SELF-EVALUATION REPORT ON IMF CODE OF GOOD PRACTICES 

ON TRANSPARENCY IN MONETARY AND FINANCIAL POLICIES 

I. CLARITY OF ROLES, RESPONSIBILITIES, AND OBJECTIVES OF CENTRAL BANKS FOR MONETARY POLICY 

1.1 The ultimate objective(s) and institutional 

framework of monetary policy should be 

clearly defined in relevant legislation or 

regulation, including, where appropriate, a 

central bank law. 

The ultimate objectives for U.S. monetary policy are clearly 

defined in central bank law (the Federal Reserve Act, as 

amended). All U.S. laws are published. 

The institutional responsibilities of the Board of Governors, the 

Federal Open Market Committee, and the Federal Reserve Banks, 

and their respective rights to use the various tools of monetary 

policy, are spelled out in the Federal Reserve Act, as amended. 

The procedures for appointment and the terms of office for 

members of the Board are specified in legislation. By law, the 

President of the United States may remove members of the 

Board, but only “for cause.” The appointment process for 

directors and presidents of Federal Reserve Banks is also 

specified in the Federal Reserve Act. 

The monetary policy decisions of the Federal Reserve are not 

subject to override by other agencies of the government absent a 

change in the law. 

The Federal Reserve Act, as amended, requires semiannual 

reports by the Board of Governors and testimony by its Chairman 

on the Federal Reserve’s conduct of monetary policy. 

Institutional responsibility for U.S. exchange rate policy is 

specified in legislation, regulation, and other documents. 

Decisions on foreign exchange intervention generally are the 

responsibility of the executive branch. In reaching such 

decisions, the Treasury traditionally has consulted with the 

Federal Reserve. Foreign exchange intervention is publicly 

disclosed through written reports to Congress and government 

documents. 
1.2 The institutional relationship between 

monetary and fiscal operations should be 

clearly defined. 

The institutional responsibilities for monetary and fiscal 

operations are defined and publicly disclosed in legislation. 

The Federal Reserve Act gives the Federal Reserve responsibility 

for conducting monetary policy. By law, the Federal Reserve’s 

budget is not subject to Congressional appropriations. The 

disposition of its earnings and the manner in which central bank 

capital is maintained are publicly disclosed. The Federal Reserve 

does not have statutory authority to extend credit to the 

government. The Federal Reserve is not permitted to participate 

in the primary markets for government securities, except to roll 

over existing holdings. Its authority to conduct operations in the 

secondary market for government securities is specified in law, 

and such operations are publicly disclosed. 

Fiscal policy is clearly the province of the Congress and the 

President, since according to the U.S. Constitution no federal 

expenditures may be made or revenues raised in the absence of a 

law passed by the Congress and signed by the President. 

1.3 Agency roles performed by the central bank 

on behalf of the government should be clearly 

defined. 

Agency roles performed by the Federal Reserve Banks on behalf 

of the government are clearly defined in the Federal Reserve Act. 

The Federal Reserve System has no significant formal 

responsibilities as advisor to the government. However, Board 

members have regular contact with members of the executive 

branch and members of the Congress on matters of economic and 

financial policy. 

II. OPEN PROCESS FOR FORMULATING AND REPORTING MONETARY POLICY DECISIONS 

2.1 The framework, instruments, and any 

targets that are used to pursue the objectives of 

monetary policy should be publicly disclosed 

and explained. 

The institutional framework for monetary policy is established in 

the Federal Reserve Act. The instruments and targets used to 

pursue monetary policy objectives are publicly disclosed in 

Federal Reserve documents, including written reports to 

Congress, and through public appearances by officials before 

Congress. 

Eligibility for discount window credit is specified in the Federal 

Reserve Act. The Federal Reserve Act requires that transactions 

in U.S. Government securities, which currently are the principal 

means of implementing U.S. monetary policy, take place in the 

open market. Public documents specify the requirements that 

must be met to qualify as counterparties in open market 

operations, and the list of those counterparties (“primary 

dealers”) is publicly disclosed. 
2.2 Where a permanent monetary policymaking 

body meets to assess underlying economic 

developments, monitor progress toward 

achieving its monetary policy objective(s), and 

formulate policy for the period ahead, 

information on the composition, structure, and 

functions of that body should be publicly 

disclosed. 

