33980 Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Rules and Regulations 

OFFICE OF GOVERNMENT ETHICS 

5 CFR Part 2634 

RIN 3209–AA00 

Executive Branch Financial Disclosure, 

Qualified Trusts, and Certificates of 

Divestiture 

AGENCY: Office of Government Ethics 

(OGE). 

ACTION: Final rule. 

SUMMARY: The U.S. Office of 

Government Ethics is issuing a final rule 

amending the Executive Branch 

Financial Disclosure, Qualified Trusts, 

and Certificates of Divestiture 

regulations. Pursuant to section 402(b) 

of the Ethics in Government Act, the 

U.S. Office of Government Ethics (OGE) 

is revising the regulations governing 

financial disclosure to incorporate the 

new reporting requirements imposed by 

the Stop Trading on Congressional 

Knowledge Act (STOCK Act), which 

was enacted on April 4, 2012. As a part 

of the revision, OGE also is modernizing 

language, making changes to the 

confidential filing requirements, adding 

and updating examples, and conforming 

the language of the regulation more 

closely to that of the Ethics in 

Government Act (EIGA). In addition, 

OGE is updating definition of ‘‘widely 

diversified’’ for Excepted Investment 

Fund purposes that brings the definition 

in line with the definition of 

‘‘diversified’’ found in the exemptions 

to the conflicts of interest law governing 

personal financial interests. 

DATES: The final rule is effective on 

January 1, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Heather A. Jones, Senior Counsel for 

Financial Disclosure, Office of 

Government Ethics, Suite 500, 1201 

New York Avenue NW, Washington, DC 

20005–3917; Telephone: 202–482–9300; 

TTY: 800–877–8339; FAX: 202–482– 

9237. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The U.S. Office of Government Ethics 

(OGE) published a proposed rule in the 

Federal Register, 81 FR 69204, October 

5, 2016, proposing to amend 5 CFR part 

2634, Executive Branch Financial 

Disclosure, Qualified Trusts, and 

Certificates of Divestiture. Part 2634 sets 

forth the rules governing public 

financial disclosure reporting for the 

Executive Branch set forth in the EIGA 

and the STOCK Act. It also establishes 

the rules governing confidential 

financial reporting authorized by the 

EIGA. Part 2634 institutes procedures 

for the creation and approval of a 

qualified trust as required by the EIGA. 

Finally, it establishes rules for 

requesting and approval of a certificate 

of divestiture as set forth in 26 U.S.C. 

1043. 

The amendments to part 2634, which 

are described in the preamble to the 

proposed rule, were proposed following 

OGE’s retrospective review of the 

regulation and draw upon the collective 

experience of agency ethics officials 

across the executive branch. The 

amendments reflect extensive input 

from the executive branch ethics 

community, as well as OGE’s 

consultation with the Department of 

Justice (DOJ) and the Office of Personnel 

Management pursuant to 5 U.S.C. app. 

402(b)(1). 

The proposed rule provided a 60-day 

comment period, which ended on 

December 5, 2016. OGE received one set 

of timely and responsive comments, 

which were submitted by an individual. 

OGE also received a comment from 

Senator Ron Wyden on April 27, 2017. 

After carefully considering both 

comments and for the reasons set forth 

in the preamble to the proposed rule, 

OGE is publishing this final rule. The 

rationale for the proposed rule can be 

found in the preamble at: https://

www.gpo.gov/fdsys/pkg/FR-2016-10-05/ 

pdf/2016-22958.pdf. 

II. Comments 

As noted above, OGE received two 

sets of comments on the proposed rule. 

The individual who commented 

suggested that the President and the 

Vice President be subject to the 

financial disclosure regulations in part 

2634, that the President report 

compensation other than his Federal 

salary, and that the President report any 

emolument received. The President and 

Vice President already are subject to all 

public financial disclosure rules under 

section 2634.202. Specifically, section 

2634.302 requires disclosure investment 

and non-investment income (including 

emoluments, but excluding any federal 

salary) over $200 and section 2634.304 

captures any gift or emolument with a 

value of more than $390 (this amount 

will increase in 2020). The commenter 

also suggests the disclosure of a number 

of other items that are not the subject of 

this regulation. 

Senator Wyden commented that OGE 

had removed the requirement that the 

appropriate designated agency ethics 

official notify the Senate confirmation 

committee that the nominee has taken 

the steps necessary to comply with the 

nominee’s ethics agreement. Based on 

this comment, OGE has reinserted that 

requirement in section 2634.804(a). 

OGE made three technical changes to 

the final rule. OGE deleted the 

inoperative reference to 5 CFR part 2638 

in the note to section 2634.605(c)(2). 

OGE changed the gift threshold amounts 

and civil monetary penalty amounts, 

which had been updated by regulations 

since the publication of the proposed 

rule. 

In all other respects, the final rule 

follows the proposed rule of October 5, 

2016. 

III. Matters of Regulatory Procedure 

Regulatory Flexibility Act 

As Acting Director of the Office of 

Government Ethics, I certify under the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) that this final rule will not 

have a significant economic impact on 

a substantial number of small entities 

because it primarily affects Federal 

executive branch employees. 

Paperwork Reduction Act 

No review is needed under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35) for the final rule, because it 

adds no new or additional information 

collection requirements in the 

regulation, which are currently 

approved under OMB paperwork 

control numbers 3209–001, 3209–002, 

3209–004, 3209–006, and 3209–0007. 

Unfunded Mandates Reform Act 

For purposes of the Unfunded 

Mandates Reform Act of 1995 (2 U.S.C. 

chapter 25, subchapter II), this final rule 

will not significantly or uniquely affect 

small governments and will not result in 

increased expenditures by State, local, 

and tribal governments, in the aggregate, 

or by the private sector, of $100 million 

or more (as adjusted for inflation) in any 

one year. 

Executive Order 12866, Executive Order 

13563 and Executive Order 13771 

Executive Orders 12866 and 13563 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits. 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This final rule has been 

designated a ‘‘significant regulatory 

action’’ although not economically 

significant, under section 3(f) of 

Executive Order 12866. Accordingly, 

the rule has been reviewed by the Office 

of Management and Budget. Executive 

Order 13771 directs agencies to control 

regulatory costs through a budgeting 

process. This rule is not subject to the 


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requirements of E.O. 13771 because this 

rule results in no more than de minimis 

costs. 

Executive Order 12988 

As Director of the Office of 

Government Ethics, I have reviewed this 

final rule in light of section 3 of 

Executive Order 12988, Civil Justice 

Reform, and certify that it meets the 

applicable standards provided therein. 

List of Subjects in 5 CFR Part 2634 

Certificates of divestiture, Conflict of 

interests, Financial disclosure, 

Government employees, Penalties, 

Privacy, Reporting and recordkeeping 

requirements, Trusts and trustees. 

Approved: July 10, 2018. 

David Apol, 

Acting Director and General Counsel, Office 

of Government Ethics. 

■ Accordingly, the Office of 

Government Ethics revises 5 CFR part 

2634 to read as follows: 

PART 2634—EXECUTIVE BRANCH 

FINANCIAL DISCLOSURE, QUALIFIED 

TRUSTS, AND CERTIFICATES OF 

DIVESTITURE 

Subpart A—General Provisions 

Sec. 

2634.101 Authority. 

2634.102 Purpose and overview. 

2634.103 Executive agency supplemental 

regulations. 

2634.104 Policies. 

2634.105 Definitions. 

Subpart B—Persons Required To File 

Public Financial Disclosure Reports 

2634.201 General requirements, filing dates, 

and extensions. 

2634.202 Public filer defined. 

2634.203 Persons excluded by rule. 

2634.204 Employment of sixty days or less. 

2634.205 Special waiver of public reporting 

requirements. 

Subpart C—Contents of Public Reports 

2634.301 Interests in property. 

2634.302 Income. 

2634.303 Purchases, sales, and exchanges. 

2634.304 Gifts and reimbursements. 

2634.305 Liabilities. 

2634.306 Agreements and arrangements. 

2634.307 Outside positions. 

2634.308 Filer’s sources of compensation 

exceeding $5,000 in a year. 

2634.309 Periodic reporting of transactions. 

2634.310 Reporting periods. 

2634.311 Spouses and dependent children. 

2634.312 Trusts, estates, and investment 

funds. 

2634.313 Special rules. 

Subpart D—Qualified Trusts 

2634.401 Overview. 

2634.402 Definitions. 

2634.403 General description of trusts. 

2634.404 Summary of procedures for 

creation of a qualified trust. 

2634.405 Standards for becoming an 

independent trustee or other fiduciary. 

2634.406 Initial portfolio. 

2634.407 Certification of qualified trust by 

the Office of Government Ethics. 

2634.408 Administration of a qualified 

trust. 

2634.409 Pre-existing trusts. 

2634.410 Dissolution. 

2634.411 Reporting on financial disclosure 

reports. 

2634.412 Sanctions and enforcement. 

2634.413 Public access. 

2634.414 OMB control number. 

Subpart E—Revocation of Trust Certificates 

and Trustee Approvals 

2634.501 Purpose and scope. 

2634.502 Definitions. 

2634.503 Determinations. 

Subpart F—Procedure 

2634.601 Report forms. 

2634.602 Filing of reports. 

2634.603 Custody of and access to public 

reports. 

2634.604 Custody of and denial of public 

access to confidential reports. 

2634.605 Review of reports. 

2634.606 Updated disclosure of advice-andconsent nominees. 

2634.607 Advice and opinions. 

Subpart G—Penalties 

2634.701 Failure to file or falsifying reports. 

2634.702 Breaches by trust fiduciaries and 

interested parties. 

2634.703 Misuse of public reports. 

2634.704 Late filing fee. 

Subpart H—Ethics Agreements 

2634.801 Scope. 

2634.802 Requirements. 

2634.803 Notification of ethics agreements. 

2634.804 Evidence of compliance. 

2634.805 Retention. 

Subpart I—Confidential Financial 

Disclosure Reports 

2634.901 Policies of confidential financial 

disclosure reporting. 

2634.902 [Reserved] 

2634.903 General requirements, filing dates, 

and extensions. 

2634.904 Confidential filer defined. 

2634.905 Use of alternative procedures. 

2634.906 Review of confidential filer status. 

2634.907 Report contents. 

2634.908 Reporting periods. 

2634.909 Procedures, penalties, and ethics 

agreements. 

Subpart J—Certificates of Divestiture 

2634.1001 Overview. 

2634.1002 Role of the Internal Revenue 

Service. 

2634.1003 Definitions. 

2634.1004 General rule. 

2634.1005 How to obtain a Certificate of 

Divestiture. 

2634.1006 Rollover into permitted property. 

2634.1007 Cases in which Certificates of 

Divestiture will not be issued. 

2634.1008 Public access to a Certificate of 

Divestiture. 

Authority: 5 U.S.C. app.; 26 U.S.C. 1043; 

Pub. L. 101–410, 104 Stat. 890, 28 U.S.C. 

2461 note, as amended by Sec. 31001, Pub. 

L. 104–134, 110 Stat. 1321 and Sec. 701, Pub. 

L. 114–74; Pub. L. 112–105, 126 Stat. 291; 

E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., 

p. 215, as modified by E.O. 12731, 55 FR 

42547, 3 CFR, 1990 Comp., p. 306. 

Subpart A—General Provisions 

§ 2634.101 Authority. 

The regulation in this part is issued 

pursuant to the authority of the Ethics 

in Government Act of 1978, as 

amended; 26 U.S.C. 1043; the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990, as amended by the Debt 

Collection Improvement Act of 1996 

and the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015; the Stop Trading on Congressional 

Knowledge Act (STOCK Act), as 

amended; and Executive Order 12674 of 

April 12, 1989, as modified by 

Executive Order 12731 of October 17, 

1990. 

§ 2634.102 Purpose and overview. 

(a) The regulation in this part 

supplements and implements title I of 

the Act, sections 8(a)–(b) and 11 of the 

STOCK Act, and section 201(d) of 

Executive Order 12674 (as modified by 

Executive Order 12731) with respect to 

executive branch employees, by setting 

forth more specifically the uniform 

procedures and requirements for 

financial disclosure and for the 

certification and use of qualified blind 

and diversified trusts. Additionally, this 

part implements section 502 of the 

Reform Act by establishing procedures 

for executive branch personnel to obtain 

Certificates of Divestiture, which permit 

deferred recognition of capital gain in 

certain instances. 

(b) The rules in this part govern both 

public and confidential (nonpublic) 

financial disclosure systems. Subpart I 

of this part contains the rules applicable 

to the confidential disclosure system. 

§ 2634.103 Executive agency supplemental 

regulations. 

(a) The regulation in this part is 

intended to provide uniformity for 

executive branch financial disclosure 

systems. However, an agency may, 

subject to the prior written approval of 

the Office of Government Ethics (OGE), 

issue supplemental regulations 

implementing this part, if necessary to 

address special or unique agency 

circumstances. Such regulations: 

(1) Must be consistent with the Act, 

the STOCK Act, Executive Orders 12674 

and 12731, and this part; and 

(2) Must not impose additional 

reporting requirements on either public 

or confidential filers, unless specifically 

authorized by the Office of Government 


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Ethics as supplemental confidential 

reporting. 

Note to paragraph (a): Supplemental 

regulations will not be used to satisfy the 

separate requirement of 5 U.S.C. app. (Ethics 

in Government Act of 1978, section 

402(d)(1)) that each agency have established 

written procedures on how to collect, review, 

evaluate, and, where appropriate, make 

publicly available, financial disclosure 

statements filed with it. 

(b) Requests for approval of 

supplemental regulations under 

paragraph (a) of this section must be 

submitted in writing to the Office of 

Government Ethics, and must set forth 

the agency’s need for any proposed 

supplemental reporting requirements. 

See § 2634.901(b) and (c). 

(c) Agencies should review all of their 

existing financial disclosure regulations 

to determine which of those regulations 

must be modified or revoked in order to 

conform with the requirements of this 

part. Any amendatory agency 

regulations will be processed in 

accordance with paragraphs (a) and (b) 

of this section. 

§ 2634.104 Policies. 

(a) Title I of the Act requires that 

high-level Federal officials disclose 

publicly their personal financial 

interests, to ensure confidence in the 

integrity of the Federal Government by 

demonstrating that they are able to carry 

out their duties without compromising 

the public trust. Title I also authorizes 

the Office of Government Ethics to 

establish a confidential (nonpublic) 

financial disclosure system for less 

senior executive branch personnel in 

certain designated positions, to facilitate 

internal agency conflict-of-interest 

review. 

(b) Public and confidential financial 

disclosure serves to prevent conflicts of 

interest and to identify potential 

conflicts, by providing for a systematic 

review of the financial interests of both 

current and prospective officers and 

employees. These reports assist agencies 

in administering their ethics programs 

and providing counseling to employees. 

(c) Financial disclosure reports are 

not net worth statements. Financial 

disclosure systems seek only the 

information that the President, 

Congress, or OGE as the supervising 

ethics office for the executive branch 

has deemed relevant to the 

administration and application of the 

criminal conflict of interest laws, other 

statutes on ethical conduct or financial 

interests, and Executive orders or 

regulations on standards of ethical 

conduct. 

(d) Nothing in the Act, the STOCK 

Act, or this part requiring reporting of 

information or the filing of any report 

will be deemed to authorize receipt of 

income, honoraria, gifts, or 

reimbursements; holding of assets, 

liabilities, or positions; or involvement 

in transactions that are prohibited by 

law, Executive order, or regulation. 

(e) The provisions of title I of the Act, 

the STOCK Act, and this part requiring 

the reporting of information supersede 

any general requirement under any 

other provision of law or regulation on 

the reporting of information required for 

purposes of preventing conflicts of 

interest or apparent conflicts of interest. 

However, the provisions of title I and 

this part do not supersede the 

requirements of 5 U.S.C. 7342 (the 

Foreign Gifts and Decorations Act). 

(f) This part is intended to be genderneutral; therefore, use of the terms he, 

his, and him include she, hers, and her, 

and vice versa. 

§ 2634.105 Definitions. 

For purposes of this part: 

(a) Act means the Ethics in 

Government Act of 1978 (Pub. L. 95– 

521), as amended, as modified by the 

Ethics Reform Act of 1989 (Pub. L. 101– 

194), as amended. 

(b) Agency means any executive 

agency as defined in 5 U.S.C. 105 (any 

executive department, Government 

corporation, or independent 

establishment in the executive branch), 

any military department as defined in 5 

U.S.C. 102, and the Postal Service and 

the Postal Regulatory Commission. It 

does not include the Government 

Accountability Office. 

(c) Confidential filer. For the 

definition of ‘‘confidential filer,’’ see 

§ 2634.904. 

(d) Dependent child means, when 

used with respect to any reporting 

individual, any individual who is a son, 

daughter, stepson, or stepdaughter and 

who: 

(1) Is unmarried, under age 21, and 

living in the household of the reporting 

individual; or 

(2) Is a dependent of the reporting 

individual within the meaning of 

section 152 of the Internal Revenue 

Code of 1986, see 26 U.S.C. 152. 

(e) Designated agency ethics official 

means the primary officer or employee 

who is designated by the head of an 

agency to administer the provisions of 

title I of the Act and this part within an 

agency, and in the designated agency 

ethics official’s absence the alternate 

who is designated by the head of the 

agency. The term also includes a 

delegate of such an official, unless 

otherwise indicated. See part 2638 of 

this chapter on the appointment and 

additional responsibilities of a 

designated agency ethics official and 

alternate. 

(f) Executive branch means any 

agency as defined in paragraph (b) of 

this section and any other entity or 

administrative unit in the executive 

branch. 

(g) Filer is used interchangeably with 

‘‘reporting individual,’’ and may refer to 

a ‘‘confidential filer’’ as defined in 

paragraph (c) of this section, a ‘‘public 

filer’’ as defined in paragraph (m) of this 

section, or a nominee or candidate as 

described in § 2634.201. 

(h) Gift means a payment, advance, 

forbearance, rendering, free attendance 

at an event, deposit of money, or 

anything of value, unless consideration 

of equal or greater value is received by 

the donor, but does not include: 

(1) Bequests and other forms of 

inheritance; 

(2) Suitable mementos of a function 

honoring the reporting individual; 

(3) Food, lodging, transportation, and 

entertainment provided by a foreign 

government within a foreign country or 

by the United States Government, the 

District of Columbia, or a State or local 

government or political subdivision 

thereof; 

(4) Food and beverages, unless they 

are consumed in connection with a gift 

of overnight lodging; 

(5) Communications to the offices of 

a reporting individual, including 

subscriptions to newspapers and 

periodicals; 

(6) Consumable products provided by 

home-state businesses to the offices of 

the President or Vice President, if those 

products are intended for consumption 

by persons other than the President or 

Vice President; or 

(7) Exclusions and exceptions as 

described at § 2634.304(c) and (d). 

(i) Honorarium means a payment of 

money or anything of value for an 

appearance, speech, or article. 

(j) Income means all income from 

whatever source derived. It includes but 

is not limited to the following items: 

Earned income such as compensation 

for services, fees, commissions, salaries, 

wages, and similar items; gross income 

derived from business (and net income 

if the individual elects to include it); 

gains derived from dealings in property 

including capital gains; interest; rents; 

royalties; dividends; annuities; income 

from the investment portion of life 

insurance and endowment contracts; 

pensions; income from discharge of 

indebtedness; distributive share of 

partnership income; and income from 

an interest in an estate or trust. The term 

includes all income items, regardless of 

whether they are taxable for Federal 

income tax purposes, such as interest on 


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municipal bonds. Generally, income 

means ‘‘gross income’’ as determined in 

conformity with the Internal Revenue 

Service principles at 26 CFR 1.61–1 

through 1.61–15 and 1.61–21. 

(k) Personal hospitality of any 

individual means hospitality extended 

for a nonbusiness purpose by an 

individual, not a corporation or 

organization, at the personal residence 

of or on property or facilities owned by 

that individual or the individual’s 

family. 

(l) Personal residence means any 

property used exclusively as a private 

dwelling by the reporting individual or 

his spouse, which is not rented out 

during any portion of the reporting 

period. The term is not limited to one’s 

domicile; there may be more than one 

personal residence, including a vacation 

home. 

(m) Public filer. For the definition of 

‘‘public filer,’’ see § 2634.202. 

(n) Reimbursement means any 

payment or other thing of value received 

by the reporting individual (other than 

gifts, as defined in paragraph (h) of this 

section) to cover travel-related expenses 

of such individual, other than those 

which are: 

(1) Provided by the United States 

Government, the District of Columbia, 

or a State or local government or 

political subdivision thereof; 

(2) Required to be reported by the 

reporting individual under 5 U.S.C. 

7342 (the Foreign Gifts and Decorations 

Act); or 

(3) Required to be reported under 

section 304 of the Federal Election 

Campaign Act of 1971 (52 U.S.C. 30104) 

(relating to reports of campaign 

contributions). 

Note to paragraph (n): Payments which are 

not made to the individual are not 

reimbursements for purposes of this part. 

Thus, payments made to the filer’s 

employing agency to cover official travelrelated expenses do not fit this definition of 

reimbursement. For example, payments being 

accepted by the agency pursuant to statutory 

authority such as 31 U.S.C. 1353, as 

implemented by 41 CFR part 304–1, are not 

considered reimbursements under this part, 

because they are not payments received by 

the reporting individual. On the other hand, 

travel payments made to the employee by an 

outside entity for private travel are 

considered reimbursements for purposes of 

this part. Likewise, travel payments received 

from certain nonprofit entities under 

authority of 5 U.S.C. 4111 are considered 

reimbursements, even though for official 

travel, since that statute specifies that such 

payments must be made to the individual 

directly (with prior approval from the 

individual’s agency). 

(o) Relative means an individual who 

is related to the reporting individual, as 

father, mother, son, daughter, brother, 

sister, uncle, aunt, great uncle, great 

aunt, first cousin, nephew, niece, 

husband, wife, grandfather, 

grandmother, grandson, granddaughter, 

father-in-law, mother-in-law, son-inlaw, daughter-in-law, brother-in-law, 

sister-in-law, stepfather, stepmother, 

stepson, stepdaughter, stepbrother, 

stepsister, half-brother, half-sister, or 

who is the grandfather or grandmother 

of the spouse of the reporting 

individual, and will be deemed to 

include the fiance ́ or fiance ́e of the 

reporting individual. 

(p) Reporting individual is used 

interchangeably with ‘‘filer,’’ and may 

refer to a ‘‘confidential filer’’ as defined 

in § 2634.904, a ‘‘public filer’’ as defined 

in § 2634.202, or a nominee or candidate 

as described in § 2634.201(c) and (d). 

(q) Reviewing official means the 

designated agency ethics official or the 

delegate, the Secretary concerned, the 

head of the agency, or the Director of the 

Office of Government Ethics. 

(r) Secretary concerned has the 

meaning set forth in 10 U.S.C. 101(a)(9) 

(relating to the Secretaries of the Army, 

Navy, Air Force, and for certain Coast 

Guard matters, the Secretary of 

Homeland Security); and, in addition, 

means: 

(1) The Secretary of Commerce, in 

matters concerning the National 

Oceanic and Atmospheric 

Administration; 

(2) The Secretary of Health and 

Human Services, with respect to matters 

concerning the Public Health Service; 

and 

(3) The Secretary of State with respect 

to matters concerning the Foreign 

Service. 

(s) Special Government employee has 

the meaning given to that term by the 

first sentence of 18 U.S.C. 202(a): An 

officer or employee of an agency who is 

retained, designated, appointed, or 

employed to perform temporary duties, 

with or without compensation, for not 

to exceed 130 days during any period of 

365 consecutive days, either on a fulltime or intermittent basis. 

(t) STOCK Act means the Stop 

Trading on Congressional Knowledge 

Act (Pub. L. 112–105), as amended. 

(u) Value means a good faith estimate 

of the fair market value if the exact 

value is neither known nor easily 

obtainable by the reporting individual 

without undue hardship or expense. In 

the case of any interest in property, see 

the alternative valuation options in 

§ 2634.301(e). For gifts and 

reimbursements, see § 2634.304(e). 

Subpart B—Persons Required To File 

Public Financial Disclosure Reports 

§ 2634.201 General requirements, filing 

dates, and extensions. 

(a) Incumbents. A public filer as 

defined in § 2634.202 who, during any 

calendar year, performs the duties of the 

position or office, as described in that 

section, for a period in excess of 60 days 

must file a public financial disclosure 

report containing the information 

prescribed in subpart C of this part, on 

or before May 15 of the succeeding year. 

Example 1: An SES official commences 

performing the duties of his position on 

November 15. He will not be required to file 

an incumbent report for that calendar year. 

Example 2: An employee, who is classified 

at GS–15, is formally detailed to fill an SES 

position or is temporarily promoted to fill an 

SES position in an acting capacity, from 

October 15 through December 31. Having 

performed the duties of a covered position 

for more than 60 days during the calendar 

year, he will be required to file an incumbent 

report. In addition, he must file a new entrant 

report the first time he serves more than 60 

days in a calendar year in the position, in 

accordance with § 2634.201(b) and 

§ 2634.204(c)(1). 

Example 3: An SES employee terminates 

her employment with an agency on March 7, 

2015. The employee will file a termination 

report by April 6, 2015, in accordance with 

§ 2634.201(e), but will not file an incumbent 

report on May 15. 

(b) New entrants. (1) Within 30 days 

of assuming a public filer position or 

office described in § 2634.202, an 

individual must file a public financial 

disclosure report containing the 

information prescribed in subpart C of 

this part. 

(2) However, no report will be 

required if the individual: 

(i) Has, within 30 days prior to 

assuming such position, left another 

position or office for which a public 

financial disclosure report under the 

Act was required to be filed; or 

(ii) Has already filed such a report as 

a nominee or candidate for the position. 

Example: Y, an employee of the Treasury 

Department who has previously filed reports 

in accordance with the rules of this section, 

terminates employment with that Department 

on January 10, 2015, and begins employment 

with the Commerce Department on January 

11, 2015, in a Senior Executive Service 

position. Y is not a new entrant because he 

has assumed a position described in 

§ 2634.202 within thirty days of leaving 

another position so described. Accordingly, 

he need not file a new report with the 

Commerce Department. 

Note to example: While Y did not have to 

file a new entrant report with the Commerce 

Department, that Department should request 

a copy of the last report which he filed with 

the Treasury Department, so that Commerce 


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33984 Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Rules and Regulations 

could determine whether or not there would 

be any conflicts or potential conflicts in 

connection with Y’s new employment. 

Additionally, Y will have to file an 

incumbent report covering the 2014 calendar 

year, in accordance with paragraph (a) of this 

section, due not later than May 15, 2015, 

with Commerce, which should provide a 

copy to Treasury so that both may review it. 

