a debt or equity interest in an
entity supervised by the Bureau. As set forth in Section 9401.102, the
term ``supervised by the Bureau'' refers to the Bureau's authority
under the CFPA to supervise and examine certain financial institutions
and other providers of consumer financial products and services. Under
5 CFR 2635.403(a), an agency may, by supplemental regulation, prohibit
or restrict the holding of a financial interest by its employees and
the spouses and minor children of those employees based on the agency's
determination that the acquisition or holding of such financial
interest would cause a reasonable person to question the impartiality
and objectivity with which agency programs are administered.
The Bureau has determined that in light of the Bureau's sensitive
supervisory functions, the restriction is necessary to: (1) Maintain
public confidence in the impartiality and objectivity with which the
Bureau executes its supervisory functions; (2) eliminate any concern
that sensitive information provided to the Bureau might be misused for
private gain; and (3) avoid the widespread disqualification of
employees from official matters that might impair the Bureau's ability
to fulfill its mission.
The prohibition in paragraph (a) also applies to the spouse and
minor children of an employee. Under 5 CFR 2635.403(a), a restriction
on the holdings of financial interests by spouses or minor children of
agency employees must be based on the agency's determination that there
is a direct and appropriate nexus between the restriction as applied to
spouses and minor children and the efficiency of the service. The
Bureau has determined that such a nexus exists and is adopting this
provision to avoid the need to disqualify employees from official
matters to prevent violations of criminal law (18 U.S.C. 208), to
maintain public confidence in the objectivity and impartiality of the
Bureau's administration of its programs, and to avoid the potential
appearance that an employee's spouse could trade on information
obtained through the employee's official position.
The scope of this prohibition extends only to those entities
supervised by the Bureau that are identified on a list maintained by
the Bureau for the purposes of easing administration of this provision
and minimizing inadvertent violations. The Bureau's regulatory and
enforcement authority under the CFPA may extend beyond those entities
supervised by the Bureau that are identified on the list. However, the
regulation limits the prohibition on ownership of debt and equity
interests to only those entities identified on the list, in order to
establish a bright-line test and enable employees to easily identify
prohibited interests.
Paragraph (b) sets forth several exceptions intended to ease the
restrictions on the financial interests of employees and their spouses
and minor children to permit interests of a character unlikely to raise
questions regarding the objective and impartial performance of
employees' official duties or the possible misuse of their positions.
The exceptions permit employees and their spouses and minor children to
own or control interests in entities supervised by the Bureau through
investments in a publicly traded or available mutual fund (as long as
the fund does not have a stated policy of concentrating in the
financial services industry or the banking industry), a widely held and
diversified pension plan, or a fund administered by a Federal
government agency.
Paragraph (c) requires employees to immediately disqualify
themselves if they own or control a prohibited interest and consult
with the DAEO concerning a potential waiver under paragraph (d).
Paragraph (d) authorizes the DAEO, in consultation with senior
management in the Division in which the employee works, to waive under
certain limited circumstances on a case-by-case basis the prohibition
in paragraph (a). In general, a request for a waiver will be considered
if mitigating circumstances exist due to how the employee or the
employee's spouse or minor child acquired ownership or control, the
employee makes a prompt and complete written disclosure of the debt or
equity interest to the DAEO, and the employee's disqualification from
matters involving the entity in which the prohibited interest is held
would not unduly interfere with the full performance of the employee's
duties. If owning or controlling the debt or equity interest would
raise financial conflict of interest concerns under 18 U.S.C. 208(a),
the DAEO will consult with OGE prior to authorizing the employee to own
or control the debt or equity interest. The DAEO also will consult with
OGE prior to authorizing an employee to work on a particular matter
that would raise financial conflict of interest concerns under 18
U.S.C. 208(a).
Paragraph (e) attributes to an employee a debt or equity interest
held by entities described in this subsection (e.g., trusts,
partnerships, closely held corporations). An employee who has knowledge
of an attributed interest that would violate subparagraph (a) of this
section is required to report the interest in writing to the DAEO. The
DAEO may require the employee to terminate the relationship with the
third party entity, disqualify himself or herself from participating in
a matter, or take other appropriate action as determined by the DAEO to
avoid a violation of the conflict of interest statutes, the OGE
Standards or these supplemental regulations, or an appearance of misuse
of position or loss of impartiality.
Section 9401.107 Prohibition on Acceptance of Credit on Preferential
Terms From an Entity Supervised by the Bureau
Section 9401.107 prohibits employees or the employee's spouse or
minor child from accepting credit from or entering into a financial
relationship with an entity supervised by the Bureau if the
relationship is based on terms more favorable than those offered in
[[Page 25018]]
comparable circumstances to the public. This provision is intended to
reinforce the general principle that employees may not use their public
office for private gain and the requirement that employees have a
responsibility to avoid receiving preferential treatment in their
personal dealings with entities supervised by the Bureau.
