Financial Conflicts of Interests and Impartiality

Executive branch employees are prohibited from participating in any matter that will affect certain financial interests including:

• the employee
• the employee’s spouse or minor child
• the employee’s general partner
• an organization in which the employee serves as an officer, director, trustee, general partner or employee, and
• anyone with whom the employee is negotiating for or has an arrangement concerning prospective employment.

Potential Conflicts of Interest

Employees cannot participate in any matter that would pose a conflict of interest or “recusal”. Options available to avoid recusal include:

• Obtaining a waiver from the agency
• Selling off or “divesting” the conflicting interest
• Resigning from the conflicting position.

Agencies may, by supplemental regulation, prohibit or restrict the holding of certain financial interests by all agency employees or a group of employees, and extend such restrictions to the employee’s spouse and minor children.

Reference: 18 U.S.C. § 208; 5 C.F.R. § § 2635.401-403.