[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR3201.103]

[Page 694-695]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
           CHAPTER XXII--FEDERAL DEPOSIT INSURANCE CORPORATION
 
PART 3201_SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE 
 
Sec. 3201.103  Prohibition on acquisition, ownership, or control of securities 

of FDIC-insured depository institutions and certain holding companies.

    (a) Prohibition on acquisition, ownership, or control. Except as 
provided in paragraph (b) of this section, no employee, spouse of an 
employee, or minor child of an employee may acquire, own, or control, 
directly or indirectly, a security of any of the following:
    (1) A bank or savings association that is insured by the Federal 
Deposit Insurance Corporation (FDIC);
    (2) A bank holding company that is subject to supervision by the 
Federal Reserve Board (FRB);
    (3) A savings and loan holding company that is subject to 
supervision by the Office of Thrift Supervision (OTS);
    (4) A financial holding company that is subject to FRB supervision; 
or
    (5) A company that:
    (i) Owns or controls an FDIC-insured bank or savings association;
    (ii) Is neither an FRB-supervised bank holding company, an OTS-
supervised savings and loan holding company, nor an FRB-supervised 
financial holding company; and
    (iii) Is either primarily engaged in banking or not publicly traded 
on a U.S. securities exchange.

[[Page 695]]

    (b) Exceptions. Notwithstanding the prohibitions of paragraph (a) of 
this section, but subject to the limitations of paragraph (c) of this 
section, an employee, or the spouse or minor child of an employee, may 
do any or all of the following:
    (1) Acquire, own, or control the securities of a unitary thrift 
holding company (i.e., a savings and loan holding company that is 
subject to OTS supervision but whose principal business is neither 
banking nor activities closely related to banking);
    (2) Own or control a security of an entity described in paragraph 
(a) of this section if the security was permitted to be retained by the 
employee under 12 CFR part 336 prior to May 25, 1995, was obtained prior 
to commencement of employment with the Corporation, or was acquired by a 
spouse prior to marriage to the employee;
    (3) Own, or control a security of an entity described in paragraph 
(a) of this section if:
    (i) The security was acquired by inheritance, gift, stock-split, 
involuntary stock dividend, merger, acquisition, or other change in 
corporate ownership, exercise of preemptive right, or otherwise without 
specific intent to acquire the security, or, by an employee's spouse or 
minor child as part of a compensation package in connection with his or 
her employment;
    (ii) The employee makes full, written disclosure on FDIC form 2410/
07 to the Ethics Counselor within 30 days of the commencement of 
employment or the acquisition of the interest; and
    (iii) The employee is disqualified in accordance with 5 CFR part 
2635, subpart D, from participating in any particular matter that 
affects his or her financial interests, or that of his or her spouse or 
minor child;
    (4) Acquire, own, or control an interest in a publicly traded or 
publicly available investment fund provided that, upon initial or 
subsequent investment by the employee (excluding ordinary dividend 
reinvestment), the fund does not have invested, or indicate in its 
prospectus the intent to invest, more than 30 percent of its assets in 
the securities of one or more entities described in paragraph (a) of 
this section and the employee neither exercises control nor has the 
ability to exercise control over the financial interests held in the 
fund; and
    (5) Use an FDIC-insured depository institution or an affiliate of an 
FDIC-insured depository institution as custodian or trustee of accounts 
containing tax-deferred retirement funds.
    (c) Divestiture. Based upon a determination of substantial conflict 
under 5 CFR 2635.403(b), the Ethics Counselor may require an employee, 
or the spouse or minor child of an employee, to divest a security he or 
she is otherwise authorized to acquire, own, control, or use under 
paragraph (b) of this section.
    (d) Waiver. The Ethics Counselor may grant a written waiver from any 
provision of this section based on a determination made with the advice 
and legal clearance of the Legal Division that the waiver is not 
inconsistent with part 2635 of this title or otherwise prohibited by 
law, and that, under the particular circumstances, application of the 
prohibition is not necessary to avoid the appearance of misuse of 
position or loss of impartiality, or otherwise to ensure confidence in 
the impartiality and objectivity with which the FDIC's programs are 
administered. A waiver under this paragraph may impose appropriate 
conditions, such as requiring execution of a written disqualification.

[72 FR 19380, Apr. 18, 2007]