[Federal Register Volume 76, Number 222 (Thursday, November 17, 2011)]
[Notices]
[Pages 71343-71344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29687]


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FARM CREDIT ADMINISTRATION

[FCA-PS-81; NV 11-25]


Ethics, Independence, Arm's-Length Role, Ex Parte Communications 
and Open Government

AGENCY: Farm Credit Administration.

ACTION: Policy statement.

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SUMMARY: The Farm Credit Administration (FCA or Agency) Board was 
created by Congress to serve the public interest in ensuring a source 
of affordable and dependable credit to agriculture and rural America. 
In fulfilling this obligation, the FCA Board should ensure that the 
Agency has conducted a thorough, independent and objective analysis of 
every matter brought before it for action, and that varying viewpoints 
and interests are considered by the FCA Board prior to making any 
substantive decision. As reflected by its current policies, the FCA 
Board believes that it must place emphasis on the independence and 
objectivity of itself and all FCA employees in dealing with 
representatives of the Farm Credit System (System) and the public. The 
FCA Board also is committed to the ethics principles and laws governing 
all Executive Branch employees and to the Agency's strong ethics 
program.

DATES: Effective Date: November 7, 2011.

FOR FURTHER INFORMATION CONTACT: Wendy R. Laguarda, Assistant General 
Counsel, Office of General Counsel, Farm Credit Administration, McLean, 
VA 22102-5090, (703) 883-4020, TTY (703) 883-4020.

SUPPLEMENTARY INFORMATION: The following policy reaffirms the Board's 
commitment to the ethics laws and regulations, its avoidance of ex 
parte communications in its judicial and rulemaking roles, its 
commitment to open Government and its role as an independent, arm's 
length safety and soundness regulator:

THE FCA BOARD HEREBY ADOPTS THE FOLLOWING POLICY STATEMENT

Ethics, Independence, Arm's-Length Role, Ex Parte Communications and 
Open Government FCA-PS-81 [NV 11-25]

    DATES: Effective Date: 7-NOV-11.
    Effect on Previous Actions: None.
    Source of Authority: Sections 5.8, 5.9, 5.10, and 5.11 of the Farm 
Credit Act of 1971, as amended.
    Ethics. The body of ethics law, rules and policies are designed to 
ensure that every citizen can have complete confidence in the integrity 
of the Government. FCA, as an agency in the executive branch, is 
subject to the Federal criminal conflict of interest laws and Office of 
Government Ethics (OGE) regulations and oversight, including the 14 
General Principles of Ethical Conduct and the Uniform Standards of 
Ethical Conduct (Code) (5 CFR part 2635), the restrictions on certain 
noncareer employees (5 CFR part 2636), the regulations on ethics 
program responsibilities (5 CFR part 2638), the financial disclosure 
regulations (5 CFR part 2634), the regulations on acts affecting a 
personal financial interest (5 CFR part 2640), and the post-employment 
restrictions (5 CFR part 2641). FCA also has issued supplemental ethics 
rules with the concurrence of OGE (5 CFR part 4101). In addition, the 
FCA Board Members, as Presidential Appointees with Senate confirmation 
(PAS), are subject to any further applicable ethics restrictions that 
may be imposed by the President of the United States.
    Pursuant to the body of ethics laws cited above, the FCA Board will 
continue to hold itself to the highest standards of ethical conduct in 
recognition that its commitment and adherence to the Agency ethics 
program sets the standard for the commitment and conduct of Agency 
staff. Board Members should avoid actions that could create the 
impression that they can be improperly influenced. They should also 
avoid actions that could create the appearance of violating the law, 
the ethical standards set forth in the Federal and FCA ethical 
standards of conduct, or other applicable guidance. In decision making, 
a Board Member should be guided by the integrity of the Farm Credit 
Act, as amended, and also by the knowledge that he/she is acting on 
behalf of the public.
    Independence. The FCA has been established as an independent Agency 
to administer laws enacted by the Congress. Its PAS Board Members serve 
fixed terms as provided by law. Because of its independent status, 
Board Members should not let their official decisions be swayed by 
partisan demands. Although the Agency works cooperatively with Congress 
and the White House, Board Members and employees must remain mindful of 
their duty to make independent determinations on matters being 
considered by the Agency. The decisions made by a Board Member will 
reflect objective understanding and knowledge of the complexity of the 
matter under consideration.
    Arm's-Length Role. The FCA Board Members and Agency staff are 
committed to maintaining an arm's-length relationship with the System. 
This means Agency decisions must be independent of any undue influence, 
favoritism, or special access so that all parties coming before the 
Agency stand on an equal footing. The Board Members, as final arbiters 
of Agency actions affecting the System, as well as all Agency employees 
who have decision-making authority affecting System institutions and 
related entities, must be especially mindful to conduct themselves in a 
fair and impartial manner, avoiding any actions that create an 
appearance of a loss of impartiality. This is especially important in 
light of FCA's examination, rulemaking and adjudicatory functions. 
While open and informative communications with regulated parties is 
essential for an effective regulator, the FCA Board and staff will 
strive to maintain an appropriate balance in its communications with 
the System, keeping in mind the totality of the circumstances--
including the content, timing and setting of such communications--
before engaging with the System. FCA Board and staff will consult with 
the ethics staff whenever in doubt about the propriety of such 
communications.
    Determination of Appearance of Loss of Impartiality. Under the 
Code's impartiality rule, an appearance concern is judged on the basis 
of the individual Board Member or employee determining that the 
circumstances would cause a reasonable person with knowledge of the 
relevant facts to question his or her impartiality in the matter. The 
rule also permits the DAEO or ethics designee to make an independent 
determination of whether or not a potential appearance problem would 
cause a reasonable person with knowledge of the relevant facts to 
question a Board Member's or employee's impartiality in a matter.
    Ex Parte Communications. In its judicial functions, the Board 
Members and staff avoid all discussions with persons outside the Agency 
and its staff as set forth in Agency regulations at 12 CFR part 
622.7(j). Specifically, this regulatory provision, in part, prohibits 
any FCA Board Member or employee who is or may reasonably be expected 
to be involved in the decisional process from making or knowingly cause 
to be made an ex parte communication

[[Page 71344]]

relevant to the merits of the proceeding to any person. In its 
rulemaking functions, the Board Members and staff also adhere to the ex 
parte restrictions set forth in Board Policy 37, which governs 
substantive oral communications with the public during the rulemaking 
process.
    Open Government. The Agency is committed to conducting its business 
in the sunshine and on the public record as required by law. We also 
adopt the following core values of an open and accountable FCA as 
outlined in the President's Open Government memorandum issued in 
January 2009:
     Transparency: FCA should provide citizens with information 
about what it is doing to promote knowledge, accessibility and 
accountability.
     Participation: FCA should actively solicit expertise from 
the public and from outside Washington so that it makes policies with 
the benefit of the best information.
     Collaboration: FCA officials should work together with 
other Government officials and with citizens as part of doing its job 
of solving national problems.

Dated This 7th Day Of November, 2011.

    By Order of the Board.
    Dated: November 10, 2011.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2011-29687 Filed 11-16-11; 8:45 am]
BILLING CODE 6705-01-P