(c) Nominees. (1) At any time after a 

public announcement by the President 

or President-elect of the intention to 

nominate an individual to an executive 

branch position, appointment to which 

requires the advice and consent of the 

Senate, such individual may, and in any 

event within five days after the 

transmittal of the nomination to the 

Senate must, file a public financial 

disclosure report containing the 

information prescribed in subpart C of 

this part. 

(2) This requirement will not apply to 

any individual who is nominated to a 

position as: 

(i) An officer of the uniformed 

services; or 

(ii) A Foreign Service Officer. 

Note to paragraph (c)(2): Although the 

statute, 5 U.S.C. app. (Ethics in Government 

Act of 1978, section 101(b)(1)), exempts 

uniformed service officers only if they are 

nominated for appointment to a grade or rank 

for which the pay grade is 0–6 or below, the 

Senate confirmation committees have 

adopted a practice of exempting all 

uniformed service officers, unless otherwise 

specified by the committee assigned. 

(3) Section 2634.605(c) provides 

expedited procedures in the case of 

individuals described in paragraph 

(c)(1) of this section. Those individuals 

referred to in paragraph (c)(2) of this 

section as being exempt from filing 

nominee reports must file new entrant 

reports, if required by paragraph (b) of 

this section. 

(d) Candidates. A candidate (as 

defined in section 301 of the Federal 

Election Campaign Act of 1971, 52 

U.S.C. 30101) for nomination or election 

to the office of President or Vice 

President (other than an incumbent) 

must file a public financial disclosure 

report containing the information 

prescribed in subpart C of this part, in 

accordance with the following: 

(1) Within 30 days of becoming a 

candidate or on or before May 15 of the 

calendar year in which the individual 

becomes a candidate, whichever is later, 

but in no event later than 30 days before 

the election; and 

(2) On or before May 15 of each 

successive year an individual continues 

to be a candidate. However, in any 

calendar year in which an individual 

continues to be a candidate but all 

elections relating to such candidacy 

were held in prior calendar years, the 

individual need not file a report unless 

the individual becomes a candidate for 

a vacancy during that year. 

Example: P became a candidate for 

President in January 2015. P will be required 

to file a public financial disclosure report on 

or before May 15, 2015. If P had become a 

candidate on June 1, 2015, P would have 

been required to file a disclosure report 

within 30 days of that date. 

(e) Termination of employment. (1) 

On or before the thirtieth day after 

termination of employment from a 

public filer position or office described 

in § 2634.202 but no more than 15 days 

prior to termination, an individual must 

file a public financial disclosure report 

containing the information prescribed in 

subpart C of this part. If the individual 

files prior to the termination date and 

there are any changes between the filing 

date and the termination date, the 

individual must update the report. 

(2) However, if within 30 days of such 

termination the individual assumes 

employment in another position or 

office for which a public report under 

the Act is required to be filed, no report 

will be required by the provisions of 

this paragraph. See the related Example 

in paragraph (b) of this section. 

(f) Transactions occurring throughout 

the calendar year. (1) A public filer as 

defined in § 2634.202 who, during any 

calendar year, performs, or is reasonably 

expected to perform, the duties of his 

position or office, as described in that 

section, for a period in excess of 60 days 

must file a transaction report within 30 

days of receiving notification of a 

covered transaction, but not later than 

45 days after such transaction. The 

report must contain the information 

prescribed in subpart C of this part. 

(2) A covered transaction is any 

purchase, sale, or exchange required to 

be reported according to the provisions 

of § 2634.309. 

Example: A filer receives a statement on 

October 10 notifying her of all of the covered 

transactions executed by her broker on her 

behalf in September. Although each 

transaction may have a different due date, if 

the filer reports all the covered transactions 

from September on a report filed on or before 

October 15, the filer will ensure that all 

transactions have been timely reported. 

(g) Extensions generally. The 

reviewing official may, for good cause 

shown, grant to any public filer or class 

thereof an extension of time for filing 

which must not exceed 45 days. The 

reviewing official may, for good cause 

shown, grant an additional extension of 

time which must not exceed 45 days. 

The employee must set forth in writing 

specific reasons why such additional 

extension of time is necessary. The 

reviewing official must approve or deny 

such requests in writing. Such records 

must be maintained as part of the 

official report file. For extensions on 

confidential financial disclosure reports, 

see § 2634.903(d). 

(h) Exceptions for individuals in 

combat zones. In the case of an 

individual who is serving in the Armed 

Forces, or serving in support of the 

Armed Forces, in an area while that area 

is designated by the President by 

Executive order as a combat zone for 

purposes of section 112 of the Internal 

Revenue Code of 1986: 

(1) The date for the filing of any report 

will be extended so that the date is 180 

days after the later of: 

(i) The last day of the individual’s 

service in such area during such 

designated period; or 

(ii) The last day of the individual’s 

hospitalization as a result of injury 

received or disease contracted while 

serving in such area; and 

(2) The exception described in this 

paragraph will apply automatically to 

any individual who qualifies for the 

exception, unless the Secretary of 

Defense establishes written guidelines 

for determining eligibility or for 

requesting an extension under this 

paragraph. 

§ 2634.202 Public filer defined. 

The term public filer includes: 

(a) The President; 

(b) The Vice President; 

(c) Each officer or employee in the 

executive branch, including a special 

Government employee as defined in 18 

U.S.C. 202(a), whose position is 

classified above GS–15 of the General 

Schedule prescribed by 5 U.S.C. 5332, 

or the rate of basic pay for which is 

fixed, other than under the General 

Schedule, at a rate equal to or greater 

than 120% of the minimum rate of basic 

pay for GS–15 of the General Schedule; 

each member of a uniformed service 

whose pay grade is at or in excess of O– 

7 under 37 U.S.C. 201; and each officer 

or employee in any other position 

determined by the Director of the Office 

of Government Ethics to be of equal 

classification; 

(d) Each employee who is an 

administrative law judge appointed 

pursuant to 5 U.S.C. 3105; 

(e) Any employee not otherwise 

described in paragraph (c) of this 

section who is in a position in the 

executive branch which is excepted 

from the competitive service by reason 

of being of a confidential or policymaking character, unless excluded by 

virtue of a determination under 

§ 2634.203; 


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(f) The Postmaster General, the 

Deputy Postmaster General, each 

Governor of the Board of Governors of 

the United States Postal Service and 

each officer or employee of the United 

States Postal Service or Postal 

Regulatory Commission whose basic 

rate of pay is equal to or greater than 

120% of the minimum rate of basic pay 

for GS–15 of the General Schedule; 

(g) The Director of the Office of 

Government Ethics and each agency’s 

designated agency ethics official; 

(h) Any civilian employee not 

otherwise described in paragraph (c) of 

this section who is employed in the 

Executive Office of the President (other 

than a special Government employee, as 

defined in 18 U.S.C. 202(a)) and holds 

a commission of appointment from the 

President; and 

(i) Anyone whose employment in a 

position or office described in 

paragraphs (a) through (h) of this section 

has terminated, but who has not yet 

satisfied the filing requirements of 

§ 2634.201(e). 

§ 2634.203 Persons excluded by rule. 

(a) In general. Any individual or 

group of individuals described in 

§ 2634.202(e) (relating to positions of a 

confidential or policy-making character) 

may be excluded by rule from the public 

reporting requirements of this subpart 

when the Director of the Office of 

Government Ethics determines, in his 

sole discretion, that such exclusion 

would not affect adversely the integrity 

of the Government or the public’s 

confidence in the integrity of the 

Government. 

(b) Exclusion determination for 

employees at or below the GS–13 grade 

level. (1) The determination required by 

paragraph (a) of this section has been 

made for any individual who, as a 

factual matter, serves in a position that 

meets the criteria set forth in this 

paragraph. The exclusion applies to a 

position upon a written determination 

by the designated agency ethics official 

that the position meets the following 

criteria: 

(i) The position is paid at the GS–13 

grade level or below or, in the case of 

a position not under the General 

Schedule, both the level of pay and the 

nature of responsibilities of the position 

are commensurate with the GS–13 grade 

level or below; and 

(ii) The incumbent in the position 

does not have a substantial policymaking role with respect to agency 

programs. 

(2) The designated agency ethics 

official must consider whether the 

position meets the standards for filing a 

confidential financial disclosure report 

enumerated in § 2634.904(a)(4). 

(c) Exclusion determination for 

employees at or below the GS–15 grade 

level, but above the GS–13 grade level. 

The exclusion determination required 

by paragraph (a) of this section may also 

be made on a case-by-case basis by the 

Office of Government Ethics. To receive 

an exclusion determination, an agency 

must follow the procedures set forth in 

paragraph (d) of this section and must 

demonstrate that the employee: 

(1) Has a position that has been 

established at the GS–14 or GS–15 grade 

level or, in the case of a position not 

under the General Schedule, both the 

level of pay and the nature of 

responsibilities of the position are 

commensurate with the GS–14 or GS–15 

grade level; and 

(2) Has no policy-making role with 

respect to agency programs. In the event 

that the Office of Government Ethics 

permits the requested exclusion, the 

designated agency ethics official must 

consider whether the position meets the 

standards for filing a confidential 

financial disclosure report enumerated 

in § 2634.904(a)(4). 

(d) Procedure. (1) The exclusion of 

any individual from reporting 

requirements pursuant to paragraph (c) 

of this section will be effective as of the 

time the employing agency files with 

the Office of Government Ethics the 

name of the employee, the name of any 

incumbent in the position, and a 

position description. Exclusions should 

be requested prior to due dates for the 

reports which such employees would 

otherwise have to file. If the position 

description changes in a substantive 

way, the employing agency must 

provide the Office of Government Ethics 

with a revised position description. 

(2) If the Office of Government Ethics 

finds that one or more positions has 

been improperly excluded, it will advise 

the agency and set a date for the filing 

of any report that is due. 

Example: An agency requests an exclusion 

for a special assistant, who is a Schedule C 

appointee whose position description is 

classified at the GS–14 level. The position 

description indicates that the employee’s 

duties involve the analysis of policy options 

and the presentation of findings and 

recommendations to superiors. On the basis 

of this position description, the requested 

exception is denied. 

§ 2634.204 Employment of sixty days or 

less. 

(a) In general. Any public filer or 

nominee who, as determined by the 

official specified in this paragraph, is 

not reasonably expected to perform the 

duties of an office or position described 

in § 2634.201(c) or § 2634.202 for more 

than 60 days in any calendar year will 

not be subject to the reporting 

requirements of § 2634.201(b), (c), or (e). 

This determination will be made by: 

(1) The designated agency ethics 

official or Secretary concerned, in a case 

to which the provisions of § 2634.201(b) 

or (e) (relating to new entrant and 

termination reports) would otherwise 

apply; or 

(2) The Director of the Office of 

Government Ethics, in a case to which 

the provisions of § 2634.201(c) (relating 

to nominee reports) would otherwise 

apply. 

(b) Alternative reporting. Any new 

entrant who is exempted from filing a 

public financial report under paragraph 

(a) of this section and who is a special 

Government employee is subject to 

confidential reporting under 

§ 2634.903(b). See § 2634.904(a)(2). 

(c) Exception. If the public filer or 

nominee actually performs the duties of 

an office or position referred to in 

paragraph (a) of this section for more 

than 60 days in a calendar year, the 

public report otherwise required by: 

(1) Section 2634.201(b) or (c) (relating 

to new entrant and nominee reports) 

must be filed within 15 calendar days 

after the sixtieth day of duty; and 

(2) Section 2634.201(e) (relating to 

termination reports) must be filed as 

provided in that paragraph. 

§ 2634.205 Special waiver of public 

reporting requirements. 

(a) General rule. In unusual 

circumstances, the Director of the Office 

of Government Ethics may grant a 

request for a waiver of the public 

reporting requirements under this 

subpart for an individual who is 

reasonably expected to perform, or has 

performed, the duties of an office or 

position for fewer than 130 days in a 

calendar year, but only if the Director 

determines that: 

(1) The individual is a special 

Government employee, as defined in 18 

U.S.C. 202(a), who performs temporary 

duties either on a full-time or 

intermittent basis; 

(2) The individual is able to provide 

services specially needed by the 

Government; 

(3) It is unlikely that the individual’s 

outside employment or financial 

interests will create a conflict of 

interest; and 

(4) Public financial disclosure by the 

individual is not necessary under the 

circumstances. 

(b) Procedure. (1) Requests for waivers 

must be submitted to the Office of 

Government Ethics, via the requester’s 

agency, within 10 days after an 


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employee learns that the employee will 

hold a position which requires reporting 

and that the employee will serve in that 

position for more than 60 days in any 

calendar year, or upon serving in such 

a position for more than 60 days, 

whichever is earlier. 

(2) The request must consist of: 

(i) A cover letter which identifies the 

individual and the position, states the 

approximate number of days in a 

calendar year which the employee 

expects to serve in that position, and 

requests a waiver of public reporting 

requirements under this section; 

(ii) An enclosure which states the 

reasons for the individual’s belief that 

the conditions of paragraphs (a)(1) 

through (4) of this section are met in the 

particular case; and 

(iii) The report otherwise required by 

this subpart, as a factual basis for the 

determination required by this section. 

The report must bear the legend: 

‘‘CONFIDENTIAL: WAIVER REQUEST 

PENDING PURSUANT TO 5 CFR 

2634.205.’’ 

(3) The agency in which the 

individual serves must advise the Office 

of Government Ethics as to the 

justification for a waiver. 

(4) In the event a waiver is granted, 

the report will not be subject to the 

public disclosure requirements of 

§ 2634.603; however, the waiver request 

cover letter will be subject to those 

requirements. In the event that a waiver 

is not granted, the confidential legend 

will be removed from the report, and the 

report will be subject to public 

disclosure; however, the waiver request 

cover letter will not then be subject to 

public disclosure. 

Subpart C—Contents of Public Reports 

§ 2634.301 Interests in property. 

(a) In general. Except reports required 

under § 2634.201(f), each financial 

disclosure report filed pursuant to this 

subpart must include a brief description 

of any interest in property held by the 

filer at the end of the reporting period 

in a trade or business, or for investment 

or the production of income, having a 

fair market value in excess of $1,000. 

The report must designate the category 

of value of the property in accordance 

with paragraph (d) of this section. Each 

item of real and personal property must 

be disclosed separately. Note that for 

Individual Retirement Accounts (IRAs), 

defined contribution plans, brokerage 

accounts, trusts, mutual or pooled 

investment funds and other entities 

with portfolio holdings, each underlying 

asset must be separately disclosed, 

unless the entity qualifies for special 

treatment under § 2634.312. 

(b) Types of property reportable. 

Subject to the exceptions in paragraph 

(c) of this section, examples of the types 

of property required to be reported 

include, but are not limited to: 

(1) Real estate; 

(2) Stocks, bonds, securities, and 

futures contracts; 

(3) Mutual funds, exchange-traded 

funds, and other pooled investment 

funds; 

(4) Pensions and annuities; 

(5) Vested beneficial interests in 

trusts; 

(6) Ownership interests in businesses 

or partnerships; 

(7) Deposits in banks or other 

financial institutions; and 

(8) Accounts receivable. 

(c) Exceptions. The following 

property interests are exempt from the 

reporting requirements under 

paragraphs (a) and (b) of this section: 

(1) Any personal liability owed to the 

filer, spouse, or dependent child by a 

spouse, or by a parent, brother, sister, or 

child of the filer, spouse, or dependent 

child; 

(2) Personal savings accounts (defined 

as any form of deposit in a bank, savings 

and loan association, credit union, or 

similar financial institution) in a single 

financial institution or holdings in a 

single money market mutual fund, 

aggregating $5,000 or less in that 

institution or fund; 

(3) A personal residence of the filer or 

spouse, as defined in § 2634.105(l); and 

(4) Financial interests in any 

retirement system of the United States 

(including the Thrift Savings Plan) or 

under the Social Security Act. 

(d) Valuation categories. The 

valuation categories specified for 

property items are as follows: 

(1) None (or less than $1,001); 

(2) $1,001 but not more than $15,000; 

(3) Greater than $15,000 but not more 

than $50,000; 

(4) Greater than $50,000 but not more 

than $100,000; 

(5) Greater than $100,000 but not 

more than $250,000; 

(6) Greater than $250,000 but not 

more than $500,000; 

(7) Greater than $500,000 but not 

more than $1,000,000; and 

(8) Greater than $1,000,000; 

(9) Provided that, with respect to 

items held by the filer alone or held 

jointly by the filer with the filer’s 

spouse and/or dependent children, the 

following additional categories over 

$1,000,000 will apply: 

(i) Greater than $1,000,000 but not 

more than $5,000,000; 

(ii) Greater than $5,000,000 but not 

more than $25,000,000; 

(iii) Greater than $25,000,000 but not 

more than $50,000,000; and 

(iv) Greater than $50,000,000. 

(e) Valuation of interests in property. 

A good faith estimate of the fair market 

value of interests in property may be 

made in any case in which the exact 

value cannot be obtained without undue 

hardship or expense to the filer. If a filer 

is unable to make a good faith estimate 

of the value of an asset, the filer may 

indicate on the report that the ‘‘value is 

not readily ascertainable.’’ Value may 

also be determined by: 

(1) The purchase price (in which case, 

the filer should indicate date of 

purchase); 

(2) Recent appraisal; 

(3) The assessed value for tax 

purposes (adjusted to reflect the market 

value of the property used for the 

assessment if the assessed value is 

computed at less than 100 percent of 

that market value); 

(4) The year-end book value of 

nonpublicly traded stock, the year-end 

exchange value of corporate stock, or 

the face value of corporate bonds or 

comparable securities; 

(5) The net worth of a business 

partnership; 

(6) The equity value of an 

individually owned business; or 

(7) Any other recognized indication of 

value (such as the last sale on a stock 

exchange). 

Example 1: An official has a $4,000 savings 

account in Bank A. The filer’s spouse has a 

$2,500 certificate of deposit issued by Bank 

B and his dependent daughter has a $200 

savings account in Bank C. The official does 

not have to disclose the deposits, as the total 

value of the deposits in any one bank does 

not exceed $5,000. 

Example 2: Public filer R has a collection 

of post-impressionist paintings which have 

been carefully selected over the years. From 

time to time, as new paintings have been 

acquired to add to the collection, R has made 

sales of both less desirable works from his 

collection and paintings of various schools 

which he acquired through inheritance. 

Under these circumstances, R must report the 

value of all the paintings he retains as 

interests in property pursuant to this section, 

as well as income from the sales of paintings 

pursuant to § 2634.302(b). Recurrent sales 

from a collection indicate that the collection 

is being held for investment or the 

production of income. 

Example 3: A reporting individual has 

investments which her broker holds as an 

IRA and invests in stocks, bonds, and mutual 

funds. Each such asset having a value in 

excess of $1,000 at the close of the reporting 

period must be separately listed, and the 

value must be shown. 

§ 2634.302 Income. 

(a) Noninvestment income. Except 

reports required under § 2634.201(f), 

each financial disclosure report filed 

pursuant to this subpart must disclose 

the source, type, and the actual amount 


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or value, of earned or other 

noninvestment income in excess of $200 

from any one source which is received 

by the filer during the reporting period, 

including: 

(1) Salaries, fees, commissions, wages 

and any other compensation for 

personal services (other than from 

United States Government 

employment); 

(2) Retirement benefits (other than 

from United States Government 

employment, including the Thrift 

Savings Plan, or from Social Security); 

(3) Any honoraria, and the date 

services were provided, including 

payments made or to be made to 

charitable organizations on behalf of the 

filer in lieu of honoraria; and 

(4) Any other noninvestment income, 

such as prizes, awards, or discharge of 

indebtedness. 

Note to paragraph (a)(3): In calculating the 

amount of an honorarium, subtract any actual 

and necessary travel expenses incurred by 

the recipient and one relative. If such 

expenses are paid or reimbursed by the 

honorarium source, they shall not be counted 

as part of the honorarium payment. 

Example 1: An official is a participant in 

the defined benefit retirement plan of Coastal 

Airlines. Since his retirement from Coastal 

Airlines, the filer receives a $5,000 pension 

payment each month. The pension income 

must be disclosed as employment-related 

income. 

Example 2: An official serves on the board 

of directors at a bank, for which he receives 

a $5,000 fee each calendar quarter. He also 

receives an annual fee of $15,000 for service 

as trustee of a private trust. In both instances, 

such fees received or earned during the 

reporting period must be disclosed, and the 

actual amount must be shown. 

(b) Investment income. Except as 

indicated in § 2634.309, each financial 

disclosure report filed pursuant to this 

subpart must disclose: 

(1) The source and type of investment 

income, characterized as dividends, 

rent, interest, capital gains, or income 

from qualified or excepted trusts or 

excepted investment funds (see 

§ 2634.312), which is received by the 

filer during the reporting period, and 

which exceeds $200 in amount or value 

from any one source. Examples include, 

but are not limited to, income derived 

from real estate, collectible items, 

stocks, bonds, notes, copyrights, 

pensions, mutual funds, the investment 

portion of life insurance contracts, 

loans, and personal savings accounts (as 

defined in § 2634.301(c)(2)). Note that 

for entities with portfolio holdings, such 

as brokerage accounts or trusts, each 

underlying source of income must be 

separately disclosed, unless the entity 

qualifies for special treatment under 

§ 2634.312. The amount or value of 

income from each reported source must 

also be disclosed and categorized in 

accordance with the following table: 

(i) None (or less than $201); 

(ii) $201 but not more than $1,000; 

(iii) Greater than $1,000 but not more 

than $2,500; 

(iv) Greater than $2,500 but not more 

than $5,000; 

(v) Greater than $5,000 but not more 

than $15,000; 

(vi) Greater than $15,000 but not more 

than $50,000; 

(vii) Greater than $50,000 but not 

more than $100,000; 

(viii) Greater than $100,000 but not 

more than $1,000,000; and 

(ix) Greater than $1,000,000; 

(x) Provided that, with respect to 

investment income of the filer alone or 

joint investment income of the filer with 

the filer’s spouse and/or dependent 

children, the following additional 

categories over $1,000,000 will apply: 

(A) Greater than $1,000,000 but not 

more than $5,000,000; and 

(B) Greater than $5,000,000. 

(2) The source, type, and the actual 

amount or value of gross income from 

a business, distributive share of a 

partnership, joint business venture 

income, payments from an estate or an 

annuity or endowment contract, or any 

other items of income not otherwise 

covered by paragraphs (a) or (b)(1) of 

this section which are received by the 

filer during the reporting period and 

which exceed $200 from any one 

source. 

Example 1: An official rents out a portion 

of his residence. He receives rental income of 

$6,000 from one individual for four months 

and $12,000 from another individual for the 

remaining eight months of the year covered 

by his incumbent financial disclosure report. 

He must identify the property, specify the 

type of income (rent), and indicate the 

category of the total amount of rent received. 

(He must also disclose the asset information 

required by § 2634.301.) 

Example 2: An official has an ownership 

interest in a fast-food restaurant, from which 

she receives $25,000 in annual income. She 

must specify on her financial disclosure 

report the type of income, such as 

partnership distributive share or gross 

business income, and indicate the actual 

amount of such income. (Additionally, she 

must describe the business and categorize its 

asset value, pursuant to § 2634.301.) 

Example 3: A reporting individual owned 

stock in XYZ, a publicly-traded corporation. 

During the reporting period, she received $85 

in dividends and, when she sold her shares, 

$175 in capital gains. The individual must 

disclose XYZ Corporation because the stock 

generated more than $200 in income. She 

also must specify the type of income 

(dividends and capital gains), and indicate 

the category of the total amount of income 

received. (She must also disclose the asset 

information required by § 2634.301.) 

§ 2634.303 Purchases, sales, and 

exchanges. 

(a) In general. Except for reports 

required under § 2634.201(f) and as 

indicated in § 2634.310(b), each 

financial disclosure report filed 

pursuant to this subpart must include a 

brief description, the date, and value 

(using the categories of value in 

§ 2634.301(d)(2) through (9)) of any 

purchase, sale, or exchange by the filer 

during the reporting period, in which 

the amount involved in the transaction 

exceeds $1,000. The acquisition of an 

asset through inheritance is not 

considered a transaction for purposes of 

this section. Reportable transactions 

include: 

(1) Of real property, other than a 

personal residence of the filer or spouse, 

as defined in § 2634.105(l); and 

(2) Of stocks, bonds, commodity 

futures, mutual fund shares, and other 

forms of securities. 

(b) Exceptions. The following 

transactions need not be reported under 

paragraph (a) of this section: 

(1) Transactions solely by and 

between the reporting individual, the 

reporting individual’s spouse, or the 

reporting individual’s dependent 

children; 

(2) Transactions involving Treasury 

bills, notes, and bonds; money market 

mutual funds or accounts; and bank 

accounts (as defined in 

§ 2634.301(c)(2)), provided they occur at 

rates, terms, and conditions available 

generally to members of the public; 

(3) Transactions involving holdings of 

trusts and investment funds described 

in § 2634.312(b) and (c); 

(4) Transactions which occurred at a 

time when the reporting individual was 

not a public financial disclosure filer or 

was not a Federal Government officer or 

employee; and 

(5) Transactions fully disclosed in any 

public financial disclosure report filed 

during the calendar year pursuant to 

§ 2634.309. 

Example 1: An employee sells her personal 

residence in Virginia for $650,000 and 

purchases a personal residence in the District 

of Columbia for $800,000. She did not rent 

out any portion of the Virginia property and 

does not intend to rent out the property in 

DC. She need not report the sale of the 

Virginia residence or the purchase of the DC 

residence. 

Example 2: An official sells his beach 

home in Maryland for $350,000. Because he 

has rented it out for one month every 

summer, it does not qualify as a personal 

residence. He must disclose the sale under 

this section and any capital gain over $200 

realized on the sale under § 2634.302. 

Example 3: An official sells a ranch to his 

dependent daughter. The official need not 

report the sale because it is a transaction 


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between the reporting individual and a 

dependent child; however, any capital gain, 

except for that portion attributable to a 

personal residence, is required to be reported 

under § 2634.302. 

Example 4: An official sells an apartment 

building and realizes a loss of $100,000. He 

must report the sale of the building if the sale 

price of the property exceeds $1,000; 

however, he need not report anything under 

§ 2634.302, as the sale did not result in a 

capital gain. 

Example 5: An official buys shares in an 

S&P 500 mutual fund worth $12,000 in the 

401(k) account that he has with a previous 

employer. He must disclose the purchase 

under this section. To make the purchase, he 

sold $12,000 worth of shares in a money 

market fund also held in the 401(k). He does 

not need to disclose the sale of the money 

market fund shares. 

Example 6: An official sells her interest in 

a private business for $75,000. She must 

disclose the sale under this section, and she 

must disclose any capital gain over $200 

realized on the sale under § 2634.302. 

§ 2634.304 Gifts and reimbursements. 

