Employee Financial Disclosure:

CFTC System Affords Reasonable Protection Against Conflicts of Interest

GGD-91-3: Published: Nov 7, 1990. Publicly Released: Dec 10, 1990.

Additional Materials:

Contact:

Nancy R. Kingsbury
(202) 512-4268
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO evaluated the Commodity Futures Trading Commission's (CFTC) employee financial disclosure system to determine whether it reasonably ensured prevention, detection, and resolution of conflicts between its employees' duties and their outside interests.

GAO found that CFTC: (1) restricted employees' outside financial activities; (2) required employees to annually file financial disclosure reports or certifications of compliance indicating a lack of conflicts of interest; (3) required 349 of its 558 employees to file reports or certifications in 1989; (4) took follow-up steps to obtain 11 late reports from employees; (5) included steps in its review of reports to detect errors and conflicts of interest; (6) did not always timely review reports or make conflict-of-interest decisions; (7) did not require such additional information as financial transactions and value of outside interests in confidential disclosure reports; and (8) implemented most of the Office of Government Ethics' (OGE) 1986 recommendations.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: For 1991, CFTC has reviewed all confidential and public reports within 60 days of receipt. The final review on all confidential reports was August 15, 1991.

    Recommendation: To further reduce the risk of conflicts of interest and improve the CFTC disclosure system, the Chairman, CFTC, should direct the designated agency ethics official (DAEO) to establish a time limit, such as 60 days after receipt, for completing reviews of confidential disclosure reports and ensure that: (1) confidential report reviews are completed within that limit; and (2) public report reviews are completed within the existing 60-day statutory limit.

    Agency Affected: Commodity Futures Trading Commission

  2. Status: Closed - Implemented

    Comments: CFTC is following regulations effective October 1, 1992 that require reporting all assets held during the year. This requirement meets the recommendation that was aimed at disclosure of all assets held during the reporting year.

    Recommendation: To further reduce the risk of conflicts of interest and improve the CFTC disclosure system, the Chairman, CFTC, should direct the designated agency ethics official (DAEO) to require employees to include information on their financial transactions that occur during the year in their confidential reports.

    Agency Affected: Commodity Futures Trading Commission

  3. Status: Closed - Implemented

    Comments: CFTC has sent out annual reminders on reporting outside employment. It also published an advisory memorandum dealing with speeches and honororia. CFTC senior ethics officials keep employees current on ethics matters by issuing annual reminders and advisories. Particular persons have been identified for ethics training. CFTC provides annual training sessions for all confidential filers.

    Recommendation: To further reduce the risk of conflicts of interest and improve the CFTC disclosure system, the Chairman, CFTC, should direct DAEO to establish a program of regular ethics training for all CFTC employees.

    Agency Affected: Commodity Futures Trading Commission

 

Explore the full database of GAO's Open Recommendations »

Sep 29, 2016

Jul 25, 2016

Jul 5, 2016

May 6, 2016

Apr 21, 2016

Apr 18, 2016

Apr 12, 2016

Mar 28, 2016

Mar 8, 2016

Feb 16, 2016

Looking for more? Browse all our products here