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Department of Finance Code of Conduct

The Department of Finance Code of Conduct consolidates the overarching principles and obligations of employees under Treasury Board’s Values and Ethics Code for the Public Sector, Directive on Conflict of Interestand our pre-existing Conflict of Interest Code for the Department of Finance. The Code seeks to provide you with general guidelines and resources to ensure that we all demonstrate leadership in ethical behaviour.

Department of Finance Code of Conduct

Chapter I: Values and Ethics

Statement of Values

Expected Behaviours

Avenues for Resolution

Duties and Obligations

Other Duties and Obligations

Resources

Chapter II: Conflict of Interest and Post-Employment

Annex A: Conflict of Interest Code for the Department of Finance

Annex B: Reportable and Non-Reportable Assets, Liabilities and Outside Activities

Appendix 1

Department of Finance code of conduct

Preamble

Historically, the Department of Finance has set the highest standards for excellence, accountability and ethical conduct in serving our Minister, the Government of Canada and the Canadian public. Canadians trust us to develop financial and economic policies that preserve and strengthen their standards of living and quality of life. We believe that the way we demonstrate adherence to public service values and ethics on a daily basis is fundamentally important in ensuring public confidence and trust. We are counted on to provide professional, objective and impartial advice to serve the public interest.

Public service values and ethics matter. Given this Department’s access to sensitive economic, fiscal, financial and tax information, we must protect all classified information and ensure that we do not use or disclose non-public information for our financial benefit or for the benefit of others. This commitment to values and ethics should also be reflected in how we manage our budgets and financial transactions; how we do procurement; how we ensure fairness and transparency in our staffing processes; and in the respect we demonstrate for each other. It’s easier to make the right decisions when you understand our shared public sector values.

Each of us should familiarize ourselves with the Department of Finance Code of Conduct. If you are unsure of your obligations, please seek guidance from the appropriate individual. This Code forms part of your terms and conditions of employment and is designed to assist you in appreciating the ethical issues and corporate values that relate to your work. Each of us is accountable for putting these principles into action and demonstrating personal and professional integrity in representing the Department of Finance.

Our commitment to these values and ethics is essential in supporting and reinforcing professionalism and protecting the reputation and integrity of the Department and its employees.

About the Department of Finance Canada

The Department of Finance and its employees develop policies and provide advice to the government with the goal of creating a healthy economy for all Canadians. More specifically, the department:

Chapter I: Values and ethics

The role of federal public servants

Federal public servants have a fundamental role to play in serving Canadians, their communities and the public interest under the direction of the elected government and in accordance with the law. As professionals whose work is essential to Canada’s well-being and the enduring strength of the Canadian democracy, public servants uphold the public trust.

The Constitution of Canada and the principles of responsible government provide the foundation for the role, responsibilities and values of the federal public sector.Footnote 1 Constitutional conventions of ministerial responsibility prescribe the appropriate relationships among ministers, parliamentarians, public servantsFootnote 2 and the public. A professional and non-partisan federal public sector is integral to our democracy.

Public servants working in the Department of Finance are accountable to their departmental managers, to the Government and to the public for the way they conduct themselves. Public servants are expected to carry out their assigned duties conscientiously and in accordance with the Department’s policies and guidelines. Public servants should carefully consider the potential impact that their decisions and actions may have on all stakeholders including the public, their co-workers and others. They should make appropriate choices as to what is right and what is wrong, even when legal and regulatory decisions do not require it.

The role of Ministers

Ministers are also responsible for preserving public trust and confidence in the integrity of public sector organizations and for upholding the tradition and practice of a professional non-partisan federal public sector. Furthermore, Ministers play a critical role in supporting public servants’ responsibility to provide professional and frank advice.Footnote 3

Application

Acceptance of these values and adherence to the expected behaviours is a condition of employment for every public servant in the federal public sector, regardless of their level or position. A breach of these values or behaviours may result in disciplinary measures being taken, up to and including termination of employment.

More specifically, compliance with this Code (which includes the pre-existing Conflict of Interest Code for the Department of Finance at Annex A, the Values and Ethics Code for the Public Sector and the Treasury Board’s (Directive on Conflictof Interest)is a condition of employmentFootnote 4 for all public servants working in the Department of Finance, including indeterminate and term employees (full and part-time), persons on secondment to the Department, casuals, students and staff on leave with or without payFootnote 5. Employees on leave without pay for more than two years are not required to declare assets in their annual Confidential Report.

Although they are not public servants, individuals on incoming Interchange Canada assignments are expected to comply with the requirements of this Code. As well, volunteers and other persons not employed by the Department who participate in organizational activities that assist the Department in carrying out its mandate are expected to respect the requirements of this Code. Governor in Council appointees, such as deputy heads, are subject to the Conflict of Interest Actand the Values and Ethics Code for the Public Sector.

The Department of Finance Code of Conduct came into force on April 2, 2012.

Objectives

This Code outlines the values and the expected behaviours that guide public servants in all activities related to their professional duties. By committing to these values and adhering to the expected behaviours, public servants strengthen the ethical culture of the public sector and contribute to public confidence in the integrity of all public institutions.

The Public Service Disclosure Protection Act (PSDPA) requires the establishment of both a public sector code of conduct and a departmental code of conduct. The Values and Ethics Code for the Public Sector, established by the Treasury Board, fulfills the first requirement and the Department of Finance Code of Conduct fulfills the second requirement of the PSDPAFootnote 6. This Code includes the pre-existing Conflict of Interest Code for the Department of Finance (Annex A). It should also be read in conjunction with the Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest.

Statement of values

These values are a compass to guide public servants in everything they do. They cannot be considered in isolation from each other as they will often overlap. This Code and departmental policies are important sources of guidance for public servants as they are expected to integrate these values into their decisions, actions, policies, processes and systems.

