[Federal Register Volume 61, Number 132 (Tuesday, July 9, 1996)] [Rules and Regulations] [Pages 35915-35916] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 96-17304] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 61, No. 132 / Tuesday, July 9, 1996 / Rules and Regulations [[Page 35915]] FEDERAL DEPOSIT INSURANCE CORPORATION 5 CFR Part 3201 RIN 3064-AA08, 3209-AA15 Supplemental Standards of Ethical Conduct for Employees of the Federal Deposit Insurance Corporation AGENCY: Federal Deposit Insurance Corporation (FDIC). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Federal Deposit Insurance Corporation, with the concurrence of the Office of Government Ethics (OGE), is amending the Supplemental Standards of Ethical Conduct for Employees of the Federal Deposit Insurance Corporation in order to allow employees' spouses and minor children to acquire otherwise prohibited securities when they are acquired as part of compensation packages in connection with their employment. The amendment is being made retroactively effective as of the effective date of the FDIC's supplemental standards. EFFECTIVE DATE: May 25, 1995. FOR FURTHER INFORMATION CONTACT: Richard M. Handy, Assistant Executive Secretary (Ethics), (202) 898-7271, in the Office of the Executive Secretary of the FDIC. SUPPLEMENTARY INFORMATION: I. Background On April 25, 1995, with the concurrence of OGE, the FDIC published as a final rule the Supplemental Standards of Ethical Conduct for Employees of the Federal Deposit Insurance Corporation which were effective May 25, 1995 (codified at 5 CFR part 3201). The final rule was issued to supplement OGE's Standards of Ethical Conduct for Employees of the Executive Branch that established uniform standards of ethical conduct for executive branch employees (effective February 3, 1993, and codified at 5 CFR part 2635). Upon the determination of the Board of Directors and with the concurrence of OGE, part 3201 is being amended to provide an additional exception to the prohibitions on the ownership of securities of FDIC- insured depository institutions. The amendment allows spouses and minor children of employees to acquire otherwise prohibited securities when they are acquired as part of compensation packages in connection with their employment. The Board of Directors determined that the provision, without the revised language, was unnecessarily restrictive. This rule is being issued as a final rule since it reduces the restrictions placed on employees and their families by the existing rule. Further, the amended rule will be made retroactively effective to May 25, 1995. II. Matters of Regulatory Procedure Administrative Procedure Act Pursuant to 5 U.S.C. 553 (a)(2), (b) and (d), the Board of Directors has found that good cause exists for waiving the regular notice of proposed rulemaking and 30-day delayed effective date as to this final rule amendment, and further making it retroactively effective to May 25, 1995, the effective date of the overall part 3201. This action is being taken because it is in the public interest that this rule, which concerns matters of agency organization, practice and procedure and which relieves certain restrictions placed on FDIC employees and their families, become effective retroactively on the effective date of the original final rule. Regulatory Flexibility Act The Board of Directors has concluded that the amendment to the rule will not impose a significant economic hardship on small institutions. Therefore, the Board of Directors hereby certifies pursuant to section 605 of the Regulatory Flexibility Act (5 U.S.C. 605) that the amended regulation will not have a significant economic impact on a substantial number of small business entities within the meaning of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Paperwork Reduction Act The Board of Directors has determined that the amended regulation does not contain any information collection requirements that require the approval of the Office of Management and Budget pursuant to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.). List of Subjects in 5 CFR Part 3201 Administrative practice and procedure, Conflict of interests, Government employees, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Federal Deposit Insurance Corporation, with the concurrence of the Office of Government Ethics, is amending 5 CFR part 3201 as follows: PART 3201--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE FEDERAL DEPOSIT INSURANCE CORPORATION 1. The authority citation for part 3201 continues to read as follows: Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government Act of 1978); 12 U.S.C. 1819(a), 1822; 26 U.S.C. 1043; 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; 5 CFR 2635.105, 2635.403, 2635.502, and 2635.803. 2. In Sec. 3201.103, paragraph (b)(4) is amended by revising the first sentence to read as follows: Sec. 3201.103 Prohibitions on ownership of securities of FDIC-insured depository institutions. * * * * * (b) * * * (4) Acquiring, owning, or controlling a security of an FDIC-insured depository institution or the affiliate of an FDIC-insured depository institution where the security was acquired by inheritance, gift, stock split, involuntary stock dividend, merger, acquisition, or other change in corporate ownership, exercise of preemptive right, or otherwise without specific intent to acquire the security, or, by an employee's spouse or minor child as part of a compensation package in connection with his or her employment. * * * * * * * * Dated at Washington, D.C. this 17th day of June 1996. By Order of the Board of Directors. [[Page 35916]] Federal Deposit Insurance Corporation. Robert E. Feldman, Deputy Executive Secretary. Concurred in this 1st day of July 1996. Stephen D. Potts, Director, Office of Government Ethics. [FR Doc. 96-17304 Filed 7-8-96; 8:45 am] BILLING CODE 6714-01-P