69U-100.956. Conflict of Interest Policy

(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.com. 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. History–New 12-23-92, Formerly 3C-100.956, Amended 1-18-21.