Similarly, public servants can expect to be treated in accordance with these values by the Department of Finance.

Respect for Democracy

The system of Canadian parliamentary democracy and its institutions are fundamental to serving the public interest. Public servants recognize that elected officials are accountable to Parliament, and ultimately to the Canadian people, and that a non-partisan public sector is essential to our democratic system.

Respect for People

Treating all people with respect, dignity and fairness is fundamental to our relationship with the Canadian public and contributes to a safe and healthy work environment that promotes engagement, openness and transparency. The diversity of our people and the ideas they generate are the source of our innovation.

Integrity

Integrity is the cornerstone of good governance and democracy. By upholding the highest ethical standards, public servants conserve and enhance public confidence in the honesty, fairness and impartiality of the federal public sector.

Stewardship

Federal public servants are entrusted to use and care for public resources responsibly, for both the short term and long term.

Excellence

Excellence in the design and delivery of public sector policy, programs and services is beneficial to every aspect of Canadian public life. Engagement, collaboration, effective teamwork and professional development are all essential to a high-performing organization.

Expected behaviours

Federal public servants are expected to conduct themselves in accordance with the values of the public sector and these expected behaviours.

1. Respect for Democracy

Public servants shall uphold the Canadian parliamentary democracy and its institutions by:

1.1 Respecting the rule of law and carrying out their duties in accordance with legislation, policies and directives in a non-partisan and impartial manner.

1.2 Loyally carrying out the lawful decisions of their leaders and supporting Ministers in their accountability to Parliament and Canadians.

1.3 Providing decision makers with all the information, analysis and advice they need, always striving to be open, candid and impartial.

2. Respect for People

Public servants shall respect human dignity and the value of every person by:

2.1 Treating every person with respect and fairness.

2.2 Valuing diversity and the benefit of combining the unique qualities and strengths inherent in a diverse workforce.

2.3 Helping to create and maintain safe and healthy workplaces that are free from harassment and discrimination.

2.4 Working together in a spirit of openness, honesty and transparency that encourages engagement, collaboration and respectful communication.

3. Integrity

Public servants shall serve the public interest by:

3.1 Acting at all times with integrity and in a manner that will bear the closest public scrutiny, an obligation that may not be fully satisfied by simply acting within the law.

3.2 Never using their official roles to inappropriately obtain an advantage for themselves or to advantage or disadvantage others.

3.3 Taking all possible steps to prevent and resolve any real, apparent or potential conflicts of interest between their official responsibilities and their private affairs in favour of the public interest.

3.4 Acting in such a way as to maintain their employer’s trust.

4. Stewardship

Public servants shall use resources responsibly by:

4.1 Effectively and efficiently using the public money, property and resources managed by them.

4.2 Considering the present and long-term effects that their actions have on people and the environment.

4.3 Acquiring, preserving and sharing knowledge and information as appropriate.

5. Excellence

Public servants shall demonstrate professional excellence by:

5.1 Providing fair, timely, efficient and effective services that respect Canada’s official languages.

5.2 Continually improving the quality of policies, programs and services they provide.

5.3 Fostering a work environment that promotes teamwork, learning and innovation.

Avenues for resolution

The expected behaviours are not intended to respond to every possible ethical issue that might arise in the course of a public servant’s daily work. When ethical issues arise, public servants are encouraged to discuss and resolve these matters with their immediate supervisor. They can also seek advice and support from other appropriate sources within the Department of Finance such as the Director, Values and Ethics.

Public servants at all levels are expected to resolve issues in a fair and respectful manner and consider informal processes such as dialogue or mediation.

As provided by sections 12 and 13 of the PSDPA, if public servants have information that could indicate a serious breach of this Code they can bring this matter, in confidence and without fear of reprisal, to the attention of their immediate supervisor, the Department of Finance Disclosure Protection Officer (DPO) or the Public Sector Integrity Commissioner.

The DPO is responsible for supporting the Deputy Minister in meeting the requirements of the PSDPA. The DPO helps promote a positive environment for disclosing wrongdoing, and deals with disclosures of wrongdoing made by employees of the organization.

Members of the public who have reason to believe that a public servant has not acted in accordance with this Code can bring the matter to the DPO or to the Public Sector Integrity Commissioner to disclose a serious breach of this Code.

Duties and obligations

Public servants

Public servants are expected to abide by this Code, and demonstrate the values of the public sector in their actions and behaviour. If a public servant does not abide by these values and expectations, he or she may be subject to administrative or disciplinary measures up to and including termination of employment.

As provided by sections 12 and 13 of the PSDPA, if public servants have information that could indicate a serious breach of this Code they can bring this matter, in confidence and without fear of reprisal, to the attention of their immediate supervisor, the DPO or the Public Sector Integrity Commissioner.

Managers

Public servants who are also managers are in a position of influence and authority that gives them a particular responsibility to exemplify the values of the public sector.

A manager is expected to demonstrate leadership in respecting this Code and its underlying policies and, in particular, to:

Deputy Minister

The deputy minister of a public sector organization has specific responsibilities under the PSDPA, including establishing a code of conduct for the organization, and an overall responsibility for fostering a positive culture of values and ethics in the organization. The Deputy Minister of the Department of Finance ensures that employees are aware of their obligations under the Values and Ethics Code for the Public Sector and this Code of Conduct. It must also be ensured that employees can obtain appropriate advice within the organization on ethical issues, including possible conflicts of interest.

The Deputy Minister ensures that this Code, the Values and Ethics Code for the Public Sector, the Directive on Conflict of Interest and the internal disclosure procedures are implemented effectively in the department, and are regularly monitored and evaluated.

