Page images

statutes are deemed to be violations of (q) The prohibition against an emthe rules in this Subpart M as well. ployee acting as the agent of a foreign

(a) House Concurrent Resolution 175, principal registered under the Foreign 85th Congress, 2d Session, 72 Stat. B12, Agents Registration Act (18 U.S.C. 219). the “Code of Ethics for Government

(31 F.R. 5483, Apr. 7, 1966, as amended at Service."

33 F.R. 2631, Feb. 7, 1968] (b) Chapter 11 of title 18, United

$ 200.735-11 Statement of employment States Code, relating to bribery, graft,

and financial interests. and conflicts of interest, as appropriate to the employees concerned.

(a) Not later than 90 days after the (c) The prohibition against lobbying effective date of this subpart, each with appropriated funds (18 U.S.C. employee occupying a position designated 1913).

in paragraph (c) of this section shall (d) The prohibition against disloyalty submit to the Director of Personnel, a and striking (5 U.S.C. 7311, 18 U.S.C. statement, on SEC Form 683, made avail1918).

able through the Office of Personnel or (e) The prohibition against the em- the Publications Unit, Оfice of Records ployment of a member of a Communist and Service, setting forth the following organization (50 U.S.C. 784).

information: (f) The prohibition against (1) the

(1) A list of the names of all corpodisclosure of classified information (18 rations, companies, firms, or other busiU.S.C. 798, 50 U.S.C. 783); and (2) dis- ness enterprises, partnerships, nonprofit closure of confidential information (18 organizations, and educational or other U.S.C. 1905).

institutions with or in which he, his (g) The provision relating to the ha- spouse, minor child or other member of bitual use of intoxicants to excess (5

his immediate household hasU.S.C. 7352).

(1) Any connection as an employee, (h) The prohibition against the mis- officer, owner, director, member, trustee, use of a Government vehicle (31 U.S.C. partner, adviser or consultant; or 638a(c)).

(ii) Any continuing financial interest, (i) The prohibition against the mis

through a pension or retirement plan, use of franking privilege (18 U.S.C.

shared income, or other arrangement as

a result of any current or prior employ(j) The prohibition against the use of ment or business or professional associadeceit in an examination or personnel

tion; or action in connection with Government (iii) Any financial interest through employment (18 U.S.C. 1917).

the ownership of stock, stock options, (k) The prohibition against fraud or bonds, securities, or other arrangements false statements in a Government matter

including trusts. (18 U.S.C. 1001).

(2) A list of the names of his creditors (1) The prohibition against mutilating and the creditors of his spouse, minor or destroying a public record (18 U.S.C.

child or other member of his immediate 2071).

household, other than those creditors to (m) The prohibition against counter- whom any such person may be indebted feiting and forging transportation re- by reason of a mortgage on property quests (18 U.S.C.508).

which he occupies as a personal residence (n) The prohibition against (1) em- or to whom such person may be indebted bezzlement of Government money or for current and ordinary household and property (18 U.S.C. 641); (2) failing to living expenses such as those incurred account for public money (18 U.S.C. 643); for household furnishings, vacations, an and (3) embezzlement of the money or

automobile, education, or the like. property of another person in the pos

(3) A list of his interests and those of session of an employee by reason of his his spouse, minor child, or other member employment (18 U.S.C. 654).

of his immediate household in real prop(0) The prohibition against unau- erty or rights in lands, other than propthorized use of documents relating to erty which he occupies as a personal claims from or by the Government (18 residence. U.S.C. 285).

(4) For the purpose of this section, (p) The prohibition against political “member of his immediate household" activities in subchapter III of Chapter 73

a resident of the employee's of Title 5, United States Code and 18 household who is related to him by blood U.S.C. 602, 603, 607, and 608.

or marriage.



(b) Each new employee designated in (ix) Office of Policy Research. (a) paragraph (c) of this section shall sub- Chief Economist. mit such statement prior to entrance on (x) Office of Comptroller. (a) Compduty with the Commission.

troller. (c) Statements of employment and (b) Assistant Comptroller. financial interests are required of the (xi) Office of Personnel. (a) Director following:

of Personnel. (1) Employees paid at a level of the (b) Assistant Director of Personnel. Executive Schedule in Subchapter II of (xii) Office of Records and Services. Chapter 53 of Title 5, United States Code. (a) Records and Service Officer.

