Public Office Holders
Conflict of Interest and Post-Employment Code
Library and Archives Canada Cataloguing in Publication
Canada. Privy Council Office
Conflict of Interest and Post-employment Code for Public Office Holders
Rev. ed.
Text in English and French on inverted pages.
Title on added t.p.: Code régissant la conduite des titulaires de charge
publique en ce qui concerne les conflits d'intérêts et l'après-mandat.
The Code is administered by the Office of the Ethics Commissioner.
Issued also on the Internet: http://www.pco-bcp.gc.ca
ISBN 0-662-68405-2
Cat. no. CP22-79/2004
1. Conflict of interest B Canada. 2. Canada B Officials and employees B
Professional ethics. 3. Civil service ethics B Canada. I. Canada. Office of the
Ethics Commissioner. II. Title.
KE4244.C32 2004 342.71'0684 C2004-980280-1E
To obtain paper copies:
Office of the Ethics Commissioner
Ottawa, Ontario
K1A 0C9
(613) 995-0721
© Her Majesty the Queen in Right of Canada, 2004
TABLE OF CONTENTS
Message from the Prime Minister
Part I Object and Principles
Object
Principles
Part II Conflict of Interest Compliance Measures
Interpretation
Duties of the Ethics Commissioner
Certification
Compliance Arrangements
Time Limits
Confidential Report
Assets and Liabilities
Outside Activities
Gifts, Hospitality and Other Benefits
Avoidance of Preferential Treatment
Failure to Comply
Part III Post-employment Compliance Measures
Interpretation
Object
Compliance Measures
Exit Arrangements
Dealings with Former Public Office Holders
Schedule
Agreements and Recusal
Provisions Common to Blind Trusts
Agreement Forms
Filing of Agreements
Reimbursement for Costs Incurred
Message from the Prime Minister
The attached document is a revised Conflict of Interest and
Post-employment Code for Public Office Holders.
These revisions are the first since An Act to Amend the Parliament of
Canada Act (Ethics Commissioner and Senate Ethics Officer) came into force
on May 17, 2004. The release of this Code fulfils the statutory requirement that
the Prime Minister establish "ethical principles, rules and obligations for
public office holders".
Our government must uphold the public trust to the highest possible standard,
and this responsibility falls uniquely on all of us as public office holders.
The object of both the original and revised Code is to enhance
confidence in our system of government. The Code can be usefully read in
conjunction with Governing Responsibly: A Guide for Ministers and Ministers
of State. Although Governing Responsibly does not form part of this
Code, it stresses for Ministers, and I would add, for all public office holders,
the paramount importance of accuracy and truthfulness.
By acting always in accordance with the principles and specific provisions of
this Code, public office holders will provide Canadians with a greater assurance
that our government is acting in an honest and transparent manner.
Paul Martin
Prime Minister of Canada
CONFLICT OF INTEREST AND POST-EMPLOYMENT CODE FOR PUBLIC
OFFICE HOLDERS
Short Title
1. This Code may be cited as the Conflict of Interest Code.
Part 1
Objects and Principles
OBJET
2. The object of this Code is to enhance public confidence in the integrity of
public office holders and the decision-making process in government
(a) while encouraging experienced and competent persons to seek and
accept public office;
(b) while facilitating interchange between the private and public
sector;
(c) by establishing clear rules of conduct respecting conflict of
interest for, and post-employment practices applicable to, all public
office holders; and
(d) by minimizing the possibility of conflicts arising between the
private interests and public duties of public office holders and providing
for the resolution of such conflicts in the public interest should they
arise.
PRINCIPLES
3. Every public office holder shall conform to the following principles:
Ethical Standards
(1) Public office holders shall act with honesty and uphold the highest
ethical standards so that public confidence and trust in the integrity,
objectivity and impartiality of government are conserved and enhanced.
Public Scrutiny
(2) Public office holders have an obligation to perform their official
duties and arrange their private affairs in a manner that will bear the
closest public scrutiny, an obligation that is not fully discharged by
simply acting within the law.
Decision Making
(3) Public office holders, in fulfilling their official duties and
responsibilities, shall make decisions in the public interest and with
regard to the merits of each case.
Private Interests
(4) Public office holders shall not have private interests, other than
those permitted pursuant to this Code, that would be affected particularly
or significantly by government actions in which they participate.
Public Interest
(5) On appointment to office, and thereafter, public office
holders shall arrange their private affairs in a manner that will prevent
real, potential or apparent conflicts of interest from arising but if such
a conflict does arise between the private interests of a public office
holder and the official duties and responsibilities of that public office
holder, the conflict shall be resolved in favour of the public interest.
Gifts, Hospitality and Benefits
(6) Public office holders and their families shall not solicit
or accept transfers of economic benefit, other than incidental gifts,
customary hospitality, or other benefits of nominal value, unless the
transfer is pursuant to an enforceable contract or property right of the
public office holder.
Preferential Treatment
(7) Public office holders shall not use their position of office
to assist private entities or persons where this would result in
preferential treatment to any person.
Insider Information
(8) Public office holders shall not knowingly take advantage of,
or benefit from, information that is obtained in the course of their
official duties and responsibilities and that is not generally available
to the public.
