Guideline of the European Central Bank of 26 September 2002 on minimum standards for the European Central Bank and national central banks when conducting monetary policy operations, foreign exchange operations with the ECB's foreign reserves and managing the ECB's foreign reserve assets (ECB/2002/6)
Date: 2002-09-26
Institutions: European Central Bank
Subjects: European Central Bank, bank deposit, central bank, exchange transaction, foreign-exchange reserves, standard

L 270/14

EN

Official Journal of the European Communities

8.10.2002

II

(Acts whose publication is not obligatory)

EUROPEAN CENTRAL BANK

GUIDELINE OF THE EUROPEAN CENTRAL BANK

of 26 September 2002

on minimum standards for the European Central Bank and national central banks when conducting
monetary policy operations, foreign exchange operations with the ECB's foreign reserves and
managing the ECB's foreign reserve assets

(ECB/2002/6)

(2002/777/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

(3)

Having regard to the Treaty establishing the European Commu-
nity, and in particular to the first, second and third indents of
Article 105(2),

Having regard to Article 12.1 and Article 14.3 of the Statute of
the European System of Central Banks and of the European
Central Bank, in conjunction with the first, second and third
indents of Article 3.1, Article 18.2 and Article 30.6,

Whereas:

(1)

(2)

In accordance with the first, second and third indents of
Article 105(2) of the Treaty, amongst the basic tasks to
be carried out by the ESCB are the definition and imple-
mentation of the monetary policy of the Community,
the conduct of foreign exchange operations consistent
with the provisions of Article 111 of the Treaty and the
holding and management of the official foreign reserves
of the Member States.

(i) conducting monetary policy operations;

The European Central Bank (ECB) considers it necessary
for the ECB and each national central bank of a partici-
pating Member State (NCB) to apply minimum standards
when:
(ii)
conducting foreign exchange operations with the ECBs
foreign reserves, and (iii) managing the ECB's foreign
reserve assets to the extent that NCBs are acting as an
agent for the ECB pursuant to Guideline ECB/2000/1 of
3 February 2000 on the management of the foreign
reserve assets of
the European Central Bank by the
national central banks and the legal documentation for
operations involving the foreign reserve assets of the
European Central Bank (1), as last amended by Guideline
ECB/2001/12 (2).

Article 38.1 of the Statute provides that members of the
governing bodies and the staff of the ECB and the NCBs
shall be required, even after their duties have ceased, not
to disclose information of the kind covered by the obli-
gation of professional secrecy.

The members of the Governing Council of the ECB have
agreed on a Memorandum of Understanding on similar
matters in the Governing Council meeting of 16 May
2002 (3).

In accordance with Article 12.1 and Article 14.3 of the
Statute, ECB guidelines form an integral part of Commu-
nity law,

(4)

(5)

HAS ADOPTED THIS GUIDELINE:

Article 1

Minimum standards
the ECB and NCBs when
conducting monetary policy operations, foreign exchange
operations with the ECB's foreign reserves and managing
the ECB's foreign reserve assets

for

When conducting activities or operations related to monetary
policy operations, foreign exchange operations with the ECB's
foreign reserves and when managing the ECBs foreign reserve
assets, the ECB and each NCB shall ensure that its internal rules
related to such operations or to such management, whether
they are codes of conduct, personnel regulations or any other
type of internal rules comply with the following minimum stan-
dards, in the framework of applicable national laws and labour
market practices.

(1) OJ L 207, 17.8.2000, p. 24.
(2) OJ L 310, 28.11.2001, p. 31.

(3) OJ C 123, 24.5.2002, p. 9.

8.10.2002

EN

Official Journal of the European Communities

L 270/15

1. SCOPE

The internal rules of the ECB and of the NCBs should contain
binding provisions ensuring compliance with these minimum
standards of all the ECB's and NCBs' activities or operations
related to monetary policy, foreign exchange operations with
the ECB's foreign reserves and when managing the ECB's
foreign reserve assets.

