Library and Archives Canada Cataloguing in Publication
Message from the Prime Minister
Part I Object and 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
Agreements and Recusal
Provisions Common to Blind Trusts
Agreement Forms
Filing of Agreements
Reimbursement for Costs Incurred
Canada
[Conflict of interest and post-employment code for public office holders (Online)]
Conflict of interest and post-employment code for public office holders [electronic resource].
Annual (irregular)
Began with 2004? issue.
Electronic serial in HTML and PDF formats.
Mode of access: World Wide Web.
Issued by Privy Council Office.
The Code is administered by the Office of the Ethics Commissioner.
Issued also in French: Code régissant la conduite des titulaires de charge publique en ce qui concerne les conflits d'intérêts et l'après-mandat.
Issued also in printed form.
ISBN 0-662-42420-4
ISSN: 1717-7634
Cat. no.: CP22-79/2006E-PDF
1. Conflict of interests--Canada--Periodicals. 2. Canada--Officials and employees--Professional ethics--Periodicals. 3. Civil service ethics--Canada--Periodicals. I. Canada. Privy Council Office II. Canada. Office of the Ethics Counsellor III. Title.
KE4244 342.71'0684 C2005-980358-4
© Her Majesty the Queen in Right of Canada, 2006
To obtain paper copies:
Office of the Ethics Commissioner
Ottawa, Ontario
K1A 0C9
(613) 995-0721
We have committed to Canadians that accountability and ethics will be at the centre of our governing agenda. First and foremost, accountable government means leading by example. Our government must uphold the public trust to the highest possible standard, and this responsibility falls uniquely on all public office holders, beginning with Ministers.
The Conflict of Interest and Post-Employment Code for Public Office Holders is a critical component of accountable government. The objective of the Code is to provide guidance to all public office holders in the discharge of their official duties and responsibilities and, thereby, to provide assurance to Canadians that their government is acting in an accountable, ethical and transparent manner. This means acting always in accordance with both the principles and specific provisions of the Code.
Numerous revisions have been made to the Code to strengthen it, including more stringent post-employment provisions. All the changes are intended to ensure that the Code reflects our commitments to Canadians and will complement the government's broader ethics and accountability agenda.
The release of this Code fulfills the statutory requirement, under the Parliament of Canada Act, that the Prime Minister establish "ethical principles, rules and obligations for public office holders."
This Code should be read in conjunction with Accountable Government: A Guide for Ministers, which sets out the core principles concerning the roles and responsibilities of Canada's system of responsible Parliamentary government.
Stephen Harper
Prime Minister of Canada
Short Title
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.
Respect for Administration of the Code
(12) Public office holders shall respect the administration of this Code, and shall exercise appropriate restraint when commenting upon matters under review by the Ethics Commissioner.
"Assets" include any trusts in respect of which a public office holder or a member of his or her family is a beneficiary.
"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
"Public office holder" has the same meaning as defined by the Parliament of Canada Act and means
"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 and parliamentary secretaries are subject to the provisions of this Code when carrying out the duties and functions of their office as ministers or parliamentary secretaries.
(3) a. Staff of federal boards, commissions and tribunals as defined in the Federal Courts Act, separate employers as defined under the Public Service Labour 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.
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.
(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, or when the public office holder consents to the release of the information by the Ethics Commissioner.
(3) It is the responsibility of the Ethics Commissioner to ensure:
(4) In fulfilling the functions under 72.07(a) and (b) of the Parliament of Canada Act, and subject to 72.08 of that Act, the Ethics Commissioner shall consider information from the public that is brought to his attention by a member of Parliament suggesting that a public office holder has not complied with this Code, and may take such action as the Ethics Commissioner deems appropriate in the circumstances.
(2) 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 (3) 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.
(3) The Summary Statement shall include:
(4) 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.
(5) 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 by the Ethics Commissioner.
(6) 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.
(7) Public office holders who have established:
(8) 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.
(9) 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.
(1) within 60 days after appointment, make a Confidential Report as required under section 9;
(2) within 120 days after appointment
(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 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.
(2) a. In the case of ministers 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 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 and parliamentary secretaries on their own compliance measures.
b. In the case of ministers and parliamentary secretaries, the Confidential Report shall also include all benefits that the ministers and parliamentary secretaries and their families, and any partnership or 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.
