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Canadian Nuclear Safety Commission

Canadian Nuclear Safety Commission Conflict of Interest and Post-Employment Code

Part I - Introduction
Part II - Principles and Administration
Part III - Conflict of Interest Compliance Measures Applicable to all Employees
Part IV - Additional Measures Applicable to Certain Employees
Part V - Compliance Measures for Special Employees
Part VI – Enforcement
Schedule A

Part I - Introduction

1. This code is modeled after the Conflict of Interest and Post-Employment Code for Public Office Holders, which was tabled by the Prime Minister in the House of Commons on September 9, 1985.

2. (1) For the purposes of this code:

"Act" means the Nuclear Safety and Control Act;

"ADRG" means the Assistant Deputy Registrar General;

"Commission" means the Canadian Nuclear Safety Commission;

"designated authority" means, subject to subsection (2), a panel established pursuant to section 19 of the rules;

"designated official" means the President of the Commission or his duly authorized delegate;

"employee" means, subject to subsection (3), a person appointed and employed by the Commission pursuant to paragraph 8(c) of the Act; and

"rules" means the CNSC Rules of Proceedings.

(2) The designated official shall not be a member of a panel established for purposes of this code.

(3) For greater certainty the definition "employee" in subsection (1) does not include

(a) a member of the Commission,

(b) a person engaged under a contract in writing to provide a service to the Commission if that person is not a former employee,

(d) a member of the Advisory Committee on Radiological Protection, or

(e) a person appointed as

(i) an inspector pursuant to section 12,

(ii) a medical adviser pursuant to section 15, or

(iii) a radiation safety adviser pursuant to section 16

of the Nuclear Safety and Control Regulations who is not appointed and employed by the Commission pursuant to paragraph 8(c) of the Act.

Part II - Principles and Administration

Objects

3. The objects of this code are to enhance public confidence in the integrity of the Commission and its employees

(a) while encouraging experienced and competent persons to seek and accept public office;

(b) while facilitating interchange between the private and the public sector;

(c) by establishing clear rules of conduct respecting conflict of interest for, and post-employment practices applicable to, all employees; and

(d) by minimizing the possibility of conflicts arising between the private interests and public service duties of employees and providing for the resolution of such conflicts in the public interest should they arise.

Application

4. In keeping with the principles described in section 5, each employee is obliged to take such action as is necessary to prevent real, potential or apparent conflicts of interest.

Principles

5. Every employee shall conform to the following principles;

(a) employees shall perform their official duties and arrange their private affairs in such a manner that public confidence and trust in the integrity, objectivity and impartiality of the Commission are conserved and enhanced;

(b) employees have an obligation to act in a manner that will bear the closest public scrutiny, an obligation that is not fully discharged by simply acting within the law;

(c) employees shall not have private interests, other than those permitted pursuant to this code, that would be affected particularly or significantly by the Commission’s decisions or actions in which they participate;

(d) on appointment and thereafter, employees 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 an employee and the official duties and responsibilities of that employee, the conflict shall be resolved in favour of the public interest;

(e) employees shall not solicit or accept transfers of economic benefits, 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 employee;

(f) employees shall not step out of their official roles to assist a person, group or other organization in dealings with the Commission where this would result in preferential treatment to that person, group or organization;

(g) employees shall not knowingly take advantage of, or benefit from, information that is obtained in the course of their official duties and responsibilities that is not generally available to the public;

(h) employees shall not use or allow the use of the Commission’s property of any kind, including property leased to the Commission, for anything but officially approved activities; and

(i) employees shall not act, after they leave the Commission’s employ, in such a manner as to take improper advantage of their previous employment.

Certification Document

6. Before or upon appointment, new employees shall sign a document in form I, certifying that they have read and understood this code and that, as a condition of employment, they will observe it.

Annual Review

7. All employees are required to review their obligations under this code at least once a year.

Contracts

8. Every employee negotiating or proposing to enter into a personal service or other contract on behalf of the Commission with or involving a former employee shall, before the contract is entered into, report to the designated official and shall not enter into that contract except in accordance with the instructions of the designated official.

Dealing with Former Employees

9. (1) Employees who intend to have official dealings, other than those that consist of the routine provision of service to an individual, with former employees who are or may be governed by the post-employment measures prescribed in Part IV shall report this fact to the designated official.