Government Property
(9) Public office holders shall not directly or indirectly use, or
allow the use of, government property of any kind, including property leased
to the government, for anything other than officially approved activities.
Post-employment
(10) Public office holders shall not act, after they leave
public office, in such a manner as to take improper advantage of their
previous office.
Fundraising
(11) Public office holders are not to personally solicit funds from any
person, group, organization or corporation where such fundraising could
place public office holders in a position of obligation incompatible with
their public duties.
Part II
Conflict of Interest Compliance Measures
INTERPRETATION
4. (1) The following definitions apply for the purposes of this Part
and the Schedule:
"Common-law partner" means a person who is cohabiting with a
public office holder in a conjugal relationship, having so cohabited for a
period of at least one year.
"Dependent child" means a child of a public office holder, or
a child of the public office holder's spouse or common- law partner, who
has not reached the age of 18 years or who has reached that age but is
primarily dependent on the public office holder or the public office
holder's spouse or common-law partner for financial support.
"Ethics Commissioner" means the Ethics Commissioner appointed
under section 72.01 of the Parliament of Canada Act.
"Family" means spouse or common-law partner and dependent
children.
"Private interest" does not include an interest in a matter
(a) that is of general application;
(b) that affects a person as one of a broad class of the public; or
(c) that concerns the remuneration or benefits of a public office
holder.
"Public office holder" means
(a) a minister of the Crown, a minister of state or a parliamentary
secretary;
(b) a person, other than a public servant, who works on behalf of a
minister of the Crown or a minister of state;
(c) a Governor in Council appointee, other than the following
persons, namely:
(i) a Lieutenant-Governor,
(ii) officers and staff of the Senate, House of Commons and
Library of Parliament,
(iii) a person appointed or employed under the Public
Service Employment Act who is a head of mission within the
meaning of subsection 13(1) of the Department of
Foreign Affairs and International Trade Act,
(iv) a judge who receives a salary under the Judges Act,
(v) a military judge within the meaning of subsection 2(1) of
the National Defence Act, and
(vi) an officer of the Royal Canadian Mounted Police, not
including the Commissioner; and
(d) a full-time ministerial appointee designated by the appropriate
minister of the Crown as a public office holder.
"Public Registry" means the registry where public documents
are maintained by the Ethics Commissioner for examination by the public.
"Relatives" include persons related to a public office holder
by blood, marriage, adoption or affinity, except where the Ethics
Commissioner otherwise determines necessary in the context.
"Spouse" does not include a person from whom the public
office holder is separated where all support obligations and family
property have been dealt with by a separation agreement or by a court
order.
(2) Ministers of the Crown, ministers of state and parliamentary
secretaries are subject to the provisions of this Code when carrying out
the duties and functions of their office as ministers of the Crown,
ministers of state or parliamentary secretaries.
(3) (a) Staff of federal boards, commissions and tribunals as
defined in the Federal Court Act, separate employers as defined
under the Public Service Staff Relations Act, the Canadian
Armed Forces and the Royal Canadian Mounted Police, are subject to the
Principles set out in Part I and such other compliance measures as may
be determined by the head of the organization in question, for whose
application that individual is responsible.
(b) Part-time ministerial appointees who are persons other than
public servants who work on average fewer than fifteen hours a week on
behalf of a minister of the Crown or a minister of state, including
persons working on a contractual or voluntary basis, and part-time
Governor in Council appointees, who are not appointed on a full-time
basis and are not in receipt of an annual salary or benefits from the
appointment, are subject only to the Principles set out in Part I and
such other compliance measures as may be determined by the head of the
organization in question, for whose application that individual is
responsible.
(4) Crown corporations as set out in the Financial Administration
Act shall be subject to compliance measures established by, and in
accordance with, the established practices of their own organization.
(5) Such provisions of this Part as may be relevant shall be brought to
the attention of Lieutenant-Governors at the time of their appointment.
DUTIES OF THE ETHICS COMMISSIONER
5. (1) Pursuant to subsection 72.07 of the Parliament of Canada Act,
the Ethics Commissioner is charged with the administration of this Code
and the application of the conflict of interest compliance measures set
out in this Part as they apply to public office holders.
(2) Information concerning the private interests of a public office
holder provided to the Ethics Commissioner is confidential until a Public
Declaration, if any, is made with respect to that information.
(3) It is the responsibility of the Ethics Commissioner to ensure:
(a) that information provided under subsection (2) shall be kept in
strict confidence and in secure safekeeping; and
(b) that any information provided by public office holders for a
public purpose is placed in personal unclassified files in the Public
Registry.
CERTIFICATION
6. Before or on assuming their official duties and responsibilities, public
office holders shall sign a document certifying that, as a condition of their
holding office, they will observe this Code.
COMPLIANCE ARRANGEMENTS
7. (1) Once the arrangements made by a public office holder to comply
with the conflict of interest compliance measures set out in this Code are
completed, a Summary Statement described in subsection (2) and any Public
Declaration made pursuant to sections 11, 14, 18 and 21, and section 1 of
the Schedule, shall be signed by the public office holder and a certified
copy of the Summary Statement and any Public Declaration shall be placed
in the Public Registry.
