§ 263.9 Ex parte communications. ( a ) *Definition* — ( 1 ) *Ex parte communication. Ex parte communication* means any material oral or written communication relevant to the merits of an adjudicatory proceeding that was neither on the record nor on reasonable prior notice to all parties that takes place between: ( i ) An interested person outside the Board (including such person's counsel); and
( ii ) The ALJ handling that proceeding, a member of the Board, or a decisional employee.
( 2 ) *Exception.* A request for status of the proceeding does not constitute an *ex parte* communication.
( b ) *Prohibition of ex parte communications.* From the time the notice is issued by the Board until the date that the Board issues a final decision pursuant to § 263.40(c): ( 1 ) An interested person outside the Federal Reserve System must not make or knowingly cause to be made an *ex parte* communication to a member of the Board, the ALJ, or a decisional employee; and
( 2 ) A member of the Board, ALJ, or decisional employee may not make or knowingly cause to be made to any interested person outside the Federal Reserve System any *ex parte* communication.
( c ) *Procedure upon occurrence of ex parte communication.* If an *ex parte* communication is received by the ALJ, a member of the Board, or any other person identified in paragraph (a) of this section, that person will cause all such written communications (or, if the communication is oral, a memorandum stating the substance of the communication) to be placed on the record of the proceeding and served on all parties. All other parties to the proceeding may, within ten days of service of the *ex parte* communication, file responses thereto and to recommend any sanctions that they believe to be appropriate under the circumstances. The ALJ or the Board then determines whether any action should be taken concerning the *ex parte* communication in accordance with paragraph (d) of this section.
( d ) *Sanctions.* Any party or counsel to a party who makes a prohibited *ex parte* communication, or who encourages or solicits another to make any such communication, may be subject to any appropriate sanction or sanctions imposed by the Board or the ALJ including, but not limited to, exclusion from the proceedings and an adverse ruling on the issue which is the subject of the prohibited communication.
( e ) *Separation of functions* — ( 1 ) *In general.* Except to the extent required for the disposition of *ex parte* matters as authorized by law, the ALJ may not: ( i ) Consult a person or party on a fact in issue unless on notice and opportunity for all parties to participate; or
( ii ) Be responsible to or subject to the supervision or direction of an employee or agent engaged in the performance of investigative or prosecuting functions for the Board.
( 2 ) *Decision process.* An employee or agent engaged in the performance of investigative or prosecuting functions for the Board in a case may not, in that or a factually related case, participate or advise in the decision, recommended decision, or agency review of the recommended decision under § 263.40, except as witness or counsel in administrative or judicial proceedings.