Section 9401.108 Restrictions on Seeking, Obtaining, or Renegotiating
Credit From an Entity That Is or Represents a Party to a Matter to
Which an Employee Is Assigned or May Be Assigned
Section 9401.108 prohibits an employee from seeking, obtaining, or
renegotiating credit from an entity, while the employee is assigned to
participate in a particular matter involving specific parties in which
the entity is or represents a party to the matter. The prohibition also
extends to those matters to which the employee is not currently
assigned, but the employee is aware of the pendency of the matter and
believes it is likely that he or she will participate in the matter.
This prohibition also applies for two years after the employee's
participation in the matter has ended.
This prohibition applies equally to the employee's spouse or minor
children, unless the credit or indebtedness is supported exclusively by
the income or independent means of the spouse or minor child and is
obtained on terms and conditions no more favorable than those offered
to the public, and the employee does not participate in the
negotiations for the credit or indebtedness or serve as a co-maker,
endorser, or guarantor of the loan.
The prohibition on seeking, obtaining, or renegotiating credit is
necessary for several reasons. Under 5 CFR 2635.403(a), the Bureau may
prohibit or restrict the acquisition or holding of a financial interest
or class of financial interests by employees, and the spouses and minor
children of those employees, when the Bureau has determined that the
acquisition or holding of such financial interests would cause a
reasonable person to question the impartiality and objectivity with
which the Bureau programs are administered. ``Financial interest'' may
include an indebtedness relationship, under 5 CFR 2635.403(c). This
prohibition is necessary to prevent the loss of public confidence in
the integrity of Bureau programs and to prevent the appearance of loss
of impartiality. These concerns might arise if an employee appears to
be using his or her official position or contacts with an entity
resulting from the employee's work on a matter to obtain loans or
extensions of credit on favorable terms, or to be benefitting from his
or her official position through possible forbearance by the lender in
collecting on the indebtedness. This section also will strengthen
public confidence in the Bureau's integrity by limiting the ability of
employees to engage in financial transactions with entities that are or
represent a party to a particular matter involving specific parties to
which the employee is assigned.
Under paragraph (c), an employee must immediately disqualify
himself or herself from participating in a particular matter involving
specific parties after the employee becomes aware that certain
identified persons are seeking, obtaining, or renegotiating credit or
indebtedness with an entity that is or represents a party to the
matter, while the matter is pending before the Bureau. The Bureau does
not intend to impose an affirmative duty on the part of the employee to
investigate or inquire whether the persons identified in this section
are seeking, obtaining, or renegotiating credit.
Because this section supplements Sec. 2635.502 of the OGE
Standards, the list of persons identified in paragraph (c) of this
section are defined broadly and include the employee's spouse, domestic
partner, and dependent child, and other related entities. This section
is designed to ensure that employees and persons associated with
employees in a non-governmental capacity do not benefit or appear to
benefit from the employees' official positions and that employees do
not lose or appear to lose their impartiality.
Paragraph (d) provides exemptions to the prohibition in paragraphs
(a) and (b) and the disqualification requirement in paragraph (c), for
two forms of credit: borrowing through the use of a credit or charge
card and borrowing through overdraft protection, on terms and
conditions available to the public. The need for regulation is
diminished because these forms of credit are typically fairly
standardized and low credit amounts are customary. The Bureau has
determined permitting employees to have adequate access to sources of
credit to meet their individual financial needs outweighs the
incremental benefit that may be gained by extending the rule to cover
these forms of credit.
The DAEO may grant a waiver under paragraph (e) based on a
determination that the participation in matters otherwise prohibited by
this section is not prohibited by law and would not create an
appearance of loss of impartiality or use of public office for private
gain.
Section 9401.109 Disqualification of Employees From Particular Matters
Involving Creditors
Section 9401.109(a) prohibits an employee from participating in a
particular matter involving specific parties if the employee is aware
that the employee, the employee's spouse, domestic partner, or
dependent child, or a specified related entity has credit with or is
indebted to an entity that is or represents a party to the matter.
This section supplements Sec. 2635.502 of the OGE Standards. The
disqualification requirement is designed to ensure that employees and
persons and entities related to employees do not benefit or appear to
benefit from employees' official positions and the employees do not
lose or appear to lose their impartiality when taking official action.
Paragraph (b) exempts certain forms of credit and indebtedness from
the disqualification requirement in paragraph (a) as long as the person
with the credit or indebtedness is not in an adversarial position with
the entity that extended the credit or to which the indebtedness is
owed, and the credit or indebtedness was offered on terms and
conditions no more favorable than those offered to the general public.
The exemptions include revolving consumer credit and charge cards;
overdraft protection on checking and similar accounts; amortizing
indebtedness on consumer goods (e.g., automobiles); educational loans
(e.g., student loans; loans taken out by a parent or guardian to pay
for a child's education costs); and loans on residential homes (e.g.,
mortgages, home equity lines of credit).