(2) The Summary Statement shall include:
(a) a statement by the public office holder of the methods of
compliance used to comply with the conflict of interest compliance
measures;
(b) a list of the matters which the Ethics Commissioner has
determined could, as a result of the public office holder's private
interests or other reasons the Ethics Commissioner considers
relevant, create a conflict of interest, and on which the public
office holder shall recuse in accordance with this Code, or for other
reasons which the Ethics Commissioner may consider necessary;
(c) information regarding the process which must be put in place by
the public office holder and others to administer the recusal; and
(d) a certification by the public office holder that he or she is
fully cognizant of the post-employment compliance measures set out in
Part III, where applicable.
(3) Where there is doubt as to which method is appropriate in order
that a public office holder may comply with the Code, the Ethics
Commissioner shall determine the appropriate method and, in doing so,
shall try to achieve mutual agreement with the public office holder.
(4) All arrangements made by a public office holder to comply with the
conflict of interest compliance measures set out in this Part shall be
approved:
(a) in the case of ministers of the Crown, ministers of state and
parliamentary secretaries, by the Prime Minister, in consultation
with the Ethics Commissioner; and
(b) in the case of all other public office holders including the
Prime Minister, by the Ethics Commissioner.
(5) The information contained in Confidential Reports and the
arrangements made by public office holders and their obligations under the
Code will be reviewed annually by the Ethics Commissioner and the
public office holder.
(6) Public office holders who have established:
(a) a trust, will require the respective trustee to provide the
Ethics Commissioner with a written annual report verifying as to
accuracy the trust's nature and market value, a reconciliation of
the trust property, the net income of the trust for the preceding
year, and the fees of the trustee, if any; or
(b) a management agreement in instances where
(i) a public office holder owns an interest in a corporation
whose assets are invested, in whole or in part, in publicly traded
securities, will require the manager to provide the
Ethics Commissioner with a written annual report verifying as
to accuracy the nature and market value of the agreement property,
a reconciliation of the agreement property, the net income of the
agreement property for the preceding year, and the fees of the
manager, if any;
(ii) a corporation and its holdings in which a public office
holder has an interest, contracts with the federal government or
its agencies, will require the manager to provide the
Ethics Commissioner with an annual report verifying as to
accuracy the nature and name(s) of the corporation(s) that
contract(s) with the federal government or its agencies, a
reconciliation of the agreement property and the net worth value
of the public office holder's interest.
(7) On the recommendation of the Ethics Commissioner, a public office
holder may be reimbursed for administrative costs incurred as a result of
arrangements made under this Code, as set out in the Schedule.
(8) A public office holder shall not take any action that has as its
purpose the circumvention of the public office holder's obligations
under this Code.
TIME LIMITS
8. Unless otherwise authorized by the Ethics Commissioner, every public
office holder shall:
(1) within 60 days after appointment, make a Confidential Report as
required under section 9;
(2) within 120 days after appointment
(a) where required, make a Public Declaration pursuant to
sections 11, 14, 18 and 21, and section 1 of the Schedule;
(b) divest controlled assets as required under subsection 12(2); and
(c) sign a Summary Statement for placing in the Public Registry
pursuant to section 7;
(3) within 30 days after receipt of a gift, hospitality or other benefit,
notify the Ethics Commissioner as required under section 21, and within 60
days make a Public Declaration as required under that section;
(4) within 30 days, inform the Ethics Commissioner of any material
changes in his or her assets, liabilities and outside activities; and
(5) in the case of ministers of the Crown, ministers of state and
parliamentary secretaries, within 30 days, inform the Ethics Commissioner of
any material changes in their assets, liabilities and outside activities and
those of their families except for exempt assets.
CONFIDENTIAL REPORT
9. (1) Public office holders shall make a Confidential Report to the
Ethics Commissioner of all their assets, direct and contingent liabilities
and income received during the twelve-month period before assuming public
office as well as the income they are entitled to receive during the
following twelve months. The Confidential Report shall include the value
of these assets, liabilities and income. The Confidential Report shall
also include a description of those outside activities in which public
office holders were engaged during the two-year period before they assumed
public office. Outside activities shall include all involvements in
activities of a philanthropic, charitable or non-commercial nature and
designations as trustee, executor or holder of a power of attorney.
(2) (a) In the case of ministers of the Crown, ministers of state and
parliamentary secretaries, information, including value, regarding the
assets, liabilities, income and outside activities of members of their
families shall also be included in the Confidential Report. Ministers of
the Crown, ministers of state and parliamentary secretaries shall make
reasonable efforts to include this information in the Confidential Report.
This information is to be used by the Ethics Commissioner for the sole
purpose of advising the ministers, ministers of state and parliamentary
secretaries on their own compliance measures.
(b) In the case of ministers of the Crown, ministers of state and
parliamentary secretaries, the Confidential Report shall also include all
benefits that the ministers of the Crown, ministers of state and
parliamentary secretaries and their families, and any private corporation
in which they or their families have an interest, are entitled to receive
during the following twelve months as a result of a contract with the
Government of Canada, and a description of the subject matter and nature
of each such contract.