(2) Upon receiving a report pursuant to subsection (12), the designated official shall forthwith

(a) determine whether or not the former employee is complying with the post employment measures prescribed by part IV, and

(b) give written instructions to the reporting employee with respect to the matter.

10. An employee who receives instructions pursuant to paragraph 9(2)(b) shall thereafter comply with those instructions.

Part III - Conflict of Interest Compliance Measures Applicable to all Employees

Objects

11. The compliance measures prescribed in this part set out the procedural and administrative requirements to be observed by employees in order to minimize the risk of conflict of interest and to permit the resolution of such conflicts of interest in favour of the public interest, should any arise.

Confidentiality

12. Information concerning the private interests of employees provided to the designated official pursuant to this part shall be treated in confidence.

13. The designated official shall ensure that information referred to in section 12 is placed in special personal files apart from personnel files and in secure safekeeping.

Methods of Compliance

14. An employee may comply with the code in the following ways:

(a) by avoiding or withdrawing from activities or situations that would place the employee in a real, potential or apparent conflict of interest relative to his or her official duties and responsibilities;

(b) by providing a confidential report to the designated official indicating ownership of an asset, receipt of a gift, hospitality, or other benefit, or participation in any outside employment or activity; and

(c) where continued ownership of an asset by an employee would constitute a real, potential or apparent conflict of interest with the employee’s official duties and responsibilities, that employee may elect to sell the asset at arm’s length or place that asset in trust.

15. The sale or transfer of an asset by an employee to family members or others for purposes of circumventing the compliance measures prescribed by this part is an act of non-compliance with this code.

16. A confidential report will usually be considered to be compliance with the measures prescribed by this part; however, there will be instances where withdrawal from the activity or divestment will be necessary. The designated official will make this decision and communicate it to the employee. Where there is doubt about which and, in doing so, will try to achieve agreement with the employee taking into account:

(a) the employee’s specific responsibilities;

(b) the value and type of the assets and interests involved;

(d) the actual costs to be incurred by divesting the assets and interests, as opposed to the potential that the assets and interests represent for a conflict of interest; and

(e) the results of any consultation with the ADRG.

Exempt Assets

17. Assets and interests intended for the private use of an employee, and assets that are not of a commercial character are not subject to the compliance measures prescribed by this code. Such assets include:

(a) residences, recreational property and farms used or intended for use by employees or their families;

(b) household goods and personal effects;

(d) automobiles and other personal means of transportation;

(e) cash and deposits;

(f) Canada Savings Bonds and other similar investments in securities of fixed value issued or guaranteed by any level of government in Canada or any agency of those governments;

(g) registered retirement savings plans that are not self-administered,

(h) registered home ownership savings plans;

(i) investments in open-ended mutual funds;

(j) guaranteed investment certificates and similar financial instruments;

(k) annuities and life insurance policies;

(l) pension rights;

(m) money owed by a previous employer, client or partnership; and

(n) personal loans receivable from members of the employee’s immediate family and small personal loans receivable from other persons where the employee has loaned the moneys receivable.

Confidential Report

18. Every employee shall, within 60 days after assuming office, make a confidential report in form II to the designated official of all assets other than exempt assets described in section 17, and of all direct and contingent liabilities, where such assets and liabilities might give rise to a conflict of interest in respect of the employee’s official duties and responsibilities.

Assets and Liabilities Subject to Confidential Report

19. Assets and liabilities referred to in section 18 include:

(a) publicly traded securities of corporations and foreign governments which are directly engaged in the development, application or use of atomic energy, and self-administered registered retirement savings plans composed of such securities;

(b) interests in partnerships, proprietorships, joint ventures, private companies and family businesses that own or control shares of corporations or foreign governments referred to in paragraph (a) or that do business with the Commission;

(i) is directly used by any of the organizations referred to in paragraphs (a) and (b), and

(ii) is not an exempt asset described in section 17;

(d) commodities directly used in the development, application or use of atomic energy or futures with respect to such commodities;

(e) secured or unsecured loans granted to persons other than to members of the employee’s immediate family;

(f) any other assets or liabilities that could give rise to a real or potential conflict of interest due to the particular nature of the employee’s duties and responsibilities; and

(g) direct and contingent liabilities in respect of any of the assets described in this section.

Divestment of Assets

20. (1) An employee shall divest assets where

(a) it is determined by the designated official, after consulting with the ADRG, that such assets constitute a real or potential conflict of interest in relation to the duties and responsibilities of that employee; and

(b) the designated official requires divestment.