Paragraph (c) allows an employee to participate in a matter from
which they would be disqualified under paragraph (a), if the credit or
indebtedness is the sole responsibility of a person listed in
paragraphs (a)(2) through (a)(8), and other conditions are met. The
exception is intended to address situations where the credit or
indebtedness is unlikely to raise ethics concerns regarding the
motivation of the lender or the impartiality of an employee's
performance of official duties because the connection between the
employee and that credit or indebtedness is attenuated.
Despite the general disqualification requirement in paragraph (a)
of this section, the DAEO may authorize an employee to participate in
the matter using the authorization process set forth in 5 CFR
2635.502(d) of the OGE Standards.
[[Page 25019]]
Section 9401.110 Prohibited Recommendations
This section prohibits employees from making any recommendation or
suggestion regarding the acquisition, sale, or other divestiture of a
debt or equity interest of an entity supervised by the Bureau or of an
entity that is or represents a party to a particular matter involving
specific parties to which the employee is assigned. This rule is
intended in part to eliminate any misunderstanding or harm that could
result from such a recommendation. For example, an investor should not
be misled into believing that an equity interest in a particular entity
supervised by the Bureau is a good investment because the investor
believes that the employee from whom the investor receives a
recommendation may have access to inside information concerning that
entity. This provision also supplements 5 CFR 2635.704 with a provision
designed specifically to prohibit employees from using or creating the
appearance of using information unavailable to the general public to
further a private interest.
Section 9401.111 Restrictions on Participating in Matters Involving
Covered Entities
This section disqualifies an employee from participating in a
particular matter involving specific parties if a covered entity is or
represents a party to the matter. For purposes of this disqualification
requirement, the term ``covered entity'' includes a person for whom the
employee is aware that his or her spouse, domestic partner,
fianc[eacute], child, parent, sibling, or member of the employee's
household is serving or seeking to serve as an officer, director,
trustee, general partner, agent, attorney, consultant, contractor, or
employee. Disqualification of the employee eliminates the potential for
an appearance of preferential treatment in those instances where the
employee's connection to a covered entity would likely raise questions
regarding the appropriateness of actions taken by the employee or the
Bureau. This section is not intended to impose an affirmative duty on
the part of the employee to investigate or inquire as to whether these
individuals have these relationships with covered entities.
The DAEO may authorize an employee to participate in the matter
using the authorization process set forth in 5 CFR 2635.502(d) of the
OGE Standards.
Section 9401.112 Prohibited Purchase of Assets
This section prohibits employees, or their spouse and minor
children, from purchasing real or personal property from an entity
supervised by the Bureau unless it is sold at public auction or by
other means that assures that the selling price of the property is the
asset's fair market value. For example, fixed price retail transactions
from an entity supervised by the Bureau would be excluded from this
prohibition. This section is proposed to maintain public confidence in
the impartiality and objectivity with which the Bureau executes its
supervisory functions and as a supplement to the general prohibition in
5 CFR 2635.702 against the use of public office for private gain.
Section 9401.113 Waivers
This section authorizes the DAEO to grant a written waiver of any
provision of this part based upon a determination that the waiver will
not result in conduct inconsistent with the OGE Standards or otherwise
prohibited by law. Under this section, the DAEO may grant a written
waiver but require the employee to take further action. This provision
is intended, in appropriate cases, to lessen the burden that these
supplemental regulations may impose on employees while ensuring that
employees do not engage in actions or hold financial interests that may
interfere with the objective and impartial performance of their
official duties.
III. Matters of Regulatory Procedure
Administrative Procedure Act
Under 5 U.S.C. 553(a)(2), rules relating to agency management or
personnel are exempt from the notice and comment rulemaking
requirements of the Administrative Procedure Act (APA). In addition,
under 5 U.S.C. 553(b)(3)(A), notice and comment rulemaking requirements
do not apply to rules concerning matters of agency organization,
procedure, or practice. Given that the rule concerns matters of agency
management or personnel, and organization, procedure, or practice, the
notice and comment requirements of the APA do not apply here.
Furthermore, under 5 U.S.C. 553(b)(3)(B), the Bureau finds that good
cause exists to waive the proposed rulemaking requirements under the
APA because the notice and comment procedures would be contrary to the
public interest. The Bureau began exercising certain of its
supervision, enforcement, and regulatory authorities on July 21, 2011.
Given the Bureau's newly acquired authorities, it is necessary to
promptly establish supplemental ethics rules that will: (1) Maintain
public confidence in the impartiality and objectivity with which the
Bureau executes its regulatory and supervisory functions; (2) eliminate
concerns that sensitive information provided to the Bureau might be
misused for private gain; and (3) ensure that employees are not
disqualified from participating in official matters that might result
in the Bureau's inability to fulfill its mission. The absence of such
rules may adversely affect the public's confidence and may call into
question the impartiality with which Bureau programs are carried out.
For these reasons, the Bureau finds good cause to issue this regulation
as an Interim Final Rule effective 60 days after publication.