The Deputy Minister is responsible for ensuring the non-partisan provision of programs and services by the department. The Deputy Minister is subject to the Values and Ethics Code for the Public Sectorand to the Conflict of Interest Act.

Disclosure Protection Officer

The DPO helps promote a positive environment for disclosing wrongdoing, and deals with disclosures of wrongdoing made by public servants of the department. Senior officers are responsible for supporting the Deputy Minister in meeting the requirements of the PSDPA. In the Department of Finance, the DPO is also the Director, Values and Ethics.

The DPO's duties and powers within the department also include the following, in accordance with the internal disclosure procedures established under the PSDPA:

  1. Provide information, advice and guidance to public servants regarding the department’s internal disclosure procedures, including the making of disclosures, the conduct of investigations into disclosures and the handling of disclosures made to supervisors.
  2. Receive and record disclosures and review them to establish whether there are sufficient grounds for further action under the PSDPA.
  3. Manage investigations into disclosures, including determining whether to deal with a disclosure under the PSDPA, initiate an investigation or cease an investigation.
  4. Coordinate handling of a disclosure with the senior officer of another federal public sector organization, if a disclosure or an investigation into a disclosure involves that other organization.
  5. Notify the person(s) who made a disclosure in writing of the outcome of any review and/or investigation into the disclosure and on the status of actions taken on the disclosure, as appropriate.
  6. Report the findings of investigations, as well as any systemic problems that may give rise to wrongdoing, directly to the Deputy Minister, with recommendations for corrective action, if any.

Director, Values and Ethics

The Director, Values and Ethics, is designated by the Deputy Minister as the senior official responsible for ensuring that all public servants working in the Department of Finance are aware of their obligations and comply with this Code, the Values and Ethics Code for the Public Sectorand the Directive on Conflict of Interest.

The Director reports directly to the Deputy Minister on Code-related matters. The role of the Director is to receive, record, review and protect confidential disclosure reports filed under this Code; resolve conflict of interest issues; and provide information, training and advice to departmental personnel on matters relating to conflict of interest and generally, on matters of values and ethics.

Treasury Board of Canada Secretariat – Office of the Chief Human Resources Officer

In support of the Treasury Board President’s responsibilities under section 4 of the PSDPA, the Office of the Chief Human Resources Officer (OCHRO) is responsible for promoting ethical practices in the public sector. The OCHRO will work with all relevant partner organizations to implement and promote the Values and Ethics Code for the Public Sector, and will provide advice to chief executives and designated departmental officials with respect to its interpretation.

The Chief Human Resources Officer may issue directives, standards and guidelines related to the Values and Ethics Code for the Public Sector.

OCHRO will monitor the implementation of the Values and Ethics Code for the Public Sector in organizations with a view to assessing whether the stated objectives have been achieved.

Public Service Commission

The Public Service Commission is responsible for conducting staffing investigations and audits to safeguard the integrity of the public service staffing system and administering certain provisions related to political activities to maintain the non-partisanship of the public service in accordance with the Public Service Employment Act

Other duties and obligations

Access to information and privacy

The Access to Information Act gives every Canadian citizen, permanent resident, individual or corporation present in Canada the right to request access to records that are under the control of federal government institutions regardless of their format. It also contains exemptive provisions which may be used to protect certain types of information from disclosure. Of note is section 67.1 of the Act which makes it a criminal offence to intentionally destroy, mutilate, alter, conceal a record or to direct, propose, counsel or cause any person to do the same in order to prevent its access under the Act.

The Privacy Act protects the privacy of individuals with respect to their personal information and it governs the federal government’s collection, retention, use and disclosure of that information. The Act also provides individuals (including those in Canada who are not permanent residents or citizens) with a right of access to their personal information subject to the exemptive provisions that can be used to protect certain types of personal information from disclosure. Breaches of personal information are investigated internally and possibly by the Office of the Privacy Commissioner.

Communication with the media

Only designated and authorized spokespersons within the Media Office of the Department of Finance may make statements or comments to the media.

If a call from the media is received, it must be referred to the departmental Media Office. The role of the Media Office is to ensure that media requests are handled by experienced staff in a timely fashion.

The Minister of Finance is the only person who can conduct television or radio interviews on behalf of the Department of Finance.

The departmental spokespersons are the only Finance officials who can be quoted by name for attribution by the print and electronic media.

In the event that an employee receives a call from a journalist about a Working Paper or Analytical Paper, this call must also be referred to the Media Office. The spokesperson, a communications strategist and the Assistant Deputy Minister or the General Director of the relevant policy branch will generally discuss the appropriate response.

Disclosure of wrongdoing

“Wrongdoing” under the PSDPA is a violation of an Act of Parliament or the legislature of the province, or any regulations made under any such Act; the misuse of public funds or assets; a serious breach of this code of conduct; or gross mismanagement in the public sector. It may involve an act or omission that creates a substantial endangerment to the life, health or safety of persons and of the environment; or it could involve knowingly directing or counselling a person to commit a wrongdoing.

In accordance with the PSDPA, employees are encouraged to come forward if they believe that a serious wrongdoing has taken place in the workplace. In making a disclosure, employees shall be treated fairly, in confidence and protected against reprisal.

Finance staff may make a disclosure of wrongdoing to the Disclosure Protection Officer or to the Public Sector Integrity Commissioner. If an employee makes a disclosure of wrongdoing to his or her supervisor, the disclosure must then be forwarded to the Disclosure Protection Officer.

Duty of loyalty

The duty of loyalty has long been a fundamental value and requirement of the public service of Canada. In Canada's system of parliamentary democracy, public servants owe a duty of loyalty to their employer. This duty derives from the essential mission of the public service to help the duly elected government, under law, to serve the public interest. The duty of loyalty reflects the importance and necessity of an impartial and effective public service.