The rules contained herein should be applicable to:

— the members of the Executive Board of the ECB when not
exercising their functions as members of the Governing
Council,

— the members of the NCBs' decision making bodies, other
than those who are members of the Governing Council of
the ECB (and their alternates appointed in accordance with
Article 4.4 of the Rules of Procedure of
the European
Central Bank) exercising their functions as members of the
Governing Council,

— all ECB's employees involved in activities or operations
related to monetary policy operations,
foreign exchange
operations with the ECB's foreign reserves and the manage-
ment of the ECB's foreign reserve assets, and

— all NCB employees involved in activities or operations
related to monetary policy operations,
foreign exchange
operations with the ECB's foreign reserves and the manage-
ment of the ECB's foreign reserve assets

(such members of the Executive Board of the ECB and the
NCBs' decision-making bodies are hereinafter
collectively
referred to as ‘decision-making bodies’ and such ECB and NCB
as
employees
‘employees’).

collectively

hereinafter

referred

are

to

These minimum standards are not intended to exclude or preju-
dice the operation of any other more stringent provisions laid
internal rules that apply to
down in the ECB's and NCBs'
employees as well as to the decision making bodies, and these
minimum standards shall also be without prejudice to the
operation of Article 38.1 of the Statute of the European System
of Central Banks and of the European Central Bank.

2. MANAGEMENT SUPERVISION OF OPERATIONS WITH MARKET

COUNTERPARTIES

Control of the activities of the employees engaged in operations
with market counterparties is the responsibility of the respec-
tive management. The
and responsibilities
according to which market operators and support staff should
discharge their duties should be clearly set out in writing.

authorisations

3. AVOIDANCE OF POTENTIAL CONFLICTS OF INTEREST

Decision-making bodies and employees are required to abstain
from being a party to any economic or financial transactions
that may hinder their independence and impartiality.

Decision-making bodies and employees should avoid any situa-
tion liable to give rise to a conflict of interest.

4. PROHIBITION OF INSIDER TRADING

non-public confidential information obtained at the workplace
on to third parties. Moreover, decision-making bodies and
employees may not use non-public ESCB related knowledge
obtained at the workplace whenever they conduct private finan-
cial transactions.

to monetary policy operations,

Insider trading is defined as the activity of any person who, by
virtue of his or her employment, profession or duties, has
access to certain information of a precise nature that could be
foreign exchange
relevant
operations with the ECB's foreign reserves and the management
of the ECB's foreign reserve assets before it becomes public and
takes advantage of that information with full knowledge of the
facts by acquiring or disposing of, either for his or her own
account or for the account of a third party, either directly or
indirectly, assets (including transferable securities) or rights
(including rights under derivatives contracts)
to which that
information is closely related.

The ECB and the NCBs should have appropriate arrangements
in place to check that financial transactions entered into by the
decision-making bodies and employees conform with this rule.
Moreover,
these arrangements should be strictly limited to
compliance checks regarding those kinds of transactions that
could be relevant
foreign
exchange operations with the ECB's foreign reserves and the
management of the ECB's foreign reserve assets. Such compli-
ance checks should only be carried out where there are compel-
ling reasons for doing so.

to monetary policy operations,

5. ENTERTAINMENT AND GIFTS

Decision-making bodies and employees may not solicit gifts
and entertainment
course of
from third parties
conducting monetary policy operations,
foreign exchange
operations with the ECB's foreign reserves and the management
of the ECB's foreign reserve assets, nor may decision-making
bodies and employees accept gifts and entertainment in excess
of a customary or negligible amount, whether financial or non-
financial, that may hinder their independence and impartiality.

in the

Employees should be required to inform their management
about any attempt by a counterparty to offer them such gifts or
entertainment.

Article 2

Amendments to Guideline ECB/2000/1

Article 3a of and Annex 4 to Guideline ECB/2000/1 shall be
repealed.

Article 3

Verification

The NCBs shall forward details of the texts and means by which
they intend to comply with this Guideline to the ECB by 15
October 2002 at the latest to the extent they have not yet done
so in the context of the implementation of Guideline ECB/
2001/5 (1).

The ECB and the NCBs should not allow the decision-making
bodies and employees to conduct insider trading, nor to pass

(1) OJ L 190, 12.7.2001, p. 26.

L 270/16

EN

Official Journal of the European Communities

8.10.2002

Article 4

Final provisions

This Guideline is addressed to the NCBs of the Member States that have adopted the single currency

1.
in accordance with the Treaty.

2.

3.

This Guideline shall enter into force on 30 November 2002.

This Guideline shall be published in the Official Journal of the European Communities.

Done at Frankfurt am Main, 26 September 2002.

On behalf of the Governing Council of the
ECB

The President

Willem F. DUISENBERG