By statute, the Federal Open Market Committee (FOMC) is 

responsible for overseeing open market operations, the principal 

means of implementing monetary policy. The Federal Reserve 

Act establishes the composition of the FOMC. By law, the 

FOMC must meet at least four times each year. By recent 

practice, the FOMC meets eight times a year, at intervals of five 

to eight weeks. Late each year, a schedule is prepared for FOMC 

meetings in the upcoming year and released to the public. 

The Board of Governors has separate monetary policy 

responsibilities—setting reserve requirements and reviewing and 

determining recommendations for discount rate changes made by 

the Reserve Banks. These responsibilities are set out in law, and 

the use of these tools is described in detail in separate Federal 

Reserve documents, including official regulations that are 

published in the Federal Register. 

In addition to the publication of the Federal Reserve Act, which 

establishes these bodies, their composition, structure, and 

functions are described in detail in Federal Reserve publications. 

2.3 Changes in the setting of monetary policy 

instruments (other than fine-tuning measures) 

should be publicly announced and explained in 

a timely manner. 

Following each regularly scheduled FOMC meeting, the stance of 

monetary policy is announced immediately through a press 

release, which is also made available on the web site. The 

announcement also provides a brief discussion of the main 

considerations that led to the policy decision and indicates how 

the Committee assesses the risks of heightened inflation pressures 

or economic weakness in the foreseeable future. A detailed 

summary of the discussions at FOMC meetings is contained in 

the meeting minutes, which are released shortly after the 

following meeting. Monetary policy decisions are also explained 

in the semiannual Monetary Policy Reports to the Congress. 

Transcripts of meetings are released to the public after five years. 

2.4 The central bank should issue periodic 

public statements on progress toward achieving 

its monetary policy objective(s) as well as 

prospects for achieving them. The 

arrangements could differ depending on the 

monetary policy framework, including the 

exchange rate regime. 

By law, the Federal Reserve must provide a semiannual report 

and accompanying testimony to the Congress on monetary 

policy. 

2.5 For proposed substantive technical changes 

to the structure of monetary regulations, there 

should be a presumption in favor of public 

consultations, within an appropriate period. 

The Administrative Procedures Act calls for a public comment 

period of no less than thirty days on proposed substantive 

changes to regulations, with no less than thirty days before new 

regulations take effect. 

2.6. The regulations on data reporting by 

financial institutions to the central bank for 

monetary policy purposes should be publicly 

disclosed. 

Requirements for data reporting by financial institutions are 

provided to the Federal Government's Office of Management and 

Budget, which in turn submits them to the Congress. Reporting 

forms are contained on the Board's public web site. 

III. PUBLIC AVAILABILITY OF INFORMATION ON MONETARY POLICY 
3.1. Presentations and releases of central bank 

data should meet the standards related to 

coverage, periodicity, timeliness of data and 

access by the public that are consistent with the 

International Monetary Fund’s data 

dissemination standards. 

Presentations of central bank data are consistent with the 

International Monetary Fund’s Special Data Dissemination 

Standards and General Data Dissemination Standards. 

3.2. The central bank should publicly disclose 

its balance sheet on a preannounced schedule 

and, after a predetermined interval, publicly 

disclose selected information on its aggregate 

market transactions. 

The Board of Governors is required by law to publish once each 

week a balance sheet for each Reserve Bank and a consolidated 

balance sheet for all twelve Reserve Banks. 

More detailed Federal Reserve balance sheets are publicly 

disclosed on an annual basis. For many private sector-like 

transactions, the Federal Reserve adheres to Generally Accepted 

Accounting Principles (GAAP). The Federal Reserve's 

accounting standards for central bank-unique transactions are 

based on the GAAP concept of providing useful and relevant 

information to the users of financial statements. 