Employees must ensure that their public statements or actions do not impair their ability to carry out their duties or call into question their impartiality in carrying out their duties. Internal avenues should be used to bring criticism to the attention of management.

Employees must refrain from making, through any public medium, either directly or through a third party, any statement critical of the Department of Finance or government policies, programs, or officials, or on matters of current political controversy where the statements or actions might create a conflict with the duties of their position or Department of Finance and Government of Canada programs and policies.

Given technological innovations, such as social networking websites, employees should exercise caution in using publicly accessible media to express criticism of government policy as it may impair (or be perceived as impairing) their ability to carry out their official duties in an impartial matter. Employees should not use public fora to disclose non-public information.

Financial management

Employees may be responsible for collecting, receiving, managing or disbursing public money. These are serious responsibilities and the management of financial resources must be exercised with due diligence and in accordance with Treasury Board and Department of Finance policies and procedures. It is imperative that all financial management activities comply with the Financial Administration Act.

Harassment and discrimination

The Department of Finance promotes a professional and respectful work environment where diversity is valued. Everyone is entitled to work in an environment free from harassment and discrimination. While management is responsible for fostering such an environment, it is everyone’s responsibility to treat fellow employees with fairness, respect and dignity.

Security of information

Employees must fully respect the confidentiality requirements of information obtained through their position in the Department of Finance. Documents containing confidential/secret information must be strictly controlled at all times and not be displayed in elevators or left in conference rooms, on desks or in other locations where they may be seen by the public or by employees who do not have a legitimate need to know. Unnecessary copying of confidential/secret documents should be avoided. Documents containing confidential information must be placed in an appropriate secured cabinet. For more detailed guidance, please consult the Guideline for Employees of the Government of Canada: Information Management (IM) Basics and the Security of Information Act.

Depending on the circumstances, in the case of a privacy breach, contact the Director of Security Services and the Director of Access to Information and Privacy immediately for further guidance.

Use of electronic networks

Use of electronic network facilities, including the Internet, for personal use on personal time for such purposes as online banking and shopping, sending personal electronic mail using the departmental email system and exploring the Internet for useful resources is permissible.

Access to electronic network facilities, including the Internet, provides employees with powerful tools but also carries with it responsibility. Maintaining balance between empowerment and responsibility is not solely the job of the Department but is also the job of the user and creator of the information resources stored on the networks.

Employees should limit themselves to authorized uses and avoid any unlawful or unacceptable use of electronic networks. Policy on Service and Digitaland the Directive on Service and Digital  provide detailed information in this regard.

Use of social media

When employees participate in Web 2.0 and social media websites for personal use, people may know or ascertain that they are public servants. The issues of accessibility to information posted on social networking websites may blur the distinction between the professional and the private lives of employees. Depending on the website and access given, information originally posted for family and friends may be forwarded to others who have access to the online content. All employees are expected to use sound judgement to ensure that postings do not compromise the professional, respectful and non-partisan performance of their official duties.

For more information on the use of social media, visit the Social media and web requirements by Treasury Board.

Workplace health and safety

While on the job, employees are expected to follow established safety procedures and comply with all instructions concerning health and safety in the workplace in accordance with the Canada Labour Code, Part II. Employees are also required to take all reasonable and necessary precautions to ensure their safety and health and that of other employees and any persons granted access to the workplace. Employees are to promptly report to their manager any work-related accident or personal injury or that of other employees, or any unsafe or hazardous condition at work.

Resources

Bargaining agents

The following bargaining agents represent unionized public servants working in Department of Finance and are available to assist their members and consult on workplace issues:

Delegation of authorities

Human Resource Delegation Authorities and Delegation of Financial Signing Authorities sets out the authorities that are delegated to Finance employees.

Employee Assistance Program

The Employee Assistance Program is available to all employees and their immediate family members, to help them better manage stressful situations and deal with difficult professional or personal situations. This voluntary and confidential service is offered at any time day or night, all year round.

Informal Conflict Management Systems

The use of an interest-based approach and informal conflict resolution mechanisms such as coaching, facilitation and mediation can, in many instances, help to resolve issues and prevent situations from escalating to the point where processes such as a grievance or a harassment complaint are necessary. Confidential services are available from Conflict Management Services.

Political activities

For guidance concerning political activities, consult the Public Service Commission website to find the Designated Political  Activities Representative for the Department.

Prevention and resolution of harassment in the workplace

The Treasury Board Directive on the Prevention and Resolution of Workplace Harassment and ViolenceFootnote 7 provides a guide to help determine what constitutes harassment. It fosters prevention and rapid resolution, setting out a complaint mechanism, the use of mediation and the potential for an investigation, where applicable. The Directive encourages participation in a problem resolution process before proceeding with the complaint process. Employees may direct any questions regarding harassment to the Occupational Health and Safety team.

Chapter II: Conflict of interest and post-employment

Compliance with the conflict of interest and post-employment requirements set out in this Chapter is a condition of employment for public servants in the Department of Finance. These requirements are grounded in and serve to uphold the values contained in the Values and Ethics Code for the Public Sector. By upholding these values, public servants conserve and enhance public confidence in the honesty, fairness and integrity of the public service. The Conflict of Interest Code for the Department of Finance (Annex A) sets out specific conflict of interest and reporting measures established by the Department.

Definitions

Conflict of interest: a situation in which the public servant has private interests that could improperly influence the performance of his or her official duties and responsibilities or in which the public servant uses his or her office for personal gain. A real conflict of interest exists at the present time, an apparent conflict of interest could be perceived by a reasonable observer to exist, whether or not it is the case, and a potential conflict of interest could reasonably be foreseen to exist in the future.

