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Federal Register / Vol. 86, No. 174 / Monday, September 13, 2021 / Rules and Regulations business entity; service on the board of directors of the Federal Agricultural Mortgage Corporation; transactions with non-profit entities; or transactions with entities in which the System institution has an ownership interest. The prohibition in this paragraph b1 does not apply in the following situations:
i You may serve as a director or employee of an employee credit union.
ii You may serve as a director of a cooperative that borrows from the System under the Acts Title III
authorities if you are not employed at an institution with Title III lending authority and your employing institution approves your service on the cooperatives board.
2 Act as a real estate agent or broker.
Do not act as a real estate agent or broker unless you are buying or selling real estate for your own use or for family.
3 Act as an insurance agent or broker. Do not act as an insurance agent or broker for the sale and placement of insurance, unless authorized by section 4.29 of the Act.
4 Serve as a joint employee. Do not serve as an employee for your supervising institution if you are an officer at your association. Do not serve as an employee for a supervised institution if you are an officer at your Farm Credit bank. The prohibition in this paragraph b4 does not apply in the following situations:
i You may be both a non-officer employee at a Farm Credit bank and a supervised association if the employment expenses are appropriately reflected in each institutions financial statements.
ii If you are currently employed with a Farm Credit bank as other than an officer, in extraordinary circumstances, FCA may approve your serving as an officer of a supervised association. This requires the boards at both institutions to agree to the joint service and for the duties and compensation at each institution to be delineated in the board approval documents. The board documents, along with the request, must be sent at least 10 business days before the effective date to the Director of Regulatory Policy, Farm Credit Administration.
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Reserved
Standards of Conduct Official.

a Authority. The Standards of Conduct Official must be appointed by the board of directors for the institution and the board of directors must empower the appointed SOCO with all of the following:
1 Direct access to the board or designated board committee for the
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purpose of discussing and reporting on matters related to the institutions Standards of Conduct Program and Code of Ethics;
2 Authority to carry out the responsibilities set forth in this section;
3 Accessibility to all directors, employees, and agents of the institution;
4 Legal authority to receive confidential SOC program communications from all directors, employees, and agents of the institution;
and 5 Resources adequate for implementing a successful Standards of Conduct Program.
b Program administration. The Standards of Conduct Official must implement the institutions Standards of Conduct Program as determined by the written policies and procedures of his or her institution and FCA regulations in this chapter. This may include, but is not limited to, the following:
1 Providing guidance and information to directors and employees on conflicts of interest, including aiding in the identification of reportable conflicts of interest and reportable financial interests in accordance with this subpart;
2 Receiving reports required under this subpart from directors, employees, and agents;
3 Receiving from directors and officers the disclosures required under 620.6a, e, and f of this chapter for treatment as a supplement to an individuals conflicts of interest report;
4 Reviewing and acting upon all SOC program reports and disclosures, including documenting resolved and unresolved conflicts of interest that are material, and making written determinations on how conflicts of interest will be resolved;
5 Maintaining all SOC program records for the required period of time, including documentation that explains how conflicts are being handled;
6 Conducting investigations as either authorized under this subpart or by the institutions SOC program policies and procedures;
7 Reporting promptly to the institutions board of directors or designated board committee those SOC
program or Code of Ethics matters required by the institutions SOC
program policies and procedures or FCA
regulations in this chapter; and 8 Reporting to the institutions board of directors those activities investigated pursuant to paragraph d of this section.
c Training duties. The Standards of Conduct Official must give standards of conduct training to all directors and employees at the institution. The
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training must comply with the requirement of 612.2137 and the institutions Standards of Conduct policies and procedures. In addition to other matters, periodic training must cover updates or revisions to the institutions SOC program and Code of Ethics. The SOCO must obtain written participation certifications from every director and employee taking the training.
d Investigative duties. The Standards of Conduct Official is responsible for investigating complaints alleging misconduct or possible criminal behavior by the institution, its directors, or its employees.
1 At a minimum, the Standards of Conduct Official must investigate, or cause to be investigated, all cases involving:
i Possible violations of criminal statutes;
ii Possible violations of director or employee prohibited conduct regulations in 612.2150, and the applicable institution policies and procedures;
iii Complaints of misconduct received against directors and employees of the institution;
iv Possible violations of other provisions of this part; and v Suspected activities of a sensitive nature which could affect continued public confidence in the Farm Credit System.
2 The SOCO serves as the reporting official for all cases investigated under subpart B of this part criminal referrals. In this capacity, the SOCO
must report to both the institutions board and the Farm Credit Administrations Office of General Counsel all cases where:
i A preliminary investigation indicates that a Federal criminal statute may have been violated;
ii An investigation results in the removal of a director or discharge of an employee; or iii A violation may have an adverse impact on continued public confidence in the System or any of its institutions.
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agents.

Standards of conduct for
a Agents. Agents of System institutions must maintain high standards of honesty, integrity, and impartiality in order to ensure the proper performance of System business and continued public confidence in the System and all its institutions. The avoidance of misconduct and conflicts of interest is indispensable to the maintenance of these standards.
b Institutions. Each institution must use safe and sound business practices in
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