The Federal Reserve publicly discloses information on its 

aggregate market transactions. Data on open market transactions, 

by type, maturity, and month are published in the monthly 

Federal Reserve Bulletin and the Board of Governors’ Annual 

Report. Data on the volume of open market operations are 

released to wire services on a daily basis. Foreign exchange 

interventions during a calendar quarter are reported during the 

following quarter. 

Aggregate information on routine credit extensions at the 

discount window, as well as any emergency support, is available 

each week from the Federal Reserve’s balance sheet. 

3.3 The central bank should establish and 

maintain public information services. 

The Federal Reserve maintains an active public information 

service. By law, it must publish an Annual Report. It also 

publishes a monthly Bulletin, maintains an extensive web site, 

and publishes numerous staff studies and statistical releases. 

Policymakers frequently give speeches and testimonies in which 

they explain their views on the economic situation and monetary 

policy. Policymakers and staff, including those in public affairs 

offices, respond to inquiries from the press and the public. 

3.4 Texts of regulations issued by the central 

bank should be readily available to the public. 

Texts of regulations issued by the Federal Reserve are readily 

available to the public. Copies of individual regulations are 

available, free of charge, from the Board's Publications Services 

Section, and online from the Government Printing Office. The 

Board also publishes the Federal Reserve Regulatory Service 

(FRRS), which contains all Board regulations as well as 

authorizing statutes, policy statements, interpretations, and staff 

commentaries and opinions. FRRS is updated monthly, and 

available in loose-leaf volumes or on CD-ROM, by subscription. 

The four parts of FRRS are also published separately as 

handbooks and are also available monthly. 

IV. ACCOUNTABILITY AND ASSURANCES OF INTEGRITY BY THE CENTRAL BANK 
4.1 Officials of the central bank should be 

available to appear before a designated public 

authority to report on the conduct of monetary 

policy, explain the policy objective(s) of their 

institution, describe their performance in 

achieving their objective(s), and, as 

appropriate, exchange views on the state of the 

economy and the financial system. 

The Chairman of the Federal Reserve Board testifies before the 

Congress when presenting the semiannual monetary policy 

report. The Chairman and other officials frequently testify before 

the Congress on other matters. 

4.2 The central bank should publicly disclose 

audited financial statements of its operations on 

a preannounced schedule. 

The Federal Reserve publishes audited financial statements in its 

annual report. In addition, the Board's office of Inspector General 

produces internal audit reports, which are delivered to the 

Congress and then made public. Other aspects of internal 

governance procedures, such as ethics rules, are public as well. 

4.3 Information on the expenses and revenues 

in operating the central bank should be publicly 

disclosed annually. 

Information on the expenses and revenues in operating the 

Federal Reserve are publicly disclosed on an annual basis through 

written reports submitted to Congress and documents that are 

available upon request from the Federal Reserve. 

4.4 Standards for the conduct of personal 

financial affairs of officials and staff of the 

central bank and rules to prevent exploitation of 

conflicts of interest, including any general 

fiduciary obligation, should be publicly 

disclosed. 

Federal law and regulation, as well as Federal Reserve policies, 

establish standards for the conduct of personal financial affairs of 

officials and staff of the Federal Reserve as well as rules to 

prevent conflicts of interest. 

V. CLARITY OF ROLES, RESPONSIBILITIES, AND OBJECTIVES OF FINANCIAL AGENCIES RESPONSIBLE FOR 

FINANCIAL POLICIES 

5.1 The broad objective(s) and institutional 

framework of financial agencies should be 

clearly defined, preferably in relevant 

legislation or regulation. 

The broad objectives, responsibilities and modalities for 

accountability for each of the five financial agencies are defined 

in federal legislation, and in the agencies’ regulations. The 

relevant legislation and regulations also specify procedures for 

appointment, term of office, and in most cases, general criteria 

for removal of heads and members of the governing bodies. 

Since the objectives, roles, and responsibilities are written into 

federal legislation, they are disclosed to the public in the United 

States Code. Regulations are published in the Federal Register 

upon adoption, and subsequently codified in the Code of Federal 

Regulations. Accountability is further enhanced by 

Congressional oversight, audit by the Government Accounting 

Office (GAO), and statutorily mandated Inspector General (IG) 

offices. Agencies provide written reports and oral testimony to 

Congressional committees as appropriate. 

