Sec. 3. Requirements relating to slowing the revolving door among financial services regulators
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The Ethics in Government Act of 1978 (5 U.S.C. App.) is amended by adding at the end the following: In this title, the terms designated agency ethics official and executive branch have the meanings given such terms under section 109. In this title: The term covered financial services agency — means a primary financial regulatory agency (as defined in section 2 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 )); and includes— the Board of Governors of the Federal Reserve System; the Office of the Comptroller of the Currency; the Federal Deposit Insurance Corporation; the National Credit Union Administration; the Securities and Exchange Commission; the Federal Housing Finance Agency; the Bureau of Consumer Financial Protection; the Commodity Futures Trading Commission; and the Department of the Treasury.
The term covered financial services regulator means an officer or employee of a covered financial services agency who occupies— a supervisory position classified above GS–15 of the General Schedule; in the case of a position not under the General Schedule, a supervisory position for which the rate of basic pay is not less than 120 percent of the minimum rate of basic pay for GS–15 of the General Schedule; or any other supervisory position determined to be of equal classification by the Director of the Office of Government Ethics.
The term former client — means a person for whom a covered financial services regulator served personally as an agent, attorney, or consultant during the 2-year period ending on the date (after such service) on which the covered financial services regulator begins service in the Federal Government; and does not include— instances in which the service provided was limited to a speech or similar appearance; or a client of the former employer of the covered financial services regulator to whom the covered financial services regulator did not personally provide such services.
The term former employer — means a person for whom a covered financial services regulator served as an employee, officer, director, trustee, or general partner during the 2-year period ending on the date (after such service) on which the covered financial services regulator begins service in the Federal Government; and does not include— an entity in the Federal Government, including an executive branch agency; a State or local government; the District of Columbia; an Indian tribe, as defined in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450b ); or the government of a territory or possession of the United States.
A covered financial services regulator shall not make, participate in making, or in any way attempt to use the official position of the covered financial services regulator to influence a particular matter that provides a direct and substantial pecuniary benefit for a former employer or former client of the covered financial services regulator. A covered financial services regulator shall recuse himself or herself from any official action that would violate subsection (a). The head of the covered financial services agency employing a covered financial services regulator, in consultation with the Director of the Office of Government Ethics, may grant a written waiver of the restrictions under subsection
(a)if, and to the extent that, the head of the covered financial services agency certifies in writing that— the application of the restriction to the particular matter is inconsistent with the purposes of the restriction; or it is in the public interest to grant the waiver. The Director of the Office of Government Ethics shall make each waiver under paragraph
(1)publicly available on the Web site of the Office of Government Ethics. Except as provided in subsection (c), and notwithstanding any other provision of law, a covered financial services regulator may not participate in any particular matter which involves, to the knowledge of the covered financial services regulator, an individual or entity with whom the covered financial services regulator is in negotiations of future employment or has an arrangement concerning prospective employment. If a covered financial services regulator begins any negotiations of future employment with another person, or an agent or intermediary of another person, or other discussion or communication with another person, or an agent or intermediary of another person, mutually conducted with a view toward reaching an agreement regarding possible employment of the covered financial services regulator, the covered financial services regulator shall notify the designated agency ethics official of the covered financial services agency employing the covered financial services regulator regarding the negotiations, discussions, or communications. A designated agency ethics official receiving notice under paragraph (1), after consultation with the Director of the Office of Government Ethics, shall inform the covered financial services regulator of any potential conflicts of interest involved in any negotiations, discussions, or communications with the other person and the prohibitions applicable. The head of a covered financial services agency may only grant a waiver of subsection
(a)if the head determines that exceptional circumstances exist. For any waiver granted under paragraph (1), the Director of the Office of Government Ethics shall— review the circumstances relating to the waiver and the determination that exceptional circumstances exist; and make the waiver publicly available on the Web site of the Office of Government Ethics, which shall include— the name of the private person or persons involved in the negotiations or arrangement concerning prospective employment; and the date on which the negotiations or arrangements commenced. For purposes of this section, the term negotiations of future employment is not limited to discussions of specific terms or conditions of employment in a specific position. The Director of the Office of Government Ethics shall— receive all employment histories, recusal and waiver records, and other disclosure records for covered executive branch officials necessary for monitoring compliance to this title; promulgate rules and regulations, in consultation with the Director of the Office of Personnel Management and the Attorney General, for implementation of this title; provide guidance and assistance where appropriate to facilitate compliance with this title; review and, where necessary, assist designated agency ethics officers in providing advice to covered financial services regulators regarding compliance with this title; and if the Director determines that a violation of this title may have occurred, and in consultation with the designated agency ethics officer and the Counsel to the President, refer the compliance case to the United States Attorney for the District of Columbia for enforcement action. Any person who violates section 602 or 603 shall be fined under title 18, United States Code, imprisoned for not more than 1 year, or both. Any person who willfully violates section 602 or 603 shall be fined under title 18, United States Code, imprisoned for not more than 5 years, or both. The Attorney General may bring a civil action in the appropriate United States district court against any person who violates, or who the Attorney General has reason to believe is engaging in conduct that violates, section 602 or 603. Upon proof by a preponderance of the evidence that a person violated section 602 or 603, the court shall impose a civil penalty of not more than the greater of— $100,000 for each violation; or the amount of compensation the person received or was offered for the conduct constituting the violation. A civil penalty under this subsection shall be in addition to any other criminal or civil statutory, common law, or administrative remedy, available to the United States or any other person. In a civil action brought under paragraph
(1)against a person, the Attorney General may petition the court for an order prohibiting the person from engaging in conduct that violates section 602 or 603. The court may issue such an order if the court finds by a preponderance of the evidence that the conduct of the person violates section 602 or 603. The filing of a petition seeking injunctive relief under this paragraph shall not preclude any other remedy which is available by law to the United States or any other person. .
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Sec. 3
Requirements relating to slowing the revolving door among financial services regulators
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