The Bureau is issuing this interim final rule for comment and
welcomes comments from the public on all aspects of the rule. The
Bureau will consider comments as appropriate. Comments may be submitted
in accordance with the instructions in the ADDRESSES section of these
supplemental regulations.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do
not apply.
List of Subjects in 5 CFR Part 9401
Conflict of interests, Government employees.
Authority and Issuance
For the reasons set forth in the preamble, the Bureau, in
concurrence with OGE, is amending title 5 of the Code of Federal
Regulations by adding a new chapter LXXXIV, consisting of part 9401, to
read as follows:
TITLE 5--ADMINISTRATIVE PERSONNEL
CHAPTER LXXXIV--BUREAU OF CONSUMER FINANCIAL PROTECTION
PART 9401--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES
OF THE BUREAU OF CONSUMER FINANCIAL PROTECTION
Sec.
9401.101 General.
9401.102 Definitions.
9401.103 Prior approval for outside employment.
9401.104 Additional rules concerning outside employment for covered
employees.
9401.105 Additional rules concerning outside employment for Bureau
attorneys.
9401.106 Prohibited financial interests.
[[Page 25020]]
9401.107 Prohibition on acceptance of credit on preferential terms
from an entity supervised by the Bureau.
9401.108 Restrictions on seeking, obtaining, or renegotiating credit
from an entity that is or represents a party to a matter to which an
employee is assigned or may be assigned.
9401.109 Disqualification of employees from particular matters
involving creditors.
9401.110 Prohibited recommendations.
9401.111 Restriction on participating in matters involving covered
entities.
9401.112 Prohibited purchase of assets.
9401.113 Waivers.
Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government
Act of 1978); E.O. 12674, 54 FR 15159; 3 CFR, 1898 Comp., p.215, as
modified by E.O. 12731, 55 FR 42547; 3 CFR, 1990 Comp., p. 306; 5
CFR 2635.105, 2635.403, 2635.502 and 2635.803.
Sec. 9401.101 General.
(a) Purpose. In accordance with 5 CFR 2635.105, the regulations in
this part supplement the Standards of Ethical Conduct for Employees of
the Executive Branch contained in 5 CFR part 2635 (OGE Standards) and
prescribe the standards of ethical conduct applicable to employees of
the Bureau of Consumer Financial Protection (Bureau).
(b) Other regulations, guidance and procedures. Employees are
required to comply with the OGE Standards and the CFPB Ethics
Regulations, as well as with guidance and procedures issued by the
Bureau pursuant to 5 CFR 2635.105(c). Employees also are subject to all
other government-wide regulations concerning executive branch ethics
including without limitation, financial disclosure regulations
contained in 5 CFR part 2634, regulations concerning financial
interests contained in 5 CFR part 2640, post-employment conflict of
interest restrictions contained in 5 CFR part 2641, outside earned
income limitations and employment and affiliation restrictions
applicable to certain noncareer employees contained in 5 CFR part 2636,
and the regulations concerning executive branch employee
responsibilities and conduct contained in 5 CFR part 735.
Sec. 9401.102 Definitions.
For purposes of this part:
CFPB Ethics Regulations means the supplemental ethics standards set
forth in this part.
Control means the possession, direct or indirect, of the power or
authority to manage, direct, or oversee.
Credit has the meaning set forth in 12 U.S.C. 5481(7) and as
further defined in regulations promulgated by the Bureau to implement
that statute. A person may have credit without any outstanding balance
owed.
Debt or equity interest includes without limitation, secured and
unsecured bonds, debentures, notes, securitized assets, commercial
papers, and preferred and common stock. The term encompasses both
current and contingent ownership interests; a beneficial or legal
interest derived from a trust; a right to acquire or dispose of any
long or short position in debt or equity interests; interests
convertible into debt or equity interests; and options, rights,
warrants, puts, calls, straddles, derivatives, and other similar
interests. It does not include deposits; credit union shares; a future
interest created by someone other than the employee or the employee's
spouse or dependent child; or a right as a beneficiary of an estate
that has not been settled.
Dependent child has the meaning set forth in 5 CFR 2634.105(d). It
includes an employee's son, daughter, stepson, or stepdaughter if:
(1) Unmarried, under the age of 21, and living in the employee's
household; or
(2) Claimed as a ``dependent'' on the employee's income tax return.
Designated Agency Ethics Official (DAEO) means the official within
the Bureau that the Director has appointed to coordinate and manage the
ethics program at the Bureau, under 5 CFR 2638.202(b). For purposes of
this part, the term ``DAEO'' also includes the Alternate DAEO appointed
under 5 CFR 2638.202(b), and a designee of the DAEO or Alternate DAEO
unless a particular provision says an authority is reserved to the
DAEO.
Director means the Director of the Bureau.
