4401.103—Outside employment and activities.
(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:
(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).
(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)
No employee shall engage in any outside employment, whether or not for compensation, without prior approval, in accordance with paragraph (d) of this section.
(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 of this subpart; or
(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) Prior approval requirement.
(1)
An employee, other than a member or special government employee, must obtain written approval before engaging in any outside employment (whether or not for compensation).
(2)
Requests for prior approval of outside employment shall be submitted in writing to the appropriate agency designee and to the Commission's Office of the General Counsel's Ethics Office. Agency designees include Division Directors, Office Heads and Regional Directors.
(ii)
A description of the proposed outside employment, including the duties and services to be performed;
(iv)
The fee or other compensation, if any, to be received by the Commission employee for the outside employment; and
(v)
A statement that the employee will disqualify himself or herself, if the request is approved, from participating in particular matters that could directly affect his outside employer during the period of the outside employment and, thereafter, from participating in particular matters involving specific parties, consistent with 5 CFR 2635.502 (Personal and business relationships).
(5)
Approval shall be granted only upon a determination by both the agency designee and Designated Agency Ethics Officers (“DAEO”) or by the Commission, on appeal, pursuant to paragraph (d)(6) of this section, that the outside employment is not expected to involve conduct prohibited by law or Federal regulation, including 5 CFR part 2635 (Standards of ethical conduct for employees of the executive branch), and this part.
(6)
An employee may appeal the disapproval of a request to engage in outside employment by the agency designee or by the Commission's Office of the General Counsel's Ethics Office to the Commission in accordance with the requirements of Commission Rules 430 and 431 of the Commission's Rules of Practice, 17 CFR 201.430, 201.431. That appeal shall be submitted in writing to the Commission through the Commission's Office of the General Counsel's Ethics Office and shall explain why the employee believes that his or her request should be approved.
(e)
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).