[Code of Federal Regulations]
[Title 15, Volume 1]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR0.735-13]

[Page 10]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
PART 0--EMPLOYEE RESPONSIBILITIES AND CONDUCT--Table of Contents
 
         Subpart D--Regulatory Limitations Upon Employee Conduct
 
Sec. 0.735-13  Financial interests.

    (a) An employee shall not: (1) Have a direct or indirect financial 
interest that conflicts substantially, or appears to conflict 
substantially, with his Government duties and responsibilities; or
    (2) Engage in, directly or indirectly, a financial transaction as a 
result of, or primarily relying on, information obtained through his 
Government employment.
    (b) No employee shall participate in any manner, on behalf of the 
United States, in the negotiation of contracts, the making of loans, and 
grants, the granting of subsidies, the fixing of rates, or the issuance 
of valuable permits or certificates, or in any investigation or 
prosecution, or in the transaction of any other official business, which 
affects chiefly a person with whom he has any economic interest or any 
pending negotiations concerning a prospective economic interest, except 
with express prior authorization as provided for in subpart G of this 
part.
    (c) This section does not preclude an employee from having a 
financial interest or engaging in financial transactions to the same 
extent as a private citizen not employed by the Government so long as it 
is not prohibited by law, Executive order, Civil Service regulations (5 
CFR Part 735), or regulations in this part.
    (d) The financial (or economic) interests described below are too 
remote or too inconsequential to affect the integrity of an employee's 
services in any matter involving them, and are thereby exempted from the 
prohibitions of 18 U.S.C. 208(a), and do not exclude such employee's 
participation in the transaction of any official business involving such 
financial or economic interests:

    Deposits in a bank, savings and loan association, building 
association, credit union or similar financial institution; policies 
held with an insurance company; constructive interests in companies and 
other entities owned or held by a mutual fund or other diversified 
investment company in which the employee has an interest.


These exempted financial (or economic) interests need not be reported by 
employees in their statements of employment and financial interests 
referred to in Sec. 0.735-21.

(18 U.S.C. 208(b); 5 CFR 735.404a)

[32 FR 15222, Nov. 2, 1967, as amended at 41 FR 34939, Aug. 18, 1976; 47 
FR 3350, Jan. 25, 1982]