The financial agencies make information broadly available to the 

public by maintaining websites, which contain information on the 

operation, history, mandate and objectives and other information 

relevant to the public and the institutions they regulate. 

Financial agencies are also governed by federal legislation that 

seeks to promote transparency and accountability throughout the 

U.S. government, including the Administrative Procedure Act, 

the Government in the Sunshine Act, and the Freedom of 

Information Act, which contribute to making the conduct of U.S. 

financial agencies among the most transparent in the world. 
5.2 The relationship between financial agencies 

should be publicly disclosed. 

The relationship among financial agencies is codified in both 

federal legislation and regulations, and is publicly disclosed as 

noted in 5.1 above. In some cases applicable legislation 

specifically requires cooperation with other financial regulators 

and other parts of the government (e.g., the Commodity 

Exchange Act). Additionally, agencies enter Memoranda of 

Understanding (MOU) to clarify overlapping areas of 

responsibility. Financial agencies share responsibility among 

themselves and with relevant state agencies for bank supervision 

and regulation and for deposit insurance regulation. Agencies 

coordinate formally through their practice of acting jointly in 

preparing regulations and statements of policy implementing 

common statutory mandates or addressing common supervisory 

concerns. The existence, composition and output of coordinating 

groups such as the President’s Working Group on Financial 

Markets is also public. 

5.3 The role of oversight agencies with regard 

to payments systems should be publicly 

disclosed. 

The Federal Reserve Board is the agency generally responsible 

for oversight of payment and settlement systems. Its role, 

responsibilities, objectives, and modalities of accountability are 

defined in legislation, regulation, and policy statements and 

publicly disclosed as noted in 5.1 above. The general policy 

principles (including risk management policies) that relate to the 

stability of payment systems are also publicly disclosed via the 

same channels, including written reports to and public 

appearances before Congress, publications in the Federal 

Register, the Federal Reserve Bulletin and the Board’s Annual 

Report, promulgation of international standards, and via the 

Federal Reserve Board website. The U.S. antitrust authorities 

generally have responsibility for competition issues in private 

sector payment systems. 

5.4 Where financial agencies have oversight 

responsibilities for self-regulatory organizations 

(e.g. payment systems), the relationship 

between them should be publicly disclosed. 

The SEC and the CFTC have oversight responsibility for selfregulating securities exchanges and markets and futures 

associations, respectively. The relationships between these 

agencies and the self-regulating organizations they oversee are 

defined in federal legislation and regulation and disclosed as in 

5.1 above. 
5.5 Where self-regulatory organizations are 

authorized to perform part of the regulatory and 

supervisory process, they should be guided by 

the same good transparency practices specified 

for financial agencies. 

Self-regulatory organizations are subject to transparent rulemaking policies and processes, defined in legislation and 

regulations developed internally and in concert with the financial 

oversight agencies. For example, an exchange that wishes to 

register as a national securities exchange under Section 6 of the 

Securities Exchange Act must meet several demanding terms and 

conditions, including some that enhance transparency. An 

association of brokers and dealers (e.g. the National Association 

of Securities Dealers) that wishes to register as a national 

securities association under Section 15A of the Exchange Act 

must also meet demanding terms and conditions, including some 

which enhance transparency. These provisions require that the 

rules of an SRO assure, among other things, fair representation of 

its members, equitable allocation of reasonable dues and fees, and 

a fair procedure for disciplining members. Similar requirements 

apply to the authorization and oversight of markets with selfregulatory responsibilities and the futures associations that 

address oversight of industry professionals that are generally 

subject to the oversight of the CFTC. Its oversight reports are 

also public. 

VI. OPEN PROCESS FOR FORMULATING AND REPORTING OF FINANCIAL POLICIES 

6.1 The conduct of policies by financial 

agencies should be transparent, compatible with 

confidentiality considerations and the need to 

preserve the effectiveness of actions by 

regulatory and oversight agencies. 