(2) Divestment, where required, shall take place within 120 days after a determination referred to in subsection (1).

(3) Divestment of assets may be achieved by selling them in an arm’s length transaction or by making them subject to a trust arrangement satisfactory to the designated official and the ADRG.

21. A trust arrangement established in compliance with section 20 shall not leave in the hands of an employee or of a member of that employee’s immediate family any power of management or decision over the assets placed in trust.

22. The Commission may reimburse the employee for trust costs incurred in an amount not exceeding the amount set out in the Schedule A.

Outside Activities

23. Involvement in outside employment or other outside activities, whether for compensation or not, by an employee is not prohibited if such employment or activities do not impose demands inconsistent with official duties and responsibilities or call into question the capacity of that employee to perform official duties and responsibilities objectively.

24. It is the responsibility of the employee to make a confidential report to the designated official of any outside employment or outside activity in which he is or intends to become engaged and which imposes demands inconsistent with official duties and responsibilities or calls into question the capacity of that employee to perform official duties and responsibilities objectively.

25. The designated official may require that outside employment or an outside activity reported pursuant to section 24 be curtailed, modified or ceased when it has been determined by him that a real or potential conflict of interest exists.

26. An employee shall not engage in second employment with any department, other board, commission or agency of the Government of Canada unless the employee has first obtained the specific permission of the designated official for the second employment.

Gifts, Hospitality and Other Benefits

27. An employee shall decline gifts, hospitality or other benefits that could influence that employee’s judgement and performance of official duties and responsibilities.

28. An employee may not accept, directly or indirectly, any gift, hospitality or other benefit that is offered by a person, group or other organization directly or indirectly involved in the development, application or use of atomic energy or having dealings with the Commission.

29. Notwithstanding sections 27 and 28, an employee’s acceptance of an offer of an incidental gift, hospitality or other benefit arising out of activities associated with the performance of official duties and responsibilities is not prohibited if such gift, hospitality or other benefit:

(a) is within the bounds of propriety, a normal expression of courtesy or within the normal standards of hospitality;

(b) is not such as to bring suspicion on the employee’s objectivity and impartiality; and

30. Where it is impossible to decline an unauthorized gift, hospitality or other benefit, an employee shall immediately report the matter to the designated official.

31. The designated official may require that a gift referred to in section 29 be retained by the Commission or be disposed of by the employee for charitable purposes.

Avoidance of Preferential Treatment

32. An employee shall not accord preferential treatment in relation to any official matter to a family member or a friend, or to any group or other organization in which the employee, family member or friend has an interest.

33. Every employee shall take appropriate measures to avoid being placed, or appearing to be placed, under obligation to any person, group or other organization who or which might profit from special consideration by the employee.

34. An employee shall not, without the prior written permission of the designated official, offer assistance in dealing with the Commission to any person, group or other organization where such assistance is outside the official role of the employee.

Failure to Agree

35. (1) Where an employee and the designated official disagree with respect to any matter arising under this part or with respect to the appropriate arrangements necessary for that employee to achieve compliance with this code, the disagreement shall be referred to the designated authority for determination.

(2) The rules apply to every reference made pursuant to subsection (1).

Subsequent Changes

36. An employee shall forthwith inform the designated official of any change in assets, liabilities, outside employment or outside activities that would be subject to a confidential report.

Ttransitional Provision

37. Where an employee was, immediately prior to the coming into force of this code, subject to any conflict of interest or post-employment guidelines of the Commission, the employee shall continue to be subject to those guidelines, in lieu of this code, until a review of that employee’s compliance measures is completed by the designated official.

Part IV - Additional Measures Applicable to Certain Employees

39. This part applies to an employee who receives written notice from the designated official of its application.

Post-Employment Compliance Mesures

Objects

40. This part is not intended and shall not be construed to unduly inhibit an employee’s pursuit of alternate employment, including employment with respect to the development, application and use of atomic energy, but is designed to assist that employee to minimize the possibility of:

(a) allowing prospects of outside employment to create a real, potential or apparent conflict of interest;

(b) obtaining preferential treatment or privileged access to the Commission after leaving the Commission’s employ;

(c) taking personal advantage of information obtained in the course of official duties and responsibilities until that information has become generally available to the public; and

(d) using public office to unfair advantage in obtaining opportunities for outside employment.

Before Leaving Office

41. (1) An employee shall not allow plans for, or offers of outside employment to affect or influence the objective and impartial pursuit of official duties and responsibilities.