Domestic partner means a person with whom a Bureau employee:
(1) Has a close and committed personal relationship and both
parties are at least 18 years of age, are each other's sole domestic
partner, and intend to remain in the relationship indefinitely, and
neither is married to, in a civil union with, or partnered with any
other spouse or domestic partner;
(2) Is not related by blood in a manner that would bar marriage
under the laws of the jurisdiction in which the employee resides;
(3) Is in a financially interdependent relationship in which both
agree to be responsible for each other's common welfare and share in
financial obligations; and
(4) Has shared for at least six months the same regular and
permanent residence in a committed relationship and both parties intend
to do so indefinitely, or would maintain a common residence but for an
assignment abroad or other employment-related, financial, or similar
obstacle.
Employee means an employee of the Bureau, including a special
Government employee.
Entity supervised by the Bureau means a person that is subject to
the Bureau's supervision authority pursuant to 12 U.S.C. 5514(a)(1) or
5515(a) and in regulations promulgated thereunder, as identified on a
list to be maintained by CFPB.
Indebted or indebtedness means a legal obligation under which an
individual or borrower received money or assets on credit, and
currently owes payment.
Indebted to an entity means an obligation to make payments to an
entity as a result of an indebtedness, whether originally made with
that entity or with another entity. This includes without limitation, a
servicer on a mortgage to whom payments are made.
OGE Standards mean the Standards of Ethical Conduct for Employees
of the Executive Branch contained in 5 CFR part 2635.
Participate means personal and substantial participation and has
the meaning set forth in 5 CFR 2635.402(b)(4). An employee participates
when, for example, he or she makes a decision, gives approval or
disapproval, renders advice, provides a recommendation, conducts an
investigation or examination, or takes an official action in a
particular matter, and such involvement is of significance to the
matter. It requires more than official responsibility, knowledge,
perfunctory involvement, or involvement on an administrative or
peripheral issue.
Particular matter has the meaning set forth in 5 CFR
2635.402(b)(3). The term includes a matter that involves deliberation,
decision, or action and is focused upon the interests of specific
persons or a discrete and identifiable class of persons. It may include
governmental action such as legislation, regulations, or policy-making
that is narrowly focused on the interest of a discrete and identifiable
class of persons.
Particular matter involving specific parties has the meaning set
forth in 5 CFR 2641.201(h). Such a matter typically involves a specific
proceeding affecting the legal rights of the parties or an isolatable
transaction or related set of transactions between identified parties.
The term includes without limitation, a contract, audit, enforcement
action, examination, investigation, litigation proceeding, or request
for a ruling.
[[Page 25021]]
Person has the same meaning set forth in 5 CFR 2635.102(k). It
includes without limitation, an individual, corporation and
subsidiaries it controls, company, association, firm, partnership,
society, joint stock company, or any other organization or institution.
Special Government employee has the meaning set forth in 5 CFR
2635.102(l).
Spouse means an employee's husband or wife by lawful marriage, but
does not include an employee's spouse if:
(1) The employee and the employee's spouse are legally separated;
(2) The employee and the employee's spouse live apart;
(3) There is an intention to end the marriage or separate
permanently; and
(4) The employee has no control over the legally separated spouse's
debt or equity interests.
Sec. 9401.103 Prior approval for outside employment.
(a) General requirement. Before engaging in outside employment, an
employee must obtain written approval from the employee's supervisor
and the concurrence of the DAEO, except to the extent that the Bureau
has issued an instruction or internal directive pursuant to paragraph
(e) of this section exempting an activity or class of activities from
this requirement.
(b) Definition of employment. For purposes of this section,
``employment'' means any form of non-Federal employment, business
relationship, or activity involving the provision of personal services
by the employee, regardless of whether the services are compensated. It
includes without limitation, personal services as an officer, director,
employee, agent, advisor, attorney, consultant, contractor, general
partner, trustee, teacher, speaker, or writer.
Note to Sec. 9401.103(b): Both 18 U.S.C. 203(d) and 205(e)
require special approval for certain representational activities in
claims against and other matters affecting the interests of the
Government. Thus, an employee who wishes to act as agent or attorney
for or otherwise represent his or her parents, spouse, child, or a
person for whom or for an estate for which he or she is serving as
guardian, executor, administrator, trustee, or other personal
fiduciary in such matters as described in those statutes shall
obtain the approval of the Government official responsible for the
employee's appointment in addition to the regulatory approval
required in this section.
(c) Standard for approval. Approval will be granted only upon a
determination that the outside employment is not expected to involve
conduct prohibited by statute, the OGE Standards, or the CFPB Ethics
Regulations in this part.
(d) Renewed request for approval. Upon a significant change in
either the nature, scope, or duties of the employee's outside
employment or in the employee's official Bureau position, the employee
shall submit a new request for approval.
(e) DAEO responsibilities. The DAEO may issue instructions or
internal directives governing the submission of requests for approval
of outside employment and designating appropriate officials to act on
such requests. The instructions or internal directives may exempt
categories of employment from the prior approval requirement of this
section based on a determination that employment within those
categories generally would be approved and is not likely to involve
prohibited conduct or create an appearance of lack of impartiality.
Sec. 9401.104 Additional rules concerning outside employment for
covered employees.