The conduct of policies of financial agencies is publicly disclosed 

and explained through a variety of media. Information that is 

publicly available includes the regulatory framework governing: 

the conduct of financial policies, financial reporting, operations 

of organized financial markets, the fee structure that agencies 

charge to financial institutions, and procedures for information 

sharing and consultation between financial agencies. Most of this 

information is publicly available on the websites of the various 

financial agencies. Where the regulatory framework is set out 

under federal statute or in federal regulations, information is 

made publicly accessible in the United States Code and the 

Federal Register. Additional information is also disclosed via 

written reports to or public appearances before Congress, and 

publication of official bulletins and other releases. 

6.2 Significant changes in financial policies 

should be publicly announced and explained in 

a timely manner. 

Financial agencies publicly announce significant changes in 

financial policies immediately in most cases. In many cases, 

prior public consultation is sought as in 6.4 infra. Changes are 

typically announced via press release which are subsequently 

posted on agencies’ websites. Changes in policy that require a 

change in a federal statute or regulation are published in the 

United States Code or the Federal Register. Regulatory changes 

typically have an effective data of 30 days after publication in the 

Federal Register, although earlier effective dates may occur for 

good cause. Agencies occasionally provide for delayed effective 

dates. Information on changes may also be published in official 

agency publications, or described in public appearances before 

Congress. 
6.3 Financial agencies should issue periodic 

public reports on how their overall policy 

objectives are being pursued. 

Each of the financial agencies issues an annual report that is 

publicly available on the agencies’ website. Most agencies issue 

a press release along with the annual report, and in some cases 

they are required to submit annual reports to Congress. For 

example, the Federal Reserve Board is required by law to make a 

full report of its operations to Congress annually, and the FDIC 

publishes a statutorily mandated Annual Report. 

6.4 For proposed substantive technical changes 

to the structure of financial regulations, there 

should be a presumption in favor of public 

consultations, within an appropriate period. 

Each agency provides for a period of public notice and comment 

before proposed substantive technical changes take place. 

Typically the length of the comment period is between one and 

three months. For more complex or controversial rule proposals 

the comment period may be extended one or more times. 

Regulations usually take effect from one to three months after the 

agency adopts a final rule. 

VII. PUBLIC AVAILABILITY OF INFORMATION ON FINANCIAL POLICIES 

7.1 Financial agencies should issue a periodic 

public report on the major developments of the 

sector(s) of the financial system for which they 

carry designated responsibility. 

Each financial agency publishes an annual report, which includes 

information on the major developments of the sector(s) of the 

financial system for which they carry designated responsibility. 

These reports are made available on the agencies’ websites. In 

addition, agencies issue reports more frequently. For example: 

• the CFTC publishes reports on economic and regulatory issues 

or market events that are of interest to regulators and the public 

(e.g. competitiveness studies and specific data on emerging 

markets and over-the-counter markets); 

• the FDIC publishes six separate periodic reports on major 

developments of various sectors of the financial system, current 

issues of which are all available on the FDIC website; 

• the Federal Reserve Board publishes the Federal Reserve 

Bulletin monthly, which includes new data and reports and 

analyses on economic and financial developments; 

• the SEC regularly comments on major developments in the 

securities markets in the context of rule releases, special 

studies, Congressionally-mandated reports, and the examination 

of such SEC-registered entities as broker-dealers and 

exchanges; and 

• the OCC publishes a quarterly report on the condition and 

performance of commercial banks which highlights key 

performance trends. 

• 
7.2 Financial agencies should seek to ensure 

that, consistent with confidentiality 

requirements, there is public reporting of 

aggregate data related to their jurisdictional 

responsibilities on a timely and regular basis. 