Conflict of duties: a conflict that arises, not because of a public servant’s private interests, but as a result of one or more concurrent or competing official responsibilities. For example, these roles could include his or her primary public service employment and his or her responsibilities in an outside role that forms part of his or her official duties, such as an appointment to a board of directors or other outside function.

Staff member: a public servant working in the Department of Finance, including indeterminate and term employees, persons on secondment to the Department, casuals, students and staff on leave with or without pay.

Prevention of conflicts of interest during and after employment

Staff members maintain public confidence in the objectivity of the public service by preventing and avoiding situations that could give the appearance of a conflict of interest, result in a potential for a conflict of interest or result in an actual conflict of interest. Conflict of interest does not relate exclusively to matters concerning financial transactions and the transfer of economic benefit. While financial activity is important, conflicts of interest in any area of activity can have a negative impact on the perceived objectivity of the department. With the permanent and pervasive nature of information technology, staff members should be particularly sensitive to real, apparent or potential conflicts of interest that may arise from messages and information transmitted via the Internet and other media.

All staff members have a responsibility to minimize the possibility of real, apparent or potential conflicts of interest between their most recent responsibilities with the Department and any subsequent employment outside the public service. Staff members in positions at the EX minus 2 level and above (“designated positions”) are subject to a one-year post-employment limitation period, during which time they must comply with specific employment-related restrictions.

1. Responsibilities and duties during employment

1.1 General Requirements

  1. Identifying, preventing, and resolving conflict of interest or conflict of duties situations during their employment with the Department of Finance, and when they leave the Department;
  2. Reporting in writing to the Director, Values & Ethics all outside employment and activities, assets, liabilities and interests that might give rise to a real, apparent or potential conflict of interest in relation to their official duties and responsibilities;
  3. Reporting in writing to the Director, Values & Ethics when concurrent or competing official responsibilities give rise to a conflict of duties situation;
  4. Refraining from having private interests and engaging in outside employment or activities that may subject them to demands incompatible with their official duties, or that could be seen to impair their ability to perform their duties and responsibilities in an objective and impartial manner; Reporting in writing to the Director, Values & Ethics before engaging in non-candidacy political activities that could constitute a conflict of interest or impair their ability to perform their duties and responsibilities in an objective and impartial manner.

1.2 Financial Mitigation

  1. Implementing a financial mitigation strategy where the Director, Values & Ethics determines that any of their reported assets and liabilities would result in a real, apparent or potential conflict of interest in relation to their official duties and responsibilities;
  2. Refraining from selling or transferring assets to anyone, including family members, or taking any other measures for the purpose of circumventing the compliance requirements set out in this Code or related instruments;

1.3 Contracts with the Government of Canada, Non-public Information, Preferential Treatment, and Inappropriate Influence

  1. Seeking the approval of the Director, Values & Ethics before entering into a contractual arrangement with the Government of Canada for which they are receiving any direct or indirect benefit or income;
  2. Refraining from knowingly taking advantage of or benefiting from information that is obtained in the course of their official duties and responsibilities and that is not available to the public; Refraining from assisting outside entities or individuals in their dealings with the government where this would result in preferential treatment or advantages to the entities or individuals; Refraining from interfering in the dealings of outside entities or individuals with the government in order to inappropriately influence the outcome;

1.4 Gifts, Hospitality and Other Benefits

  1. Refusing gifts, hospitality or other benefits if they may have a real, apparent or potential influence on their objectivity in carrying out their official duties and responsibilities or that may place them under obligation to the donor;

    For greater certainty, accepting gifts, hospitality or other benefits is permissible if they:
    1. are infrequent and of minimal value; are within the normal standards of courtesy or protocol;
    2. arise out of activities or events related to the official duties and responsibilities of the person employed; and
    3. do not compromise or appear to compromise the integrity of the person employed or the organization;
  2. Reporting and seeking written direction from the Director, Values & Ethics when they cannot decline gifts, hospitality or other benefits that do not meet the criteria outlined above, or where it is believed their acceptance would bring sufficient benefit to the organization;

1.5 Financial Arrangements, Solicitation, and Use of Government Property

  1. Refraining from undertaking any financial arrangements, including procuring goods or contracting services or administering grants and contributions or transfer payments, with outside entities or individuals where there is a risk for a real, apparent or potential conflict of interest or conflict of duties situation;
  2. Refraining from soliciting gifts, hospitality, other benefits or transfers of economic value from outside entities or individuals that have, had or may have dealings with the organization, including during fundraising activities for the Government of Canada Workplace Charitable Campaign, without having received prior written approval from their deputy head;
  3. (c) Refraining from the direct or indirect use of, or allowing the direct or indirect use of government property of any kind, including property leased to the government, for anything other than officially approved activities.

2. Post-Employment Responsibilities and Duties

Staff members must:

2.1 Before leaving the public service, reporting in writing to the Director, Values & Ethics all intended future employment and activities that might give rise to a real, apparent or potential conflict of interest in relation to their most recent duties and responsibilities;

2.2 If occupying a designated position, before leaving the public service and during the one-year post-employment limitation period:

  1. Reporting in writing to the Director, Values & Ethics all firm offers of employment and activities that might give rise to a real, apparent or potential conflict of interest in relation to their most recent duties and responsibilities;
  2. Seeking the Deputy Minister’s written approval before:

    accepting an appointment to a board of directors of, or employment with, outside entities or individuals with which they had significant official dealings, either directly or through their subordinates, in the year immediately prior to leaving their employment in the public service;
    1. making representations on behalf of entities or individuals outside of the public service to any government organization with which they had significant official dealings, either directly or through their subordinates, in the year immediately prior to leaving their employment in the public service;
    2. giving advice to their clients or any new employer by using information that is not publicly available concerning the programs or policies of the department or organization with which they were employed or with which they had a direct and substantial relationship;
    3. Seeking the Deputy Minister’s written approval if applying for a waiver or reduction of the one-year post-employment limitation period.

