PART 9001—SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE FEDERAL HOUSING FINANCE AGENCY Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 1978); 12 U.S.C. 4526; E.O. 12674, 54 FR 15159; 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547; 3 CFR, 1990 Comp., p. 306; 5 CFR 2635.105, 2635.402(c), 2635.403(a), 2635.502(e), 2635.604, 2635.702, 2635.703, 2635.802(a), 2635.803. Source: 75 FR 52611, Aug. 27, 2010, unless otherwise noted. § 9001.101 General. (a) Purpose and scope. (b) Cross-references Regulations. (2)(i) Statutory restriction. (ii) Notice to employees. § 9001.102 Definitions. For purposes of this part, the term: Affiliate Designated Agency Ethics Official, DAEO, Director Employee Enterprise Federal Home Loan Bank Bank Federal Home Loan Bank System Regulated entity Safety and Soundness Act et seq. Security § 9001.103 Waivers. (a) General. (b) Waiver of prohibitions relating to ownership or control of securities. (1) Extenuating circumstances exist, such as ownership or control of the security was acquired: (i) Prior to employment with FHFA; (ii) Through inheritance, gift, merger, acquisition, or other change in corporate structure, or otherwise without specific intent on the part of the employee, or employee's spouse or minor children, to acquire the security; or (iii) By an employee's spouse or minor children as part of a compensation package in connection with employment or prior to marriage to the employee; (2) The amount of the prohibited financial interest has a market value of less than the de minimis (3) The employee makes a prompt and complete written disclosure of the interest; and (4) If the employee is required to disqualify himself or herself from certain assignments, the disqualification does not unduly interfere with the full performance of the employee's duties. § 9001.104 Prohibited financial interests. (a) General prohibition. (b) Restrictions arising from third-party relationships. (1) A partnership in which the employee or employee's spouse or minor children are general partners; (2) A partnership in which the employee or employee's spouse or minor children individually or jointly hold more than a 10 percent limited partnership interest; (3) A closely held corporation in which the employee or employee's spouse or minor children individually or jointly hold more than a 10 percent equity interest; (4) A trust in which the employee or employee's spouse or minor children have a legal or beneficial interest; (5) An investment club or similar informal investment arrangement between the employee or employee's spouse or minor children and others; or (6) Any other entity in which the employee or employee's spouse or minor children individually or jointly hold more than a 10 percent equity interest. (c) Exceptions to prohibition for certain interests. (1) A security for which a waiver has been granted pursuant to § 9001.103; and (2) An interest in a publicly-traded or publicly-available diversified mutual fund or other collective diversified investment fund, including a widely-held pension or other retirement fund if: (i) Neither the employee, the employee's spouse, nor the employee's minor children exercise or have the ability to exercise control over the financial interests held by the fund; and (ii) The fund does not indicate in its prospectus the objective or practice of concentrating its investments in securities of a regulated entity or regulated entities generally, and less than 25 percent of the total holdings of the fund are comprised of securities owned, issued, guaranteed, securitized, or collateralized by one or more regulated entities. (d) Reporting and divestiture. § 9001.105 Outside employment. (a) Prohibited outside employment. (1) Employment with a person or entity, other than a State or local government, that is registered as a lobbyist under the Lobbying Disclosure Act of 1995 (2 U.S.C. chapter 26) and engages in lobbying activities concerning FHFA programs; or (2) Employment with any regulated entity or with the Office of Finance of the Federal Home Loan Bank System. (b) Prior approval for and concurrence with other outside employment (2) An employee, other than a special Government employee, who before the effective date of this part or commencement of employment with FHFA commenced engaging in outside employment that is not prohibited under paragraph (a) of this section must request written approval from his or her supervisor and the concurrence of the DAEO within 30 calendar days of the effective date of this part or commencement of employment with FHFA. The employee may continue engaging in the outside employment while the request is under review. (c) Definition of outside employment. outside employment (1) The employee will receive compensation other than reimbursement of expenses; (2) The organization's activities are devoted substantially to matters relating to the employee's official duties as defined in 5 CFR 2635.807(a)(2)(i)(B) through (E) and the employee will serve as officer or director of the organization; or (3) The activities will involve the provision of consultative or professional services. Consultative services Professional services Note to § 9001.105( c There is a special approval requirement set out in both 18 U.S.C. 203(d) and 205(e), respectively, 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. Thus, an employee who wishes to act as agent or attorney for, or otherwise represent his or her parents, spouse, children, or any person for whom, or any estate for which, he or she is serving as guardian, executor, administrator, trustee, or other personal fiduciary in such matters must obtain the approval required by law of the Government official responsible for the employee's appointment in addition to the regulatory approval required in this section. (d) Procedure for requesting approval and concurrence (2) The request for approval to engage in outside employment shall set forth, at a minimum: (i) The name of the employer or organization; (ii) The nature of the activity or other work to be performed; (iii) The title of the position; and (iv) The estimated duration of the outside employment. (3) Upon a significant change in the nature or scope of the outside employment or in the employee's official position within FHFA, the employee must, within seven calendar days of the change, submit a revised request for approval and concurrence. (e) Standard for concurrence. (f) Issuance of instructions. § 9001.106 Restrictions resulting from employment of family and household members. (a) Disqualification of employee. (b) Reporting certain relationships. § 9001.107 Other limitations. (a) Director and Deputy Directors. (b) Financial interests in Bank members and other financial institutions. de minimis § 9001.108 Prohibited recommendations. Employees shall not make any recommendation or suggestion, directly or indirectly, concerning the acquisition, sale, or divestiture of securities of a regulated entity. § 9001.109 Prohibited purchase of assets. An employee or the employee's spouse or minor children shall not purchase, directly or indirectly, any real or personal property from a regulated entity, unless it is sold at public auction or by other means which would assure that the selling price is the asset's fair market value.