(a) Prohibited outside employment. A covered employee shall not
engage in compensated outside employment for an entity supervised by
the Bureau or for an officer, director, or employee of such entity.
(b) Definition of employment. For purposes of this section,
``employment'' has the same meaning as set forth in Sec. 9401.103(b)
of this part.
(c) Definition of covered employee. For purposes of this section,
``covered employee'' means:
(1) An employee serving in an examiner position;
(2) An employee serving in an attorney position;
(3) An employee in the Office of Research, serving as a section
chief at CFPB pay band 71 or above or as a senior economist in the
Compliance Analysis Section;
(4) An employee serving in an investigator, paralegal, or financial
analyst position in the Office of Enforcement;
(5) An employee required to file a Public Financial Disclosure
Report (OGE Form 278) under 5 CFR part 2634; or
(6) Any other Bureau employee specified in a Bureau order or
directive whose duties and responsibilities, as determined by the DAEO,
require application of the prohibition on outside employment contained
in this section to ensure public confidence that the Bureau's programs
are conducted impartially and objectively.
Sec. 9401.105 Additional rules concerning outside employment for
Bureau attorneys.
(a) Prohibited outside practice of law. In addition to the prior
approval requirements under Sec. 9401.103 and the outside employment
restrictions under Sec. 9401.104 of this part, an employee serving in
an attorney position shall not engage in the practice of law outside
his or her official Bureau duties that might require the attorney to:
(1) Take a position that is or appears to be in conflict with the
interests of CFPB; or
(2) Interpret any statute, regulation, or rule administered or
issued by the Bureau.
(b) Exemption for self representation. Nothing in this section
prevents a Bureau attorney from acting as an agent or attorney for or
otherwise representing himself or herself in the outside practice of
law, except:
(1) In those matters in which the employee has participated
personally and substantially as a Government employee; or
(2) In those matters which are the subject of the employee's
official responsibility.
Sec. 9401.106 Prohibited financial interests.
(a) Prohibited interests. Except as permitted by this section, an
employee or an employee's spouse or minor child shall not own or
control a debt or equity interest in an entity supervised by the
Bureau.
(b) Exceptions. Interests prohibited in paragraph (a) of this
section do not include the ownership or control of a debt or equity
interest in:
(1) Mutual funds. A publicly traded or publicly available mutual
fund or other collective investment fund if:
(i) The fund does not have a stated policy of concentration in the
financial services industry or the banking industry; and
(ii) Neither the employee nor the employee's spouse exercises or
has the ability to exercise control over or selection of the financial
interests held by the fund.
(2) Pension plans. A widely held, diversified pension or other
retirement fund that is administered by an independent trustee or
custodian. Such a fund is diversified if it holds no more than 5% of
the value of its portfolio in the securities of any one issuer (other
than the United States Government) and no more than 20% in any
particular economic or geographic sector (other than the United
States).
(3) Federal retirement and thrift savings plans. Funds administered
by the Thrift Plan for Employees of the Federal Reserve System, the
Retirement Plan for Employees of the Federal Reserve System, the Thrift
Savings Plan, or a Federal government agency.
(c) Disqualification. If an employee or an employee's spouse or
minor child
[[Page 25022]]
owns or controls a debt or equity interest that is prohibited under
paragraph (a) of this section, the employee shall immediately
disqualify himself or herself from participating in all particular
matters involving an entity with which the employee or the employee's
spouse or minor child has a debt or equity interest, unless and until
the employee is granted a waiver pursuant to paragraph (d) of this
section and the waiver includes an authorization allowing the employee
to participate in such matters.
(d) Waivers. Upon request by the employee, the DAEO has the
authority to grant an individual waiver under this paragraph, which
authority may be delegated only to the Alternate DAEO. The DAEO, in
consultation with senior management in the Division in which the
employee works, may issue a written waiver permitting the employee or
the employee's spouse or minor child to own or control a particular
debt or equity interest that otherwise would be prohibited by this
section, if:
(1) Mitigating circumstances exist due to the way the employee or
the employee's spouse or minor child acquired ownership or control of
the debt or equity interest. Mitigating circumstances may include, but
are not limited to:
(i) The employee or the employee's spouse or minor child acquired
the debt or equity interest through inheritance, gift, merger,
acquisition, or other change in corporate structure, or otherwise
without specific intent on the part of the employee or the employee's
spouse or minor child; or
(ii) The employee's spouse received the debt or equity interest as
part of a compensation package in connection with employment or prior
to marriage to the employee;
(2) The employee makes a prompt and complete written disclosure of
the debt or equity interest to the DAEO; and
(3) The disqualification of the employee from participating in
particular matters involving an entity with which the employee or the
employee's spouse or minor child has a debt or equity interest, as
specified in the written waiver, would not unduly interfere with the
full performance of the employee's duties.