3. Mandatory Procedures

Waiver or reduction of limitation period

A current or former incumbent of a designated position may apply to the Deputy Minister for a waiver or reduction of the applicable post-employment limitation period, by filing a written application with the Director, Values & Ethics. The applicant must provide sufficient information to assist the Deputy Minister in making a determination as to whether to grant the waiver taking into consideration the following criteria:

  1. the circumstances under which the termination of their service occurred;
  2. the general employment prospects of the staff member or former staff member;
  3. the significance to the government of information possessed by the staff member or former staff member by virtue of that individual's position in the department;
  4. the desirability of a rapid transfer of the staff member or former staff member’s knowledge and skills from the government to private, other governmental or non-governmental sectors;
  5. the degree to which the new employer might gain unfair commercial or private advantage by hiring the staff member or former staff member;
  6. the authority and influence possessed by that individual while in the public service; and/or
  7. any other consideration at the discretion of the Deputy Minister.

4. Resolution

With respect to the arrangements necessary to prevent real, apparent or potential conflicts of interest, or to comply with the requirements set out above, it is expected that situations will be resolved through discussion and agreement between the public servant and the Director, Values and Ethics. In the case of a disagreement as to the appropriate arrangements to resolve a real, apparent or potential conflict of interest, the issue will be addressed through the resolution procedures established by the Deputy Minister.

5. Consequences

A great deal of trust is placed in staff members in the performance of their duties. A staff member who does not comply with the requirements set out in this Code may be subject to disciplinary measures, up to and including termination of employment.

Although this Code prescribes standards of conduct, they are not exhaustive. The absence of a specific standard of behaviour or guideline covering a particular situation does not relieve a staff member from the responsibility to act ethically. The action or omission may still be subject to disciplinary action. Do not assume that only one interpretation of a situation exists, particularly in conflict of interest situations such as outside activities or employment and investments. Consult with a manager, or the Director, Values and Ethics.

Annex A

Conflict of Interest Code for the Department of Finance

Ethical standards

The Department of Finance is a values-based organization that is committed to the highest standards of ethical and professional conduct.

Basic principle

It is a basic principle of ethical conduct in the federal public service that a public servant’s private interests and official duties should not conflict and that public office should not be used for private gain.

Special measures

This Code establishes specific measures to prevent conflicts of interest for persons working in the Department of Finance. In doing so, it aims to protect the reputation and integrity of both the Department and its staff.

Reason for measures

Specific measures are necessary for Finance because of the nature of the Department’s work and the fact that it affects the financial markets and the economy more generally.

No use or disclosure of non-public information

The key premise of this Code is that persons who work in the Department of Finance must not use or disclose non-public information obtained in the course of their work for their own financial benefit or the benefit of others.

Policy on Conflict of Interest and Post-Employment

The requirements of this Code supplement and strengthen the conflict of interest provisions of the Treasury Board’s Directive on Conflict of Interest. The Directive on Conflict of Interestsets out general measures that apply to all public servants. It covers assets, outside employment or activities, and receipt of gifts, hospitality and other benefits.Footnote 8 It also sets out avenues for resolving conflicts.

Condition of employment

Compliance with this Code is a condition of employment for persons working in the Department of Finance. In the event, and to the extent, of any inconsistency between the measures established by this Code and those established by the Directive on Conflict of Interest, this Code shall prevail.

Integrated Code requirements

For convenience, the conflict of interest measures under this Code and the Directive on Conflict of Interesthave been integrated and are collectively set out in this Code.

Application

Application

This Code, the Directive on Conflict of Interestand the Values and Ethics Code for the Public Sector apply to all public servants working in the Department of Finance, including indeterminate and term employees (full and part-time workers), persons on secondment to the Department, casuals, students and staff on leave with or without pay. They also apply to Interchange Canada participants and Finance counsellors posted to Canadian missions abroad.

Conflict of interest prevention

Duty to prevent conflicts and protect information

All staff membersFootnote 9 must arrange their personal affairs and conduct themselves in a manner that will prevent real, potential or apparent conflicts between their private interests and the public interest served through their official duties. Staff are obliged to protect information obtained through their work and not to use or disclose non-public information for personal profit or to enable others to profit.

Publicly traded securities

Staff members should be aware that investments in publicly traded securities, in particular, can give rise to a real, potential or apparent conflict of interest because of the nature of the Department’s work and the market sensitivity of non-public information to which staff have access.

Public interest prevails

Any conflict between a staff member’s private interests and his or her official duties must be resolved in favour of the public interest.

Director, Values and Ethics

Responsibility

The Director, Values and Ethics has lead responsibility for the application of this Code, the Directive on Conflict of Interest, the Values and Ethics Code for the Public Sector and the Department of Finance Code of Conduct. The Director reports to the deputy head on Code-related matters.

Role

The role of the Director is to receive, record, review and protect confidential disclosure reports filed under this Code and Directive on Conflict of Interest, resolve conflict of interest issues, and provide information, training and advice to departmental personnel on matters relating to conflict of interest and generally, on matters of values and ethics.

Compliance measures

Measures

This Code establishes two specific conflict of interest compliance measures for staff members:
(1) a mandatory annual Affirmation and (2) mandatory annual disclosure of reportable publicly traded securities. All other compliance measures are pre-existing and established by the Directive on Conflict of Interest.

The integrated compliance measures under this Code and the Directive on Conflict of Interestare set out below.