(2) Employees occupying the follow- (b) Chief, Section of Office Services, ing positions in the headquarters office: GS-11.

(i) Executive Staff. (a) Executive As- (xiii) Office of Data Processing. (a) sistant to the Chairman.

Data Processing Manager. (5) Legal Assistant to the Chairman. (3) Employees occupying the follow

(c) Legal Assistant to each Commis- ing positions in Regional and Branch sioner, GS-12 and above.

Offices: (d) Chief Management Analyst.

(i) Atlanta Regional Office. (a) (ii) Office of the Secretary. (a) Sec- Administrator. retary of the Commission.

(b) Assistant Administrator. (6) Assistant Secretary of the Com- (c) Attorney - in - Charge (Miami mission.

Branch Office). (iii) Office of the General Counsel. (ii) Boston Regional Office. (a) (a) General Counsel.

Administrator. (6) Solicitor.

(6) Assistant Administrator. (c) Associate General Counsel.

(iii) Chicago Regional Office.

(a) (d) Assistant General Counsel.

Administrator. (iv) Office of the Chief Accountant. (6) Assistant Administrator.

(a) Chief Accountant of the Commis- (c) Chief Investigator. sion.

(d) Special Counsel (Reorganization). (b) Associate Chief Accountant of the (e) Attorney-in-Charge (Cleveland Commission.

Branch Office). (v) Office of Opinions and Review. (f) Attorney - in Charge (Detroit (a) Director.

Branch Office). (b) Associate Director.

(g) Attorney-in-Charge (St. Louis (vi) Division of Corporation Finance. Branch Office). (a) Director.

(iv) Denver Regional Office. (a) (b) Associate Director.

Administrator. (C) Executive Assistant Director.

(b) Assistant Administrator. (d) Assistant Director.

(c) Attorney-in-Charge (St. Lake City (e) Chief Counsel.

Branch Office). (f) Chief Accountant.

(v) Fort Worth Regional Office. (a) (vii) Division of Corporate Regulation.

Administrator. (a) Director.

(6) Assistant Administrator. (6) Associate Director.

(c) Attorney - in - Charge (Houston (c) Assistant Director.

Branch Office). (d) Chief Financial Analyst.

(vi) New York Regional Office. (a) (e) Chief Counsel.

Administrator. (f) Chief Enforcement Attorney:

(b) Associate Administrator (En(viii) Division of Trading and Markets.

forcement). (a) Director.

(c) Associate Administrator (Regula(6) Associate Director (Enforcement).

tion). (c) Associate Director (Markets and

(d) Assistant Administrator (EnRegulation).

forcement). (d) Assistant Director.

(e) Assistant Administrator (Regula

tion). (e) Chief Counsel.

(f) Special Trial Counsel. (f) Special Counsel.

(g) Special Investigative Consultant. (g) Assistant General Counsel.

(vii) San Francisco Regional Office. (h) Chief Investigative Counsel.

(a) Administrator. () Chief Financial Analyst.

(6) Associate Administrator (LOS (j) Chief Market Analyst.

Angeles Branch Office).

[ocr errors]

(c) Assistant Administrator.
(d) Assistant General Counsel.

(viii) Seattle Regional Office. (a) Administrator.

(b) Assistant Administrator.

(ix) Washington Regional Office. (a) Administrator.

(b) Assistant Administrator.

(d) Changes in, or additions to, the information contained in an employee's statement of employment and financial interests shall be reported in a supplementary statement as of June 30 each year. If no changes or additions occur, a negative report is required. Notwithstanding the filing of the annual report required by this paragraph, each employee shall at all times avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of the conflicts-of-interest provisions of Section 208 of Title 18, United States Code or of this Conduct Regulation.

(e) If any information required to be included on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf.

(f) Paragraph (a) of this section does not require an employee to submit any information relating to his connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a similar organization not conducted as a business enterprise. For the purpose of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed "business enterprises” and are required to be included in an employee's statement of employment and financial interests.

(g) Statements of employment and financial interests shall be sent to the Director of Personnel in a sealed envelope marked “Confidential-SEC 683”. They shall be maintained in a confidential file. Only those officials of the Commission whose participation is necessary for the carrying out of the purpose of this conduct Regulation may have access to such statements and no information may be disclosed from them except as the Commission or the Civil Service Commission may determine for good cause shown.