(e) Covered third party entities. Immediately after becoming aware
that a covered third party entity owns or controls a debt or equity
interest that an employee would be prohibited from owning or
controlling under paragraph (a) of this section, the employee shall
report the interest in writing to the DAEO. The DAEO may require the
employee to terminate the relationship with the covered third party
entity, disqualify himself or herself from certain particular matters,
or take other action as necessary to avoid a statutory violation, or a
violation of the OGE Standards or the CFPB Ethics Regulations,
including an appearance of misuse of position or loss of impartiality.
For purposes of this paragraph (e), ``covered third party entity''
includes:
(1) A partnership in which the employee or the employee's spouse or
minor child is a general partner;
(2) A partnership or closely held corporation in which the employee
or the employee's spouse or minor child individually or jointly holds
more than a 10 percent equity interest;
(3) A trust in which the employee or the employee's spouse or minor
child has a legal or beneficial interest;
(4) An investment club or similar informal investment arrangement
between the employee or the employee's spouse or minor child, and
others;
(5) A qualified profit sharing, retirement, or similar plan in
which the employee or the employee's spouse or minor child has an
interest; or
(6) An entity in which the employee or the employee's spouse or
minor child individually or jointly holds more than a 25 percent equity
interest.
Sec. 9401.107 Prohibition on acceptance of credit on preferential
terms from an entity supervised by the Bureau.
An employee, and the employee's spouse or minor child, may not
accept credit from or enter into any other financial relationship with
an entity supervised by the Bureau, if the credit or financial
relationship contains terms that are more favorable than those offered
to the public in comparable circumstances.
Sec. 9401.108 Restrictions on seeking, obtaining, or renegotiating
credit from an entity that is or represents a party to a matter to
which an employee is assigned or may be assigned.
(a) Prohibition on employee seeking, obtaining, or renegotiating
credit or indebtedness. (1) While an employee is assigned to
participate in a particular matter involving specific parties, the
employee shall not seek, obtain, or renegotiate credit or indebtedness
with an entity that is or represents a party to the matter. This
prohibition also applies to a particular matter involving specific
parties pending at the Bureau in which the employee is not currently
participating but of which the employee is aware and believes it is
likely that he or she will participate.
(2) The prohibition in paragraph (a)(1) of this section continues
for two years after the employee's participation in the particular
matter has ended.
(b) Prohibition on employee's spouse or minor child seeking,
obtaining, or renegotiating credit or indebtedness. The prohibition in
paragraph (a) of this section shall apply to the spouse or minor child
of an employee unless:
(1) The credit or indebtedness is supported only by the income or
independent means of the spouse or minor child;
(2) The credit or indebtedness is obtained on terms and conditions
no more favorable than those offered to the general public; and
(3) The employee does not participate in the negotiation for the
credit or indebtedness or serve as co-maker, endorser, or guarantor of
the credit or indebtedness.
(c) Disqualification requirement for credit sought by person
related to an employee. An employee shall disqualify himself or herself
from participating in a particular matter involving specific parties as
soon as he or she learns that any of the following persons are seeking,
obtaining, or renegotiating credit or indebtedness with an entity that
is or represents a party to the matter:
(1) The employee's spouse, domestic partner, or dependent child;
(2) A partnership in which the employee or the employee's spouse,
domestic partner, or dependent child is a general partner;
(3) A partnership or closely held corporation in which the employee
or the employee's spouse, domestic partner, or dependent child
individually or jointly owns or controls more than a 10 percent equity
interest;
(4) A trust in which the employee or the employee's spouse,
domestic partner, or dependent child has a legal or beneficial
interest;
(5) An investment club or similar informal investment arrangement
between the employee or the employee's spouse, domestic partner, or
dependent child, and others;
(6) A qualified profit sharing, retirement, or similar plan in
which the employee or the employee's spouse, domestic partner, or
dependent child has an interest; or
(7) An entity in which the employee or the employee's spouse,
domestic partner, or dependent child individually or jointly holds more
than a 25 percent equity interest.
(d) Exemptions. The following forms of credit are exempted from the
prohibition in paragraphs (a) and (b) of this section and the
disqualification requirement in paragraph (c) of this section:
[[Page 25023]]
(1) Revolving consumer credit or charge cards issued by insured
depository institutions or insured credit unions on terms and
conditions no more favorable than those offered to the general public;
and
(2) Overdraft protection on checking accounts and similar accounts
at insured depository institutions or insured credit unions on terms
and conditions no more favorable than those offered to the general
public.
(e) Waivers. The DAEO, after consultation with senior management in
the Division in which the employee works, may grant a written waiver
from the prohibition in paragraphs (a) or (b) of this section or the
disqualification requirement in paragraph (c) of this section, based on
a determination that participation in matters otherwise prohibited by
this section would not be prohibited by law (18 U.S.C. 208) or create
an appearance of loss of impartiality or use of public office for
private gain, and would not otherwise be inconsistent with the OGE
Standards or the CFPB Ethics Regulations.
Sec. 9401.109 Disqualification of employees from particular matters
involving creditors.