(3) In addition to the information required under this
section, a public office holder shall include in his or her Confidential
Report any other information that the Ethics Commissioner may require to
ensure compliance with this Code.
ASSETS AND LIABILITIES
Exempt Assets
10. (1) Assets and interests for the private use of public office
holders and their families and assets that are not of a commercial
character are not subject to public declaration or divestment. Such
assets, hereinafter referred to as "exempt assets," include:
(a) residences, recreational property and farms used or intended
for use by public office holders or their families;
(b) household goods and personal effects;
(c) works of art, antiques and collectibles;
(d) automobiles and other personal means of transportation;
(e) cash and deposits;
(f) Canada Savings Bonds and other similar investments issued or
guaranteed by any level of government in Canada or agencies of those
governments;
(g) Registered Retirement Savings Plans and Registered Education
Savings Plans that are not self-administered or self-directed;
(h) investments in open-ended mutual funds;
(i) guaranteed investment certificates and similar financial
instruments;
(j) public sector debt financing not guaranteed by a level of
government, such as university and hospital debt financing;
(k) annuities and life insurance policies;
(l) pension rights;
(m) money owed by a previous employer, client or partnership;
(n) personal loans receivable from the public office holder's
relatives, and personal loans of less than $10,000 receivable from
other persons where the public office holder has loaned the moneys
receivable; and
(o) money owed under a mortgage of less than $10,000.
(2) Assets that are not exempt assets are either "declarable
assets" or "controlled assets."
Declarable Assets
11. (1) A public office holder shall make a Public Declaration of
assets that are not controlled assets, as defined under section 12,
in order to allow the public office holder to deal with those assets,
subject to exercising vigilance to ensure that such dealings cannot give
rise to a conflict of interest.
(2) Declarable assets include:
(a) interests in businesses that do not contract with the
government, and do not own or control publicly traded securities,
other than incidentally, and whose stocks and shares are not traded
publicly;
(b) farms under commercial operations;
(c) real property that is not an exempt asset as described in
section 10;
(d) assets that are beneficially owned, that are not exempt assets
as described in section 10, and that are administered at arm's
length;
(e) rental property;
(f) investments in limited partnerships;
(g) personal loans, greater than or equal to $10,000 receivable
from persons other than the public office holder's relatives; and
(h) money owed under a mortgage greater than or equal to $10,000.
(3) Declarable assets that are not publicly declared pursuant to
subsection (1) shall, for the purposes of section 13, be considered to be
controlled assets and must be divested.
Controlled Assets
12. (1) For the purposes of this section and section 13,
"controlled assets" means assets that could be directly or
indirectly affected as to value by Government decisions or policy.
(2) Controlled assets, other than assets that may be retained under
subsection 13(5), shall be divested, pursuant to subsection 13(1).
(3) Controlled assets include:
(a) publicly traded securities of corporations and foreign
governments, whether held individually or in an investment portfolio
account such as, but not limited to, stocks, bonds, stock market
indices, trust units, closed end mutual funds, commercial papers and
medium-term notes;
(b) self-administered Registered Retirement Savings Plans,
self-administered Registered Education Savings Plans and Registered
Retirement Income Funds, except when exclusively composed of exempt
assets as described in section 10;
(c) commodities, futures and foreign currencies held or traded for
speculative purposes; and
(d) stock options, warrants, rights and similar instruments.
Divestment of Controlled Assets
13. (1) Subject to subsection (5), controlled assets are usually
divested by one or more of the following:
(a) selling them in an arm's length transaction;
(b) making them subject to a trust or management agreement, the
most common of which are set out in the Schedule; or
(c) through means of an appropriate recusal mechanism, approved by
the Ethics Commissioner.
(2) The Ethics Commissioner has the sole responsibility for determining
that a trust, management agreement or recusal, or a combination of any of
the foregoing, meets the requirement of this Code. Before an arrangement
is executed or when a change is contemplated, a determination that the
arrangement meets the requirements of this Code shall be obtained from the
Ethics Commissioner.
(3) Confirmation of sale or a copy of any executed instrument shall be
filed with the Ethics Commissioner. With the exception of a statement that
a sale has taken place or that a trust or management agreement exists, all
information relating to the sale and the arrangement is confidential.
(4) For the purposes of this Code, trust or management arrangements
shall be such that they do not leave in the hands of the public office
holder any power of management or decision over the assets.
(5) (a) Subject to the approval of the Ethics Commissioner, a
public office holder is not required to divest controlled assets:
(i) that are pledged to a lending institution as collateral; or
(ii) where in the opinion of the Ethics Commissioner the
assets are of such minimal value that they do not constitute any
risk of conflict of interest in relation to the public office
holder's official duties and responsibilities.
(b) Notwithstanding subparagraph 5(a)(ii), in the case of ministers
of the Crown, ministers of state and parliamentary secretaries,
controlled assets, save those described in subparagraph 5(a)(i) above,
must be divested even where they are of such minimal value that they
do not constitute any risk of conflict of interest in relation to the
public office holder's official duties and responsibilities.