Exempt Assets
(2) Assets that are not exempt assets are either "declarable assets" or "controlled assets."
Declarable Assets
(2) Declarable assets include:
(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
(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:
Divestment of Controlled Assets
(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:
Liabilities
General
Prohibited Activities
Permissible Activities
(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(5), 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
(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.
General
(2) Gifts, hospitality or other benefits include gifts, hospitality or other benefits from trusts.
(3) 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
(2) In the case of ministers and parliamentary secretaries and their family members, and in the case of ministerial staff, 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:
(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
(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.
(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 shall not hire or contract with their families, non-dependent children, siblings or parents. As well, they shall 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 and the departments or agencies for which they are responsible shall not hire or contract with the families, non-dependent children, siblings or parents of another minister or party colleague in Parliament except by means of an impartial administrative process in which the minister plays no part. Appointments of 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).
(2) Where the Ethics Commissioner finds that a public office holder is not in compliance with this Code, or issues a report pursuant to the Parliament of Canada Act, such a finding or report is final, and may not be altered.
"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.
"Senior public servant" means public office holders occupying a position of deputy head as that term is defined in the Financial Administration Act, as well as public office holders with the rank of deputy minister, deputy head, associate deputy minister, deputy secretary, associate secretary or equivalent.
Before Leaving Office
(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 toward the limitation under section 28.
(4) The public office holder shall also disclose the acceptance of the offer:
After Leaving Office - Prohibited Activities
(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
(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
provided that nothing in this section will act so as to prevent a former minister 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.
(2) For the purposes of this section, acting as a "consultant lobbyist" means engaging in any activity for which subsection 5(1) of the Lobbyists Registration Act requires a return to be filed, and accepting employment as an "in-house lobbyist" means accepting any employment for which subsection 7(1) of that Act requires a return to be filed.
Reduction and Waiver of Limitation
(2) No waiver or reduction may be granted with respect to the limitation imposed under section 29.
(3) 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:
(4) The decision made by the Ethics Commissioner shall be communicated in writing to the applicant referred to in subsection (1).
(5) Where the Ethics Commissioner has granted a waiver or reduction in accordance with this section, the Ethics Commissioner shall publish the decision, and the reasons therefor.
(6) A decision made by the Ethics Commissioner under this section is final and may not be altered.
Obligation to Report
(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.
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.
Where the manager is of the view that an extraordinary corporate event is likely to materially affect the value of the assets, the manager may advise the Ethics Commissioner of the circumstances. Should the Ethics Commissioner conclude that the circumstances are of such a nature that they may cause significant undue loss or hardship to the public office holder, financial information as approved by the Ethics Commissioner can be provided to the public office holder.
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 determined that the intervention would not give rise to a conflict of interest, and that failure to intervene would cause the public office holder undue loss or hardship. Any intervention must occur 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.
Where the Ethics Commissioner permits financial information, other than value, to be disclosed to the public office holder, or permits an intervention in the circumstances allowed above, the Ethics Commissioner shall publish the fact of such information being provided, or of such intervention occurring, along with such details thereof as deemed appropriate by the Ethics Commissioner in all the circumstances.
For greater certainty, where there has been a determination by the Ethics Commissioner that a minister or parliamentary secretary is recused in respect of a matter, that minister or parliamentary secretary may not participate in debate on or vote on a question related to that matter in the Parliament of Canada.
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:
The Ethics Commissioner will maintain a confidential record of all recusals which the Ethics Commissioner may use in determining whether or not the public office holder has breached the requirements of the Code. The Ethics Commissioner will also report annually on recusal practices implemented under the Code.
Where a minister has recused him or herself in respect of a matter before the Queen's Privy Council for Canada, the Ethics Commissioner may publish the fact that such a recusal has occurred. However, no such publication shall be made where the very fact of such a recusal could reveal, directly or indirectly, a confidence of the Queen's Privy Council for Canada; nor shall any publication include any detail that could reveal, directly or indirectly, a confidence of the Queen's Privy Council for Canada. To ensure that confidences are protected as required, the Ethics Commissioner shall not publish under this provision without the prior authorization of the Clerk of the Privy Council or his or her delegate.
(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.