Current through Reg. 50, No. 187; September 24, 2024
(1)
Definitions. - As used in this rule, the following definitions shall apply:
(a) "Regulatory employee" shall mean all
employees of OFR who have direct regulatory authority over the Florida
Financial Institution Codes, including the authority to overrule the actions or
decisions of professional examination or legal staff in the exercise of their
duties under the Financial Institution Codes.
(b) "OFR" means the Office of Financial
Regulation.
(c) "Family
relationship" means any individual who is the regulatory employee's: father,
mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew,
niece, husband, wife, father-in-law, mother-in-law, son-in-law,
daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother,
stepson, stepdaughter, stepsister, stepbrother, half brother, half sister,
grandparent, great-grandparent, grandchild, great-grandchild, step-grandparent,
step-great-grandparent, step-grandchild, step-great-grandchild, person who is
engaged to be married to the regulatory employee or who otherwise holds himself
or herself out as or is generally known as the person to whom the regulatory
employee intends to marry or with whom the regulatory employee intends to form
a household, or any other natural person having the same legal residence as the
regulatory employee.
(d) "Nominal
intrinsic value" means a rebuttable presumption that an item, food, or
refreshment is symbolic and of minimum value when such item, food, or
refreshment is available in the market to a retail purchaser for $25.00 or
less.
(2) Purpose. This
rule sets forth the policies and procedures of OFR with regard to conflicts of
interest of regulatory employees. The ultimate mission of OFR is to ensure that
state financial institutions are operated in a safe and sound manner. As such,
the public deserves the highest standards of honesty, integrity, and
impartiality as part of the conduct of each regulatory employee. It is
incumbent upon every regulatory employee to avoid any actions which are or
appear to be a conflict of interest.
(3) Regulatory employees shall be provided a
copy of this rule, Chapter 112, Part III, F.S., Office of Financial Regulation
Administrative Policies & Procedures 1-2, Ethics and Professional
Responsibility, last revised May 29, 2019 (OFR APP 1-2),
http://www.flrules.org/Gateway/reference.asp?No=Ref-12615,
adopted and incorporated herein by reference and Department of Financial
Services Code of Ethics, Administrative Policies & Procedures 1-15,
effective October 28, 2009 (DFS APP 1-15),
http://www.flrules.org/Gateway/reference.asp?No=Ref-12616,
adopted and incorporated herein by reference. The foregoing materials are also
available at the OFR's website, www.flofr.gov. Each regulatory employee is
responsible for ensuring that, as applicable, they are in compliance with the
principles of conduct set forth herein, Chapter 112, Part III, F.S., OFR APP
1-2, and DFS APP 1-15.
(4) Any
regulatory employee violating this rule, Chapter 112, Part III, F.S., OFR APP
1-2, or DFS APP 1-15, will be subject to one or more of the following
disciplinary penalties: divestment or suspension of conflicting interests,
changes in assigned duties, disqualification for a particular assignment,
written or oral reprimand, demotion, suspension, or termination of
employment.
(5) No regulatory
employee shall engage in any activity, whether or not specifically prohibited
by this rule, which would result in, or create the appearance of:
(a) Using one's official position for their
own personal or private benefit;
(b) Giving preferential treatment to any
state financial institution;
(c)
Impeding an investigation or inquiry into a state financial
institution;
(d) Losing one's
independence or impartiality; or
(e) Affecting adversely the public's
confidence in the state or financial institution system.
(6) Except as otherwise permitted by law or
this rule, no regulatory employee shall knowingly accept, directly or
indirectly, anything of monetary value from a person who:
(a) Has, or is seeking to obtain, a
contractual or other business-type of relationship with OFR;
(b) Conducts activities that are regulated or
examined by OFR; or
(c) Has
financial or business interests that may be substantially affected by the
performance or nonperformance of the regulatory employee's official
duties.
(7) The
provisions of subsection (6) shall not apply to the:
(a) Acceptance of gifts, entertainment, or
food when such items are provided to the regulatory employee pursuant to a
family relationship;
(b) Acceptance
of unsolicited advertising or promotional material of nominal intrinsic value,
such as pens, pencils or calendars; or
(c) Acceptance of food or beverage consumed
at a single sitting or event.