(h) The Director of Personnel, or the Assistant Director of Personnel shall examine the statements of employment and financial interests to determine whether conflicts of interest or apparent conflicts of interest on the part of employees exist. An employee shall be afforded the opportunity to explain any conflict or appearance of conflict. When the Director or Assistant Director of Personnel, in consultation with appropriate superiors of the employee involved, is unable to resolve a conflict or appearance of conflict, he shall report the matter to the Commission through the Counselor for the Commission designated under 5 CFR 735.105 (a).

(i) The statement of employment and financial interests and supplementary statements required of employees are in addition to, and not in substitution for, or in derogation of, any similar requirement imposed by law, order or regulation. The submission of a statement by an employee does not permit him or any other person to participate in a matter in which his or the other person's participation is prohibited by law, order, or regulation.

(j) Members of the Commission are subject to separate reporting requirements as to statements of employment and financial interests under section 401 of Executive Order 11222.

(k) An employee has the right to ask for a review through the Commission's grievance procedure outlined in section 771, Part II, Manual of Administrative Regulations, of a complaint that his position has been improperly included under the provisions of this section as one requiring the submission of a statement of employment and financial interests. [31 F.R. 5483, Apr. 7, 1966, as amended at 33 F.R. 2631, Feb. 7, 1968; 33 F.R. 5259, Apr. 2, 1968] $ 200.735–12 Special Government em

ployees. (a) Special Government employee means a “special Government employee" as defined in section 202 of Title 18 of the United States Code who is employed in the executive branch. In the Commission these employees normally are Expert Consultants.

(b) These rules in this subpart also are applicable to special Government employees, except that in specific appropriate cases, the Commission may exempt such employees from all or portions of $ $ 200.735–4, 200.735-5 and 200.735–7 if deemed consistent with the public interest. Additional specific provisions applicable to special Government employees are listed in paragraph (c) of this section.

(c) A special Government employee shall not:

(1) Use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, particularly one with whom he has family, business, or financial ties.

(2) Use inside information obtained as a result of his Government employment for private gain for himself or another person either by direct action on his part or by counsel, recommendation, or suggestion to another person, particularly one with whom he has family, business, or financial ties. For purposes of this subparagraph, “inside information" means information obtained under Government authority which has not become part of the body of public information. A special Government employee may teach, lecture, or write provided he meets the requirements of $ 200.735-4(b) (4).

(3) Use his Government employment to coerce, or give the appearance of coercing, a person to provide financial benefit to himself or another person, particularly one with whom he has family, business, or financial ties.

(4) Receive or solicit from a person having business with the Commission anything of value as a gift, gratuity, loan, entertainment, or favor for himself or another person, particularly one with whom he has family, business, or financial ties. The same exceptions in § 200.735–3(b) (1) applicable to regular employees are also applicable to special Government employees.

(d) Prior to entrance on duty, each special Government employee shall submit to the Director of Personnel a statement of employment and financial interests which reports (1) all other employment, and (2) the financial interests of the special Government employee which the Commission determines are relevant in the light of the duties he is to perform. It shall be kept current throughout the period of employment by the filing of supplementary statements in accordance with the requirements of $ 200.735–11(d). Statements shall be on SEC Form 684, available through the Office of Personnel or the Publications

Unit. This paragraph shall not be construed as requiring the submission of information referred to in § 200.735–11(e). Paragraphs (f), (g), and (h) of $ 200.735–11 shall be applicable with respect to statements required under this section.

(e) The Commission may waive the requirement of paragraph (d) of this section in the case of a special Government employee who is not a “consultant” or an "expert,” as those terms are defined in Chapter 304 of the Federal Personnel Manual (5 CFR 735.304), if the duties of the position are determined to be at a level of responsibility which does not require the submission of such statement to protect the integrity of the Commission. (31 F.R. 5483, Apr. 7, 1966, as amended at 33 F.R. 2632, Feb. 7, 1968] $ 200.735–13 Disciplinary and other

remedial action. (a) Knowing participation in a violation of this subpart by persons not within the scope of the foregoing rules in this subpart shall likewise be deemed improper conduct and in contravention of Commission rules. Departure from any of the rules in this subpart by employees or special Government employees without specific approval may be cause for appropriate disciplinary action or, in the case of former members and employees, for disqualification from appearing and practicing before the Commission, which may be in addition to any penalty prescribed by law.