Liabilities
14. The Ethics Commissioner may require, with respect to liabilities, that
particular arrangements be made to prevent any conflict of interest situation
from arising. Ministers of the Crown, ministers of state and parliamentary
secretaries are required to publicly declare liabilities greater than or equal
to $10,000 identifying their source and nature, but not their value.
OUTSIDE ACTIVITIES
General
15. Public office holders' participation in activities outside their
official duties and responsibilities is often in the public interest. Subject
to sections 16 to 18, such participation is acceptable where it is not
inconsistent with their official duties and responsibilities and does not call
into question their capacity to perform their official duties and
responsibilities objectively.
Prohibited Activities
16. Subject to section 17, public office holders shall not, outside their
official duties and responsibilities:
(a) engage in employment or the practice of a profession;
(b) actively manage or operate a business or commercial activity;
(c) retain or accept directorships or offices in a corporation;
(d) hold office in a union or professional association;
(e) serve as a paid consultant;
(f) be an active partner in a partnership; and
(g) personally solicit funds except for participation in fundraising
campaigns sponsored by the federal government and participation in
discussions of a strategic nature for other charitable campaigns.
Permissible Activities
17. (1) When the activities described in section 16 relate to the
official duties and responsibilities of a public office holder, the public
office holder may, in exceptional circumstances and with the approval
required by subsection 7(4) and subject to the conditions specified by the
Ethics Commissioner, become or remain involved in them, but may not
accept remuneration for any activity, except as provided in subsections
(3) and (4).
(2) A public office holder may, with the approval of and subject to the
conditions specified by the Ethics Commissioner, retain or accept
directorships in organizations of a philanthropic, charitable or
non-commercial character, but the office holder shall take great care to
prevent conflicts of interest from arising.
(3) Where the Ethics Commissioner is of the opinion that it is in the
public interest, full-time Governor in Council appointees to Crown
Corporations, as defined in the Financial Administration Act, may
retain or accept directorships or offices in a financial or commercial
corporation, and accept remuneration therefore, in accordance with
compensation policies for Governor in Council appointees as determined
from time to time.
(4) Public office holders may, in exceptional circumstances and with
the approval required by subsection 7(4), become or remain involved in
activities that do not place on them demands inconsistent with their
official duties and responsibilities or call into question their capacity
to perform their official duties and responsibilities objectively.
Public Declaration of Outside Activities
18. (1) A public office holder shall make a Public Declaration of the
activities referred to in section 17 and of past and current directorships and
other positions listed in a Confidential Report under section 9.
(2) In cooperation with a public office holder, the
Ethics Commissioner shall prepare the Public Declaration of outside
activities to be made by that office holder.
GIFTS, HOSPITALITY AND OTHER BENEFITS
General
19. (1) Gifts, hospitality or other benefits, including those described
in section 20, that could influence public office holders in their
judgment and in the performance of official duties and responsibilities,
shall be declined.
(2) Where there is doubt as to the appropriateness of accepting an
offer of a gift, hospitality or other benefit, irrespective of its value,
public office holders must consult the Ethics Commissioner and obtain his
or her approval to accept the offer.
Where Acceptable
20. (1) (a) Acceptance by public office holders or members of their
families of offers of gifts, hospitality or other benefits arising out
of activities associated with the performance of the public office
holder's official duties and responsibilities is not prohibited if
such gifts, hospitality or other benefits:
(i) are within the normal bounds of propriety, a normal
expression of courtesy or protocol or within the normal standards
of hospitality;
(ii) are not such as to bring suspicion on the public office
holder's objectivity and impartiality; and
(iii) would not compromise the integrity of the Government.
(b) Invitations to attend special events (such as, but not limited
to, sporting events and performing arts) are not prohibited provided
that the criteria in paragraph (1)(a) are met and provided that:
(i) attendance serves a legitimate business purpose;
(ii) the person or a representative of the organization
extending the invitation is in attendance; and
(iii) the value is reasonable and the invitations are not
frequent.
(2) In the case of ministers of the Crown, ministers of state and
parliamentary secretaries and their family members, travel on
non-commercial chartered or private aircraft for any purpose shall be
prohibited except in exceptional circumstances and may only be accepted
with the prior approval of the Ethics Commissioner.
(3) In keeping with existing practice, gifts, hospitality and other
benefits are permitted if:
(a) received from relatives and close personal friends; or
(b) of reasonable value and received from a government or in
connection with an official or public event.
(4) Where the Ethics Commissioner determines appropriate, where a gift
accepted under subsection 20(1), other than gifts from relatives or close
personal friends, has a value of $1,000 or more, the public office holder
shall make arrangements for the gift to be placed into the government
inventory.
Disclosure and Public Declaration
21. (1) Where the total value of all gifts, hospitality or other
benefits received, directly or indirectly, by a public office holder or
his/her family, exceeds $200, from any one source other than relatives and
close personal friends in a twelve-month period, such gifts, hospitality
and benefits shall be disclosed to the Ethics Commissioner.
(2) Where a public office holder or a member of his or her family
directly or indirectly accepts any gift, hospitality or other benefit in
accordance with section 20 that has a value of $200 or more, other than a
gift, hospitality or other benefit from a relative or close personal
friend, the public office holder shall notify the Ethics Commissioner and
make a Public Declaration that provides sufficient detail to identify the
gift, hospitality or other benefit received, the donor and the
circumstances.