(a) Disqualification required. Absent an authorization pursuant to
paragraph (d) of this section, an employee shall not participate in a
particular matter involving specific parties if the employee is aware
that any of the following have credit with or are indebted to an entity
that is or represents a party to the matter:
(1) The employee;
(2) The employee's spouse, domestic partner, or dependent child;
(3) A partnership in which the employee or the employee's spouse,
domestic partner, or dependent child is a general partner;
(4) A partnership or closely held corporation in which the employee
or the employee's spouse, domestic partner, or dependent child
individually or jointly owns or controls more than 10 percent of its
equity;
(5) A trust in which the employee or the employee's spouse,
domestic partner, or dependent child has a legal or beneficial
interest;
(6) An investment club or similar informal investment arrangement
between the employee or the employee's spouse, domestic partner, or
dependent child, and others;
(7) A qualified profit sharing, retirement, or similar plan in
which the employee or the employee's spouse, domestic partner, or
dependent child has an interest; or
(8) An entity in which the employee or the employee's spouse,
domestic partner, or dependent child individually or jointly holds more
than a 25 percent equity interest.
(b) Forms of credit and indebtedness exempted. The following forms
of credit and indebtedness are exempted from the disqualification
requirement in paragraph (a) of this section, as long as the person
listed in paragraphs (a)(1) through (a)(8) of this section is not in an
adversarial position (e.g., delinquent in payments; disputing the terms
or conditions of the account; subject to debt collection measures like
wage garnishment; involved in any disagreement that may cast doubt on
the employee's ability to remain impartial) with the entity that
extended the credit or to which the indebtedness is owed, and the
credit or indebtedness was offered on terms and conditions no more
favorable than those offered to the general public:
(1) Revolving consumer credit or charge cards issued by insured
depository institutions or insured credit unions;
(2) Overdraft protection on checking accounts and similar accounts
at insured depository institutions or insured credit unions;
(3) Amortizing indebtedness on consumer goods (e.g., automobiles);
(4) Educational loans (e.g., student loans; loans taken out by a
parent or guardian to pay for a child's education costs); and
(5) Loans on residential homes (e.g., home mortgages; home equity
lines of credit).
(c) Credit or indebtedness of employee's spouse, domestic partner,
dependent child, or other specified persons. An employee's
disqualification under paragraph (a) of this section is not required
if:
(1) The credit or indebtedness is solely the responsibility of the
person listed in paragraphs (a)(2) through (a)(8) of this section; and
(2) The credit or the liability for repayment of the indebtedness
is not dependent on, attributable to, or derived from the employee's
income, assets, or activities.
(d) Authorization to participate. The DAEO may authorize an
employee to participate in a matter that would require disqualification
under paragraph (a) of this section, using the authorization process
set forth in 5 CFR 2635.502(d) of the OGE Standards. The DAEO will
consult with senior management in the Division in which the employee
works before issuing such an authorization.
Sec. 9401.110 Prohibited recommendations.
An employee shall not make recommendations or suggestions, directly
or indirectly, concerning the acquisition or sale or other divestiture
of a debt or equity interest of an entity supervised by the Bureau, or
an entity that is or represents a party to a particular matter
involving specific parties to which the employee is assigned.
Sec. 9401.111 Restriction on participating in matters involving
covered entities.
(a) An employee shall not participate in a particular matter
involving specific parties if a covered entity is or represents a party
to the matter, unless the employee receives authorization from the
DAEO. For purposes of this paragraph, a ``covered entity'' is a person
for whom the employee is aware the employee's spouse, domestic partner,
fianc[eacute], child, parent, sibling, or member of the employee's
household is serving or seeking to serve as an officer, director,
trustee, general partner, agent, attorney, consultant, contractor, or
employee.
(b) The DAEO may authorize the employee to participate in the
matter using the authorization process set forth in 5 CFR 2635.502(d)
of the OGE Standards. The DAEO will consult with senior management in
the Division in which the employee works before issuing such an
authorization.
Sec. 9401.112 Prohibited purchase of assets.
An employee, or an employee's spouse or minor child, shall not
purchase, directly or indirectly, any real or personal property from an
entity supervised by the Bureau, unless it is sold at public auction or
by other means which assures that the selling price reflects the
asset's fair market value.
Sec. 9401.113 Waivers.
The DAEO may grant a written waiver from any provision of this part
where the DAEO finds good cause to do so; provided, however, that the
DAEO will not do so unless the DAEO finds that the waiver is not
inconsistent with the OGE Standards or otherwise prohibited by law and
that, under the particular circumstances, application of the provision
being waived is not necessary in order to avoid a violation of an
ethics rule. Each waiver must be in writing and supported by a
statement of facts and findings and may impose appropriate conditions,
such as requiring the employee to execute a written disqualification
statement.
[[Page 25024]]
Dated: April 16, 2012.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
Don Fox,
Principal Deputy Director, Office of Government Ethics.
[FR Doc. 2012-10122 Filed 4-26-12; 8:45 am]
BILLING CODE 4810-AM-P