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Employee Financial Disclosure: CFTC System Affords Reasonable Protection Against Conflicts of Interest

GGD-91-3 Published: Nov 07, 1990. Publicly Released: Dec 10, 1990.
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Highlights

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.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Commodity Futures Trading Commission 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.
Closed – Implemented
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.
Commodity Futures Trading Commission 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.
Closed – Implemented
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.
Commodity Futures Trading Commission 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.
Closed – Implemented
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.

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Topics

Financial Markets and Institutions
Conflict of interestsDisclosure lawEthical conductFederal employeesFinancial disclosureAgricultural commoditiesCommodity futures marketsFuturesNutritionCommodity futures market