(a) Gifts. Except reports required 

under § 2634.201(f) and as indicated in 

§ 2634.310(b), each financial disclosure 

report filed pursuant to this subpart 

must contain the identity of the source, 

a brief description, and the value of all 

gifts aggregating more than $390 in 

value which are received by the filer 

during the reporting period from any 

one source. For in-kind travel-related 

gifts, include a travel itinerary, dates, 

and nature of expenses provided. 

Note to paragraph (a): Under sections 

102(a)(2)(A) and (B) of the Ethics in 

Government Act, the reporting thresholds for 

gifts, reimbursements, and travel expenses 

are tied to the dollar amount for the 

‘‘minimal value’’ threshold for foreign gifts 

established by the Foreign Gifts and 

Decoration Act, 5 U.S.C. 7342(a)(5). The 

General Services Administration (GSA), in 

consultation with the Secretary of State, 

redefines the value every 3 years. In 2017, the 

amount was set at $390. In subsection (d) the 

Office of Government Ethics sets the 

aggregation exception amount and redefines 

the value every 3 years. In 2017, the amount 

was set at $156. The Office of Government 

Ethics will update this part in 2020 and every 

three years thereafter to reflect the new 

amounts. 

(b) Reimbursements. Except as 

indicated in §§ 2634.309 and 

2634.310(b), each financial disclosure 

report filed pursuant to this subpart 

must contain the identity of the source, 

a brief description (including a travel 

itinerary, dates, and the nature of 

expenses provided), and the value of 

any travel-related reimbursements 

aggregating more than $390 in value, 

which are received by the filer during 

the reporting period from any one 

source. The filer is not required to 

report travel reimbursements received 

from the filer’s non-Federal employer. 

(c) Exclusions. Reports need not 

contain any information about gifts and 

reimbursements to which the provisions 

of this section would otherwise apply 

which are received from relatives (see 

§ 2634.105(o)) or during a period in 

which the filer was not an officer or 

employee of the Federal Government. 

Additionally, any food, lodging, or 

entertainment received as ‘‘personal 

hospitality of any individual,’’ as 

defined in § 2634.105(k), need not be 

reported. See also exclusions specified 

in the definitions of gift and 

reimbursement, at § 2634.105(h) and (n). 

(d) Aggregation exception. Any gift or 

reimbursement with a fair market value 

of $156 or less need not be aggregated 

for purposes of the reporting rules of 

this section. However, the acceptance of 

gifts, whether or not reportable, is 

subject to the restrictions imposed by 

Executive Order 12674, as modified by 

Executive Order 12731, and the 

implementing regulations on standards 

of ethical conduct. 

Example 1: An official accepts a print, a 

pen and pencil set, and a letter opener from 

a community service organization he has 

worked with solely in his private capacity. 

He determines, in accordance with paragraph 

(e) of this section, that these gifts are valued 

as follows: 

Gift 1—Print: $220 

Gift 2—Pen and pencil set: $185 

Gift 3—Letter opener: $20 

The official must disclose Gifts 1 and 2, 

since together they aggregate more than $390 

in value from the same source. Gift 3 need 

not be aggregated, because its value does not 

exceed $156. 

Example 2: An official receives the 

following gifts from a single source: 

1. Dinner for two at a local restaurant— 

$200. 

2. Round-trip taxi fare to meet donor at the 

restaurant—$25. 

3. Dinner at donor’s city residence—(value 

uncertain). 

4. Round-trip airline transportation and 

hotel accommodations to visit Epcot Center 

in Florida—$600. 

5. Weekend at donor’s country home, 

including duck hunting and tennis match— 

(value uncertain). 

Based on the minimal value threshold 

established in 2017, the official need only 

disclose Gift 4. Gift 1 falls within the 

exclusion in § 2634.105(h)(4) for food and 

beverages not consumed in connection with 

a gift of overnight lodging. Gifts 3 and 5 need 

not be disclosed because they fall within the 

exception for personal hospitality of an 

individual. Gift 2 need not be aggregated and 

reported, because its value does not exceed 

$156. 

Example 3: A non-Federal organization 

asks an official to speak at an out-of-town 

meeting on a matter that is unrelated to her 

official duties and her agency. She accepts 

the invitation and travels on her own time to 

the event. The round-trip airfare costs $500. 

Based on the minimal value threshold 

established in 2017, the official must disclose 

the value of the plane ticket whether the 

organization pays for the ticket directly or 

reimburses her for her purchase of the ticket. 

(e) Valuation of gifts and 

reimbursements. The value to be 

assigned to a gift or reimbursement is its 

fair market value in the United States. 

For most reimbursements, this will be 

the amount actually received. For gifts, 

the value should be determined in one 

of the following manners: 

(1) Except as provided in paragraph 

(e)(4) of this section, if the gift is readily 

available in the market, the value is its 

retail price. The filer need not contact 

the donor, but may contact a retail 

establishment selling similar items to 

determine the present cost in the 

market. 

(2) If the item is not readily available 

in the market, such as a piece of art, a 

handmade item, or an antique, the filer 

may make a good faith estimate of the 

value of the item. 

(3) The term ‘‘readily available in the 

market’’ means that an item generally is 

available for retail purchase. 

(4) The market value of a ticket 

entitling the holder to attend an event 

which includes food, refreshments, 

entertainment, or other benefits is the 

face value of the ticket, which may 

exceed the actual cost of the food and 

other benefits. 

Example: Items such as a pen and pencil 

set, letter opener, leather case, or engraved 

pen are generally available in the market and 

can be determined by researching the retail 

price for each item online. 

(f) Waiver rule in the case of certain 

gifts. In unusual cases, the value of a gift 

as defined in § 2634.105(h) need not be 

aggregated for reporting threshold 

purposes under this section, and 

therefore the gift need not be reported 

on a public financial disclosure report, 

if the Director of the Office of 

Government Ethics grants a publicly 

available waiver to a public filer. 

(1) Standard. If the Director receives 

a written request for a waiver, the 

Director will issue a waiver upon 

determining that: 

(i) Both the basis of the relationship 

between the grantor and the grantee and 

the motivation behind the gift are 

personal; and 

(ii) No countervailing public purpose 

requires public disclosure of the nature, 

source, and value of the gift. 

Example The Secretary of Education and 

her spouse receive the following two 

wedding gifts: (A) A crystal decanter valued 

at $450 from the Secretary’s former college 

roommate and lifelong friend, who is a real 

estate broker in Wyoming; and (B) A gift of 


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a print valued at $500 from a business 

partner of the spouse, who owns a catering 

company. Under these circumstances, the 

Director of OGE may grant a request for a 

waiver of the requirement to report on a 

public financial disclosure report each of 

these gifts. 

(2) Public disclosure of waiver 

request. If approved in whole or in part, 

the cover letter requesting the waiver 

and the waiver will be subject to the 

public disclosure requirements in 

§ 2634.603. Enclosures to the cover 

letter, required by paragraph (3)(ii) of 

this section, are not covered by 

§ 2634.603. 

(3) Procedure. (i) A public filer 

seeking a waiver under this section 

must submit a request to the designated 

agency ethics official for the employee’s 

agency. The designated agency ethics 

official must sign a cover letter that 

identifies the filer and the filer’s 

position and states that a waiver is 

requested under this section. To the 

extent practicable, the designated 

agency ethics official should avoid 

including other personal identifying 

information about the employee in the 

cover letter. 

(ii) In an enclosure to the cover letter, 

the filer must set forth: 

(A) The identity and occupation of the 

donor; 

(B) A statement that the relationship 

between the donor and the filer is 

personal in nature; 

(C) An explanation of all relevant 

circumstances surrounding the gift, 

including whether any donor is a 

prohibited source, as defined in 

§ 2635.203(d), or represents a prohibited 

source and whether the gift was given 

because of the employee’s official 

position; and 

(D) A brief description of the gift and 

the value of the gift. 

(iii) With respect to the information 

required in paragraph (f)(3)(ii) of this 

section, if a gift has more than one 

donor, the filer shall provide the 

necessary information for each donor. 

(iv) The Director will approve or 

disapprove any request for a waiver in 

writing. In the event that a waiver is 

granted, the Director will avoid 

including personal information about 

the filer to the extent practicable. 

§ 2634.305 Liabilities. 

(a) In general. Except reports required 

under § 2634.201(f), each financial 

disclosure report filed pursuant to this 

subpart must identify and include a 

brief description of the filer’s liabilities 

exceeding $10,000 owed to any creditor 

at any time during the reporting period, 

and the name of the creditors to whom 

such liabilities are owed. The report 

also must designate the category of 

value of the liabilities in accordance 

with § 2634.301(d) based on the greatest 

amount owed to the creditor during the 

period, except that the amount of a 

revolving charge account is based on the 

balance at the end of the reporting 

period. 

(b) Exceptions. The following are not 

required to be reported under paragraph 

(a) of this section: 

(1) Personal liabilities owed to a 

spouse or to the parent, brother, sister, 

or child of the filer, spouse, or 

dependent child; and 

(2) Any loan secured by a personal 

motor vehicle, household furniture, or 

appliances, provided that the loan does 

not exceed the purchase price of the 

item which secures it; and 

(c) Limited exception for mortgages on 

personal residences. (1) The President, 

the Vice President, and a filer 

nominated for or appointed by the 

President to a position that requires the 

advice and consent of the Senate, other 

than those identified in paragraph (c)(2) 

of this section, must disclose a mortgage 

on a personal residence. 

(2) Other public filers are not required 

to disclose a mortgage on a personal 

residence. Such filers include 

individuals who are nominated or 

appointed by the President to a Senateconfirmed position as a Foreign Service 

Officer below the rank of ambassador or 

a special Government employee. 

Example 1: A career official in the Senior 

Executive Service has the following debts 

outstanding during the reporting period: 

1. Mortgage on personal residence— 

$200,000. 

2. Mortgage on rental property—$150,000. 

3. VISA Card—$1,000. 

4. Loan balance of $15,000, secured by 

family automobile purchased for $16,200. 

5. Loan balance of $10,500, secured by 

antique furniture purchased for $8,000. 

6. Loan from parents—$20,000. 

7. A personal line of credit up to $20,000 

on which no draws have been made. 

The loans indicated in items 2 and 5 must 

be disclosed in the official’s annual financial 

disclosure report. Loan 1 is exempt from 

disclosure under paragraph (c) of this section 

because it is secured by the personal 

residence and the filer is not covered by the 

STOCK Act provision requiring reporting. 

Loan 3 need not be disclosed under 

paragraph (a) of this section because it is 

considered to be a revolving charge account 

with an outstanding liability that does not 

exceed $10,000 at the end of the reporting 

period. Loan 4 need not be disclosed under 

paragraph (b)(2) of this section because it is 

secured by a personal motor vehicle which 

was purchased for more than the value of the 

loan. Loan 6 need not be disclosed because 

the creditors are persons specified in 

paragraph (b)(1) of this section. Loan 7 need 

not be disclosed because the filer has not 

drawn on the line of credit and, as a result, 

had no outstanding liability associated with 

the line of credit during the reporting period. 

Example 2: An incumbent official has 

$15,000 of outstanding debt in an American 

Express account in July. On December 31, the 

outstanding liability is $7,000. The liability 

does not need to be disclosed in the official’s 

annual financial disclosure report because it 

does not exceed $10,000 at the end of the 

reporting period. 

Example 3: A Secretary of a Department 

has an outstanding home improvement loan 

in the amount of $25,000, which is secured 

by her home. This liability must be disclosed 

on the annual financial disclosure report. 

§ 2634.306 Agreements and arrangements. 

Except reports required under 

§ 2634.201(f), each financial disclosure 

report filed pursuant to this subpart 

must identify the parties to and the date 

of, and must briefly describe the terms 

of, any agreement or arrangement of the 

filer in existence at any time during the 

reporting period with respect to: 

(a) Future employment; 

(b) A leave of absence from 

employment during the period of the 

reporting individual’s Government 

service; 

(c) Continuation of payments by a 

former employer other than the United 

States Government; and 

(d) Continuing participation in an 

employee welfare or benefit plan 

maintained by a former employer, other 

than the United States Government. 

§ 2634.307 Outside positions. 

(a) In general. Except reports required 

under § 2634.201(f), each financial 

disclosure report filed pursuant to this 

subpart must identify all positions held 

at any time by the filer during the 

reporting period, as an officer, director, 

trustee, general partner, proprietor, 

representative, executor, employee, or 

consultant of any corporation, company, 

firm, partnership, trust, or other 

business enterprise, any nonprofit 

organization, any labor organization, or 

any educational or other institution 

other than the United States. 

(b) Exceptions. The following need 

not be reported under paragraph (a) of 

this section: 

(1) Positions held in any religious, 

social, fraternal, or political entity; and 

(2) Positions solely of an honorary 

nature, such as those with an emeritus 

designation. 

Example 1: An official recently terminated 

her role as the managing member of a limited 

liability corporation upon appointment to a 

position in the executive branch. The 

managing member position must be disclosed 

in the official’s new entrant financial 

disclosure report pursuant to this section. 

Example 2: An official is a member of the 

board of his church. The official does not 

need to disclose the position in his financial 

disclosure report. 


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Example 3: An official is an officer in a 

fraternal organization that exists for the 

purpose of performing service work in the 

community. The official does not need to 

disclose this position in her financial 

disclosure report. 

Example 4: An official is the ceremonial 

Parade Marshal for a local town’s annual 

Founders’ Day event and, in that capacity, 

leads a parade and serves as Master of 

Ceremonies for an awards ceremony at the 

town hall. The official does not need to 

disclose this position in her financial 

disclosure report. 

Example 5: An official recently terminated 

his role as a campaign manager for a 

candidate for the Office of the President of 

the United States upon appointment to a 

noncareer position in the executive branch. 

The official does not need to disclose the 

campaign manager position in his financial 

disclosure report. 

Example 6: Immediately prior to her recent 

appointment to a position in an agency, an 

official terminated her employment as a 

corporate officer. In connection with her 

employment, she served for several years as 

the corporation’s representative to an 

association that represents members of the 

industry in which the corporation operates. 

She does not need to disclose her role as her 

employer’s representative to the association 

because she performed her representative 

duties in her capacity as a corporate officer. 

Example 7: An official holds a position on 

the board of directors of the local food bank. 

The official must disclose the position in his 

financial disclosure report. 

§ 2634.308 Filer’s sources of 

compensation exceeding $5,000 in a year 

(a) In general. A public filer required 

to file a report as a New Entrant or a 

Nominee, pursuant to § 2634.201(b) or 

(c), must identify the filer’s sources of 

compensation which exceed $5,000 in 

any one calendar year. This requirement 

includes compensation paid to another 

person, such as an employer, in 

exchange for the filer’s services (e.g., 

payments to a law firm exceeding 

$5,000 in any one calendar year in 

exchange for the services of a partner or 

associate attorney). The filer must also 

briefly describe the nature of the duties 

performed or services rendered (e.g., 

‘‘legal services’’). 

(b) Exceptions. (1) The name of a 

source of compensation may be 

excluded only if that information is 

specifically determined to be 

confidential as a result of a privileged 

relationship established by law and if 

the disclosure is specifically prohibited 

by law or regulation, by a rule of a 

professional licensing organization, or 

by a client agreement that at the time of 

engagement of the filer’s services 

expressly provided that the client’s 

name would not be disclosed publicly 

to any person. If the filer excludes the 

name of any source, the filer must 

indicate in the report that such 

information has been excluded, the 

number of sources excluded, and, if 

applicable, a citation to the statute, 

regulation, rule of professional conduct, 

or other authority pursuant to which 

disclosure of the information is 

specifically prohibited. 

(2) The report need not contain any 

information with respect to any person 

for whom services were provided by any 

firm or association of which the filer 

was a member, partner, or employee, 

unless the filer was directly involved in 

the provision of such services. 

(3) The President, the Vice President, 

and a candidate referred to in 

§ 2634.201(d) are not required to report 

this information. 

Example: A nominee who is a partner or 

employee of a law firm and who has worked 

on a matter involving a client from which the 

firm received over $5,000 in fees during a 

calendar year must report the name of the 

client only if the value of the services 

rendered by the nominee exceeded $5,000. 

The name of the client would not normally 

be considered confidential, unless the matter 

potentially involved an investigation or 

enforcement action involving the client by 

the government and the client’s name has 

never been disclosed publicly in connection 

with the representation. As a result, the 

nominee must disclose the client’s identity 

unless it is protected by statute, a court order, 

is under seal, or is considered confidential 

because: (1) The client is the subject of a nonpublic proceeding or investigation and the 

client has not been identified in a public 

filing, statement, appearance, or official 

report; (2) disclosure of the client’s name is 

specifically prohibited by a rule of 

professional conduct that can be enforced by 

a professional licensing body; or (3) a 

privileged relationship was established by a 

written confidentiality agreement, entered 

into at the time that the filer’s services were 

retained, that expressly prohibits disclosure 

of the client’s identity. 

§ 2634.309 Periodic reporting of 

transactions. 

(a) In general. Each financial 

disclosure report filed pursuant to 

§ 2634.201(f) must include a brief 

description, the date, and value (using 

the categories of value in 

§ 2634.301(d)(2) through (9)) of any 

purchase, sale, or exchange of stocks, 

bonds, commodity futures, and other 

forms of securities by the filer during 

the reporting period, in which the 

amount involved in the transaction 

exceeds $1,000. 

(b) Exceptions. The following 

transactions need not be reported under 

paragraph (a) of this section: 

(1) Transactions solely by and 

between the reporting individual, the 

reporting individual’s spouse, or the 

reporting individual’s dependent 

children; 

(2) Transactions of excepted 

investment funds as defined in 

§ 2634.312(c); 

(3) Transactions involving Treasury 

bills, notes, and bonds; money market 

mutual funds or accounts; and bank 

accounts (as defined in 

§ 2634.301(c)(2)), provided they occur at 

rates, terms, and conditions available 

generally to members of the public; 

(4) Transactions involving holdings of 

trusts and investment funds described 

in § 2634.312(b) and (c); and 

(5) Transactions which occurred at a 

time when the reporting individual was 

not a public financial disclosure filer or 

was not a Federal Government officer or 

employee. 

§ 2634.310 Reporting periods. 

(a) Incumbents. Each financial 

disclosure report filed pursuant to 

§ 2634.201(a) must include a full and 

complete statement of the information 

required to be reported under this 

subpart, for the preceding calendar year 

(except for §§ 2634.303 and 2634.304, 

relating to transactions and gifts/ 

reimbursements, for which the reporting 

period does not include any portion of 

the previous calendar year during which 

the filer was not a Federal employee). In 

the case of §§ 2634.306 and 2634.307, 

the reporting period also includes the 

current calendar year up to the date of 

filing. 

(b) New entrants, nominees, and 

candidates. Each financial disclosure 

report filed pursuant to § 2634.201(b) 

through (d) must include a full and 

complete statement of the information 

required to be reported under this 

subpart, except for § 2634.303 (relating 

to purchases, sales, and exchanges of 

certain property) and § 2634.304 

(relating to gifts and reimbursements). 

The following special rules apply: 

(1) Interests in property. For purposes 

of § 2634.301, the report must include 

all interests in property specified by that 

section which are held on or after a date 

which is fewer than 31 days before the 

date on which the report is filed. 

(2) Income. For purposes of 

§ 2634.302, the report must include all 

income items specified by that section 

which are received during the period 

beginning on January 1 of the preceding 

calendar year and ending on the date on 

which the report is filed, except as 

otherwise provided by § 2634.606 

relating to updated disclosure for 

nominees. 

(3) Liabilities. For purposes of 

§ 2634.305, the report must include all 

liabilities specified by that section 

which are owed during the period 

beginning on January 1 of the preceding 

calendar year and ending fewer than 31 


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days before the date on which the report 

is filed. 

(4) Agreements and arrangements. For 

purposes of § 2634.306, the report will 

include only those agreements and 

arrangements which still exist at the 

time of filing. 

(5) Outside positions. For purposes of 

§ 2634.307, the report must include all 

such positions held during the 

preceding two calendar years and the 

current calendar year up to the date of 

filing. 

(6) Certain sources of compensation. 

For purposes of § 2634.308, the report 

must also identify the filer’s sources of 

compensation which exceed $5,000 

during either of the preceding two 

calendar years or during the current 

calendar year up to the date of filing. 

(c) Termination reports. Each 

financial disclosure report filed under 

§ 2634.201(e) must include a full and 

complete statement of the information 

required to be reported under this 

subpart, covering the preceding 

calendar year if an incumbent report 

required by § 2634.201(a) has not been 

filed and covering the portion of the 

calendar year in which such termination 

occurs up to the date the individual left 

such office or position. 

(d) Periodic reporting of transactions. 

Each financial disclosure report filed 

under § 2634.201(f) must include a full 

and complete statement of the 

information required to be reported 

according to the provisions of 

§ 2634.309. The report must be filed 

within 30 days of receiving notification 

of a covered transaction, but not later 

than 45 days after the date such 

transaction was executed. 

Example: A filer receives a statement on 

October 10 notifying her of all of the covered 

transactions executed by her broker on her 

behalf in September. Although each 

transaction may have a different due date, if 

the filer reports all the covered transactions 

from September on a report filed on or before 

October 15, the filer will ensure that all 

transactions have been timely reported. 

§ 2634.311 Spouses and dependent 

children. 

(a) Special disclosure rules. Each 

report required by the provisions of 

subpart B of this part must also include 

the following information with respect 

to the spouse or dependent children of 

the reporting individual: 

(1) Income. For purposes of 

§ 2634.302: 

(i) With respect to a spouse, the 

source but not the amount of earned 

income (other than honoraria) which 

exceeds $1,000 from any one source; 

and if earned income is derived from a 

spouse’s self-employment in a business 

or profession, the nature of the business 

or profession but not the amount of the 

earned income; 

(ii) With respect to a spouse, the 

source and the actual amount or value 

of any honoraria received by the spouse 

(or payments made or to be made to 

charity on the spouse’s behalf in lieu of 

honoraria) which exceed $200 from any 

one source, and the date on which the 

services were provided; and 

(iii) With respect to a spouse or 

dependent child, the type and source, 

and the amount or value (category or 

actual amount, in accordance with 

§ 2634.302), of all other income 

exceeding $200 from any one source, 

such as investment income from 

interests in property (if the property 

itself is reportable according to 

§ 2634.301). 

Example 1: The spouse of a filer is 

employed as a teller at Bank X and earns 

$50,000 per year. The report must disclose 

that the spouse is employed by Bank X. The 

amount of the spouse’s earnings need not be 

disclosed. 

Example 2: The spouse of a reporting 

individual is self-employed as a pediatrician. 

The report must disclose her selfemployment as a physician, but need not 

disclose the amount of income. 

(2) Gifts and reimbursements. For 

purposes of § 2634.304, gifts and 

reimbursements received by a spouse or 

dependent child, unless the gift was 

given to the spouse or dependent child 

totally independent of their relationship 

to the filer. 

(3) Interests in property, transactions, 

and liabilities. For purposes of 

§§ 2634.301, 2634.303, 2634.305, and 

2634.309, all information concerning 

property interests, transactions, or 

liabilities referred to by those sections of 

a spouse or dependent child. 

(b) Exception. For reports filed as a 

new entrant, nominee, or candidate 

under § 2634.201(b) through (d), no 

information regarding gifts and 

reimbursements or transactions is 

required for a spouse or dependent 

child. 

(c) Divorce and separation. A 

reporting individual need not report any 

information about: 

(1) A spouse living separate and apart 

from the reporting individual with the 

intention of terminating the marriage or 

providing for permanent separation; 

(2) A former spouse or a spouse from 

whom the reporting individual is 

permanently separated; or 

(3) Any income or obligations of the 

reporting individual arising from 

dissolution of the reporting individual’s 

marriage or permanent separation from 

a spouse. 

(d) Unusual circumstances. In very 

rare cases, certain interests in property, 

transactions, and liabilities of a spouse 

or a dependent child are excluded from 

reporting requirements, provided that 

each requirement of this paragraph is 

strictly met. 

(1) The filer must certify without 

qualification that the item represents the 

spouse’s or dependent child’s sole 

financial interest or responsibility, and 

that the filer has no knowledge 

regarding that item; 

(2) The item must not be in any way, 

past or present, derived from the 

income, assets or activities of the filer; 

and 

(3) The filer must not derive, or 

expect to derive, any financial or 

economic benefit from the item. 

Note to paragraph (d): The exception 

described in paragraph (d) is not available to 

most filers. A filer who files a joint tax return 

with a spouse will normally be deemed to 

derive a financial or economic benefit from 

every financial interest of the spouse, and the 

filer will not be able to rely on this exception. 

If a filer and the filer’s spouse cohabitate, 

share any expenses, or are jointly responsible 

for the care of children, the filer will be 

deemed to derive an economic benefit from 

every financial interest of the spouse. 

Example: The spouse of a filer shares in 

paying expenses or taxes of the marriage or 

family (for example, any such item as: A 

household item, food, clothing, vacation, 

automobile maintenance or fuel, any childrelated expense, income tax, or real estate 

tax, etc.). The spouse of a filer has a 

brokerage account. The spouse does not share 

any information about the holdings and does 

not want the information disclosed on a 

financial disclosure statement. The filer must 

disclose the holdings in the spouse’s 

brokerage account because the filer is 

deemed to derive a financial or economic 

benefit from any asset of the filer’s spouse 

who shares in paying expenses or taxes of the 

marriage or family. 

§ 2634.312 Trusts, estates, and investment 

funds. 

(a) In general. (1) Except as otherwise 

provided in this section, each financial 

disclosure report must include the 

information required by this subpart 

about the holdings of and income from 

the holdings of any trust, estate, 

investment fund or other financial 

arrangement from which income is 

received by, or with respect to which a 

beneficial interest in principal or 

income is held by, the filer, the filer’s 

spouse, or dependent child. 

(2) Information about the underlying 

holdings of a trust is required if the filer, 

filer’s spouse, or dependent child 

currently is entitled to receive income 

from the trust or is entitled to access the 

principal of the trust. If a filer, filer’s 

spouse, or dependent child has a 

beneficial interest in a trust that either 

will provide income or the ability to 


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access the principal in the future, the 

filer should determine whether there is 

a vested interest in the trust under 

controlling state law. However, no 

information about the underlying 

holdings of the trust is required for a 

nonvested beneficial interest in the 

principal or income of a trust. 

Note to paragraph (a): Nothing in this 

section requires the reporting of the holdings 

or income of a revocable inter vivos trust 

(also known as a ‘‘living trust’’) with respect 

to which the filer, the filer’s spouse, or 

dependent child has only a remainder 

interest, whether or not vested, provided that 

the grantor of the trust is neither the filer, the 

filer’s spouse, nor the filer’s dependent child. 

Furthermore, nothing in this section requires 

the reporting of the holdings or income of a 

revocable inter vivos trust from which the 

filer, the filer’s spouse, or dependent child 

receives any discretionary distribution, 

provided that the grantor of the trust is 

neither the filer, the filer’s spouse, nor the 

filer’s dependent child. 

