View all text of Part 4401 [§ 4401.101 - § 4401.103]
§ 4401.103 - Outside employment and activities.
(a) Definitions. As used in this section:
(1) Employee is defined in 5 CFR 2635.102(h) and includes employees and special government employees of the Commission.
(2) Employment is defined broadly, as any form of non-Federal employment or business relationship, involving the provision of personal services by the employee. It includes services as an officer, director, employee, agent, attorney, accountant, consultant, contractor, general partner, trustee, teacher, writer, or speaker, but does not include participation in the activities of a nonprofit charitable, religious, professional, civic, or public service organization, unless such activities:
(i) Involve serving as an officer or director of the organization;
(ii) Involve providing professional services or advice to the organization;
(iii) Are for compensation, other than reimbursement of expenses; or
(iv) Involve serving as an active participant (as defined in 5 CFR 2635.502(b)(1)(v)) in a professional organization whose interests may be substantially affected by the Commission.
(3) Professional services means practicing a profession as the term “profession” is defined in 5 CFR 2636.305(b)(1).
(4) DAEO is the Designated Agency Ethics Official.
(b) Pro bono and community service. Subject to the prohibitions, restrictions and requirements contained in law and Federal regulations, including 18 U.S.C. 203 (Compensation to members of Congress, officers, and others in matters affecting the Government), 205 (Activities of officers and employees in claims against and other matters affecting the Government), and 208 (Acts affecting a personal financial interest), 5 CFR part 2634 (Executive branch financial disclosure), 5 CFR part 2635 (Standards of ethical conduct for employees of the executive branch), and paragraph (c) of this section, employees are encouraged to participate in matters involving improvement to their communities, and, when qualified, to provide professional pro bono services.
(c) Prohibitions and restrictions on outside employment and activities—(1) Prohibitions and restrictions on employees other than members.
(i) No employee may engage in any outside employment or activities that conflict with employment with the Commission.
(ii) [Reserved]
(iii) No employee shall undertake the following types of employment or activities:
(A) Employment with any entity regulated by the Commission;
(B) Employment or any activity directly or indirectly related to the issuance, purchase, sale, investment or trading of securities or futures on securities or a group of securities, except this prohibition does not apply to securities holdings or transactions permitted by § 4401.102;
(C) Employment otherwise involved with the securities industry; or
(D) Employment otherwise in violation of any applicable law, rule or regulation.
(2) Prohibitions and restrictions on members. (i) Members of the Commission may engage in outside employment only to the extent permitted by Section 4(a) of the Securities Exchange Act of 1934, 15 U.S.C. 78d(a). This provision does not preclude members from engaging in permitted securities transactions.
(ii) Notwithstanding the absence of a statutory prohibition, a member may not engage in any outside employment or activity, if such outside employment or activity would materially impair the member's ability to perform properly the member's duties. Such outside employment or activity includes such fiduciary relationships such as serving as a trustee, executor or corporate director.
(d) Employees are required to submit proposed publications or prepared speeches relating to the Commission, or the statutes or rules it administers, to the Commission's Office of the General Counsel's Ethics Office for review, pursuant to the Commission's Regulation Concerning Conduct of Members and Employees and Former Members and Employees of the Commission, 17 CFR 200.735-4 (Outside Employment and Activities). Any such publication or speech must include the disclaimer prescribed in 17 CFR 200.735-4(c). Employees who wish to engage in teaching, writing or speaking for compensation should review the provisions of 5 CFR 2635.807 (Teaching, Speaking, and Writing).