(3) Where travel has been accepted in accordance with
subsection 20(2), from any source, the public office holder shall
make a Public Declaration that provides sufficient detail to identify the
source and the circumstances.
(4) Where there is doubt as to the need for a Public Declaration the
public office holder must consult the Ethics Commissioner.
AVOIDANCE OF PREFERENTIAL TREATMENT
22. (1) A public office holder shall take care to avoid being placed or
the appearance of being placed under an obligation to any person or
organization that might profit from special consideration on the part of
the office holder.
(2) In the formulation of government policy or the making of decisions,
a public office holder shall ensure that no persons or groups are given
preferential treatment based on the individuals hired to represent them.
(3) Public office holders shall not accord preferential treatment in
relation to any official matter to relatives or friends or to
organizations in which they, relatives or friends have an interest.
(4) A public office holder shall not use his or her position as a
public office holder to influence or attempt to influence a decision of
another person so as to further the public office holder's private
interests or those of his or her relatives or friends or to improperly
further another person's private interests.
(5) A public office holder shall not use information obtained in his or
her position as a public office holder that is not generally available to
the public to further his or her private interests or those of his or her
relatives or friends, or to improperly further another person's private
interests.
(6) Ministers of the Crown and ministers of state should not hire or
contract with their families, non-dependent children, siblings or parents.
As well, they should not permit departments or agencies for which they are
responsible, or to which they are assigned, to hire or contract with their
families, non-dependent children, siblings or parents.
(7) Ministers of the Crown, ministers of state and the departments or
agencies for which they are responsible should not hire or contract with
the families, non-dependent children, siblings or parents of another
minister of the Crown, minister of state or party colleague in Parliament
except by means of an impartial administrative process in which the
minister or minister of state plays no part. Appointments to ministerial
exempt staff are not subject to this restriction.
(8) A public office holder shall not attempt to engage in any of the
activities prohibited under subsections (1) to (7).
FAILURE TO COMPLY
23. Where the Ethics Commissioner advises that a public office holder is
not in compliance with the Code, the public office holder is subject to such
appropriate measures as may be determined by the Prime Minister,
including, where applicable, discharge or termination of appointment.
Part III
Post Employment Compliance Measures
INTERPRETATION
24. For purposes of this Part, "public office holder" refers to
the same positions subject to Part II, as set out in section 4, with the
exception that ministerial staff and other public office holders as defined at
paragraph (b) of the definition of "public office holder" under
subsection 4(1) must be designated by their minister for this Part to apply.
OBJECT
25. Public office holders shall not act, after they leave public office, in
such a manner as to take improper advantage of their previous public office.
Observance of this Part will minimize the possibilities of:
(a) allowing prospects of outside employment to create a real,
potential or apparent conflict of interest for public office holders while
in public office;
(b) obtaining preferential treatment or privileged access to government
after leaving public office;
(c) taking personal advantage of information obtained in the course of
official duties and responsibilities until it has become generally
available to the public; and
(d) using public office to unfair advantage in obtaining opportunities
for outside employment.
COMPLIANCE MEASURES
Before Leaving Office
26. (1) Public office holders should not allow themselves to be
influenced in the pursuit of their official duties and responsibilities by
plans for or offers of outside employment.
(2) A public office holder shall disclose in writing to the
Ethics Commissioner all firm offers of outside employment that could
place the public office holder in a position of conflict of interest.
(3) A public office holder who accepts an offer of outside employment
shall immediately disclose in writing to the Ethics Commissioner as well
as to his or her superior, the acceptance of the offer. In such an event,
where it is determined by the Ethics Commissioner that the public office
holder is engaged in significant official dealings with the future
employer, the public office holder shall be assigned to other duties and
responsibilities as soon as possible. The period of time spent in public
office following such an assignment shall be counted towards the
limitation under section 28.
(4) The public office holder shall also disclose the acceptance of the
offer:
(a) in the case of ministers of the Crown and ministers of state,
to the Prime Minister;
(b) in the case of deputy heads, to the Clerk of the
Privy Council;
(c) in the case of ministerial staff and other public office
holders as defined at paragraph (b) of the definition of "public
office holder" under subsection 4(1), full-time ministerial
appointees and full-time Governor in Council appointees other than
those referred to in paragraph (b), to the appropriate minister of the
Crown or minister of state; and
(d) in the case of parliamentary secretaries, to the minister whom
the parliamentary secretary assists.
After Leaving Office - Prohibited Activities
27. (1) At no time shall a former public office holder switch sides by
acting for or on behalf of any person, commercial entity, association or
union in connection with any specific ongoing proceeding, transaction,
negotiation or case to which the Government is a party and where the
former public office holder acted for or advised the Government.
(2) Nor shall former public office holders give advice to their clients
using information that is not available to the public concerning the
programs or policies of the departments with which they were employed, or
with which they had a direct and substantial relationship.