(b) Qualified trusts and excepted 

trusts. (1) A filer should not report 

information about the holdings of or 

income from holdings of, any qualified 

blind trust (as defined in § 2634.402) or 

any qualified diversified trust (as 

defined in § 2634.402). For a qualified 

blind trust, a public financial disclosure 

report must disclose the category of the 

aggregate amount of the trust’s income 

attributable to the beneficial interest of 

the filer, the filer’s spouse, or dependent 

child in the trust. For a qualified 

diversified trust, a public financial 

disclosure report must disclose the 

category of the aggregate amount of 

income with respect to such a trust 

which is actually received by the filer, 

the filer’s spouse, or dependent child, or 

applied for the benefit of any of them. 

(2) In the case of an excepted trust, a 

filer should indicate the general nature 

of its holdings, to the extent known, but 

will not otherwise need to report 

information about the trust’s holdings or 

income from holdings. The category of 

the aggregate amount of income from an 

excepted trust which is received by the 

filer, the filer’s spouse, or dependent 

child must be reported on public 

financial disclosure reports. For 

purposes of this part, the term 

‘‘excepted trust’’ means a trust: 

(i) Which was not created directly by 

the filer, spouse, or dependent child; 

and 

(ii) The holdings or sources of income 

of which the filer, spouse, or dependent 

child have no specific knowledge 

through a report, disclosure, or 

constructive receipt, whether intended 

or inadvertent. 

(c) Excepted investment funds. (1) No 

information is required under paragraph 

(a) of this section about the underlying 

holdings of or income from underlying 

holdings of an excepted investment 

fund as defined in paragraph (c)(2) of 

this section, except that the fund itself 

must be identified as an interest in 

property and/or a source of income. 

Filers must also disclose the category of 

value of the fund interest held; aggregate 

amount of income from the fund which 

is received by the filer, the filer’s 

spouse, or dependent child; and value 

of any transactions involving shares or 

units of the fund. 

(2) For purposes of financial 

disclosure reports filed under the 

provisions of this part, an ‘‘excepted 

investment fund’’ means a widely held 

investment fund (whether a mutual 

fund, regulated investment company, 

common trust fund maintained by a 

bank or similar financial institution, 

pension or deferred compensation plan, 

or any other pooled investment fund), if: 

(i)(A) The fund is publicly traded or 

available; or 

(B) The assets of the fund are widely 

diversified; and 

(ii) The filer neither exercises control 

over nor has the ability to exercise 

control over the financial interests held 

by the fund. 

(3) A fund is widely diversified if it 

does not have a stated policy of 

concentrating its investments in any 

industry, business, or single country 

other than the United States or bonds of 

a single state within the United States. 

Note to paragraph (c): The fact that an 

investment fund qualifies as an excepted 

investment fund is not relevant to a 

determination as to whether the investment 

qualifies for an exemption to the criminal 

conflict of interest statute at 18 U.S.C. 208(a), 

pursuant to part 2640 of this chapter. Some 

excepted investment funds qualify for 

exemptions pursuant to part 2640, while 

other excepted investment funds do not 

qualify for such exemptions. If an employee 

holds an excepted investment fund that is 

not exempt from 18 U.S.C. 208(a), the ethics 

official may need additional information 

from the filer to determine if the holdings of 

the fund create a conflict of interest and 

should advise the employee to monitor the 

fund’s holdings for potential conflicts of 

interest. 

§ 2634.313 Special rules. 

(a) Political campaign funds. Political 

campaign funds, including campaign 

receipts and expenditures, need not be 

included in any report filed under this 

part. However, if the individual has 

authority to exercise control over the 

fund’s assets for personal use rather 

than campaign or political purposes, 

that portion of the fund over which such 

authority exists must be reported. 

(b) Reporting standards. (1) A filer 

may attach to the financial disclosure 

report, a copy of a statement which, in 

a clear and concise fashion, readily 

discloses all information that the filer 

would otherwise have been required to 

enter, but only if authorized by the 

designated agency ethics official or for 

reports that are reviewed by the Office 

of Government Ethics, the Director. The 

filer must annotate the report clearly to 

the extent necessary to identify 

information required by this part, 

including, when required, the 

identification of assets as excepted 

investment funds and the identification 

of income types. In addition, the 

statement must identify all income 

required to be disclosed for the entire 

reporting period. Any statement 

attached to a financial disclosure report 

and its contents may be subject to 

public release. A filer who attaches a 

statement to a reporting form is solely 

responsible for redacting personal 

information not otherwise subject to 

disclosure prior to filing the financial 

disclosure report (e.g., account numbers, 

addresses, etc.). 

(2) In lieu of reporting the category of 

amount or value of any item listed in 

any report filed pursuant to this subpart, 

a filer may report the actual dollar 

amount of such item. 

Subpart D—Qualified Trusts 

§ 2634.401 Overview. 

(a) Purpose. The Ethics in 

Government Act of 1978 created two 

types of qualified trusts, the qualified 

blind trust and the qualified diversified 

trust, that may be used by employees to 

reduce real or apparent conflicts of 

interest. The primary purpose of an 

executive branch qualified trust is to 

confer on an independent trustee and 

any other designated fiduciary the sole 

responsibility to administer the trust 

and to manage trust assets without 

participation by, or the knowledge of, 

any interested party or any 

representative of an interested party. 

This responsibility includes the duty to 

decide when and to what extent the 

original assets of the trust are to be sold 

or disposed of, and in what investments 

the proceeds of sale are to be reinvested. 

Because the requirements set forth in 

the Ethics in Government Act and this 

part assure true ‘‘blindness,’’ employees 

who have a qualified trust cannot be 

influenced in the performance of their 

official duties by their financial interests 

in the trust assets. Their official actions, 

under these circumstances, should be 

free from collateral attack arising out of 

real or apparent conflicts of interest. 


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(b) Scope. Two characteristics of the 

qualified trust assure that true 

‘‘blindness’’ exists: The independence 

of the trustee and the restriction on 

communications between the 

independent trustee and the interested 

parties. In order to serve as a trustee for 

an executive branch qualified trust, an 

entity must meet the strict requirements 

for independence set forth in the Ethics 

in Government Act and this part. 

Restrictions on communications also 

reinforce the independence of the 

trustee from the interested parties. 

During both the establishment of the 

trust and the administration of the trust, 

communications are limited to certain 

reports that are required by the Act and 

to written communications that are prescreened by the Office of Government 

Ethics. No other communications, even 

about matters not connected to the trust, 

are permitted between the independent 

trustee and the interested parties. 

§ 2634.402 Definitions. 

As used in this subpart: 

(a) Director means the Director of the 

Office of Government Ethics. 

(b) Employee means an officer or 

employee of the executive branch of the 

United States. 

(c) Independent trustee means a 

trustee who meets the requirements of 

§ 2634.405 and who is approved by the 

Director under this subpart. 

(d) Interested party means the 

President, the Vice President, an 

employee, a nominee or candidate as 

described in § 2634.201, and the spouse 

and any minor or dependent child of the 

President, Vice President, employee, or 

a nominee or candidate as described in 

§ 2634.201, in any case in which the 

employee, spouse, or minor or 

dependent child has a beneficial interest 

in the principal or income of a trust 

proposed for certification under this 

subpart or certified under this subpart. 

(e) Qualified blind trust means a trust 

in which the interested party has a 

beneficial interest and which: 

(1) Is certified pursuant to § 2634.407 

by the Director; 

(2) Has a portfolio as specified in 

§ 2634.406(a); 

(3) Follows the model trust document 

prepared by the Office of Government 

Ethics; and 

(4) Has an independent trustee as 

defined in § 2634.405. 

(f) Qualified diversified trust means a 

trust in which the interested party has 

a beneficial interest and which: 

(1) Is certified pursuant to § 2634.407 

by the Director; 

(2) Has a portfolio as specified in 

§ 2634.406(b); 

(3) Follows the model trust document 

prepared by the Office of Government 

Ethics; and 

(4) Has an independent trustee as 

defined in § 2634.405. 

(g) Qualified trust means a trust 

described in the Ethics in Government 

Act of 1978 and this part and certified 

by the Director under this subpart. 

There are two types of qualified trusts, 

the qualified blind trust and the 

qualified diversified trust. 

§ 2634.403 General description of trusts. 

(a) Qualified blind trust. (1) The 

qualified blind trust is the most 

universally adaptable qualified trust. An 

interested party may put most types of 

assets (such as cash, stocks, bonds, 

mutual funds, or real estate) into a 

qualified blind trust. 

(2) In the case of a qualified blind 

trust, 18 U.S.C. 208 and other Federal 

conflict of interest statutes and 

regulations apply to the assets that an 

interested party transfers to the trust 

until such time as he or she is notified 

by the independent trustee that such 

asset has been disposed of or has a value 

of less than $1,000. Because the 

interested party knows what assets he or 

she placed in the trust and there is no 

requirement that these assets be 

diversified, the possibility still exists 

that the interested party could be 

influenced in the performance of official 

duties by those interests. 

(b) Qualified diversified trust. (1) An 

interested party may put only readily 

marketable securities into a qualified 

diversified trust. In addition, the 

portfolio must meet the diversification 

requirements of § 2634.406(b)(2). 

(2) In the case of a qualified 

diversified trust, the conflict of interest 

laws do not apply to the assets that an 

interested party transfers to the trust. 

Because the assets that an interested 

party puts into this trust must meet the 

diversification requirements set forth in 

this part, the diversification achieves 

‘‘blindness’’ with regard to the initial 

assets. 

(3) Special notice for Presidential 

appointees—(i) In general. In any case 

in which the establishment of a 

qualified diversified trust is 

contemplated with respect to an 

individual whose nomination is being 

considered by a Senate committee, that 

individual must inform the committee 

of the intention to establish a qualified 

diversified trust at the time of filing a 

financial disclosure report with the 

committee. 

(ii) Applicability. Paragraph (b)(3)(i) of 

this section is not applicable to 

members of the uniformed services or 

Foreign Service officers. The special 

notice requirement of this section will 

not preclude an individual from seeking 

the certification of a qualified blind 

trust or qualified diversified trust after 

the Senate has given its advice and 

consent to a nomination. 

(c) Conflict of interest laws. In the 

case of each type of trust, the conflict of 

interest laws do not apply to the assets 

that the independent trustee or any 

other designated fiduciary adds to the 

trust. 

§ 2634.404 Summary of procedures for 

creation of a qualified trust. 

(a) Consultation with the Office of 

Government Ethics. Any interested 

party (or that party’s representative) 

who is considering setting up a 

qualified blind or qualified diversified 

trust must contact the Office of 

Government Ethics prior to beginning 

the process of creating the trust. The 

Office of Government Ethics is the only 

entity that has the authority to certify a 

qualified trust. Because an interested 

party must propose, for the approval of 

the Office of Government Ethics, an 

entity to serve as the independent 

trustee, the Office of Government Ethics 

will explain the requirements that an 

entity must meet in order to qualify as 

an independent trustee. Such 

information is essential in order for the 

interested party to interview entities for 

the position of independent trustee. The 

Office of Government Ethics will also 

explain the restrictions on the 

communications between the interested 

parties and the proposed trustee. 

(b) Selecting an independent trustee. 

After consulting with the Office of 

Government Ethics, the interested party 

may interview entities who meet the 

requirements of § 2634.405(a) in order to 

find one to serve as an independent 

trustee. At an interview, the interested 

party may ask general questions about 

the institution, such as how long it has 

been in business, its policies and 

philosophy in managing assets, the 

types of clients it serves, its prior 

performance record, and the 

qualifications of the personnel who 

would be handling the trust. Because 

the purpose of a qualified trust is to give 

an independent trustee the sole 

responsibility to manage the trust assets 

without the interested party having any 

knowledge of the identity of the assets 

in the trust, the interested party may 

communicate his or her general 

financial interests and needs to any 

institution which he or she interviews. 

For example, the interested party may 

communicate a preference for 

maximizing income or long-term capital 

gain or for balancing safety of capital 

with growth. The interested party may 


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not give more specific instructions to 

the proposed trustee, such as instructing 

it to maintain a specific allocation 

between stocks and bonds, or choosing 

stocks in a particular industry. 

(c) The proposed independent trustee. 

(1) The entity selected by an interested 

party as a possible trustee must contact 

the Office of Government Ethics to 

receive guidance on the qualified trust 

program. The Office of Government 

Ethics will ask the proposed trustee to 

submit a letter describing its past and 

current contacts, including banking and 

client relationships, with the interested 

party, spouse, and minor or dependent 

children. The extent of these contacts 

will determine whether the proposed 

trustee is independent under the Act 

and this part. 

(2) In addition, an interested party 

may select an investment manager or 

other fiduciary. Other proposed 

fiduciaries selected by an interested 

party, such as an investment manager, 

must meet the independence 

requirements. 

(d) Approval of the independent 

trustee. If the Director determines that 

the proposed trustee meets the 

requirements of independence, the 

Director will approve, in writing, that 

entity as the trustee for the qualified 

trust. 

(e) Confidentiality agreement. If any 

person other than the independent 

trustee or designated fiduciary has 

access to information that may not be 

shared with an interested party or that 

party’s representative, that person must 

file a Confidentiality Agreement with 

the Office of Government Ethics. 

Persons filing a Confidentiality 

Agreement must certify that they will 

not make prohibited contacts with an 

interested party or that party’s 

representative. 

(f) Drafting the trust instrument. The 

representative of the interested party 

will use the model documents provided 

by the Office of Government Ethics to 

draft the trust instrument. There are two 

annexes to the model trust document: 

An annex describing any current, 

permissible banking or client 

relationships between any interested 

parties and the independent trustee or 

other fiduciaries and an annex listing 

the initial assets that the interested 

party transfers to the trust. Any 

deviations from the model trust 

documents must be approved by the 

Director. 

(g) Certification of the trust. The 

representative then presents the 

unexecuted trust instrument to the 

Office of Government Ethics for review. 

If the Director finds that the instrument 

conforms to one of the model 

documents, the Director will certify the 

qualified trust. After certification, the 

interested party and the independent 

trustee will sign the trust instrument. 

They will submit a copy of the executed 

instrument to the Office of Government 

Ethics within 30 days of execution. The 

interested party will then transfer the 

assets to the trust. 

Note to paragraph (g): Existing qualified 

trusts approved under any State law or by the 

legislative or judicial branches of the Federal 

Government of the United States will not be 

recertified by the Director. Individuals with 

existing qualified trusts who are required to 

file a financial disclosure report upon 

entering the executive branch, becoming a 

nominee for a position appointed by the 

President and subject to confirmation by the 

Senate, or becoming a candidate for President 

or Vice President must file a complete 

financial disclosure form that includes a full 

disclosure of items in the trust. After filing 

a complete form, the individual may 

establish a qualified trust under the policies 

and provisions of this rule. 

§ 2634.405 Standards for becoming an 

independent trustee or other fiduciary. 

(a) Eligible entities. An interested 

party must select an entity that meets 

the requirements of this part to serve as 

an independent trustee or other 

fiduciary. The type of entity that is 

allowed to serve as an independent 

trustee is a financial institution, not 

more than 10 percent of which is owned 

or controlled by a single individual, 

which is: 

(1) A bank, as defined in 12 U.S.C. 

1841(c); or 

(2) An investment adviser, as defined 

in 15 U.S.C. 80b–2(a)(11). 

Note to paragraph (a): By the terms of 

paragraph (3)(A)(i) of section 102(f) of the 

Act, an individual who is an attorney, a 

certified public accountant, a broker, or an 

investment advisor is also eligible to serve as 

an independent trustee. However, experience 

of the Office of Government Ethics over the 

years dictates the necessity of limiting 

service as a trustee or other fiduciary to the 

financial institutions referred to in this 

paragraph, to maintain effective 

administration of trust arrangements and 

preserve confidence in the Federal qualified 

trust program. Accordingly, under its 

authority pursuant to paragraph (3)(D) of 

section 102(f) of the Act, the Office of 

Government Ethics will not approve 

proposed trustees or other fiduciaries who 

are not financial institutions, except in 

unusual cases where compelling necessity is 

demonstrated to the Director, in his or her 

sole discretion. 

(b) Orientation. After the interested 

party selects a proposed trustee, that 

proposed trustee should contact the 

Office of Government Ethics for an 

orientation about the qualified trust 

program. 

(c) Independence requirements. The 

Director will determine that a proposed 

trustee is independent if: 

(1) The entity is independent of and 

unassociated with any interested party 

so that it cannot be controlled or 

influenced in the administration of the 

trust by any interested party; 

(2) The entity is not and has not been 

affiliated with any interested party, and 

is not a partner of, or involved in any 

joint venture or other investment or 

business with, any interested party; and 

(3) Any director, officer, or employee 

of such entity: 

(i) Is independent of and unassociated 

with any interested party so that such 

director, officer, or employee cannot be 

controlled or influenced in the 

administration of the trust by any 

interested party; 

(ii) Is not and has not been employed 

by any interested party, not served as a 

director, officer, or employee of any 

organization affiliated with any 

interested party, and is not and has not 

been a partner of, or involved in any 

joint venture or other investment with, 

any interested party; and 

(iii) Is not a relative of any interested 

party. 

(d) Required documents. In order to 

make this determination, the proposed 

trustee must submit the following 

documentation to the Director: 

(1) A letter describing its past and 

current contacts, including banking and 

client relationships, with the interested 

party, spouse, or minor or dependent 

child; and 

(2) A Certificate of Independence, 

which follows the model Certificate of 

Independence prepared by the Office of 

Government Ethics. Any variation from 

the model document must be approved 

by the Director. 

(e) Determination. If the Director 

determines that the current 

relationships, if any, between the 

interested party and the independent 

trustee do not violate the independence 

requirements, these relationships will 

be disclosed in an annex to the trust 

instrument. No additional relationships 

with the independent trustee may be 

established unless they are approved by 

the Director. 

(f) Approval of the trustee. If the 

Director determines that the proposed 

trustee meets applicable requirements, 

the Office of Government Ethics will 

send the interested parties and their 

representatives a letter indicating its 

approval of a proposed trustee. 

(g) Revocation. The Director may 

revoke the approval of a trustee or any 

other designated fiduciary pursuant to 

the rules of subpart E of this part. 


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(h) Adding fiduciaries. An 

independent trustee may employ or 

consult other entities, such as 

investment counsel, investment 

advisers, accountants, and tax preparers, 

to assist in any capacity to administer 

the trust or to manage and control the 

trust assets, if all of the following 

conditions are met: 

(1) When any interested party or any 

representative of an interested party 

learns about such employment or 

consultation, the person must sign the 

trust instrument as a party, subject to 

the prior approval of the Director; 

(2) Under all the facts and 

circumstances, the person is determined 

pursuant to the requirements for eligible 

entities under paragraphs (a) through (f) 

of this section to be independent of an 

interested party with respect to the trust 

arrangement; 

(3) The person is instructed by the 

independent trustee or other designated 

fiduciary not to disclose publicly or to 

any interested party information which 

might specifically identify current trust 

assets or those assets which have been 

sold or disposed of from trust holdings, 

other than information relating to the 

sale or disposition of original trust 

assets in the case of the blind trust; and 

(4) The person is instructed by the 

independent trustee or other designated 

fiduciary to have no direct 

communication with respect to the trust 

with any interested party or any 

representative of an interested party, 

and to make all indirect 

communications with respect to the 

trust only through the independent 

trustee, pursuant to § 2634.408(a). 

§ 2634.406 Initial portfolio. 

(a) Qualified blind trust. (1) An 

interested party may not place any asset 

in the blind trust that any interested 

party would be prohibited from holding 

by the Act, by the implementing 

regulations, or by any other applicable 

Federal law, Executive order, or 

regulation. 

(2) Except as described in paragraph 

(a)(1) of this section, an interested party 

may put most types of assets (such as 

cash, stocks, bonds, mutual funds, or 

real estate) into a qualified blind trust. 

(b) Qualified diversified trust. (1) The 

initial portfolio may not contain 

securities of entities having substantial 

activities in an employee’s primary area 

of Federal responsibility. If requested by 

the Director, the designated agency 

ethics official for the employee’s agency 

must certify whether the proposed 

portfolio meets this standard. 

(2) The initial assets of a diversified 

trust must comprise a well-diversified 

portfolio of readily marketable 

securities. 

(i) A portfolio will be well diversified 

if: 

(A) The value of the securities 

concentrated in any particular or 

limited economic or geographic sector is 

no more than 20 percent of the total; 

and 

(B) The value of the securities of any 

single entity (other than the United 

States Government) is no more than five 

percent of the total. 

(ii) A security will be readily 

marketable if: 

(A) Daily price quotations for the 

security appear regularly in media, 

including websites, that publish the 

information; and 

(B) The trust holds the security in a 

quantity that does not unduly impair 

liquidity. 

(iii) The interested party or the party’s 

representative must provide the Director 

with a detailed list of the securities 

proposed for inclusion in the portfolio, 

specifying their fair market value and 

demonstrating that these securities meet 

the requirements of this paragraph. The 

Director will determine whether the 

initial assets of the trust proposed for 

certification comprise a widely 

diversified portfolio of readily 

marketable securities. 

(c) Hybrid qualified trust. A qualified 

trust may contain both a blind portfolio 

of assets and a diversified portfolio of 

assets. The Office of Government Ethics 

refers to this arrangement as a hybrid 

qualified trust. 

§ 2634.407 Certification of qualified trust 

by the Office of Government Ethics. 

(a) General. After the Director 

approves the independent trustee, the 

interested party or a representative will 

prepare the trust instrument for review 

by the Director. The representative of 

the interested party will use the model 

documents provided by the Office of 

Government Ethics to draft the trust 

instrument. Any deviations from the 

model trust documents must be 

approved by the Director. No trust will 

be considered qualified for purposes of 

the Act until the Office of Government 

Ethics certifies the trust prior to 

execution. 

(b) Certification procedures. (1) After 

the Director has approved the trustee, 

the interested party or the party’s 

representative must submit the 

following documents to the Office of 

Government Ethics for review: 

(i) A copy of the proposed, 

unexecuted trust instrument; 

(ii) A list of the assets which the 

interested party proposes to place in the 

trust; and 

(iii) In the case of a pre-existing trust 

as described in § 2634.409 which the 

interested party asks the Office of 

Government Ethics to certify, a copy of 

the pre-existing trust instrument and a 

list of that trust’s assets categorized as 

to value in accordance with 

§ 2634.301(d). 

(2) In order to assure timely trust 

certification, the interested parties and 

their representatives will be responsible 

for the expeditious submission to the 

Office of Government Ethics of all 

required documents and responses to 

requests for information. 

(3) The Director will indicate that he 

or she has certified the trust in a letter 

to the interested parties or their 

representatives. The interested party 

and the independent trustee may then 

execute the trust instrument. 

(4) Within 30 days after the trust is 

certified under this section by the 

Director, the interested party or that 

party’s representative must file with the 

Director a copy of the executed trust 

instrument and all annexed schedules 

(other than those provisions which 

relate to the testamentary disposition of 

the trust assets), including a list of the 

assets which were transferred to the 

trust, categorized as to value of each 

asset in accordance with § 2634.301(d). 

(5) Once a trust is classified as a 

qualified blind or qualified diversified 

trust in the manner discussed in this 

section, § 2634.312(b) applies less 

inclusive financial disclosure 

requirements to the trust assets. 

(c) Certification standard. A trust will 

be certified for purposes of this subpart 

only if: 

(1) It is established to the Director’s 

satisfaction that the requirements of 

section 102(f) of the Act and this 

subpart have been met; and 

(2) The Director determines that 

approval of the trust arrangement as a 

qualified trust is appropriate to assure 

compliance with applicable laws and 

regulations. 

(d) Revocation. The Director may 

revoke certification of a trust pursuant 

to the rules of subpart E of this part. 

§ 2634.408 Administration of a qualified 

trust. 

(a) General rules on communications 

between the independent fiduciaries 

and the interested parties. (1) There 

must be no direct or indirect 

communications with respect to the 

qualified trust between an interested 

party or the party’s representative and 

the independent trustee or any other 

designated fiduciary with respect to the 

trust unless: 


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(i) In the case of the blind trust, the 

proposed communication is approved in 

advance by the Director and it relates to: 

(A) A distribution of cash or other 

unspecified assets of the trust; 

(B) The general financial interest and 

needs of the interested party including, 

but not limited to, a preference for 

maximizing income or long-term capital 

gain; 

(C) Notification to the independent 

trustee by the employee that the 

employee is prohibited by a 

subsequently applicable statute, 

Executive order, or regulation from 

holding an asset, and to direction to the 

independent trustee that the trust may 

not hold that asset; or 

(D) Instructions to the independent 

trustee to sell all of an asset which was 

initially placed in the trust by an 

interested party, and which in the 

determination of the employee creates a 

real or apparent conflict due to duties 

the employee subsequently assumed 

(but nothing herein requires such 

instructions); or 

(ii) In the case of the diversified trust, 

the proposed communication is 

approved in advance by the Director 

and it relates to: 

(A) A distribution of cash or other 

unspecified assets of the trust; 

(B) The general financial interest and 

needs of the interested party including, 

but not limited to, a preference for 

maximizing income or long-term capital 

gain; or 

(C) Information, documents, and 

funds concerning income tax obligations 

arising from sources other than the 

property held in trust that are required 

by the independent trustee to enable 

him to file, on behalf of an interested 

party, the personal income tax returns 

and similar tax documents which may 

contain information relating to the trust. 

(2) The person initiating a 

communication approved under 

paragraphs (a)(1)(i) or (a)(1)(ii) of this 

section must file a copy of the 

communication with the Director within 

five days of the date of its transmission. 

Note to paragraph (a): By the terms of 

paragraph (3)(C)(vi) of section 102(f) of the 

Act, communications which solely consist of 

requests for distributions of cash or other 

unspecified assets of the trust are not 

required to be in writing. Further, there is no 

statutory mechanism for pre-screening of 

proposed communications. However, 

experience of the Office of Government 

Ethics over the years dictates the necessity of 

prohibiting any oral communications 

between the trustee and an interested party 

with respect to the trust and pre-screening all 

proposed written communications, to 

prevent inadvertent prohibited 

communications and preserve confidence in 

the Federal qualified trust program. 

Accordingly, under its authority pursuant to 

paragraph (3)(D) of section 102(f) of the Act, 

the Office of Government Ethics will not 

approve proposed trust instruments that do 

not contain language conforming to this 

policy, except in unusual cases where 

compelling necessity is demonstrated to the 

Director, in his or her sole discretion. 

(b) Required reports from the 

independent trustee to the interested 

parties—(1) Quarterly reports. The 

independent trustee must, without 

identifying specifically an asset or 

holding, report quarterly to the 

interested parties and their 

representatives the aggregate market 

value of the assets representing the 

interested party’s interest in the trust. 

The independent trustee must follow 

the model document for this report and 

must file a copy of the report, within 

five days of the date of its transmission, 

with the Director. 