(b) When a conflict of interest or an apparent conflict of interest on the part of an employee or special Government employee is referred by the Director of Personnel to the Commission and a decision reached that remedial action is required, the Commission shall order immediate action to end such conflict or appearance of conflict of interest. Remedial action may include, but is not limited to (1) changes in assigned duties; (2) divestment by the employee or special Government employee of his conflicting interest; (3) disciplinary action; or (4) disqualification for a particular assignment. Remedial action, whether disciplinary or otherwise, shall be effected in accordance with any applicable laws, Executive orders, and regulations, $ 200.735-14 Employees on leave of

absence. The provisions of the rules in this subpart relative to employees of the

Commission are applicable to employees on a leave with pay or a leave without pay status other than extended military service. $ 200.735–15 Interpretative and advisory

service. (a) The Chairman shall designate a top-ranking legal official of the Commission to be the "Counselor for the Commission” and to serve as the Commission's designee to the Civil Service Commission on matters covered by the rules in this subpart.

(b) The Chairman shall designate such other employees, as required, to serve as “Deputy Counselors" from whom employees and special Government employees may seek advice and guidance as to the application of the rules in this subpart.

(c) The “Counselor for the Commission” is responsible for the coordination of counseling services provided under this section and for assuring that counseling and interpretations on questions of conflicts of interest and other matters covered by the rules in this subpart are available to “Deputy Counselors."

(d) The Director of Personnel shall furnish a copy of this conduct regulation (Subpart M) to each member, employee and special Government employee immediately upon issuance and to each new member and new employee upon his entrance on duty and shall thereafter, annually, and at such other times as circumstances warrant, bring to the attention of each member and employee this conduct regulation (Subpart M) and all revisions thereof.

(e) The Director of Personnel shall notify each member, employee and special Government employee of the availability of counseling services and of how and where these services are available within 90 days after the approval of this conduct regulation (Subpart M) and periodically thereafter. In the case of a new employee or special Government employee appointed after this general notification, he shall be notified at the time of entrance on duty.

Sec. 201.6 Notice of proceedings and hearings. 201.7 Answers. 201.8 Settlements, agreements, and con

ferences. 201.9 Parties and limited participation. 201.10 Consolidation. 201.11 Hearings for the purpose of taking

evidence; motions and applica

tions to hearing officer. 201.11.1 Production of witnesses' state

ments. 201.12 Interlocutory review; motions and

applications to Commission. 201.13 Extension of time and adjourn

ments. 201.14 Evidence. 201.15 Depositions and interrogatories. 201.16 Proposed findings and conclusions;

recommended decision, 201.17 Review by the Commission of initial

decisions by hearing officers. 201.18 Briefs. 201.19 Special provisions relating to pro

ceedings for suspension of broker-dealer registrations pend

ing final determination. 201.20 Contents and certification of record. 201.21 Hearings before the Commission. 201.22 Filings; formalities; computation of

time. 201.23 Service of pleadings, etc. other than

moving papers. 201.24 Incorporation by reference. 201.25 Confidential treatment of certain

matters. 201.26 Review by the Commission of de

terminations at a delegated level. Table I Table II

AUTHORITY: The provisions of this Part 201 issued under secs. 19, 23, 48 Stat. 85, as amended, 901, as amended, sec. 20, 49 Stat. 833, sec. 319, 53 Stat. 1173, secs. 38, 211, 54 Stat. 841, 855; 15 U.S.C. 778, 78, 790, 775SS, 80a-37, 80b-11, unless otherwise noted. § 201.1 Scope of rules of practice.

These rules of practice are generally applicable to proceedings before the Commission under the statutes which it administers, particularly those which involve a hearing or opportunity for hearing before the Commission or its duly designated officer. In connection with any particular matter, reference should also be made to any special requirements of procedure and practice that may be contained in the particular statute involved or the rules and forms adopted by the Commission thereunder, which special requirements are controlling. These rules do not apply to investigations, except where made specifically applicable by the Rules Relating to Investigations (Part 203 of this chapter). (29 F.R. 3620, Mar. 21, 1964]


Sec. 201.1 201.2

Scope of rules of practice. Appearance and practice before the

Commission. Issuance, amendment and repeal of

rules of general application. Business hours.



« PreviousContinue »