Limitation
28. Subject to section 29, and to the object of this Code, former public
office holders, except for ministers of the Crown and ministers of state for
whom the prescribed period is two years, shall not, within a period of one
year after leaving office:
(1) accept services contracts, appointment to a board of directors of,
or employment with, an entity with which they had direct and significant
official dealings during the period of one year immediately prior to the
termination of their service in public office; or
(2) (a) make representations whether for remuneration or not, for
or on behalf of any other person or entity to any department,
organization, board, commission or tribunal with which they had direct
and significant official dealings during the period of one year
immediately prior to the termination of their service in public
office; and
(b) in the case of former ministers of the Crown or former
ministers of state make representations to a minister in the Cabinet
who had been a Cabinet colleague of the former minister of the Crown
or former minister of state; provided that nothing in this section will act so as to prevent a former
minister of the Crown, minister of state or parliamentary secretary from
engaging in activities which, as a member of Parliament, he or she is normally
asked to carry out on behalf of constituents.
Reduction and Waiver of Limitation
29. (1) On application from a public office holder or former public
office holder the Ethics Commissioner, may waive or reduce the limitation
imposed under section 28.
(2) In deciding whether to waive or reduce the limitation imposed under
section 28, the Ethics Commissioner will consider whether the public
interest in granting the waiver or reduction outweighs the public interest
in maintaining the prohibition. Factors to consider include:
(a) the circumstances under which the termination of the public
office holder's service in public office occurred;
(b) the general employment prospects of the public office holder or
former public office holder making the application;
(c) the significance to the Government of information possessed by
the public office holder or former public office holder by virtue of
that office holder's public office;
(d) the desirability of a rapid transfer from the Government to
private or other governmental sectors of the public office holder's
or former public office holder's knowledge and skills;
(e) the degree to which the new employer might gain unfair
commercial advantage by hiring the public office holder or former
public office holder;
(f) the authority and influence possessed by the public office
holder or former public office holder while in public office; and
(g) the disposition of other cases.
(3) The decision made by the Ethics Commissioner shall be communicated
in writing to the applicant referred to in subsection (1).
EXIT ARRANGEMENTS
30. Prior to a public office holder's official separation from public
office, the Ethics Commissioner shall, in order to facilitate the observance
of the compliance measures set out in this Part, communicate with the public
office holder to advise about post-employment requirements.
DEALINGS WITH FORMER PUBLIC OFFICE HOLDERS
Obligation to Report
31. (1) Public office holders who have official dealings, other than
dealings that consist of routine provision of a service to an individual,
with former public office holders who are or may be governed by the
measures set out in this Part, shall report those dealings to the Ethics
Commissioner.
(2) On receipt of a report under subsection (1), the
Ethics Commissioner shall immediately determine whether the former
public office holder is complying with the compliance measures set out in
this Part.
(3) Public office holders shall not, in respect of a transaction, have
official dealings with former public office holders, who are determined
pursuant to subsection (2) to be acting, in respect of that transaction,
contrary to the compliance measures set out in this Part.
SCHEDULE
AGREEMENTS AND RECUSAL
1. The following are examples of the most common agreements that may be
established by public office holders for the purpose of complying with the
Code:
(a) Blind Trust
A blind trust is one in which the trustee makes all investment
decisions concerning the management of the controlled assets, with no
direction from or control by the public office holder who has placed the
assets in trust. Assets are placed in a blind trust for the purpose of
allowing investment in publicly traded securities of corporations or
foreign governments.
A blind trust is not acceptable for a single or minimal block of shares
with a relatively small value, unless there is a written undertaking by
the public office holder to provide the trustee with additional funds to
be invested at the trustee's discretion. In such a case, the
Ethics Commissioner shall require confirmation from the trustee to
that effect.
The trustee shall provide the Ethics Commissioner with an annual report
setting out the nature and value of the trust property, the trust's net
income for the preceding year and the trustee's fees, if any.
(b) Blind Management Agreement
A blind management agreement places the assets of the public office
holder in the hands of a manager who is at arm's length from the public
office holder. The manager is empowered to exercise all of the rights and
privileges associated with those assets. The agreement prevents the
manager from seeking or obtaining the advice of the public office holder.
However, financial information as approved by the Ethics Commissioner can
be provided to the public office holder. The public office holder cannot
offer or provide advice, nor can the public office holder participate in
any discussion or decision-making processes, wherever they may arise, that
may particularly or significantly affect the assets that are subject to
the agreement. It is only in exceptional circumstances where an
extraordinary corporate event is likely to materially affect the assets,
that the public office holder may personally intervene, but only after the
Ethics Commissioner has been consulted and determines that the
intervention would not give rise to a conflict of interest, and only in
the presence of the Ethics Commissioner. A Public Declaration which
has been verified as to accuracy by the manager, to be signed by the
public office holder, must also be made, identifying the interest of a
public office holder in a corporation and its holdings that contract with
the federal government or its agencies. The public office holder is
entitled throughout the duration of the agreement to be kept informed of
the basic value of the assets.