Each financial agency engages in public reporting of aggregate 

data related to its jurisdictional responsibility. In each case such 

data is available on the agency’s website, and in some cases 

information is released to the public through other written reports 

to the public or to the legislature. Specific examples of such data 

released are as follows: 

• the CFTC publishes on its website the capital, segregation and 

secured amount requirements for the most active brokers; 

• the FDIC, as noted above, publishes numerous periodic reports 

containing aggregate data on various sectors of the financial 

system; 

• the Federal Reserve provides aggregate data on assets, 

liabilities and profitability of commercial banks, and aggregate 

data on government securities dealers, finance companies, and 

mortgage markets; 

• the OCC’s Quarterly Journal, available on the agency’s 

website, contains the above-noted condition report as well as 

other data on the financial performance of national banks; and 

• the SEC annual reports contain information regarding key data 

related to its jurisdictional responsibilities, including the 

number of enforcement actions the SEC has instituted. The 

SEC also provides data to Congress as part of the 

appropriations process, and twice a year publishes a status 

report on the SEC’s administrative proceeding caseload. 
7.3 Where applicable, financial agencies should 

publicly disclose their balance sheets on a 

preannounced schedule and, after a 

predetermined interval, publicly disclose 

information on aggregate market transactions. 

Where applicable, agencies publicly disclose their balance sheets 

on a preannounced schedule, and, after a predetermined interval, 

publicly disclose information on aggregate market transactions. 

The periodicity of such reports varies. For example, the Federal 

Reserve discloses its balance sheet weekly, the FDIC quarterly, 

and the OCC and SEC annually. The Federal Reserve releases 

data on the volume of open market operations each day to wire 

services, and publishes comprehensive statistics on a monthly 

basis. Wednesday levels and weekly averages of adjustment, 

seasonal, and extended credit (discount window borrowings) are 

published, as is the Wednesday level of total borrowing by 

Federal Reserve District. The FDIC presents data on the funds 

received by the Bank Insurance Fund and the Savings 

Association Insurance Fund (which are not obtained in open 

market transactions) through the “Executive Management Report 

and Unaudited Results of the FDIC” and the FDIC’s Annual 

Report. The CFTC publishes a “commitments of traders” report 

showing the volume and open interest data on the positions of 

“large” traders (i.e., traders controlling positions which exceed a 

certain minimum level) in commodity futures and commodity 

options approximately every two weeks. 

The Federal Reserve and FDIC publicly disclose aggregate 

information on emergency financial support. The Federal 

Reserve does so weekly in Federal Reserve Bank balance sheets. 

When the FDIC provides financial support to insured depositors 

of closed institutions or in the rare cases that it has provided 

emergency financial support to operating institutions suffering 

financial difficulties, it discloses the payment of such support 

immediately, either at the time the public is informed of the 

closing of a depository institution, or at the time payment is made 

to an operating institution. 
7.4 Financial agencies should establish and 

maintain public information services. 

All financial agencies maintain public information services 

whose function is to disseminate: policy decisions and policy 

announcements, information on the operating framework, targets, 

and objectives, texts of speeches by senior officials, data, 

research by staff, and to maintain contact with media 

representatives. In addition each agency maintains a website that 

includes the above-referenced information as well as other 

information specific to that individual agency. 

All agencies publish a periodic report on their principal activities, 

typically annually and typically 3-9 months after the end of the 

relevant reporting period. In most cases, the agencies are 

required to do so by law. These reports are made available free 

of charge. Each agency also has a publications program which 

covers, in most cases, the agency’s annual report, an official 

bulletin or review, research publications, speeches of officials, 

non-technical descriptions of the role and functions of the agency, 

and other material specific to the agencies. Cost of the 

publications varies. 

Senior officials from each agency explain their institution’s 

objective(s) and performance to the public through public 

appearances before Congress, public speeches, and media 

interviews. The texts of such comments are typically released to 

the media via press release and published on the agency’s 

website. 

7.5 Texts of regulations and any other generally 

applicable directives and guidelines issued by 

financial agencies should be readily available to 

the public. 

Texts of regulations and other applicable directives and 

guidelines issued by financial agencies are generally published in 

the Federal Register when proposed, and upon adoption and 

thereafter, in the Code of Federal Regulations. Texts are also 

generally available on agencies’ websites. 

7.6 Where there are deposit insurance 

guarantees, policy-holder guarantees, and any 

other client asset protection schemes, 

information on the nature and form of such 

protections, on the operating procedures, on 

how the guarantee is financed, and on the 

performance of the arrangement, should be 

publicly disclosed. 