(2) Annual report. In the case of a 

qualified blind trust, the independent 

trustee must, without identifying 

specifically an asset or holding, report 

annually to the interested parties and 

their representatives the aggregate 

amount of the trust’s income 

attributable to the interested party’s 

beneficial interest in the trust, 

categorized in accordance with 

§ 2634.302(b) to enable the employee to 

complete the public financial disclosure 

form. In the case of a qualified 

diversified trust, the independent 

trustee must, without identifying 

specifically an asset or holding, report 

annually to the interested parties and 

their representatives the aggregate 

amount actually distributed from the 

trust to the interested party or applied 

for the party’s benefit. Additionally, in 

the case of the blind trust, the 

independent trustee must report on 

Schedule K–1 the net income or loss of 

the trust and any other information 

necessary to enable the interested party 

to complete an individual tax return. 

The independent trustee must follow 

the model document for each report and 

must file a copy of the report, within 

five days of the date of its transmission, 

with the Director. 

(3) Report of sale of asset. In the case 

of the qualified blind trust, the 

independent trustee must promptly 

notify the employee and the Director 

when any particular asset transferred to 

the trust by an interested party has been 

completely disposed of or when the 

value of that asset is reduced to less 

than $1,000. The independent trustee 

must file a copy of the report, within 

five days of the date of its transmission, 

with the Director. 

(c) Communications regarding trust 

and beneficiary taxes. The Act 

establishes special tax filing procedures 

to be used by the independent trustee 

and the trust beneficiaries in order to 

maintain the substantive separation 

between trust beneficiaries and trust 

administrators. 

(1) Trust taxes. Because a trust is a 

separate entity distinct from its 

beneficiaries, an independent trustee 

must file an annual fiduciary tax return 

for the trust (IRS Form 1041). The 

independent trustee is prohibited from 

providing the interested parties and 

their representatives with a copy of the 

trust tax return. 

(2) Beneficiary taxes. The trust 

beneficiaries must report income 

received from the trust on their 

individual tax returns. 

(i) For beneficiaries of qualified blind 

trusts, the independent trustee sends a 

modified K–1 summarizing trust income 

in appropriate categories to enable the 

beneficiaries to file individual tax 

returns. The independent trustee is 

prohibited from providing the interested 

parties or their representatives with the 

identity of the assets. 

(ii) For beneficiaries of qualified 

diversified trusts, the Act requires the 

independent trustee to file the 

individual tax returns on behalf of the 

trust beneficiaries. The interested 

parties must give the independent 

trustee a power of attorney to prepare 

and file, on their behalf, the personal 

income tax returns and similar tax 

documents which may contain 

information relating to the trust. 

Appropriate Internal Revenue Service 

power of attorney forms will be used for 

this purpose. The beneficiaries must 

transmit to the trustee materials 

concerning taxable transactions and 

occurrences outside of the trust, 

pursuant to the requirements in each 

trust instrument which detail this 

procedure. This communication must be 

approved in advance by the Director in 

accordance with paragraph (a) of this 

section. 

(iii) Some qualified trust beneficiaries 

may pay estimated income taxes. 

(A) In order to pay the proper amount 

of estimated taxes each quarter, the 

beneficiaries of a qualified blind trust 

will need to receive information about 

the amount of income, if any, generated 

by the trust each quarter. To assist the 

beneficiaries, the independent trustee is 

permitted to send, on a quarterly basis, 

information about the amount of income 

generated by the trust in that quarter. 

This communication must be approved 

in advance by the Director in 

accordance with paragraph (a) of this 

section. 

(B) In order to pay the proper amount 

of estimated taxes each quarter, the 


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independent trustee of a qualified 

diversified trust will need to receive 

information about the amount of 

income, if any, earned by the 

beneficiaries on assets that are not in the 

trust. To assist the independent trustee, 

the beneficiaries are permitted to send, 

on a quarterly basis, information about 

the amount of income they earned in 

that quarter on assets that are outside of 

the trust. This communication must be 

approved in advance by the Director in 

accordance with paragraph (a) of this 

section. 

(d) Responsibilities of the 

independent trustee and other 

fiduciaries. (1) Any independent trustee 

or any other designated fiduciary of a 

qualified trust may not knowingly and 

willfully, or negligently: 

(i) Disclose any information to an 

interested party or that party’s 

representative with respect to the trust 

that may not be disclosed under title I 

of the Act, the implementing 

regulations, or the trust instrument; 

(ii) Acquire any holding: 

(A) Directly from an interested party 

or that party’s representative without 

the prior written approval of the 

Director; or 

(B) The ownership of which is 

prohibited by, or not in accordance 

with, title I of the Act, the implementing 

regulations, the trust instrument, or 

with other applicable statutes and 

regulations; 

(iii) Solicit advice from any interested 

party or any representative of that party 

with respect to such trust, which 

solicitation is prohibited by title I of the 

Act, the implementing regulations, or 

the trust instrument; or 

(iv) Fail to file any document required 

by the implementing regulations or the 

trust instrument. 

(2) The independent trustee and any 

other designated fiduciary, in the 

exercise of their authority and 

discretion to manage and control the 

assets of the trust, may not consult or 

notify any interested party or that 

party’s representative. 

(3) The independent trustee may not 

acquire by purchase, grant, gift, exercise 

of option, or otherwise, without the 

prior written approval of the Director, 

securities, cash, or other property from 

any interested party or any 

representative of an interested party. 

(4) Certificate of Compliance. An 

independent trustee and any other 

designated fiduciary must file, with the 

Director by May 15 following any 

calendar year during which the trust 

was in existence, a properly executed 

Certificate of Compliance that follows 

the model Certificate of Compliance 

prepared by the Office of Government 

Ethics. Any variation from the model 

must be approved by the Director. 

(5) In addition, the independent 

trustee and such fiduciary must 

maintain and make available for 

inspection by the Office of Government 

Ethics, as it may from time to time 

direct, the trust’s books of account and 

other records and copies of the trust’s 

tax returns for each taxable year of the 

trust. 

(e) Responsibilities of the interested 

parties and their representatives. (1) 

Interested parties to a qualified trust and 

their representatives may not knowingly 

and willfully, or negligently: 

(i) Solicit or receive any information 

about the trust that may not be disclosed 

under title I of the Act, the 

implementing regulations or the trust 

instrument; or 

(ii) Fail to file any document required 

by this subpart or the trust instrument. 

(2) The interested parties and their 

representatives may not take any action 

to obtain, and must take reasonable 

action to avoid receiving, information 

with respect to the holdings and the 

sources of income of the trust, including 

a copy of any trust tax return filed by 

the independent trustee, or any 

information relating to that return, 

except for the reports and information 

specified in paragraphs (b) and (c) of 

this section. 

(3) In the case of any qualified trust, 

the interested party must, within 30 

days of transferring an asset, other than 

cash, to a previously established 

qualified trust, file a report with the 

Director, which identifies each asset, 

categorized as to value in accordance 

with § 2634.301(d). 

(4) Any portfolio asset transferred to 

the trust by an interested party must be 

free of any restriction with respect to its 

transfer or sale, except as fully 

described in schedules attached to the 

trust instrument, and as approved by the 

Director. 

(5) During the term of the trust, the 

interested parties may not pledge, 

mortgage, or otherwise encumber their 

interests in the property held by the 

trust. 

(f) Amendment of the trust. The 

independent trustee and the interested 

parties may amend the terms of a 

qualified trust only with the prior 

written approval of the Director and 

upon a showing of necessity and 

appropriateness. 

§ 2634.409 Pre-existing trusts. 

An interested party may place a preexisting irrevocable trust into a qualified 

trust, which may then be certified by the 

Office of Government Ethics. This 

arrangement should be considered in 

the case of a pre-existing trust whose 

terms do not permit amendments that 

are necessary to satisfy the rules of this 

subpart. All of the relevant parties 

(including the employee, any other 

interested parties, the trustee of the preexisting trust, and all of the other parties 

and beneficiaries of the pre-existing 

trust) will be required pursuant to 

section 102(f)(7) of the Act to enter into 

an umbrella trust agreement. The 

umbrella trust agreement will specify 

that the pre-existing trust will be 

administered in accordance with the 

provisions of this subpart. A parent or 

guardian may execute the umbrella trust 

agreement on behalf of a required 

participant who is a minor child. The 

Office of Government Ethics has 

prepared model umbrella trust 

agreements that the interested party can 

use in this circumstance. The umbrella 

trust agreement will be certified as a 

qualified trust if all of the requirements 

of this subpart are fulfilled under 

conditions where required 

confidentiality with respect to the trust 

can be assured. 

§ 2634.410 Dissolution. 

Within 30 days of dissolution of a 

qualified trust, the interested party must 

file a report of the dissolution with the 

Director and a list of assets of the trust 

at the time of the dissolution, 

categorized as to value in accordance 

with § 2634.301(d). 

§ 2634.411 Reporting on financial 

disclosure reports. 

An employee who files a public or 

confidential financial disclosure report 

must report the trust on the financial 

disclosure report. 

(a) Public financial disclosure report. 

If the employee files a public financial 

disclosure report, the employee must 

report the trust as an asset, including 

the overall category of value of the trust. 

Additionally, in the case of a qualified 

blind trust, the employee must disclose 

the category of value of income earned 

by the trust. In the case of a qualified 

diversified trust, the employee must 

report the category of value of income 

received from the trust by the employee, 

the employee’s spouse, or dependent 

child, or applied for the benefit of any 

of them. 

(b) Confidential financial disclosure 

report. In the case of a confidential 

financial disclosure report, the 

employee must report the trust as an 

asset. 

§ 2634.412 Sanctions and enforcement. 

Section 2634.702 sets forth civil 

sanctions, as provided by sections 

102(f)(6)(C)(i) and (ii) of the Act and as 


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adjusted in accordance with the Federal 

Civil Penalties Inflation Adjustment 

Act, which apply to any interested 

party, independent trustee, or other 

trust fiduciary who violates the 

obligations under the Act, its 

implementing regulations, or the trust 

instrument. Subpart E of this part 

delineates the procedure which must be 

followed with respect to the revocation 

of trust certificates and trustee 

approvals. 

§ 2634.413 Public access. 

(a) Documents subject to public 

disclosure requirements. The following 

qualified trust documents filed by a 

public filer, nominee, or candidate are 

subject to the public disclosure 

requirements of § 2634.603: 

(1) The executed trust instrument and 

any amendments (other than those 

provisions which relate to the 

testamentary disposition of the trust 

assets), and a list of the assets which 

were transferred to the trust, categorized 

as to the value of each asset; 

(2) The identity of each additional 

asset (other than cash) transferred to a 

qualified trust by an interested party 

during the life of the trust, categorized 

as to the value of each asset; 

(3) The report of the dissolution of the 

trust and a list of the assets of the trust 

at the time of the dissolution, 

categorized as to the value of each asset; 

(4) In the case of a blind trust, the lists 

provided by the independent trustee of 

initial assets placed in the trust by an 

interested party which have been sold 

or whose value is reduced to less than 

$1,000; and 

(5) The Certificates of Independence 

and Compliance. 

(b) Documents exempt from public 

disclosure requirements. The following 

documents are exempt from the public 

disclosure requirements of § 2634.603 

and also may not be disclosed to any 

interested party: 

(1) Any document (and the 

information contained therein) filed 

under the requirements of § 2634.408(a) 

and (c); and 

(2) Any document (and the 

information contained therein) 

inspected under the requirements of 

§ 2634.408(d)(4) (other than a Certificate 

of Compliance). 

§ 2634.414 OMB control number. 

The various model trust documents 

and Certificates of Independence and 

Compliance referenced in this subpart, 

together with the underlying regulatory 

provisions, are all approved by the 

Office of Management and Budget under 

control number 3209–0007. 

Subpart E—Revocation of Trust 

Certificates and Trustee Approvals 

§ 2634.501 Purpose and scope. 

(a) Purpose. This subpart establishes 

the procedures of the Office of 

Government Ethics for enforcement of 

the qualified blind trust, qualified 

diversified trust, and independent 

trustee provisions of title I of the Ethics 

in Government Act of 1978, as 

amended, and the regulation issued 

thereunder (subpart D of this part). 

(b) Scope. This subpart applies to all 

trustee approvals and trust certifications 

pursuant to §§ 2634.405 and 2634.407, 

respectively. 

§ 2634.502 Definitions. 

For purposes of this subpart (unless 

otherwise indicated), the term ‘‘trust 

restrictions’’ means the applicable 

provisions of title I of the Ethics in 

Government Act of 1978, subpart D of 

this part, and the trust instrument. 

§ 2634.503 Determinations. 

(a) Violations. If the Office of 

Government Ethics learns that 

violations or apparent violations of the 

trust restrictions exist that may warrant 

revocations of trust certification or 

trustee approval previously granted 

under § 2634.407 or § 2634.405, the 

Director may, pursuant to the procedure 

specified in paragraph (b) of this 

section, appoint an attorney on the staff 

of the Office of Government Ethics to 

review the matter. After completing the 

review, the attorney will submit 

findings and recommendations to the 

Director. 

(b) Review procedure. (1) In the 

review of the matter, the attorney will 

perform such examination and analysis 

of violations or apparent violations as 

the attorney deems reasonable. 

(2) The attorney will provide an 

independent trustee and, if appropriate, 

the interested parties, with: 

(i) Notice that revocation of trust 

certification or trustee approval is under 

consideration pursuant to the 

procedures in this subpart; 

(ii) A summary of the violation or 

apparent violations that will state the 

preliminary facts and circumstances of 

the transactions or occurrences involved 

with sufficient particularity to permit 

the recipients to determine the nature of 

the allegations; and 

(iii) Notice that the recipients may 

present evidence and submit statements 

on any matter in issue within 10 

business days of the recipient’s actual 

receipt of the notice and summary. 

(c) Determination. (1) In making 

determinations with respect to the 

violations or apparent violations under 

this section, the Director will consider 

the findings and recommendations 

submitted by the attorney, as well as 

any written statements submitted by the 

independent trustee or interested 

parties. 

(2) The Director may take one of the 

following actions upon finding a 

violation or violations of the trust 

restrictions: 

(i) Issue an order revoking trust 

certification or trustee approval; 

(ii) Resolve the matter through any 

other remedial action within the 

Director’s authority; 

(iii) Order further examination and 

analysis of the violation or apparent 

violation; or 

(iv) Decline to take further action. 

(3) If the Director issues an order of 

revocation, parties to the trust 

instrument will receive prompt written 

notification. The notice will state the 

basis for the revocation and will inform 

the parties of the consequence of the 

revocation, which will be either of the 

following: 

(i) The trust is no longer a qualified 

blind or qualified diversified trust for 

any purpose under Federal law; or 

(ii) The independent trustee may no 

longer serve the trust in any capacity 

and must be replaced by a successor, 

who is subject to the prior written 

approval of the Director. 

Subpart F—Procedure 

§ 2634.601 Report forms. 

(a) This section prescribes the 

required forms for financial disclosure 

made pursuant to this part. 

(1) New entrant, annual, and 

termination public financial disclosure 

reports. The Office of Government 

Ethics provides a form for publicly 

disclosing the information described in 

subpart B of this part in connection with 

new entrant, nominee, incumbent, and 

termination reports filed pursuant to 

§ 2634.201(a) through (e). That form is 

the OGE Form 278e (Executive Branch 

Personnel Public Financial Disclosure 

Report) or any successor form. 

(2) Periodic transaction public 

financial disclosure reports. The Office 

of Government Ethics provides a form 

for publicly disclosing the information 

described in subpart B of this part in 

connection with periodic transaction 

public financial disclosure reports filed 

pursuant to § 2634.201(f). That form is 

the OGE Form 278–T (Periodic 

Transaction Report), or any successor 

form. 

(3) Confidential financial disclosure 

reports. The Office of Government 

Ethics also provides a form for 

confidentially disclosing information 


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described in subpart I of this part in 

connection with confidential financial 

disclosure reports filed pursuant to 

§ 2634.903. That form is the OGE Form 

450 (Confidential Financial Disclosure 

Report), or any successor form. 

(b) Supplies of the OGE Form 278e, 

OGE Form 278–T, and OGE Form 450 

are to be reproduced locally by each 

agency. The Office of Government 

Ethics has published copies on its 

official website. 

(c) Subject to the prior written 

approval of the Director of the Office of 

Government Ethics, an agency may 

require employees to file additional 

confidential financial disclosure forms 

which supplement the standard form 

referred to in paragraph (a)(3) of this 

section, if necessary because of special 

or unique agency circumstances. The 

Director may approve such agency 

forms when, in his opinion, the 

supplementation is shown to be 

necessary for a comprehensive and 

effective agency ethics program to 

identify and resolve conflicts of interest. 

See §§ 2634.103 and 2634.901. 

(d) The information collection and 

recordkeeping requirements have been 

approved by the Office of Management 

and Budget under control number 3209– 

0001 for the OGE Form 278e, and 

control number 3209–0006 for OGE 

Form 450. OGE Form 278–T has been 

determined not to require an OMB 

paperwork control number, as the form 

is used exclusively by current 

Government employees. 

§ 2634.602 Filing of reports. 

(a) Except as otherwise provided in 

this section, the reporting individual 

will file financial disclosure reports 

required under this part with the 

designated agency ethics official or the 

delegate at the agency where the 

individual is employed, or was 

employed immediately prior to 

termination of employment, or in which 

the individual will serve, unless 

otherwise directed by the employee’s 

home agency. Detailees will file with 

their home agency. Reports are due at 

the times indicated in § 2634.201 

(public disclosure) or § 2634.903 

(confidential disclosure), unless an 

extension is granted pursuant to the 

provisions of subparts B or I of this part. 

Filers must certify that the information 

contained in the report is true, correct, 

and complete to their best knowledge. 

(b) The President, the Vice President, 

any independent counsel, and persons 

appointed by independent counsel 

under 28 U.S.C. chapter 40, will file the 

public financial disclosure reports 

required under this part with the 

Director of the Office of Government 

Ethics. 

(c)(1) Each agency receiving the 

public financial disclosure reports 

required to be filed under this part by 

the following individuals must transmit 

copies to the Director of the Office of 

Government Ethics: 

(i) The Postmaster General; 

(ii) The Deputy Postmaster General; 

(iii) The Governors of the Board of 

Governors of the United States Postal 

Service; 

(iv) The designated agency ethics 

official; 

(v) Employees of the Executive Office 

of the President who are appointed 

under 3 U.S.C. 105(a)(2)(A) or (B) or 3 

U.S.C. 107(a)(1)(A) or (b)(1)(A)(i), and 

employees of the Office of Vice 

President who are appointed under 3 

U.S.C. 106(a)(1)(A) or (B); and 

(vi) Officers and employees in, and 

nominees to, offices or positions which 

require confirmation by the Senate, 

other than members of the uniformed 

services. 

(2) Prior to transmitting a copy of a 

report to the Director of the Office of 

Government Ethics, the designated 

agency ethics official or the delegate 

must review that report in accordance 

with § 2634.605, except for the 

designated agency ethics official’s own 

report, which must be reviewed by the 

agency head or by a delegate of the 

agency head. 

(3) For nominee reports, the Director 

of the Office of Government Ethics must 

forward a copy to the Senate committee 

that is considering the nomination. See 

§ 2634.605(c) for special procedures 

regarding the review of such reports. 

(d) The Director of the Office of 

Government Ethics must file the 

Director’s financial disclosure report 

with the Office of Government Ethics, 

which will make it immediately 

available to the public in accordance 

with this part. 

(e) Candidates for President and Vice 

President identified in § 2634.201(d), 

other than an incumbent President or 

Vice President, must file their financial 

disclosure reports with the Federal 

Election Commission, which will 

review and send copies of such reports 

to the Director of the Office of 

Government Ethics. 

(f) Members of the uniformed services 

identified in § 2634.202(c) must file 

their financial disclosure reports with 

the Secretary concerned, or the 

Secretary’s delegate. 

§ 2634.603 Custody of and access to 

public reports. 

(a) Each agency must make available 

to the public in accordance with the 

provisions of this section those public 

reports filed with the agency by 

reporting individuals described under 

subpart B of this part. 

(b) This section does not require 

public availability of those reports filed 

by: 

(1) Any individual in the Office of the 

Director of National Intelligence, the 

Central Intelligence Agency, the Defense 

Intelligence Agency, the National 

Geospatial-Intelligence Agency, or the 

National Security Agency, or any 

individual engaged in intelligence 

activities in any agency of the United 

States, if the President finds or has 

found that, due to the nature of the 

office or position occupied by that 

individual, public disclosure of the 

report would, by revealing the identity 

of the individual or other sensitive 

information, compromise the national 

interest of the United States. Individuals 

referred to in this paragraph who are 

exempt from the public availability 

requirement may also be authorized, 

notwithstanding § 2634.701, to file any 

additional reports necessary to protect 

their identity from public disclosure, if 

the President finds or has found that 

such filings are necessary in the 

national interest; or 

(2) An independent counsel whose 

identity has not been disclosed by the 

Court under 28 U.S.C chapter 40, or any 

person appointed by that independent 

counsel under such chapter. 

(c) Each agency will, within 30 days 

after any public report is received by the 

agency, permit inspection of the report 

by, or furnish a copy of the report to, 

any person who makes written 

application as provided by agency 

procedure. Agency reviewing officials 

and the support staffs who maintain the 

files, the staff of the Office of 

Government Ethics, and Special Agents 

of the Federal Bureau of Investigation 

who are conducting a criminal inquiry 

into possible conflict of interest 

violations need not submit an 

application. The agency may utilize 

Office of Government Ethics Form 201 

for such applications. An application 

must state: 

(1) The requesting person’s name, 

occupation, and address; 

(2) The name and address of any other 

person or organization on whose behalf 

the inspection or copy is requested; and 

(3) That the requesting person is 

aware of the prohibitions on obtaining 

or using the report set forth in paragraph 

(f) of this section. 

(d) Applications for the inspection of 

or copies of public reports will also be 

made available to the public throughout 

the period during which the report itself 

is made available, utilizing the 


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procedures in paragraph (c) of this 

section. 

(e) The agency may require a 

reasonable fee, established by agency 

regulation, to recover the direct cost of 

reproduction or mailing of a public 

report, excluding the salary of any 

employee involved. A copy of the report 

may be furnished without charge or at 

a reduced charge if the agency 

determines that waiver or reduction of 

the fee is in the public interest. The 

criteria used by an agency to determine 

when a fee will be reduced or waived 

will be established by regulation. 

Agency regulations contemplated by 

paragraph (e) of this section do not 

require approval pursuant to § 2634.103. 

(f) It is unlawful for any person to 

obtain or use a public report: 

(1) For any unlawful purpose; 

(2) For any commercial purpose, other 

than by news and communications 

media for dissemination to the general 

public; 

(3) For determining or establishing the 

credit rating of any individual; or 

(4) For use, directly or indirectly, in 

the solicitation of money for any 

political, charitable, or other purpose. 

Example 1: The deputy general counsel of 

Agency X is responsible for reviewing the 

public financial disclosure reports filed by 

persons within that agency. The agency 

personnel director, who does not exercise 

functions within the ethics program, wishes 

to review the disclosure report of an 

individual within the agency. The personnel 

director must file an application to review 

the report. However, the supervisor of an 

official with whom the deputy general 

counsel consults concerning matters arising 

in the review process need not file such an 

application. 

Example 2: A state law enforcement agent 

is conducting an investigation which 

involves the private financial dealings of an 

individual who has filed a public financial 

disclosure report. The agent must complete a 

written application in order to inspect or 

obtain a copy. 

Example 3: A financial institution has 

received an application for a loan from an 

official which indicates her present financial 

status. The official has filed a public 

financial disclosure statement with her 

agency. The financial institution cannot be 

given access to the disclosure form for 

purposes of verifying the information 

contained on the application. 

(g)(1) Any public report filed with an 

agency or transmitted to the Director of 

the Office of Government Ethics under 

this section will be retained by the 

agency, and by the Office of 

Government Ethics when it receives a 

copy. The report will be made available 

to the public for a period of six years 

after receipt. After the six-year period, 

the report must be destroyed unless 

needed in an ongoing investigation, 

except that in the case of an individual 

who filed the report pursuant to 

§ 2634.201(c) as a nominee and was not 

subsequently confirmed by the Senate, 

or who filed the report pursuant to 

§ 2634.201(d) as a candidate and was 

not subsequently elected, the report, 

unless needed in an ongoing 

investigation, must be destroyed one 

year after the individual either is no 

longer under consideration by the 

Senate or is no longer a candidate for 

nomination or election to the Office of 

President or Vice President. See also the 

OGE/GOVT–1 Governmentwide 

executive branch Privacy Act system of 

records (available for inspection at the 

Office of Government Ethics or on 

OGE’s website, www.oge.gov), as well as 

any applicable agency system of 

records. 

(2) For purposes of paragraph (g)(1) of 

this section, in the case of a reporting 

individual with respect to whom a trust 

has been certified under subpart D of 

this part, a copy of the qualified trust 

agreement, the list of assets initially 

placed in the trust, and all other 

publicly available documents relating to 

the trust will be retained and made 

available to the public until the periods 

for retention of all other reports of the 

individual have lapsed under paragraph 

(g)(1) of this section. 

(Approved by the Office of Management and 

Budget under control numbers 3209–0001 

and 3209–0002) 

§ 2634.604 Custody of and denial of public 

access to confidential reports. 

(a) Any report filed with an agency 

under subpart I of this part will be 

retained by the agency for a period of 

six years after receipt. After the six-year 

period, the report must be destroyed 

unless needed in an ongoing 

investigation. See also the OGE/GOVT– 

2 Governmentwide executive branch 

Privacy Act system of records (available 

for inspection at the Office of 

Government Ethics or on OGE’s website, 

www.oge.gov), as well as any applicable 

agency system of records. 

(b) The reports filed pursuant to 

subpart I of this part are confidential. 

No member of the public will have 

access to such reports, except pursuant 

to the order of a Federal court or as 

otherwise provided under the Privacy 

Act. See 5 U.S.C. 552a and the OGE/ 

GOVT–2 Privacy Act system of records 

(and any applicable agency system); 5 

U.S.C. app. (Ethics in Government Act 

of 1978, section 107(a)); sections 201(d) 

and 502(b) of Executive Order 12674, as 

modified by Executive Order 12731; and 

§ 2634.901(d). 

§ 2634.605 Review of reports. 

(a) In general. The designated agency 

ethics official will normally serve as the 

reviewing official for reports submitted 

to the official’s agency. That 

responsibility may be delegated, except 

in the case of certification of nominee 

reports required by paragraph (c) of this 

section. See also § 2634.105(q). The 

designated agency ethics official will 

note on any report or supplemental 

report the date on which it is received. 