(2) Every employee shall forthwith disclose in writing to the designated official:

(a) all firm offers of employment from a prospective employer who

(i) is directly engaged in the development, application or use of atomic energy, or

(ii) has or is about to have significant dealings with the Commission; and

(b) the acceptance of any offer referred to in paragraph (a).

42. (1) Where the designated official determines that an employee is engaged in significant official dealings with a future employer, that employee may be assigned to other duties and responsibilities to avoid any real, potential or apparent conflict of interest.

(2) The period of time spent by an employee following an assignment pursuant to subsection (1) shall be counted toward the limitation period prescribed in section 43.

After Leaving Office

43. (1) When the designated official determines that a real or potential conflict of interest exists, he may prohibit that employee from participating in one or more of the following activities for a period of one year after leaving the Commission’s employ:

(a) acting for or on behalf of any person, group or other organization in connection with any matter in which the Commission is involved if

(i) that employee acted for or advised the Commission in respect of that matter, and

(ii) that person, group or other organization would thereby derive a significant benefit not otherwise generally available to public;

(b) making representations for or on behalf of any person, group or other organization to any department with which he or she had significant official dealings during the period of one year immediately prior to termination of employment;

(c) giving counsel, for the commercial purposes of the recipient of the counsel, concerning the programs or policies of the Commission.

(d) accepting an appointment to a board of directors of, or employment with an organization with which he or she had significant official dealings during the period of one year immediately prior to termination of employment.

Reduction of Limitation period

44. (1) On application by an employee or former employee, the designated official may reduce the limitation period referred to in section 43.

(2) In deciding whether or not to reduce the limitation period, the designated official shall take into consideration;

(a) the circumstances under which the termination of employment occurred;

(b) the general employment prospects of the employee or former employee making the application;

(c) the significance to the Commission of information possessed by the employee or former employee by virtue of that employee’s employment;

(d) the desirability of a rapid transfer from the Commission to private or other governmental sectors of the employee’s or former employee’s knowledge and skills;

(e) the degree to which the new employer might gain unfair advantage by hiring the employee or former employee;

(f) the level of authority and influence vested in the employee or former employee while in the Commission’s employ;

(g) the disposition of other similar cases.

Advisory Panels

45. The designated official may

(a) consult with the ADRG; and

(b) convene advisory panels to advise on the application of the compliance measures in particular cases, and to help employees or former employees understand how the compliance measures apply in a particular case.

Exit Arrangements

46. Prior to an employee’s termination of employment, the designated official shall meet with the employee to review the post-employment requirements of this part in order to facilitate their observance.

Appeals

47. (1) Where an employee or former employee disagrees with a determination or other decision made by the designated official under this part, that employee or former employee may give the designated official written notice of appeal.

(2) Where the designated official receives a notice pursuant to subsection (1), he shall forthwith appoint a designated authority for purposes of the appeal.

(3) The rules apply to every appeal commenced pursuant to subsection (1).

(4) The designated authority may

(a) confirm the determination or other decision made by the designated official, or

(b) substitute its own determination or decision for that of the designated official.

Part V - Compliance Measures for Special Employees

Secondment to the Commission

48. Before entering into an agreement to accept a person on secondment, the parties to the agreement shall satisfy themselves that there is no risk of conflict of interest or that the risk of conflict of interest is not significant. If the parties determine that the risk of conflict of interest is significant, the parties shall make such provisions as are necessary to prevent the conflict of interest from arising.

49. Persons entering the Commission’s employ on a secondment shall not act, after they leave the Commission’s employ, in such a manner as to take improper advantage of that employment.

Part VI - Enforcement

50. An employee who does not comply with the measures set out in this code is subject to appropriate disciplinary action up to and including discharge.

Schedule A

Reimbursement for Costs Incurred

On the recommendation of the ADRG, the following reimbursements for costs of trusts established to comply with the Conflict of Interest Compliance Measures set out in this Code may be permitted:

(a) reasonable legal, accounting and transfer costs to establish the trust;

(b) reasonable legal, accounting and transfer costs to dismantle the trust; and

(i) up to a maximum of $500 for a portfolio with a market value of $100,000 or less, or

(ii) up to a maximum of $5,000 for a portfolio with a market value over $100,000, ½ of 1% on the first $400,000 and ¼ of 1% on the remaining value.

The employee is responsible for any income tax adjustment that may result from the reimbursement of trust costs.