(8) Regulatory employees are prohibited from
having outside financial interests or from engaging in business transactions
which:
(a) Materially conflict, or appear to
materially conflict, with the regulatory employee's financial institution
regulatory duties and responsibilities; or
(b) Directly or indirectly rely on
confidential information which was obtained through employment by
OFR.
(9)
(a) No regulatory employee may own, acquire,
or maintain:
1. A loan or other extension of
credit with a state financial institution over which the regulatory employee is
directly responsible for examining or supervising the daily affairs of such
state financial institution;
2. Any
other contractual obligation, including deposit accounts, with a state
financial institution over which the regulatory employee is directly
responsible for examining or supervising the daily affairs of such state
financial institution; or
3.
Securities or an equity interest in any state financial institution or an
affiliate of a state financial institution.
(b) Any regulatory employee holding,
acquiring, owning, or maintaining any extension of credit, contractual
obligation, or equity interest prohibited by this section shall notify the
Director of OFR or his designee, in writing, within five working days of such
an acquisition. The extension of credit, contractual obligation, or equity
interest shall be disposed of or terminated as promptly as possible without
causing undue hardship. The regulatory employee shall be prohibited from
examination or supervision of the financial institution until the regulatory
employee has terminated or disposed of the conflicting
relationship.
(10) The
Director of OFR or his designee may approve limited exceptions to subsection
(9), where a determination by the Director of OFR or his designee is made that
the concerned prohibitions of subsection (9), place an excessive burden upon
the regulatory employee and the granting of any such exemption will not
materially impact the safety and soundness of the concerned financial
institution. However, where a limited exception is granted, the regulatory
employee shall be prohibited from examination or supervision of the financial
institution until the regulatory employee has terminated or disposed of the
conflicting extension of credit, contractual obligation, or equity
interest.
(11) Regulatory employees
may engage in outside activities, including employment, if such activities are
compatible with the official duties and responsibilities of the regulatory
employee. However, any regulatory employee engaged in supplemental employment
or outside activities must notify OFR. Such notification shall be filed with
the Director of OFR or his designee and made a part of the regulatory
employee's official personnel file.
(a) A
regulatory employee may not:
1. Accept outside
dual employment at any state financial institution or at an affiliate of a
state financial institution while employed by OFR;
2. Accept any employment which creates, or
appears to create, a conflict of interest with the duties assigned such
regulatory employee or which tends to impair the regulatory employee's
objectivity in performing such assigned duties; or
3. Receive compensation, except for
reimbursement of travel related expenses if approved by the Director of OFR or
his designee, from other than OFR for services rendered in the course of
performing the duties assigned such regulatory employee by
OFR.
(b) A regulatory
employee who receives an offer of employment from or submits an application for
employment to a state financial institution shall within five working days
report in writing to the Director of OFR or his designee any such occurrence.
If the objectivity of the regulatory employee is deemed to be impaired due to
the receipt of an offer of employment or submission of an application for
employment, the regulatory employee shall be reassigned and not permitted to
examine such financial institution.
(12)
(a) A
regulatory employee shall not, for personal gain or advantage, use or permit
the use of, information obtained as a result of employment with OFR, unless
such information is available to the general public.
(b) Except as otherwise provided by law, no
regulatory employee shall disclose any confidential
information.
(13) A
regulatory employee shall disclose breaches of trust and violations of this
conflict of interest policy whenever they are discovered. Instances of breach
of trust or conflicts of interest which are committed by a regulatory employee
shall be reported to the Director of OFR or his designee as soon as practical.
In all cases, confidentiality will be maintained to the extent
possible.
(14) No regulatory
employee shall intentionally falsify and submit any record or information that
is inaccurate, misleading or incomplete. Deliberate falsification of records,
including but not limited to travel vouchers, attendance records, and
examination reports, may be grounds for dismissal.
Rulemaking Authority 655.012(2) FS. Law Implemented Chapter
92-303, Section 76, Laws of Florida.
New 12-23-92, Formerly 3C-100.956, Amended
1-18-21.