Except as indicated in paragraph (c) of 

this section, all reports must be 

reviewed within 60 days after the date 

of filing. Reports that are reviewed by 

the Director of the Office of Government 

Ethics must be forwarded promptly by 

the designated agency ethics official to 

the Director. The Director will review 

the reports within 60 days from the date 

on which they are received by the Office 

of Government Ethics. If additional 

information is needed, the Director will 

notify the agency. In the event that 

additional information must be obtained 

from the filer, the agency will require 

that the filer provide that information as 

promptly as is practical but not more 

than 30 days after the request. Final 

certification in accordance with 

paragraph (b)(3) of this section may, of 

necessity, occur later, when additional 

information is being sought or remedial 

action is being taken under this section. 

(b) Responsibilities of reviewing 

official—(1) Initial review. As a part of 

the initial review, the reviewing official 

may request an intermediate review by 

the filer’s supervisor or another 

reviewer. In the case of a filer who is 

detailed to another agency for more than 

60 days during the reporting period, the 

reviewing official will coordinate with 

the ethics official at the agency at which 

the employee is serving the detail if the 

report reveals a potential conflict of 

interest. 

(2) Standards of Review. The 

reviewing official must examine the 

report to determine, to the reviewing 

official’s satisfaction, that: 

(i) Each required part of the report is 

completed; and 

(ii) No interest or position disclosed 

on the report violates or appears to 

violate: 

(A) Any applicable provision of 

chapter 11 of title 18, United States 

Code; 

(B) The Act, as amended, and the 

implementing regulations; 

(C) Executive Order 12674, as 

modified by Executive Order 12731, and 

the implementing regulations; 

(D) Any other applicable Executive 

Order in force at the time of the review; 

or 


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(E) Any other agency-specific statute 

or regulation which governs the filer. 

(3) Signature by reviewing official. If 

the reviewing official is of the opinion 

that the report meets the requirements 

of paragraph (b)(2) of this section, the 

reviewing official will certify it by 

signature and date. The reviewing 

official need not audit the report to 

ascertain whether the disclosures are 

correct. Disclosures will be taken at 

‘‘face value’’ as correct, unless there is 

a patent omission or ambiguity or the 

official has independent knowledge of 

matters outside the report. However, a 

report which is signed by a reviewing 

official certifies that the filer’s agency 

has reviewed the report, that the 

reviewing official is of the opinion that 

each required part of the report has been 

completed, and that on the basis of 

information contained in such report 

the filer is in compliance with 

applicable laws and regulations noted in 

paragraph (b)(2)(ii) of this section. 

(4) Requests for, and review based on, 

additional information. If the reviewing 

official believes that additional 

information is required to be reported, 

the reviewing official will request that 

any additional information be submitted 

within 30 days from the date of the 

request, unless the reviewing official 

grants an extension in writing. This 

additional information will be 

incorporated into the report. If the 

reviewing official concludes, on the 

basis of the information disclosed in the 

report and any additional information 

submitted, that the report fulfills the 

requirements of paragraph (b)(2) of this 

section, the reviewing official will sign 

and date the report. 

(5) Compliance with applicable laws 

and regulations. If the reviewing official 

concludes that information disclosed in 

the report may reveal a violation of 

applicable laws and regulations as 

specified in paragraph (b)(2)(ii) of this 

section, the official must: 

(i) Notify the filer of that conclusion; 

(ii) Afford the filer a reasonable 

opportunity for an oral or written 

response; and 

(iii) Determine, after considering any 

response, whether or not the filer is then 

in compliance with applicable laws and 

regulations specified in paragraph 

(b)(2)(ii) of this section. If the reviewing 

official concludes that the report does 

fulfill the requirements, the reviewing 

official will sign and date the report. If 

the reviewing official determines that it 

does not and additional remedial 

actions are required, the reviewing 

official must: 

(A) Notify the filer of the conclusion; 

(B) Afford the filer an opportunity for 

personal consultation if practicable; 

(C) Determine what remedial action 

under paragraph (b)(6) of this section 

should be taken to bring the report into 

compliance with the requirements of 

paragraph (b)(2)(ii) of this section; and 

(D) Notify the filer in writing of the 

remedial action which is needed, and 

the date by which such action should be 

taken. 

(6) Remedial action. (i) Except in 

unusual circumstances, which must be 

fully documented to the satisfaction of 

the reviewing official, remedial action 

must be completed not later than three 

months from the date on which the filer 

received notice that the action is 

required. 

(ii) Remedial action may include, as 

appropriate: 

(A) Divestiture of a conflicting interest 

(see subpart J of this part); 

(B) Resignation from a position with 

a non-Federal business or other entity; 

(C) Restitution; 

(D) Establishment of a qualified blind 

or diversified trust under the Act and 

subpart D of this part; 

(E) Procurement of a waiver under 18 

U.S.C. 208(b)(1) or (b)(3); 

(F) Recusal; or 

(G) Voluntary request by the filer for 

transfer, reassignment, limitation of 

duties, or resignation. 

(7) Compliance or referral. (i) If the 

filer complies with a written request for 

remedial action under paragraph (b)(6) 

of this section, the reviewing official 

will memorialize what remedial action 

has been taken. The official will also 

sign and date the report. 

(ii) If the filer does not comply by the 

designated date with the written request 

for remedial action transmitted under 

paragraph (b)(6) of this section, the 

reviewing official must, in the case of a 

public filer under subpart B of this part, 

notify the head of the agency and the 

Office of Government Ethics for 

appropriate action. Where the filer is in 

a position in the executive branch (other 

than in the uniformed services or the 

Foreign Service), appointment to which 

requires the advice and consent of the 

Senate, the Director of the Office of 

Government Ethics shall refer the matter 

to the President. In the case of the 

Postmaster General or Deputy 

Postmaster General, the Director of the 

Office of Government Ethics shall 

recommend to the Governors of the 

Board of Governors of the United States 

Postal Service the action to be taken. For 

confidential filers, the reviewing official 

will follow agency procedures. 

(c) Expedited procedure in the case of 

individuals appointed by the President 

and subject to confirmation by the 

Senate. In the case of a report filed by 

an individual described in § 2634.201(c) 

who is nominated by the President for 

appointment to a position that requires 

the advice and consent of the Senate: 

(1) In most cases, the Executive Office 

of the President will furnish the 

applicable financial disclosure report 

form to the nominee. It will forward the 

completed report to the designated 

agency ethics official at the agency 

where the nominee is serving or will 

serve, or it may direct the nominee to 

file the completed report directly with 

the designated agency ethics official. 

(2) The designated agency ethics 

official will complete an accelerated 

review of the report, in accordance with 

the standards and procedures in 

paragraph (b) of this section. If that 

official concludes that the report reveals 

no unresolved conflict of interest under 

applicable laws and regulations, the 

official will: 

(i) Personally certify the report by 

signature, and date the certification; 

(ii) Write an opinion letter to the 

Director of the Office of Government 

Ethics, personally certifying that there is 

no unresolved conflict of interest under 

applicable laws and regulations; 

(iii) Provide a copy of any 

commitment, agreement, or other 

undertaking which is reduced to writing 

in accordance with subpart H of this 

part; and 

(iv) Transmit the letter and the report 

to the Director of the Office of 

Government Ethics, within three 

working days after the designated 

agency ethics official receives the 

report. 

Note to paragraph (c)(2): The designated 

agency ethics official’s certification 

responsibilities in § 2634.605(c) are 

nondelegable and must be accomplished by 

him personally, or by the agency’s alternate 

designated agency ethics official, in his 

absence. 

(3) The Director of the Office of 

Government Ethics will review the 

report and the letter from the designated 

agency ethics official. If the Director is 

satisfied that no unresolved conflicts of 

interest exist, then the Director will sign 

and date the report form. The Director 

will then submit the report with a letter 

to the appropriate Senate committee, 

expressing the Director’s opinion 

whether, on the basis of information 

contained in the report, the nominee has 

complied with all applicable conflict 

laws and regulations. 

(4) If, in the case of any nominee or 

class of nominees, the expedited 

procedure specified in this paragraph 

cannot be completed within the time set 

forth in paragraph (c)(2)(iv) of this 

section, the designated agency ethics 

official must inform the Director. When 

necessary and appropriate, the Director 


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may modify the rule of that paragraph 

for a nominee or a class of nominees 

with respect to a particular department 

or agency. 

§ 2634.606 Updated disclosure of adviceand-consent nominees. 

(a) General rule. Each individual 

described in § 2634.201(c) who is 

nominated by the President for 

appointment to a position that requires 

advice and consent of the Senate must 

submit a letter updating the information 

in the report previously filed under 

§ 2634.201(c) through the period ending 

no more than five days prior to the 

commencement of the first hearing of a 

Senate Committee considering the 

nomination to all Senate Committees 

considering the nomination. The letter 

must update the information required 

with respect to receipt of: 

(1) Outside earned income; and 

(2) Honoraria, as defined in 

§ 2634.105(i). 

(b) Timing. The nominee’s letter must 

be submitted to the Senate committees 

considering the nomination by the 

agency at or before the commencement 

of the first committee hearing to 

consider the nomination. The agency 

must also transmit copies of the 

nominee’s letter to the designated 

agency ethics official referred to in 

§ 2634.605(c)(1) and to the Office of 

Government Ethics. 

(c) Additional certification. In each 

case to which this section applies, the 

Director of the Office of Government 

Ethics will, at the request of the 

committee considering the nomination, 

submit to the committee an opinion 

letter of the nature described in 

§ 2634.605(c)(3) concerning the updated 

disclosure. If the committee requests 

such a letter, the expedited procedure 

provided by § 2634.605(c) will govern 

review of the updated disclosure, which 

will be deemed a report filed for 

purposes of that paragraph. 

§ 2634.607 Advice and opinions. 

To assist employees in avoiding 

situations in which they might violate 

applicable financial disclosure laws and 

regulations: 

(a) The Director of the Office of 

Government Ethics will render formal 

advisory opinions and informal 

advisory letters on generally applicable 

matters, or on important matters of first 

impression. See also part 2638 of this 

chapter. The Director will ensure that 

these advisory opinions and letters are 

compiled, published, and made 

available to agency ethics officials and 

the public. 

(b) Designated agency ethics officials 

will offer advice and guidance to 

employees as needed, to assist them in 

complying with the requirements of the 

Act and this part on financial 

disclosure. 

(c) Employees who have questions 

about the application of this part or any 

supplemental agency regulations to 

particular situations should seek advice 

from an agency ethics official. 

Disciplinary action for violating this 

part will not be taken against an 

employee who has engaged in conduct 

in good faith reliance upon the advice 

of an agency ethics official, provided 

that the employee, in seeking such 

advice, has made full disclosure of all 

relevant circumstances. Where the 

employee’s conduct violates a criminal 

statute, reliance on the advice of an 

agency ethics official cannot ensure that 

the employee will not be prosecuted 

under that statute. However, good faith 

reliance on the advice of an agency 

ethics official is a factor that may be 

taken into account by the Department of 

Justice in the selection of cases for 

prosecution. Disclosures made by an 

employee to an agency ethics official are 

not protected by an attorney-client 

privilege. An agency ethics official is 

required by 28 U.S.C. 535 to report any 

information he receives relating to a 

violation of the criminal code, title 18 

of the United States Code. 

Subpart G—Penalties 

§ 2634.701 Failure to file or falsifying 

reports. 

(a) Referral of cases. The head of each 

agency, each Secretary concerned, or the 

Director of the Office of Government 

Ethics, as appropriate, must refer to the 

Attorney General the name of any 

individual when there is reasonable 

cause to believe that such individual 

has willfully failed to file a public 

report or information required on such 

report, or has willfully falsified any 

information (public or confidential) 

required to be reported under this part. 

(b) Civil action. The Attorney General 

may bring a civil action in any 

appropriate United States district court 

against any individual who knowingly 

and willfully falsifies or who knowingly 

and willfully fails to file or report any 

information required by filers of public 

reports under subpart B of this part. The 

court in which the action is brought 

may assess against the individual a civil 

monetary penalty in any amount, not to 

exceed the amounts set forth in Table 1 

to this section, as provided by section 

104(a) of the Act, as amended, and as 

adjusted in accordance with the 

inflation adjustment procedures 

prescribed in the Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended: 

TABLE 1 TO § 2634.701 

Date of violation 

or assessment Penalty 

Violation occurring between 

Sept. 14, 2007 and Nov. 2, 

2015 ...................................... $50,000 

Violation occurring after Nov. 2, 

2015 ...................................... 59,028 

(c) Criminal action. An individual 

may also be prosecuted under criminal 

statutes for supplying false information 

on any financial disclosure report. 

(d) Administrative remedies. The 

President, the Vice President, the 

Director of the Office of Government 

Ethics, the Secretary concerned, the 

head of each agency, and the Office of 

Personnel Management may take 

appropriate personnel or other action in 

accordance with applicable law or 

regulation against any individual for 

failing to file public or confidential 

reports required by this part, for filing 

such reports late, or for falsifying or 

failing to report required information. 

This may include adverse action under 

5 CFR part 752, if applicable. 

§ 2634.702 Breaches by trust fiduciaries 

and interested parties. 

(a) The Attorney General may bring a 

civil action in any appropriate United 

States district court against any 

individual who knowingly and willfully 

violates the provisions of § 2634.407. 

The court in which the action is brought 

may assess against the individual a civil 

monetary penalty in any amount, not to 

exceed the amounts set forth in Table 1 

to this section, as provided by section 

102(f)(6)(C)(i) of the Act and as adjusted 

in accordance with the inflation 

adjustment procedures prescribed in the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended. 

TABLE 1 TO § 2634.702 

Date of violation 

or assessment Penalty 

Violation occurring between 

Sept. 29, 1999 and Nov. 2, 

2015 ...................................... $11,000 

Violation occurring after Nov. 2, 

2015 ...................................... 19,639 

(b) The Attorney General may bring a 

civil action in any appropriate United 

States district court against any 

individual who negligently violates the 

provisions of § 2634.407. The court in 

which the action is brought may assess 

against the individual a civil monetary 

penalty in any amount, not to exceed 


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the amounts set forth in Table 2 to this 

section, as provided by section 

102(f)(6)(C)(ii) of the Act and as 

adjusted in accordance with the 

inflation adjustment procedures of the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended. 

TABLE 2 TO § 2634.702 

Date of violation 

or assessment Penalty 

Violation occurring between 

Sept. 29, 1999 and Nov. 2, 

2015 ...................................... $5,500 

Violation occurring after Nov. 2, 

2015 and penalty assessed 

after Aug. 1, 2016 ................. 9,819 

§ 2634.703 Misuse of public reports. 

(a) The Attorney General may bring a 

civil action against any person who 

obtains or uses a report filed under this 

part for any purpose prohibited by 

section 105(c)(1) of the Act, as 

incorporated in § 2634.603(f). The court 

in which the action is brought may 

assess against the person a civil 

monetary penalty in any amount, not to 

exceed the amounts set forth in Table 1 

to this section, as provided by section 

105(c)(2) of the Act and as adjusted in 

accordance with the inflation 

adjustment procedures prescribed in the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended. 

TABLE 1 TO § 2634.703 

Date of violation 

or assessment Penalty 

Violation occurring between 

Sept. 29, 1999 and Nov. 2, 

2015 ...................................... $11,000 

Violation occurring after Nov. 2, 

2015 ...................................... 19,639 

(b) This remedy will be in addition to 

any other remedy available under 

statutory or common law. 

§ 2634.704 Late filing fee. 

(a) In general. In accordance with 

section 104(d) of the Act, any reporting 

individual who is required to file a 

public financial disclosure report by the 

provisions of this part must remit a late 

filing fee of $200 to the appropriate 

agency, payable to the U.S. Treasury, if 

such report is filed more than 30 days 

after the later of: 

(1) The date such report is required to 

be filed pursuant to the provisions of 

this part; or 

(2) The last day of any filing extension 

period granted pursuant to 

§ 2634.201(g). 

(b) Exceptions. (1) The designated 

agency ethics official may waive the late 

filing fee if the designated agency ethics 

official determines that the delay in 

filing was caused by extraordinary 

circumstances. These circumstances 

include, but are not limited to, the 

agency’s failure to notify a filer of the 

requirement to file the public financial 

disclosure report, which made the delay 

reasonably necessary. 

(2) Employees requesting a waiver of 

the late filing fee from the designated 

agency ethics official must request the 

waiver in writing. The designated 

agency ethics official’s determination 

must be made in writing to the 

employee with a copy maintained by 

the agency. The designated agency 

ethics official may consult with the 

Office of Government Ethics prior to 

approving any waiver of the late filing 

fee. 

(c) Procedure. (1) Each report received 

by the agency must be marked with the 

date of receipt. For any report which has 

not been received by the end of the 

period specified in paragraph (a) of this 

section, the agency will advise the 

delinquent filer, in writing, that: 

(i) Because the financial disclosure 

report is more than 30 days overdue, a 

$200 late filing fee will become due at 

the time of filing, by reason of section 

104(d) of the Act and § 2634.704; 

(ii) The filer is directed to remit to the 

agency, with the completed report, the 

$200 fee, payable to the United States 

Treasury; 

(iii) If the filer fails to remit the $200 

fee when filing a late report, it will be 

subject to agency debt collection 

procedures; and 

(iv) If extraordinary circumstances 

exist that would justify a request for a 

fee waiver, pursuant to paragraph (b) of 

this section, such request and any 

supporting documentation must be 

submitted immediately. 

(2) Upon receipt from the reporting 

individual of the $200 late filing fee, the 

collecting agency will note the payment 

in its records, and will then forward the 

money to the U.S. Treasury for deposit 

as miscellaneous receipts, in accordance 

with 31 U.S.C. 3302 and Part 5 of 

Volume 1 of the Treasury Financial 

Manual. If payment is not forthcoming, 

agency debt collection procedures may 

be utilized, which may include salary or 

administrative offset, initiation of a tax 

refund offset, or other authorized action. 

(d) Late filing fee not exclusive 

remedy. The late filing fee is in addition 

to other sanctions which may be 

imposed for late filing. See § 2634.701. 

(e) Confidential filers. The late filing 

fee does not apply to confidential filers. 

Late filing of confidential reports will be 

handled administratively under 

§ 2634.701(d). 

(f) Date of filing. The date of filing for 

purposes of determining whether a 

public financial disclosure report is 

filed more than 30 days late under this 

section will be the date of receipt by the 

agency, which should be noted on the 

report in accordance with § 2634.605(a). 

The 30-day grace period on imposing a 

late filing fee is adequate allowance for 

administrative delays in the receipt of 

reports by an agency. 

Subpart H—Ethics Agreements 

§ 2634.801 Scope. 

This subpart applies to ethics 

agreements made by any reporting 

individual under either subpart B or I of 

this part, to resolve potential or actual 

conflicts of interest. 

§ 2634.802 Requirements. 

(a) Ethics agreement defined. The 

term ethics agreement will include, for 

the purposes of this subpart, any oral or 

written promise by a reporting 

individual to undertake specific actions 

in order to alleviate an actual or 

apparent conflict of interest, such as: 

(1) Recusal; 

(2) Divestiture of a financial interest; 

(3) Resignation from a position with a 

non-Federal business or other entity; 

(4) Procurement of a waiver pursuant 

to 18 U.S.C. 208(b)(1) or (b)(3); or 

(5) Establishment of a qualified blind 

or diversified trust under the Act and 

subpart D of this part. 

(b) Time limit. The ethics agreement 

will specify that the individual must 

complete the action which he or she has 

agreed to undertake within a period not 

to exceed three months from the date of 

the agreement (or of Senate 

confirmation, if applicable). Exceptions 

to the three-month deadline can be 

made in cases of unusual hardship, as 

determined by the Office of Government 

Ethics, for those ethics agreements 

which are submitted to it (see 

§ 2634.803), or by the designated agency 

ethics official for all other ethics 

agreements. 

Example: An official of the ABC Aircraft 

Company is nominated to a Department of 

Defense position requiring the advice and 

consent of the Senate. As a condition of 

assuming the position, the individual has 

agreed to divest himself of his ABC Aircraft 

stock which he recently acquired while he 

was an officer with the company. However, 

the Securities and Exchange Commission 

prohibits officers of public corporations from 

deriving a profit from the sale of stock in the 

corporation in which they hold office within 

six months of acquiring the stock, and directs 

that any such profit must be returned to the 

issuing corporation or its stock holders. Since 

meeting the usual three-month time limit 

specified in this subpart for satisfying an 

ethics agreement might entail losing any 


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profit that could be realized on the sale of 

this stock, the nominee requests that the limit 

be extended beyond the six-month period 

imposed by the Commission. Written 

approval must be obtained from the Office of 

Government Ethics to extend the three-month 

period. 

§ 2634.803 Notification of ethics 

agreements. 

(a) Nominees to positions requiring 

the advice and consent of the Senate. (1) 

In the case of a nominee referred to in 

§ 2634.201(c), the designated agency 

ethics official will include with the 

report submitted to the Office of 

Government Ethics any ethics 

agreement which the nominee has 

made. 

(2) A designated agency ethics official 

must immediately notify the Office of 

Government Ethics of any ethics 

agreement of a nominee which is made 

or becomes known to the designated 

agency ethics official after the 

submission of the nominee’s report to 

the Office of Government Ethics. This 

requirement includes an ethics 

agreement made between a nominee and 

the Senate confirmation committee. The 

nominee must immediately report to the 

designated agency ethics official any 

ethics agreement made with the 

committee. 

(3) The Office of Government Ethics 

must immediately apprise the 

designated agency ethics official and the 

Senate confirmation committee of any 

ethics agreements made directly 

between the nominee and the Office of 

Government Ethics. 

(4) Any ethics agreement approved by 

the Office of Government Ethics during 

its review of a nominee’s financial 

disclosure report may not be modified 

without prior approval from the Office 

of Government Ethics. 

(b) Incumbents and other reporting 

individuals. Incumbents and other 

reporting individuals may be required to 

enter into an ethics agreement with the 

designated agency ethics official for the 

employee’s agency. Where an ethics 

agreement has been made with someone 

other than the designated agency ethics 

official, the officer or employee 

involved must promptly apprise the 

designated agency ethics official of the 

agreement. 

§ 2634.804 Evidence of compliance. 

(a) Requisite evidence of action taken. 

(1) For ethics agreements of nominees to 

positions requiring the advice and 

consent of the Senate, evidence of any 

action taken to comply with the terms 

of such ethics agreements must be 

submitted to the designated agency 

ethics official. The designated agency 

ethics official will promptly notify the 

Office of Government Ethics and the 

Senate confirmation committee of 

actions taken to comply with the ethics 

agreement. 

(2) In the case of incumbents and all 

other reporting individuals, evidence of 

any action taken to comply with the 

terms of an ethics agreement must be 

sent promptly to the designated agency 

ethics official. 

(b) The following materials and any 

other appropriate information constitute 

evidence of the action taken: 

(1) Recusal. A copy of a recusal 

statement listing and describing the 

specific matters or subjects to which the 

recusal applies, a statement of the 

method by which the agency will 

enforce the recusal. A recusal statement 

is not required for a general affirmation 

that the filer will comply with ethics 

laws. 

Example: A new employee of a Federal 

safety board owns stock in Nationwide 

Airlines. She has entered into an ethics 

agreement to recuse herself from 

participating in any accident investigations 

involving that company’s aircraft until such 

time as she can complete a divestiture of the 

asset. She sends an email to the designated 

agency ethics official recusing herself from 

Nationwide Airline matters. She sends an 

email to her supervisor and subordinates to 

notify them of the recusal and to request that 

they do not refer matters involving 

Nationwide Airlines to her. She also sends a 

copy of that email to the designated agency 

ethics official. 

(2) Divestiture or resignation. Written 

notification that the divestiture or 

resignation has occurred. 

(3) Waivers. A copy of any waivers 

issued pursuant to 18 U.S.C. 208(b)(1) or 

(b)(3) and signed by the appropriate 

supervisory official. 

(4) Blind or diversified trusts. 

Information required by subpart D of 

this part to be submitted to the Office of 

Government Ethics for its certification 

of any qualified trust instrument. If the 

Office of Government Ethics does not 

certify the trust, the designated agency 

ethics official and, as appropriate, the 

Senate confirmation committee should 

be informed immediately. 

§ 2634.805 Retention. 

Records of ethics agreements and 

actions described in this subpart will be 

maintained by the agency. In addition, 

copies of such record will be 

maintained by the Office of Government 

Ethics with respect to filers whose 

reports are certified by the Office of 

Government Ethics. 

Subpart I—Confidential Financial 

Disclosure Reports 

§ 2634.901 Policies of confidential 

financial disclosure reporting. 

(a) The confidential financial 

reporting system set forth in this subpart 

is designed to complement the public 

reporting system established by title I of 

the Act. High-level officials in the 

executive branch are required to report 

certain financial interests publicly to 

ensure that every citizen can have 

confidence in the integrity of the 

Federal Government. It is equally 

important in order to guarantee the 

efficient and honest operation of the 

Government that other, less senior, 

executive branch employees, whose 

Government duties involve the exercise 

of significant discretion in certain 

sensitive areas, report their financial 

interests and outside business activities 

to their employing agencies, to facilitate 

the review of possible conflicts of 

interest. These reports assist an agency 

in administering its ethics program and 

counseling its employees. Such reports 

are filed on a confidential basis. 

(b) The confidential reporting system 

seeks from employees only that 

information which is relevant to the 

administration and application of 

criminal conflict of interest laws, 

administrative standards of conduct, 

and agency-specific statutory and 

program-related restrictions. The basic 

content of the reports required by 

§ 2634.907 reflects that certain 

information is generally relevant to all 

agencies. However, depending upon an 

agency’s authorized activities and any 

special or unique circumstances, 

additional information may be 

necessary. In these situations, and 

subject to the prior written approval of 

the Director of the Office of Government 

Ethics, agencies may formulate 

supplemental reporting requirements by 

following the procedures of §§ 2634.103 

and 2634.601(b). 

(c) This subpart also allows an agency 

to request, on a confidential basis, 

additional information from persons 

who are already subject to the public 

reporting requirements of this part. The 

public reporting requirements of the Act 

address Governmentwide concerns. The 

reporting requirements of this subpart 

allow agencies to confront special or 

unique agency concerns. If those 

concerns prompt an agency to seek more 

extensive reporting from employees 

who file public reports, it may proceed 

on a confidential, nonpublic basis, with 

prior written approval from the Director 

of the Office of Government Ethics, 

under the procedures of §§ 2634.103 

and 2634.601(b). 


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(d) The reports filed pursuant to this 

subpart are specifically characterized as 

‘‘confidential,’’ and are required to be 

withheld from the public, pursuant to 

section 107(a) of the Act. Section 107(a) 

leaves no discretion on this issue with 

the agencies. See also § 2634.604. 