Single-form filing

A simplified process has been established to facilitate reporting under this Code and the Directive on Conflict of Interestthrough use of a single form.

1. Affirmation

Affirmation Requirement

Every staff member must affirm initially, and annually thereafter, that he or she has read this Code and has reviewed his or her personal circumstances in light of the requirements of this Code and the Directive on Conflict of Interest.

Simple Affirmation

Staff members with no reportable interests must file an Affirmation only.

Affirmation/ Confidential Report

Staff members with reportable interests must file an Affirmation/Confidential Report.

2. Confidential Report

When Confidential Report required

A Confidential Report is required in the circumstances set out in paragraphs (a) to (c) below.

(a) Annual securities disclosure

Mandatory securities reporting

A Confidential Report must be filed annually by every staff member who directly or indirectly holds reportable publicly traded securities or who manages such securities on behalf of another. The Confidential Report must disclose all security holdings and trades during the 12 months preceding the annual filing date or during the period since the staff member’s last filing. The requirement to report applies whether or not the staff member views the securities and trades as giving rise to a real, potential or apparent conflict of interest.

Examples

See Part I.1 of Annex B for examples of reportable publicly traded securities.

(b) General disclosure

Reporting other assets, liabilities, activities or gifts

Every staff member who

  1. has other reportable assets (i.e., assets other than publicly traded securities required to be disclosed under (a) above);
  2. has reportable direct or contingent liabilities;
  3. participates in reportable outside activities or employment, or
  4. has received a reportable gift, hospitality or other benefit,

must file a Confidential Report if, in the staff member’s objective view, the reportable interests, activities or gifts/benefits give rise to a real, potential or apparent conflict of interest with respect to his or her official duties.

Examples

See Parts I.2 and I.3 of Annex B for examples of reportable assets, liabilities and outside activities.

(c) Change-of-circumstance disclosure

Reporting due to major change in circumstances

Staff members must review their compliance obligations every time a major change occurs in their personal circumstances or official duties. If, in the staff member’s objective view, the change in circumstance gives rise to a real, potential or apparent conflict of interest, a Confidential Report must be filed within 60 days of the change.

Kinds of changes that may trigger a Report

Changes that may trigger the requirement to file a new Confidential Report include:

  1. appointment, deployment, transfer or secondment to a new position within the Department;
  2. a significant change in the duties of a staff member’s existing position (e.g., assignment to a special project); or
  3. a significant change in a staff member’s assets (including publicly traded securities), liabilities or outside activities.

3. Transactional advice

Advice on planned transactions

If in doubt as to whether or not a planned financial transaction might give rise to a real, potential or apparent conflict of interest, staff members are encouraged to consult the Director, Values and Ethics before entering into the transaction. Financial transactions include, but are not limited to, securities transactions, investment property transactions and currency trades for speculative purposes.

Conflict avoidance

Staff members should not enter into planned financial transactions that the Director, Values and Ethics has determined would give rise to a real, potential or apparent conflict of interest.

Review and determination process

Review by Director, Values and Ethics

The Director, Values and Ethics will review all Confidential Reports filed. If additional information is required, the staff member who filed the Confidential Report will be consulted first. If further information is required, the staff member’s Assistant Deputy Minister may be contacted for information on the staff member’s work and responsibilities to assist in determining whether a conflict of interest exists.

Process when conflict found

If the Director, Values and Ethics, determines that a real, potential or apparent conflict of interest exists, he will attempt to resolve the conflict with the staff member concerned. If the matter cannot be resolved, it will be referred to the deputy head or his delegate for decision. The staff member will be informed of the referral, provided with an opportunity to make written submissions and informed of the decision in writing.

Timeliness

The review and determination process will be conducted in a timely manner.

Conflict resolution measures

Divestment of securities and other assets

If it is determined that a staff member’s publicly traded securities or other assets create a real, potential or apparent conflict of interest, the requirement to divest set out in the TB Directive  on Reporting and Managing Financial Conflicts of Interest will apply. Assets are usually divested by selling them through an arm’s-length transaction or by making them subject to a blind trust arrangement.

Blind trust costs

If it is appropriate to establish a blind trust, the divesting staff member may be reimbursed for certain trust costs by the deputy head.

Methods of resolving other conflicts

Conflicts arising out of liabilities, participation in outside employment or activities or receipt of gifts or other benefits may be resolved by requiring the staff member to settle the liability in question, avoid, curtail, modify or withdraw from the conflicting activity or decline, return or otherwise dispose of the gift or other benefit received.

Efforts to reach mutual agreement

In determining appropriate corrective action, efforts will be made to achieve mutual agreement with the staff member concerned. Consideration will be given to such factors as:

  1. the specific responsibilities of the staff member;
  2. the value and types of assets and interests involved; and
  3. the actual costs to be incurred by divesting the assets or shedding the interests, as opposed to the potential that the assets and interests represent for a conflict of interest.

Protection of personal information

Privacy protection

Personal information provided will be collected, used, disclosed, stored and disposed of in accordance with the Privacy Act and the Department’s security policy.

Primary use

The primary use of the information is for review by the Director, Values and Ethics and the deputy head in administering the conflict of interest provisions. The information will be shared on a limited, need-to-know basis only and solely for the purposes of the Review and Determination/Conflict Resolution processes set out above.

Information, training and counselling

Advisory services

Staff members are encouraged to seek guidance from the Director, Values and Ethics on their personal or financial circumstances or on any other matter relating to conflict of interest.

Information and training

Staff will be provided with copies of, and written information on this Code and the Directive on Conflict of Interest. Appropriate information and training will be provided on an ongoing basis and included in the orientation course for new entrants to the Department of Finance.