There are two types of guarantees: the deposit insurance system 

administered by the FDIC, and the program to protect customer 

funds held by broker-dealers in the event of liquidation, which is 

administered by the Securities Investor Protection Corporation 

(SIPC). The FDIC publicly discloses information on the nature 

and form, operating procedures, financing, and performance of 

the deposit insurance system through a variety of media. These 

include: written reports to and public appearances before 

Congress, published reports, and the FDIC website. Consumer 

brochures are also distributed to and available in insured 

depository institution offices, and the FDIC provides telephone or 

e-mail service for case-specific or general advice. 

SIPC administers the federal program designed to protect the 

funds of customers of broker-dealers in the event of liquidation, 

under the oversight of the SEC. Information on the nature and 

form, operating procedures, financing, and performance of this 

type of protection can be found through the SEC’s and SIPC’s 

publicly available information. 
7.7 Where financial agencies oversee consumer 

protection arrangements (such as dispute 

settlement processes), information on such 

arrangements should be publicly disclosed. 

All of the financial agencies oversee consumer protection 

arrangements, and publicly disclose information on these 

arrangements through a variety of media, including written 

reports to and public appearances before Congress, official 

publications, and their websites. 

VIII. ACCOUNTABILITY AND ASSURANCES OF INTEGRITY BY FINANCIAL AGENCIES 

8.1 Officials of financial agencies should be 

available to appear before a designated public 

authority to report on the conduct of financial 

policies, explain the policy objective(s) of their 

institution, describe their performance in 

pursuing their objective(s), and, as appropriate, 

exchange views on the state of the financial 

system. 

Officials of certain financial agencies are required by law to 

appear before Congress, and officials of all financial agencies 

make themselves available to appear before Congress. The 

purposes of such appearances are to report on the conduct of 

financial policies, explain the policy objectives of their 

institutions, describe their performance in pursuing these 

objectives, and to exchange views on the state of the financial 

system. The Chairman of the Federal Reserve Board makes 

appearances before Congress semi-annually and additionally at 

the request of Congress. Federal Reserve Governors, staff of the 

Board, and officials of other financial agencies appear at the 

request of Congress but not according to a pre-determined 

schedule. The CFTC is a sunset agency and its authorizing 

statute and related authorities must be periodically renewed by 

Congress. The CFTC is also required to report certain specified 

agency actions to Congress and on the effect of its margin 

policies to the Federal Reserve. 

8.2 Where applicable, financial agencies should 

publicly disclose audited financial statements of 

their operations on a preannounced schedule. 

All financial agencies publish audited financial statements each 

year, and submit them to Congress. In most cases, the financial 

statements are included in agencies’ annual reports and are made 

available on agencies’ websites. Financial statements are 

typically disclosed within six months of the end of the period 

covered, and are audited by an independent auditor. In some 

cases auditors are employed by the Comptroller General of the 

United States; in others the auditor is a member of a private firm. 

The information that agencies publicly disclose also includes 

information on accounting policies and any qualification to the 

statements, as well as information on internal governance 

procedures that are in place to ensure the integrity of operations, 

including internal audit arrangements. 

8.3 Where applicable, information on the 

operating expenses and revenues of financial 

agencies should be publicly disclosed annually. 

All financial agencies publicly disclose information on the 

operating expenses and revenues of financial agencies. In most 

cases this information is disclosed annually; because the Federal 

Reserve is on a biannual budget cycle, it discloses such 

information every other year. All agencies disclose such 

information in written reports to Congress, and in most cases they 

make such information available on their websites. 

8.4 Standards for the conduct of personal 

financial affairs of officials and staff of 

financial agencies and rules to prevent 

exploitation of conflicts of interest, including 

any general fiduciary obligation, should be 

publicly disclosed. 

All employees of the executive branch of government are 

covered by the Government-wide Standards of Ethical Conduct 

for Employees of the Executive Branch, 5 C.F.R. 2635. In 

addition, each financial agency maintains its own agency-wide 

code of conduct. Such regulations are published in the Code of 

Federal Regulations. There are also legal protections for officials 

and staff of financial agencies in the conduct of their official 

duties. These legal protections are generally either statutory or 

developed through federal court decisions.