Further, Executive Order 12674 as 

modified by Executive Order 12731 

provides, in section 201(d), for a system 

of nonpublic (confidential) executive 

branch financial disclosure to 

complement the Act’s system of public 

disclosure. The confidential reports 

provided for by this subpart contain 

sensitive commercial and financial 

information, as well as personal 

privacy-protected information. These 

reports and the information which they 

contain are, accordingly, exempt from 

being released to the public, under 

exemptions 3(A) and (B), 4, and 6 of the 

Freedom of Information Act (FOIA), 5 

U.S.C. 552(b)(3)(A) and (B), (b)(4), and 

(b)(6). Additional FOIA exemptions may 

apply to particular reports or portions of 

reports. Agency personnel will not 

publicly release the reports or the 

information which these reports 

contain, except pursuant to an order 

issued by a Federal court, or as 

otherwise provided under applicable 

provisions of the Privacy Act (5 U.S.C. 

552a), and in the OGE/GOVT–2 

Governmentwide executive branch 

Privacy Act system of records, as well 

as any applicable agency records 

system. If an agency statute requires the 

public reporting of certain information 

and, for purposes of convenience, an 

agency chooses to collect that 

information on the confidential report 

form filed under this subpart, only the 

special statutory information may be 

released to the public, pursuant to the 

terms of the statute under which it was 

collected. 

(e) Executive branch agencies hire or 

use the paid and unpaid services of 

many individuals on an advisory or 

other less than full-time basis as special 

Government employees. These 

employees may include experts and 

consultants to the Government, as well 

as members of Government advisory 

committees. It is important for those 

agencies that utilize such services, and 

for the individuals who provide the 

services, to anticipate and avoid real or 

apparent conflicts of interest. The 

confidential financial disclosure system 

promotes that goal, with special 

Government employees among those 

required to file confidential reports. 

(f) For additional policies and 

definitions of terms applicable to both 

the public and confidential reporting 

systems, see §§ 2634.104 and 2634.105. 

§ 2634.902 [Reserved] 

§ 2634.903 General requirements, filing 

dates, and extensions. 

(a) Incumbents. A confidential filer 

who holds a position or office described 

in § 2634.904(a) and who performs the 

duties of that position or office for a 

period in excess of 60 days during the 

calendar year (including more than 60 

days in an acting capacity) must file a 

confidential report as an incumbent, 

containing the information prescribed in 

§§ 2634.907 and 2634.908 on or before 

February 15 of the following year. This 

requirement does not apply if the 

employee has left Government service 

or has left a covered position prior to 

the due date for the report. No 

incumbent reports are required of 

special Government employees 

described in § 2634.904(a)(2), but who 

must file new entrant reports under 

paragraph (b) of this section upon each 

appointment or reappointment. For 

confidential filers under 

§ 2634.904(a)(3), consult agency 

supplemental regulations. 

(b) New entrants. (1) Not later than 30 

days after assuming a new position or 

office described in § 2634.904(a) (which 

also encompasses the reappointment or 

redesignation of a special Government 

employee, including one who is serving 

on an advisory committee), a 

confidential filer must file a confidential 

report containing the information 

prescribed in §§ 2634.907 and 2634.908. 

For confidential filers under 

§ 2634.904(a)(3), consult agency 

supplemental regulations. 

(2) However, no report will be 

required if the individual: 

(i) Has, within 30 days prior to 

assuming the position, left another 

position or office referred to in 

§ 2634.904(a) or in § 2634.202, and has 

previously satisfied the reporting 

requirements applicable to that former 

position, but a copy of the report filed 

by the individual while in that position 

should be made available to the 

appointing agency, and the individual 

must comply with any agency 

requirement for a supplementary report 

for the new position; 

(ii) Has already filed such a report in 

connection with consideration for 

appointment to the position. The agency 

may request that the individual update 

such a report if more than six months 

has expired since it was filed; or 

(iii) Is not reasonably expected to 

perform the duties of an office or 

position referred to in § 2634.904(a) for 

more than 60 days in the following 12- 

month period, as determined by the 

designated agency ethics official or 

delegate. That may occur most 

commonly in the case of an employee 

who temporarily serves in an acting 

capacity in a position described by 

§ 2634.904(a)(1). If the individual 

actually performs the duties of such 

position for more than 60 days in the 

12-month period, then a confidential 

financial disclosure report must be filed 

within 15 calendar days after the 

sixtieth day of such service in the 

position. Paragraph (b)(2)(iii) of this 

section does not apply to new entrants 

filing as special Government employees 

under § 2634.904(a)(2). 

(3) Notwithstanding the filing 

deadline prescribed in paragraph (b)(1) 

of this section, agencies may at their 

discretion, require that prospective 

entrants into positions described in 

§ 2634.904(a) file their new entrant 

confidential financial disclosure reports 

prior to serving in such positions, to 

ensure that there are no insurmountable 

ethics concerns. Additionally, a special 

Government employee who has been 

appointed to serve on an advisory 

committee must file the required report 

before any advice is rendered by the 

employee to the agency, or in no event, 

later than the first committee meeting. 

(c) Advisory committee definition. For 

purposes of this subpart, the term 

advisory committee will have the 

meaning given to that term under 

section 3 of the Federal Advisory 

Committee Act (5 U.S.C. app). 

Specifically, it means any committee, 

board, commission, council, conference, 

panel, task force, or other similar group 

which is established by statute or 

reorganization plan, or established or 

utilized by the President or one or more 

agencies, in the interest of obtaining 

advice or recommendations for the 

President or one or more agencies or 

officers of the Federal Government. 

Such term includes any subcommittee 

or other subgroup of any advisory 

committee, but does not include the 

Advisory Commission on 

Intergovernmental Relations, the 

Commission on Government 

Procurement, or any committee 

composed wholly of full-time officers or 

employees of the Federal Government. 

(d) Extensions—(1) Agency 

extensions. The agency reviewing 

official may, for good cause shown, 

grant to any employee or class of 

employees a filing extension or several 

extensions totaling not more than 90 

days. 

(2) Certain service during period of 

national emergency. In the case of an 

active duty military officer or enlisted 

member of the Armed Forces, a Reserve 

or National Guard member on active 

duty under orders issued pursuant to 

title 10 or title 32 of the United States 


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Code, a commissioned officer of the 

Uniformed Services (as defined in 10 

U.S.C. 101), or any other employee, who 

is deployed or sent to a combat zone or 

required to perform services away from 

the employee’s permanent duty station 

in support of the Armed Forces or other 

governmental entities following a 

declaration by the President of a 

national emergency, the date of filing 

will be extended to 90 days after the last 

day of: 

(i) The employee’s service in the 

combat zone or away from the 

employee’s permanent duty station; or 

(ii) The employee’s hospitalization as 

a result of injury received or disease 

contracted while serving during the 

national emergency. 

(3) Agency procedures. Each agency 

may prescribe procedures to provide for 

the implementation of the extensions 

provided for by this paragraph. 

(e) Termination reports not required. 

An employee who is required to file a 

confidential financial disclosure report 

is not required to file a termination 

report upon leaving the filing position. 

§ 2634.904 Confidential filer defined. 

(a) The term confidential filer 

includes: 

(1) Each officer or employee in the 

executive branch whose position is 

classified at GS–15 or below of the 

General Schedule prescribed by 5 U.S.C. 

5332, or the rate of basic pay for which 

is fixed, other than under the General 

Schedule, at a rate which is less than 

120% of the minimum rate of basic pay 

for GS–15 of the General Schedule; each 

officer or employee of the United States 

Postal Service or Postal Rate 

Commission whose basic rate of pay is 

less than 120% of the minimum rate of 

basic pay for GS–15 of the General 

Schedule; each member of a uniformed 

service whose pay grade is less than 0– 

7 under 37 U.S.C. 201; and each officer 

or employee in any other position 

determined by the designated agency 

ethics official to be of equal 

classification; if: 

(i) The agency concludes that the 

duties and responsibilities of the 

employee’s position require that 

employee to participate personally and 

substantially (as defined in 

§§ 2635.402(b)(4) and 2640.103(a)(2) of 

this chapter) through decision or the 

exercise of significant judgment, and 

without substantial supervision and 

review, in taking a Government action 

regarding: 

(A) Contracting or procurement; 

(B) Administering or monitoring 

grants, subsidies, licenses, or other 

federally conferred financial or 

operational benefits; 

(C) Regulating or auditing any nonFederal entity; or 

(D) Other activities in which the final 

decision or action will have a direct and 

substantial economic effect on the 

interests of any non-Federal entity; or 

(ii) The agency concludes that the 

duties and responsibilities of the 

employee’s position require the 

employee to file such a report to avoid 

involvement in a real or apparent 

conflict of interest, or to carry out the 

purposes behind any statute, Executive 

order, rule, or regulation applicable to 

or administered by the employee. 

Positions which might be subject to a 

reporting requirement under this 

subparagraph include those with duties 

which involve investigating or 

prosecuting violations of criminal or 

civil law. 

Example 1: A contracting officer develops 

the requests for proposals for data processing 

equipment of significant value which is to be 

purchased by his agency. He works with 

substantial independence of action and 

exercises significant judgment in developing 

the requests. By engaging in this activity, he 

is participating personally and substantially 

in the contracting process. The contracting 

officer should be required to file a 

confidential financial disclosure report. 

Example 2: An agency environmental 

engineer inspects a manufacturing plant to 

ascertain whether the plant complies with 

permits to release a certain effluent into a 

nearby stream. Any violation of the permit 

standards may result in civil penalties for the 

plant, and in criminal penalties for the 

plant’s management based upon any action 

which they took to create the violation. If the 

agency engineer determines that the plant 

does not meet the permit requirements, he 

can require the plant to terminate release of 

the effluent until the plant satisfies the 

permit standards. Because the engineer 

exercises substantial discretion in regulating 

the plant’s activities, and because his final 

decisions will have a substantial economic 

effect on the plant’s interests, the engineer 

should be required to file a confidential 

financial disclosure report. 

Example 3: A GS–13 employee at an 

independent grant making agency conducts 

the initial agency review of grant 

applications from nonprofit organizations 

and advises the Deputy Assistant Chairman 

for Grants and Awards about the merits of 

each application. Although the process of 

reviewing the grant applications entails 

significant judgment, the employee’s analysis 

and recommendations are reviewed by the 

Deputy Assistant Chairman, and the 

Assistant Chairman, before the Chairman 

decides what grants to award. Because his 

work is subject to ‘‘substantial supervision 

and review,’’ the employee is not required to 

file a confidential financial disclosure report 

unless the agency determines that filing is 

necessary under § 2634.904(a)(1)(ii). 

Example 4: As a senior investigator for a 

criminal law enforcement agency, an 

employee often leads investigations, with 

substantial independence, of suspected 

felonies. The investigator usually decides 

what information will be contained in the 

agency’s report of the suspected misconduct. 

Because he participates personally and 

substantially through the exercise of 

significant judgment in investigating 

violations of criminal law, the investigator 

should be required to file a confidential 

financial disclosure report. 

(2) Unless required to file public 

financial disclosure reports by subpart B 

of this part, all executive branch special 

Government employees who: 

(i) Have a substantial role in the 

formulation of agency policy; 

(ii) Serve on a Federal Advisory 

Committee; or 

(iii) Meet the requirements of 

paragraph (a)(1) of this section. 

Example 1: A consultant to an agency 

periodically advises the agency regarding 

important foreign policy matters. The 

consultant must file a confidential report if 

he is retained as a special Government 

employee and not an independent contractor. 

Example 2: A special Government 

employee serving as a member of an advisory 

committee (who is not a private group 

representative) attends four committee 

meetings every year to provide advice to an 

agency about pharmaceutical matters. No 

compensation is received by the committee 

member, other than travel expenses. The 

advisory committee member must file a 

confidential disclosure report because she is 

a special Government employee. 

(3) Each public filer referred to in 

§ 2634.202 on public disclosure who is 

required by agency regulations and 

forms issued in accordance with 

§§ 2634.103 and 2634.601(b) to file a 

supplemental confidential financial 

disclosure report which contains 

information that is more extensive than 

the information required in the 

reporting individual’s public financial 

disclosure report under this part. 

(4) Any employee who, 

notwithstanding the employee’s 

exclusion from the public financial 

reporting requirements of this part by 

virtue of a determination under 

§ 2634.203, is covered by the criteria of 

paragraph (a)(1) of this section. 

(b) Any individual or class of 

individuals described in paragraph (a) 

of this section, including special 

Government employees unless 

otherwise noted, may be excluded from 

all or a portion of the confidential 

reporting requirements of this subpart, 

when the agency head or designee 

determines that the duties of a position 

make remote the possibility that the 

incumbent will be involved in a real or 

apparent conflict of interest. 

Example 1: A special Government 

employee who is a draftsman prepares the 

drawings to be used by an agency in 


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soliciting bids for construction work on a 

bridge. Because he is not involved in the 

contracting process associated with the 

construction, the likelihood that this action 

will create a conflict of interest is remote. As 

a result, the special Government employee is 

not required to file a confidential financial 

disclosure report. 

Example 2: An agency has just hired a 

GS–5 Procurement Assistant who is 

responsible for typing and processing 

procurement documents, answering status 

inquiries from the public, performing office 

support duties such as filing and copying, 

and maintaining an on-line contract database. 

The Assistant is not involved in contracting 

and has no other actual procurement 

responsibilities. Thus, the possibility that the 

Assistant will be involved in a real or 

apparent conflict of interest is remote, and 

the Assistant is not required to file. 

§ 2634.905 Use of alternative procedures. 

Agencies are encouraged to consider 

whether an alternative procedure would 

allow the agency to more effectively 

assess possible conflicts of interest. 

With the prior written approval of OGE, 

an agency may use an alternative 

procedure in lieu of filing the OGE Form 

450. The alternative procedure may be 

an agency-specific form to be filed in 

place thereof. An agency must submit 

for approval a description of its 

proposed alternative procedure to OGE. 

Example 1: A nonsupervisory auditor at an 

agency is regularly assigned to cases 

involving possible loan improprieties by 

financial institutions. Prior to undertaking 

each enforcement review, the auditor reviews 

the file to determine if she has a conflict of 

interest. After determining that she has no 

conflict of interest, she signs and dates a 

certification which verifies that she has 

reviewed the file and has made such a 

determination. She then files the certification 

with the head of her auditing division at the 

agency. On the other hand, if she cannot 

execute the certification, she informs the 

head of her auditing division. In response, 

the division will either reassign the case or 

review the conflicting interest to determine 

whether a waiver would be appropriate. This 

alternative procedure, if approved by the 

Office of Government Ethics in writing, may 

be used in lieu of requiring the auditor to file 

a confidential financial disclosure report. 

Example 2: To reduce its workload, an 

agency proposes that employees may file a 

statement certifying there has been no change 

in reportable information and no change in 

the filer’s position and duties and attaching 

the most recent OGE Form 450. This 

alternative procedure, if approved by the 

Office of Government Ethics in writing, may 

be used in lieu of requiring the filer to 

complete an OGE Form 450. 

§ 2634.906 Review of confidential filer 

status. 

The head of each agency, or an officer 

designated by the head of the agency for 

that purpose, will review any complaint 

by an individual that the individual’s 

position has been improperly 

determined by the agency to be one 

which requires the submission of a 

confidential financial disclosure report 

pursuant to this subpart. A decision by 

the agency head or designee regarding 

the complaint will be final. 

§ 2634.907 Report contents. 

(a) Other than the reports described in 

§ 2634.904(a)(3), each confidential 

financial disclosure report must comply 

with instructions issued by the Office of 

Government Ethics and include on the 

standardized form prescribed by OGE 

(see § 2634.601) the information 

described in paragraphs (b) through (g) 

of this section for the filer. Each report 

must also include the information 

described in paragraph (h) of this 

section for the filer’s spouse and 

dependent children. 

(b) Noninvestment income. Each 

financial disclosure report must disclose 

the source of earned or other 

noninvestment income in excess of 

$1,000 received by the filer from any 

one source during the reporting period, 

including: 

(1) Salaries, fees, commissions, wages 

and any other compensation for 

personal services (other than from 

United States Government 

employment); 

(2) Any honoraria, including 

payments made or to be made to 

charitable organizations on behalf of the 

filer in lieu of honoraria; and 

Note to paragraph (b)(2): In determining 

whether an honorarium exceeds the $1,000 

threshold, subtract any actual and necessary 

travel expenses incurred by the filer and one 

relative, if the expenses are paid or 

reimbursed by the filer. If such expenses are 

paid or reimbursed by the honorarium 

source, they will not be counted as part of 

the honorarium payment. 

(3) Any other noninvestment income, 

such as prizes, scholarships, awards, 

gambling income or discharge of 

indebtedness. 

Example to paragraphs (b)(1) and (b)(3): A 

filer teaches a course at a local community 

college, for which she receives a salary of 

$3,000 per year. She also received, during the 

previous reporting period, a $1,250 award for 

outstanding local community service. She 

must disclose both. 

(c) Assets and investment income. 

Each financial disclosure report must 

disclose separately: 

(1) Each item of real and personal 

property having a fair market value in 

excess of $1,000 held by the filer at the 

end of the reporting period in a trade or 

business, or for investment or the 

production of income, including but not 

limited to: 

(i) Real estate; 

(ii) Stocks, bonds, securities, and 

futures contracts; 

(iii) Sector mutual funds, sector 

exchange-traded funds, and other 

pooled investment funds; 

(iv) Pensions and annuities; 

(v) Vested beneficial interests in 

trusts; 

(vi) Ownership interest in businesses 

and partnerships; and 

(vii) Accounts receivable. 

(2) The source of investment income 

(dividends, rents, interest, capital gains, 

or the income from qualified or 

excepted trusts or excepted investment 

funds (see paragraph (i) of this section)), 

which is received by the filer during the 

reporting period, and which exceeds 

$1,000 in amount or value from any one 

source, including but not limited to 

income derived from: 

(i) Real estate; 

(ii) Collectible items; 

(iii) Stocks, bonds, and notes; 

(iv) Copyrights; 

(v) Vested beneficial interests in trusts 

and estates; 

(vi) Pensions; 

(vii) Sector mutual funds (see 

definition at § 2640.102(q) of this 

chapter); 

(viii) The investment portion of life 

insurance contracts; 

(ix) Loans; 

(x) Gross income from a business; 

(xi) Distributive share of a 

partnership; 

(xii) Joint business venture income; 

and 

(xiii) Payments from an estate or an 

annuity or endowment contract. 

Note to paragraphs (c)(1) and (c)(2): For 

Individual Retirement Accounts (IRAs), 

brokerage accounts, trusts, mutual or pension 

funds, and other entities with portfolio 

holdings, each underlying asset must be 

separately disclosed, unless the entity 

qualifies for special treatment under 

paragraph (i) of this section. 

(3) Exceptions. The following assets 

and investment income are excepted 

from the reporting requirements of 

paragraphs (c)(1) and (c)(2) of this 

section: 

(i) A personal residence, as defined in 

§ 2634.105(l); 

(ii) Accounts (including both demand 

and time deposits) in depository 

institutions, including banks, savings 

and loan associations, credit unions, 

and similar depository financial 

institutions; 

(iii) Money market mutual funds and 

accounts; 

(iv) U.S. Government obligations, 

including Treasury bonds, bills, notes, 

and savings bonds; 

(v) Government securities issued by 

U.S. Government agencies; 


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(vi) Financial interests in any 

retirement system of the United States 

(including the Thrift Savings Plan) or 

under the Social Security Act; 

(vii) Financial interest in any 

diversified fund held in any pension 

plan established or maintained by State 

government or any political subdivision 

of a State government for its employees; 

(viii) A diversified fund in an 

employee benefit plan; and 

(ix) Diversified mutual funds and unit 

investment trusts. 

Note to paragraphs (c)(3)(vii) through (ix): 

For purposes of this section, ‘‘diversified’’ 

means that the fund does not have a stated 

policy of concentrating its investments in any 

industry, business, single country other than 

the United States, or bonds of a single State 

within the United States and, in the case of 

an employee benefit plan, means that the 

plan’s independent trustee has a written 

policy of varying plan investments. Whether 

a fund meets this standard may be 

determined by checking the fund’s 

prospectus or by calling a broker or the 

manager of the fund. 

Example 1: A filer owns a beach house 

which he rents out for several weeks each 

summer, receiving annual rental income of 

approximately $5,000. He must report the 

rental property, as well as the city and state 

in which it is located. 

Example 2: A filer’s investment portfolio 

consists of several stocks, U.S. Treasury 

bonds, several cash bank deposit accounts, 

an account in the Government’s Thrift 

Savings Plan, and shares in sector mutual 

funds and diversified mutual funds. He must 

report the name of each sector mutual fund 

in which he owns shares, and the name of 

each company in which he owns stock, 

valued at over $1,000 at the end of the 

reporting period or from which he received 

income of more than $1,000 during the 

reporting period. He need not report his 

diversified mutual funds, U.S. Treasury 

bonds, bank deposit accounts, or Thrift 

Savings Plan holdings. 

(d) Liabilities. Each financial 

disclosure report filed pursuant to this 

subpart must identify liabilities in 

excess of $10,000 owed by the filer at 

any time during the reporting period, 

and the name and location of the 

creditors to whom such liabilities are 

owed, except: 

(1) Personal liabilities owed to a 

spouse or to the parent, brother, sister, 

or child of the filer, spouse, or 

dependent child; 

(2) Any mortgage secured by a 

personal residence of the filer or the 

filer’s spouse; 

(3) Any loan secured by a personal 

motor vehicle, household furniture, or 

appliances, provided that the loan does 

not exceed the purchase price of the 

item which secures it; 

(4) Any revolving charge account; 

(5) Any student loan; and 

(6) Any loan from a bank or other 

financial institution on terms generally 

available to the public. 

Example: A filer owes $2,500 to his 

mother-in-law and $12,000 to his best friend. 

He also has a $15,000 balance on his credit 

card, a $200,000 mortgage on his personal 

residence, and a car loan. Under the financial 

disclosure reporting requirements, he need 

not report the debt to his mother-in-law, his 

credit card balance, his mortgage, or his car 

loan. He must, however, report the debt of 

over $10,000 to his best friend. 

(e) Positions with non-Federal 

organizations—(1) In general. Each 

financial disclosure report filed 

pursuant to this subpart must identify 

all positions held at any time by the filer 

during the reporting period, other than 

with the United States, as an officer, 

director, trustee, general partner, 

proprietor, representative, executor, 

employee, or consultant of any 

corporation, company, firm, 

partnership, trust, or other business 

enterprise, any nonprofit organization, 

any labor organization, or any 

educational or other institution. 

(2) Exceptions. The following 

positions are excepted from the 

reporting requirements of paragraph 

(e)(1) of this section: 

(i) Positions held in religious, social, 

fraternal, or political entities; and 

(ii) Positions solely of an honorary 

nature, such as those with an emeritus 

designation. 

Example 1: A filer holds outside positions 

as the trustee of his family trust, the secretary 

of a local political party committee, and the 

‘‘Chairman’’ of his town’s Lions Club. He also 

is a principal of a tutoring school on 

weekends. The individual must report his 

outside positions as trustee of the family trust 

and as principal of the school. He does not 

need to report his positions as secretary of 

the local political party committee or 

‘‘Chairman’’ because each of these positions 

is excepted from disclosure. 

Example 2: An official recently terminated 

her role as the managing member of a limited 

liability corporation upon appointment to a 

position in the executive branch. The 

managing member position must be disclosed 

in the official’s new entrant financial 

disclosure report pursuant to this section. 

Example 3: An official is a member of the 

board of his church. The official does not 

need to disclose the position in his financial 

disclosure report. 

Example 4: An official is an officer in a 

fraternal organization that exists for the 

purpose of performing service work in the 

community. The official does not need to 

disclose this position in her financial 

disclosure report. 

Example 5: An official is the ceremonial 

Parade Marshal for a local town’s annual 

Founders’ Day event and, in that capacity, 

leads a parade and serves as Master of 

Ceremonies for an awards ceremony at the 

town hall. The official does not need to 

disclose this position in her financial 

disclosure report. 

Example 6: An official recently terminated 

his role as a campaign manager for a 

candidate for the Office of the President of 

the United States upon appointment to a 

noncareer position in the executive branch. 

The official does not need to disclose the 

campaign manager position in his financial 

disclosure report. 

Example 7: Immediately prior to her 

recent appointment to a position in an 

agency, an official terminated her 

employment as a corporate officer. In 

connection with her employment, she served 

for several years as the corporation’s 

representative to an incorporated association 

that represents members of the industry in 

which the corporation operates. She does not 

need to disclose her role as her employer’s 

representative to the association because she 

performed her representative duties in her 

capacity as a corporate officer. 

Example 8: An official holds a position on 

the board of directors of a local food bank. 

The official must disclose the position in his 

financial disclosure report. 

(f) Agreements and arrangements. 

Each financial disclosure report filed 

pursuant to this subpart must identify 

the parties to, and must briefly describe 

the terms of, any agreement or 

arrangement of the filer in existence at 

any time during the reporting period 

with respect to: 

(1) Future employment (including the 

date on which the filer entered into the 

agreement for future employment); 

(2) A leave of absence from 

employment during the period of the 

filer’s Government service; 

(3) Continuation of payments by a 

current or former employer other than 

the United States Government; and 

(4) Continuing participation in an 

employee welfare or benefit plan 

maintained by a current or former 

employer other than the United States 

Government. Confidential filers are not 

required to disclose continuing 

participation in a defined contribution 

plan, such as a 401(k) plan, to which a 

former employer is no longer making 

contributions. 

Note to paragraph (f)(4): Even if the 

agreement is not reportable, the filer must 

disclose any reportable asset, such as a sector 

fund or a stock, held in the account. 

Example 1: A filer plans to retire from 

Government service in eight months. She has 

negotiated an arrangement for part-time 

employment with a private-sector company, 

to commence upon her retirement. On her 

financial disclosure report, she must identify 

the future employer, and briefly describe the 

terms of, this agreement and disclose the date 

on which she entered into the agreement. 

Example 2: A new employee has entered 

a position which requires the filing of a 

confidential form. During his Government 

tenure, he will continue to receive deferred 


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compensation from his former employer and 

will continue to participate in its pension 

plan. He must report the receipt of deferred 

compensation and the participation in the 

defined benefit plan. 

Example 3: An employee has a defined 

contribution plan with a former employer. 

The employer no longer makes contributions 

to the plan. In the account, the employee 

holds shares worth $15,000 in an S&P 500 

Index fund and shares worth $7,000 in an 

U.S. Financial Services fund. The employee 

does not need to disclose either the 

agreement to continue to participate in the 

plan or the S&P 500 Index Fund. The 

employee must disclose the U.S. Financial 

Services Fund sector fund. 

(g) Gifts and travel reimbursements. 

(1) Each annual financial disclosure 

report filed pursuant to this subpart 

must contain a brief description of all 

gifts and travel reimbursements 

aggregating more than $390 in value 

which are received by the filer during 

the reporting period from any one 

source, as well as the identity of the 

source. For travel-related items, the 

report must include a travel itinerary, 

the dates, and the nature of expenses 

provided. Special government 

employees are not required to report the 

travel reimbursements received from 

their non-Federal employers. 