(c) Recusal
Recusal is based on a determination by the Ethics Commissioner of
matters which could create a conflict of interest for a public office
holder. This could include a public office holder's assets, which must
be divested under subsection 13(1) of the Code, or other information
which the Ethics Commissioner considers relevant. As provided at paragraph
7(2)(c) of the Code, matters determined to be subject for recusal must be
set out in the Public Registry, as well as information regarding the
process for administering recusals. On the basis of a determination, the
public office holder must refrain from exercising any official power or
performing any official duty or function with respect to the matter, and
from attempting to influence the matter in any way.
The public office holder, with the advice of the
Ethics Commissioner, will put in place appropriate procedures to
prevent a conflict of interest on such matters, and to ensure the
appropriate exercise of powers and performance of duties or functions.
This could include:
(i) in the case of the Prime Minister, replacement on the matter by
the Deputy Prime Minister or acting Prime Minister;
(ii) in the case of a minister of the Crown, replacement on the
matter by an acting Minister;
(iii) in the case of a minister of state, the appropriate minister
of the Crown acting on the matter in the stead of the minister of
state; and
(iv) in the case of a parliamentary secretary, the minister whom he
or she assists seeing to the appropriate exercise of power or the
performance of duty or function.
The Ethics Commissioner will maintain a confidential record of all
recusals which the Ethics Commissioner may use in determining whether or
not the minister has breached the requirements of the Code. The Ethics
Commissioner will also report annually on recusal practices implemented
under the Code.
PROVISIONS COMMON TO BLIND TRUSTS
2. Provisions common to blind trusts are:
(a) Custody of the Assets: The assets to be placed in trust must be
registered to the trustee unless these are in a RRSP account.
(b) Power of Management or Control: The public office holder (settler)
may not have any power of management or control over trust assets. The
trustee, likewise, may not seek or accept any instruction or advice from
the public office holder concerning the management or the administration
of the assets.
(c) Schedule of Assets: The assets placed in trust shall be listed on a
schedule attached to the trust agreement.
(d) Duration of Trust: The term of any trust is to be for as long as
the public office holder who establishes the trust continues to hold an
office that makes that method of divestment appropriate. A trust may be
dismantled once the trust assets have been depleted.
(e) Return of Trust Assets: Whenever a trust agreement is dismantled,
the trustee shall deliver the trust assets to the public office holder.
(f) Information: No information is provided to the public office holder
(settler) except information that is required by law to be filed and
periodic reports on the overall value of the trust, but never its
composition.
(g) Income: A public office holder who establishes a blind trust may
receive any income earned by the trust, add or withdraw capital funds, and
be informed of the aggregate value of the entrusted assets.
(h) Trustee: Any trustee who is appointed shall clearly be at arm's
length from the public office holder and the Ethics Commissioner is
to be satisfied that an arm's length relationship exists in each case.
As other criteria, any trustee must be:
(i) a public trustee;
(ii) a company, such as a trust company or investment company, that
is public and known to be qualified in performing the duties of a
trustee; or
(iii) an individual who may perform trustee duties in the normal
course of his or her work.
(i) Annual Reporting: Trustees are required to provide the
Ethics Commissioner, on every anniversary of the trust, with a
written annual report verifying as to accuracy the nature, market value
and reconciliation of the trust property, the net income of the trust for
the preceding year, and the fees of the trustee, if any.
AGREEMENT FORMS
3. (1) Acceptable blind trust and blind management agreements are
available from the Ethics Commissioner. Any amendments to these agreements
shall be submitted to the Ethics Commissioner for approval, before they
are executed.
(2) Written investment instructions can be provided by the public
office holder to the trustee, and be included in a blind trust agreement
provided they are general in nature and pre-approved by the Ethics
Commissioner. The instructions may provide for proportions to be invested
in various categories or risk, but may not be industry-specific, except
where there are legislative restrictions on the type of assets that a
public office holder may own. No oral directives are permitted.
FILING OF AGREEMENTS
4. Public office holders are required to file with the
Ethics Commissioner a copy of any blind trust or blind management
agreement. Such agreements will be kept in the public office holder's
confidential file and the Ethics Commissioner will not make them available to
anyone for any purpose.
REIMBURSEMENT FOR COSTS INCURRED
5. On the recommendation of the Ethics Commissioner, the following
reimbursements for costs to comply with the Conflict of Interest Compliance
Measures set out in this Code may be permitted:
(a) Divestment of Assets:
(i) reasonable legal, accounting and transfer costs to establish
and dismantle a trust or management arrangement determined to be
necessary by the Ethics Commissioner;
(ii) annual, actual and reasonable costs to maintain and administer
the trust or management arrangement, following rates set from time to
time by the Ethics Commissioner;
(iii) commissions for transferring, converting or selling assets
where determined necessary by the Ethics Commissioner; and
(iv) costs of other financial, legal or accounting services
required because of the complexity of arrangements for such assets.
(b) Withdrawal from Activities:
Costs of removing a public office holder's name from federal or
provincial registries of corporations.
6. Reimbursement is not permitted for:
(a) charges for day-to-day operations of a business or commercial
entity;
(b) charges associated with winding down a business; and
(c) costs for acquiring permitted assets using proceeds from required
sale of other assets.
7. The public officer holder is responsible for any income tax adjustment
that may result from the reimbursement of trust costs.
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