Failure to comply

Disciplinary action

A staff member who does not comply with the requirements of this Code and the Directive on Conflict of Interestis subject to appropriate disciplinary action, up to and including termination of employment.

Inquiries

Questions regarding the meaning or application of this Code or the Directive on Conflictof Interestmay be directed to the Director, Values and Ethics.

Annex B

Reportable and Non-Reportable Assets, Liabilities and Outside Activities

1. Assets, liabilities and outside activities subject to a Confidential Report

1.1 Reportable publicly traded securities

The following are non-exhaustive examples of publicly traded securities that must be disclosed in an annual Confidential Report whether the securities are directly or indirectly held and whether or not the staff member views the securities as giving rise to a real, potential or apparent conflict of interest:

  1. stocks, shares, bonds, convertible bonds, debentures, trust units (including income, royalty and realty trust units), commercial paper, medium-term notes and derivatives of any of the foregoing, whether held individually or in an investment portfolio account;
  2. shares, units or similar equity interests in sector investment funds – i.e., funds that concentrate their investments in specific businesses, industries or sectors of the economy, including, but not limited to, funds that invest primarily in issuers involved in mining, oil and gas extraction, precious metals, finance, insurance, broadcasting, transportation, science and technology and telecommunications – but not the underlying securities;
  3. publicly traded securities such as those described in paragraphs (a) and (b) above held in wrap accounts;
  4. publicly traded securities such as those described in (a) and (b) held in tax free savings accounts, self-directed or self-administered Registered Retirement Savings Plans, Registered Education Savings Plans, Registered Disability Savings Plans or similar tax-related saving vehicles, established for the staff member’s own benefit or for the benefit of others; and
  5. publicly traded securities held and traded through investment clubs.

NOTE: Investments in Treasury Bills, certificates of deposit, money market mutual funds and diversified investment funds are exempt from disclosure and do not require a Confidential Report unless, due to the particular nature of the staff member’s official duties or the non-public information to which he or she has access, such investments give rise to a real, potential or apparent conflict of interest.

1.2 Other reportable assets and liabilities

The following are non-exhaustive examples of other assets and liabilities that must be disclosed in a Confidential Report if, objectively viewed, they give rise to a real, potential or apparent conflict of interest:

  1. interests in partnerships, proprietorships, joint ventures, private companies and family businesses, in particular those that own or control shares of public companies or that do business with the government;
  2. interests in labour-sponsored venture capital corporations or similar entities;
  3. commercially operated farm businesses;
  4. real property that is not for the private use of staff members or their family members (e.g., investment property);
  5. commodities and foreign currencies held or traded for speculative purposes;
  6. assets placed in trust or resulting from an estate of which the staff member is a beneficiary;
  7. secured or unsecured loans granted to persons other than to members of the staff member’s immediate family;
  8. direct and contingent liabilities in respect of any of the assets described in this section; and
  9. any other assets or liabilities that give rise to a real, potential or apparent conflict of interest due to the particular nature of the staff member’s official duties or the non-public information to which he or she has access, including assets and liabilities that would otherwise be non-reportable.

1.3 Reportable outside activities or employment

The following are non-exhaustive examples of outside activities or employment that must be disclosed in a Confidential Report if, objectively viewed, they give rise to a real, potential or apparent conflict of interest:

  1. teaching or public speaking;
  2. publishing books, articles or editorials;
  3. providing consulting services;
  4. lobbying;
  5. conducting a self-owned business;
  6. accepting appointment to a board or tribunal;
  7. sitting on boards of directors of not-for-profit organizations;
  8. performing volunteer work;
  9. receiving a benefit or income either directly or indirectly from a contract with the Government of Canada; and
  10. having any other remunerated or unremunerated employment, non-required membership or involvement in a professional, business, financial, commercial, educational, consulting, charitable, philanthropic, non-commercial, political or other type of organization or association.

2. Assets, liabilities and outside activities not requiring a Confidential Report

The following are examples of assets, liabilities and outside activities that generally do not require a Confidential Report:

  1. primary and secondary residences, recreational properties and farms used or intended for use by staff members or their families and mortgages on such properties;
  2. household goods and personal effects;
  3. works of art, antiques and collectibles held for the private use of staff members or their families;
  4. automobiles and other personal means of transportation;
  5. cash and deposits;
  6. Canada Saving Bonds and other similar investments in non-tradable securities of fixed value issued or guaranteed by any level of government in Canada or agencies of those governments;
  7. assets held in Registered Retirement Savings Plans and Registered Education Saving Plans that are not self-directed or self-administered and assets other than reportable publicly traded securities held in self-directed or self-administered Registered Retirement Savings Plans and Registered Education Savings Plans;
  8. investments in money market mutual funds, Treasury Bills, certificates of deposit and diversified investment funds;
  9. guaranteed investment certificates and similar financial instruments;
  10. annuities and life insurance policies;
  11. pension rights;
  12. money owed by a previous employer, client or partner;
  13. personal loans receivable from members of staff members' immediate families and small personal loans receivable from other persons where staff members have loaned the moneys receivable;
  14. any liability, such as a car loan, home renovation loan or credit card account, from a financial institution or business entity granted on terms available to the general public; and
  15. any position, membership or outside activity required to be held or engaged in as a condition of employment or as part of a staff member’s official duties.

Appendix 1

Table of positions classified as EX, EX-1, EX-2 Equivalent for Post-Employment Purposes
EX EQUIVALENT EX-1 EQUIVALENT EX-2 EQUIVALENT
AS-08 AS-07 AS-06
    CS-04
EC-08 EC-07 EC-06
  FI-04 FI-03
  IS-06 IS-05
    LS-05
  PE-06 PE-05
  PG-06 PG-05
  PM-06 PM-05

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