(2) Aggregation exception. Any gift or 

travel reimbursement with a fair market 

value of $156 or less need not be 

aggregated for purposes of the reporting 

rules of this section. However, the 

acceptance of gifts, whether or not 

reportable, is subject to the restrictions 

imposed by Executive Order 12674, as 

modified by Executive Order 12731, and 

the implementing regulations on 

standards of ethical conduct. 

Note to paragraph (g)(2): The Office of 

Government Ethics sets these amounts every 

3 years using the same disclosure thresholds 

as those for public financial disclosure filers. 

In 2017, the reporting threshold was set at 

$390 and the aggregation threshold was set 

at $156. The Office of Government Ethics 

will update this part in 2020 and every three 

years thereafter to reflect the new amount. 

(3) Valuation of gifts and travel 

reimbursements. The value to be 

assigned to a gift or travel 

reimbursement is its fair market value. 

For most reimbursements, this will be 

the amount actually received. For gifts, 

the value should be determined in one 

of the following manners: 

(i) If the gift is readily available in the 

market, the value will be its retail price. 

The filer need not contact the donor, but 

may contact a retail establishment 

selling similar items to determine the 

present cost in the market. 

(ii) If the item is not readily available 

in the market, such as a piece of art, the 

filer may make a good faith estimate of 

the value of the item. 

(iii) The term ‘‘readily available in the 

market’’ means that an item generally is 

available for retail purchase. 

(4) New entrants, as described in 

§ 2634.903(b), need not report any 

information on gifts and travel 

reimbursements. 

(5) Exceptions. Reports need not 

contain any information about gifts and 

travel reimbursements received from 

relatives (see § 2634.105(o)) or during a 

period in which the filer was not an 

officer or employee of the Federal 

Government. Additionally, any food, 

lodging, or entertainment received as 

‘‘personal hospitality of any 

individual,’’ as defined in § 2634.105(k), 

need not be reported. See also 

exclusions specified in the definitions 

of ‘‘gift’’ and ‘‘reimbursement’’ at 

§ 2634.105(h) and (n). 

Example: A filer accepts a laptop bag, a 

t-shirt, and a cell phone from a community 

service organization he has worked with 

solely in his private capacity. He determines 

that the value of these gifts is: 

Gift 1—Laptop bag: $200 

Gift 2—T-shirt: $20 

Gift 3—Cell phone: $275 

The filer must disclose Gift 1 and Gift 

3 because, together, they aggregate more 

than $390 in value from the same 

source. He need not aggregate or report 

Gift 2 because the gift’s value does not 

exceed $156. 

(h) Disclosure rules for spouses and 

dependent children—(1) Noninvestment 

income. (i) Each financial disclosure 

report required by the provisions of this 

subpart must disclose the source of 

earned income in excess of $1,000 from 

any one source, which is received by the 

filer’s spouse during the reporting 

period. If earned income is derived from 

a spouse’s self-employment in a 

business or profession, the report must 

disclose the nature of the business or 

profession. The filer is not required to 

report other noninvestment income 

received by the spouse such as prizes, 

scholarships, awards, gambling income, 

or a discharge of indebtedness. 

(ii) Each report must disclose the 

source of any honoraria received by the 

spouse (or payments made or to be 

made to charity on the spouse’s behalf 

in lieu of honoraria) in excess of $1,000 

from any one source during the 

reporting period. 

Example to paragraph (h)(1): A filer’s 

husband has a seasonal part-time job as a 

sales clerk at a department store, for which 

he receives a salary of $1,000 per year, and 

an honorarium of $1,250 from the state 

university. The filer need not report her 

husband’s outside earned income because it 

did not exceed $1,000. She must, however, 

report the source of the honorarium because 

it exceeded $1,000. 

(2) Assets and investment income. 

Each confidential financial disclosure 

report must disclose the assets and 

investment income described in 

paragraph (c) of this section and held by 

the spouse or dependent child of the 

filer. 

(3) Liabilities. Each confidential 

financial disclosure report must disclose 

all information concerning liabilities 

described in paragraph (d) of this 

section and owed by a spouse or 

dependent child. 

(4) Gifts and travel reimbursements. 

(i) Each annual confidential financial 

disclosure report must disclose gifts and 

reimbursements described in paragraph 

(g) of this section and received by a 

spouse or dependent child which are 

not received totally independently of 

their relationship to the filer. 

(ii) A filer who is a new entrant as 

described in § 2634.903(b) is not 

required to report information regarding 

gifts and reimbursements received by a 

spouse or dependent child. 

(5) Divorce and separation. A filer 

need not report any information about: 

(i) A spouse living separate and apart 

from the filer with the intention of 

terminating the marriage or providing 

for permanent separation; 

(ii) A former spouse or a spouse from 

whom the filer is permanently 

separated; or 

(iii) Any income or obligations of the 

filer arising from dissolution of the 

filer’s marriage or permanent separation 

from a spouse. 

Example: A filer and her husband are 

living apart in anticipation of divorcing. The 

filer need not report any information about 

her spouse’s sole assets and liabilities, but 

she must continue to report their joint assets 

and liabilities. 

(6) Unusual circumstances. In very 

rare cases, certain interests in property, 

transactions, and liabilities of a spouse 

or a dependent child are excluded from 

reporting requirements, provided that 

each requirement of this paragraph is 

strictly met. 

(i) The filer must certify without 

qualification that the item represents the 

spouse’s or dependent child’s sole 

financial interest or responsibility, and 

that the filer has no knowledge 

regarding that item; 

(ii) The item must not be in any way, 

past or present, derived from the 

income, assets or activities of the filer; 

and 

(iii) The filer must not derive, or 

expect to derive, any financial or 

economic benefit from the item. 


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Note to paragraph (h)(6): The exception 

described in paragraph (6) of this section is 

not available to most filers. One who 

prepares or files a joint tax return with a 

spouse will normally derive a financial or 

economic benefit from assets held by the 

spouse, and will also be presumed to have 

knowledge of such items; therefore one could 

not avail oneself of this exception after 

preparing or filing a joint tax return. If the 

filer and the spouse cohabitate and share 

household expenses, the filer will be deemed 

to derive an economic benefit from the item, 

unless the item is beyond the filer’s control. 

Example: The spouse of a filer has a 

managed account with a brokerage firm. The 

filer knows the account exists but the spouse 

does not share any information about the 

holdings and does not want the information 

disclosed on a financial disclosure statement. 

The filer must disclose the holdings in the 

spouse’s managed account because the 

spouse shares in paying expenses (for 

example, household, vacation, or child 

related). 

(i) Trusts, estates, and investment 

funds—(1) In general. (i) Except as 

otherwise provided in this section, each 

confidential financial disclosure report 

must include the information required 

by this subpart about the holdings of 

any trust, estate, investment fund or 

other financial arrangement from which 

income is received by, or with respect 

to which a beneficial interest in 

principal or income is held by, the filer, 

the filer’s spouse, or dependent child. 

(ii) Information about the underlying 

holdings of a trust is required if the filer, 

filer’s spouse, or dependent child 

currently is entitled to receive income 

from the trust or is entitled to access the 

principal of the trust. If a filer, filer’s 

spouse, or dependent child has a 

beneficial interest in a trust that either 

will provide income or the ability to 

access the principal in the future, the 

filer should determine whether there is 

a vested interest in the trust under 

controlling state law. However, no 

information about the underlying 

holdings of the trust is required for a 

nonvested beneficial interest in the 

principal or income of a trust. 

Note to paragraph (i)(1): Nothing in this 

section requires the reporting of the holdings 

of a revocable inter vivos trust (also known 

as a ‘‘living trust’’) with respect to which the 

filer, the filer’s spouse or dependent child 

has only a remainder interest, whether or not 

vested, provided that the grantor of the trust 

is neither the filer, the filer’s spouse, nor the 

filer’s dependent child. Furthermore, nothing 

in this section requires the reporting of the 

holdings of a revocable inter vivos trust from 

which the filer, the filer’s spouse or 

dependent child receives any discretionary 

distribution, provided that the grantor of the 

trust is neither the filer, the filer’s spouse, 

nor the filer’s dependent child. 

(2) Qualified trusts and excepted 

trusts. (i) A filer should not report 

information about the holdings of any 

qualified blind trust (as defined in 

§ 2634.402) or any qualified diversified 

trust (as defined in § 2634.402). 

(ii) In the case of an excepted trust, a 

filer should indicate the general nature 

of its holdings, to the extent known, but 

does not otherwise need to report 

information about the trust’s holdings. 

For purposes of this part, the term 

‘‘excepted trust’’ means a trust: 

(A) Which was not created directly by 

the filer, spouse, or dependent child; 

and 

(B) The holdings or sources of income 

of which the filer, spouse, or dependent 

child have no specific knowledge 

through a report, disclosure, or 

constructive receipt, whether intended 

or inadvertent. 

(3) Excepted investment funds. (i) No 

information is required under paragraph 

(i)(1) of this section about the 

underlying holdings of an excepted 

investment fund as defined in paragraph 

(i)(3)(ii) of this section, except that the 

fund itself must be identified as an 

interest in property and/or a source of 

income. 

(ii) For purposes of financial 

disclosure reports filed under the 

provisions of this subpart, an ‘‘excepted 

investment fund’’ means a widely held 

investment fund (whether a mutual 

fund, regulated investment company, 

common trust fund maintained by a 

bank or similar financial institution, 

pension or deferred compensation plan, 

or any other investment fund), if: 

(A)(1) The fund is publicly traded or 

available; or 

(2) The assets of the fund are widely 

diversified; and 

(B) The filer neither exercises control 

over nor has the ability to exercise 

control over the financial interests held 

by the fund. 

(iii) A fund is widely diversified if it 

does not have a stated policy of 

concentrating its investments in any 

industry, business, single country other 

than the United States, or bonds of a 

single State within the United States. 

Note to paragraph (i)(3): The fact that an 

investment fund qualifies as an excepted 

investment fund is not relevant to a 

determination as to whether the investment 

qualifies for an exemption to the criminal 

conflict of interest statute at 18 U.S.C. 208(a), 

pursuant to part 2640 of this chapter. Some 

excepted investment funds qualify for 

exemptions pursuant to part 2640, while 

other excepted investment funds do not 

qualify for such exemptions. If an employee 

holds an excepted investment fund that is 

not exempt from 18 U.S.C. 208(a), the ethics 

official may need additional information 

from the filer to determine if the holdings of 

the fund create a conflict of interest and 

should advise the employee to monitor the 

fund’s holdings for potential conflicts of 

interest. 

(j) Special rules. (1) Political 

campaign funds, including campaign 

receipts and expenditures, need not be 

included in any report filed under this 

subpart. However, if the individual has 

authority to exercise control over the 

fund’s assets for personal use rather 

than campaign or political purposes, 

that portion of the fund over which such 

authority exists must be reported. 

(2) With permission of the designated 

agency ethics official, a filer may attach 

to the reporting form a copy of a 

statement which, in a clear and concise 

fashion, readily discloses all 

information which the filer would 

otherwise have been required to enter 

on the concerned part of the report 

form. 

(k) For reports of confidential filers 

described in § 2634.904(a)(3), each 

supplemental confidential financial 

disclosure report will include only the 

supplemental information: 

(1) Which is more extensive than that 

required in the reporting individual’s 

public financial disclosure report under 

this part; and 

(2) Which has been approved by the 

Office of Government Ethics for 

collection by the agency concerned, as 

set forth in supplemental agency 

regulations and forms, issued under 

§§ 2634.103 and 2634.601(b) (see 

§ 2634.901(b) and (c)). 

§ 2634.908 Reporting periods. 

(a) Incumbents. Each confidential 

financial disclosure report filed under 

§ 2634.903(a) must include the 

information required to be reported 

under this subpart for the preceding 

calendar year, or for any portion of that 

period not covered by a previous 

confidential or public financial 

disclosure report filed under this part. 

(b) New entrants. Each confidential 

financial disclosure report filed under 

§ 2634.903(b) must include the 

information required to be reported 

under this subpart for the following 

reporting periods: 

(1) Noninvestment income for the 

preceding 12 months; 

(2) Assets held on the date of filing. 

New entrant filers are not required to 

report assets no longer held at the time 

of appointment, even if the assets 

previously produced income before the 

filers were appointed to their 

confidential positions; 

(3) Liabilities owed on the date of 

filing; 

(4) Positions with non-Federal 

organizations for the preceding 12 

months; and 


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(5) Agreements and arrangements 

held on the date of filing. 

§ 2634.909 Procedures, penalties, and 

ethics agreements. 

(a) The provisions of subpart F of this 

part govern the filing procedures and 

forms for, and the custody and review 

of, confidential disclosure reports filed 

under this subpart. 

(b) For penalties and remedial action 

which apply in the event that the 

reporting individual fails to file, falsifies 

information, or files late with respect to 

confidential financial disclosure reports, 

see subpart G of this part. 

(c) Subpart H of this part on ethics 

agreements applies to both the public 

and confidential reporting systems 

under this part. 

Subpart J—Certificates of Divestiture 

§ 2634.1001 Overview. 

(a) Scope. 26 U.S.C. 1043 and the 

rules of this subpart allow an eligible 

person to defer paying capital gains tax 

on property sold to comply with conflict 

of interest requirements. To defer the 

gains, an eligible person must obtain a 

Certificate of Divestiture from the 

Director of the Office of Government 

Ethics before selling the property. This 

subpart describes the circumstances 

when an eligible person may obtain a 

Certificate of Divestiture and establishes 

the procedure that the Office of 

Government Ethics uses to issue 

Certificates of Divestiture. 

(b) Purpose. The purpose of section 

1043 and this subpart is to minimize the 

burden that would result from paying 

capital gains tax on the sale of assets to 

comply with conflict of interest 

requirements. Minimizing this burden 

aids in attracting and retaining highly 

qualified personnel in the executive 

branch and ensures the confidence of 

the public in the integrity of 

Government officials and decisionmaking processes. 

§ 2634.1002 Role of the Internal Revenue 

Service. 

The Internal Revenue Service (IRS) 

has jurisdiction over the tax aspects of 

a divestiture made pursuant to a 

Certificate of Divestiture. Eligible 

persons seeking to defer capital gains: 

(a) Must follow IRS requirements for 

reporting dispositions of property and 

electing under section 1043 not to 

recognize capital gains; and 

(b) Should consult a personal tax 

advisor or the IRS for guidance on these 

matters. 

§ 2634.1003 Definitions. 

For purposes of this subpart: 

(a) Eligible person means: 

(1) Any officer or employee of the 

executive branch of the Federal 

Government, except a person who is a 

special Government employee as 

defined in 18 U.S.C. 202; 

(2) The spouse or any minor or 

dependent child of the individual 

referred to in paragraph (1) of this 

definition; and 

(3) Any trustee holding property in a 

trust in which an individual referred to 

in paragraph (1) or (2) of this definition 

has a beneficial interest in principal or 

income. 

(b) Permitted property means: 

(1) An obligation of the United States; 

or 

(2) A diversified investment fund. A 

diversified investment fund is a 

diversified mutual fund (including 

diversified exchange-traded funds) or a 

diversified unit investment trust, as 

defined in 5 CFR 2640.102(a), (k) and 

(u); 

(3) Provided, however, a permitted 

property cannot be any holding 

prohibited by statute, regulation, rule, or 

Executive order. As a result, 

requirements applicable to specific 

agencies and positions may limit an 

eligible person’s choices of permitted 

property. An employee seeking a 

Certificate of Divestiture should consult 

the appropriate designated agency 

ethics official to determine whether a 

statute, regulation, rule, or Executive 

order may limit choices of permitted 

property. 

§ 2634.1004 General rule. 

(a) The Director of the Office of 

Government Ethics may issue a 

Certificate of Divestiture for specific 

property in accordance with the 

procedures of § 2634.1005 if: 

(1) The Director determines that 

divestiture of the property by an eligible 

person is reasonably necessary to 

comply with 18 U.S.C. 208, or any other 

Federal conflict of interest statute, 

regulation, rule, or Executive order; or 

(2) A congressional committee 

requires divestiture as a condition of 

confirmation. 

(b) The Director of the Office of 

Government Ethics cannot issue a 

Certificate of Divestiture for property 

that already has been sold. 

Example 1: An employee is directed to 

divest shares of stock, a limited partnership 

interest, and foreign currencies. If the sale of 

these assets will result in capital gains under 

the Internal Revenue Code, the employee 

may request and receive a Certificate of 

Divestiture. 

Example 2: An employee of the 

Department of Commerce is directed to 

divest his shares of XYZ stock acquired 

through the exercise of options held in an 

employee benefit plan. The employee 

explains that the gain from the sale of the 

stock will be treated as ordinary income. 

Because only capital gains realized under 

Federal tax law are eligible for deferral under 

section 1043, a Certificate of Divestiture 

cannot be issued for the sale of the XYZ 

stock. 

Example 3: During her Senate confirmation 

hearing, a nominee to a Department of 

Defense (DOD) position is directed to divest 

stock in a DOD contractor as a condition of 

her confirmation. Eager to comply with the 

order to divest, the nominee sells her stock 

immediately after the hearing and prior to 

being confirmed by the Senate. Once she is 

a DOD employee, she requests a Certificate of 

Divestiture for the stock. Because the Office 

of Government Ethics cannot issue a 

Certificate of Divestiture for property that has 

already been divested, the employee’s 

request for a Certificate of Divestiture must 

be denied. 

§ 2634.1005 How to obtain a Certificate of 

Divestiture. 

(a) Employee’s request to the 

designated agency ethics official. An 

employee seeking a Certificate of 

Divestiture must submit a written 

request to the designated agency ethics 

official at his or her agency. The request 

must contain: 

(1) A full and specific description of 

the property that will be divested. For 

example, if the property is corporate 

stock, the request must include the 

number of shares for which the eligible 

person seeks a Certificate of Divestiture; 

(2) A brief description of how the 

eligible person acquired the property; 

(3) A statement that the eligible 

person holding the property has agreed 

to divest the property; and 

(4)(i) The date that the requirement to 

divest first applied; or 

(ii) The date the employee first agreed 

that the eligible person would divest the 

property in order to comply with 

conflict of interest requirements. 

(b) Designated agency ethics official’s 

submission to the Office of Government 

Ethics. The designated agency ethics 

official must forward to the Director of 

the Office of Government Ethics the 

employee’s written request described in 

paragraph (a) of this section. In 

addition, the designated agency ethics 

official must submit: 

(1) A copy of the employee’s most 

recent Incumbent financial disclosure 

report, or New Entrant report, if an 

Incumbent report has not been filed, 

and any subsequent Periodic 

Transaction reports, as required by this 

part. If the employee is not required to 

file a financial disclosure report, the 

designated agency ethics official must 

obtain from the employee, and submit to 

the Office of Government Ethics, a 

listing of the employee’s interests that 

would be required to be disclosed on a 


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confidential financial disclosure report 

excluding gifts and travel 

reimbursements. For purposes of this 

listing, the reporting period is the 

preceding 12 months from the date the 

requirement to divest first applied or the 

date the employee first agreed that the 

eligible person would divest the 

property; 

(2) An opinion that describes why 

divestiture of the property is reasonably 

necessary to comply with 18 U.S.C. 208, 

or any other Federal conflict of interest 

statute, regulation, rule, or Executive 

order; 

(3) If applicable, a statement 

identifying any factors that, in the 

opinion of the designated agency ethics 

official, weigh against the issuance of a 

certificate of divestiture; and 

(4) A brief description of the 

employee’s position or a citation to a 

statute that sets forth the duties of the 

position. 

(c) Divestitures required by a 

congressional committee. In the case of 

a divestiture required by a congressional 

committee as a condition of 

confirmation, the designated agency 

ethics official must submit appropriate 

evidence that the committee requires 

the divestiture. A transcript of 

congressional testimony or a written 

statement from the designated agency 

ethics official concerning the 

committee’s custom regarding 

divestiture are examples of evidence of 

the committee’s requirements. 

(d) Divestitures for property held in a 

trust. In the case of divestiture of 

property held in a trust, the employee 

must submit a copy of the trust 

instrument, as well as a list of the trust’s 

current holdings, unless the holdings 

are listed on the employee’s most recent 

financial disclosure report. In certain 

cases involving divestiture of property 

held in a trust, the Director may not 

issue a Certificate of Divestiture unless 

the parties take actions which, in the 

opinion of the Director, are appropriate 

to exclude, to the extent practicable, 

parties other than eligible persons from 

benefitting from the deferral of capital 

gains. Such actions may include, as 

permitted by applicable State law, 

division of the trust into separate 

portfolios, special distributions, 

dissolution of the trust, or anything else 

deemed feasible by the Director, in his 

or her sole discretion. 

Example: An employee has a 90% 

beneficial interest in an irrevocable trust 

created by his grandfather. His four adult 

children have the remaining 10% beneficial 

interest in the trust. A number of the assets 

held in the trust must be sold to comply with 

conflicts of interest requirements. Due to 

State law, no action can be taken to separate 

the trust assets. Because the adult children 

have a small interest in the trust and the 

assets cannot be separated, the Director may 

consider issuing a Certificate of Divestiture to 

the trustee for the sale of all of the conflicting 

assets. 

(e) Time requirements. A request for 

a Certificate of Divestiture does not 

extend the time in which an employee 

otherwise must divest property required 

to be divested pursuant to an ethics 

agreement, or prohibited by statute, 

regulation, rule, or Executive order. 

Therefore, an employee must submit his 

or her request for a Certificate of 

Divestiture as soon as possible once the 

requirement to divest becomes 

applicable. The Office of Government 

Ethics will consider requests submitted 

beyond the applicable time period for 

divestiture. If the designated agency 

ethics official submits a request to the 

Office of Government Ethics beyond the 

applicable time period for divestiture, 

he must explain the reason for the 

delay. See §§ 2634.802 and 2635.403 for 

rules relating to the time requirements 

for divestiture. 

(f) Response by the Office of 

Government Ethics. After reviewing the 

materials submitted by the employee 

and the designated agency ethics 

official, and making a determination 

that all requirements have been met, the 

Director will issue a Certificate of 

Divestiture. The certificate will be sent 

to the designated agency ethics official 

who will then forward it to the 

employee. 

§ 2634.1006 Rollover into permitted 

property. 

(a) Reinvestment of proceeds. In order 

to qualify for deferral of capital gains, an 

eligible person must reinvest the 

proceeds from the sale of the property 

divested pursuant to a Certificate of 

Divestiture into permitted property 

during the 60-day period beginning on 

the date of the sale. The proceeds may 

be reinvested into one or more types of 

permitted property. 

Example 1: A recently hired employee of 

the Department of Transportation receives a 

Certificate of Divestiture for the sale of a large 

block of stock in an airline. He may split the 

proceeds of the sale and reinvest them in an 

S&P Index Fund, a diversified Growth Stock 

Fund, and U.S. Treasury bonds. 

Example 2: The Secretary of Treasury sells 

certain stock after receiving a Certificate of 

Divestiture and is considering reinvesting the 

proceeds from the sale into U.S. Treasury 

securities. However, because the Secretary of 

the Treasury is prohibited by 31 U.S.C. 329 

from being involved in buying obligations of 

the United States Government, the Secretary 

cannot reinvest the proceeds in such 

securities. However, she may invest the 

proceeds in a diversified mutual fund. See 

the definition of permitted property at 

§ 2634.1003(b). 

(b) Internal Revenue Service reporting 

requirements. An eligible person who 

elects to defer the recognition of capital 

gains from the sale of property pursuant 

to a Certificate of Divestiture must 

follow Internal Revenue Service rules 

for reporting the sale of the property and 

the reinvestment transaction. 

§ 2634.1007 Cases in which Certificates of 

Divestiture will not be issued. 

The Director of the Office of 

Government Ethics, in his or her sole 

discretion, may deny a request for a 

Certificate of Divestiture in cases where 

an unfair or unintended benefit would 

result. Examples of such cases include: 

(a) Employee benefit plans. The 

Director will not issue a Certificate of 

Divestiture if the property is held in a 

pension, profit-sharing, stock bonus, or 

other employee benefit plan and can 

otherwise be rolled over into an eligible 

tax-deferred retirement plan within the 

60-day reinvestment period. 

(b) Tax-Deferred and Tax-Advantaged 

Accounts. The Director will not issue a 

Certificate of Divestiture if the property 

is held in an Individual Retirement 

Account, college savings plan (529 

plan), or other tax-deferred or taxadvantaged account (e.g., 401(k), 403(b), 

457 plans, etc.), which allow the 

account holder to exchange the property 

for permissible property without 

incurring a capital gain. 

(c) Complete divestiture. The Director 

will not issue a Certificate of Divestiture 

unless the employee agrees to divest all 

of the property that presents a conflict 

of interest, as well as other similar or 

related property that presents a conflict 

of interest under a Federal conflict of 

interest statute, regulation, rule, or 

Executive order. However, any property 

that qualifies for a regulatory exemption 

at part 2640 of this chapter need not be 

divested for a Certificate of Divestiture 

to be issued. 

Example: A Department of Agriculture 

employee owns shares of stock in Better 

Workspace, Inc. valued at $25,000. As part of 

his official duties, the employee is assigned 

to evaluate bids for a contract to renovate 

office space at his agency. The Department’s 

designated agency ethics official discovers 

that Better Workspace is one of the 

companies that has submitted a bid and 

directs the employee to sell his stock in the 

company. Because Better Workspace is a 

publicly traded security, the employee could 

retain up to $15,000 of the stock under the 

regulatory exemption for interests in 

securities at § 2640.202(a) of this chapter. He 

would be able to request a Certificate of 

Divestiture for the $10,000 of Better 

Workspace stock that is not covered by the 

exemption. Alternatively, he could request a 


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Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Rules and Regulations 34013 

Certificate of Divestiture for the entire 

$25,000 worth of stock. If he chooses to sell 

his stock down to an amount permitted 

under the regulatory exemption, the Office of 

Government Ethics will not issue additional 

Certificates of Divestiture if the value of the 

stock goes above $15,000 again. 

(d) Property acquired under improper 

circumstances. The Director will not 

issue a Certificate of Divestiture: 

(1) If the eligible person acquired the 

property at a time when its acquisition 

was prohibited by statute, regulation, 

rule, or Executive order; or 

(2) If circumstances would otherwise 

create the appearance of a conflict with 

the conscientious performance of 

Government responsibilities. 

§ 2634.1008 Public access to a Certificate 

of Divestiture. 

A Certificate of Divestiture issued 

pursuant to the provisions of this 

subpart is available to the public in 

accordance with the rules of § 2634.603. 

[FR Doc. 2018–15086 Filed 7–17–18; 8:45 am] 

BILLING CODE 6345–03–P 


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