§ 1506.306 - Special rules for reporting trust interests and assets.

(a) Subject to the exceptions of paragraph (b) of this section, employees required to submit 278 forms shall report trust interests and assets which have a value in excess of $1,000.

(b) The reporting requirement of paragraph (a) of this section does not apply when an employee is the beneficiary of:

(1) A “qualified blind trust,”

(2) A “qualified diversified trust,” or

(3) An “excepted trust.”

(c) The trusts provided in paragraph (b) of this section are approved in the following manner:

(1) A “qualified blind trust” is a trust certified as approved by the Director of the Office of Government Ethics as meeting the requirements of section 202(f)(3) of the Ethics in Government Act and implementing regulations.

(2) A “qualified diversified trust” is a trust certified as approved by the Director of the Office of Government Ethics, in concurrence with the Attorney General, as meeting the requirements of section 202(f)(4)(B) of the Ethics in Government Act and implementing regulations.

(3) An “excepted trust” is one which was not created directly by the employee, his spouse, or his dependent child, and the holdings or sources of income of which are not known to the employee, his spouse, or his dependent child. An excepted trust requires no certification or approval.

(d) An employee who wishes to create a qualified blind trust or (in the case of the Federal Inspector) a qualified diversified trust should consult with the ethics officer, who shall refer the employee to the OGE.

(e) Employees who create, maintain, or dissolve either a qualified blind trust or a qualified diversified trust shall familiarize themselves with the special filing requirements for those actions. Employees may obtain copies and interpretations of those requirements (5 CFR 734.407) from the ethics officer.

(f) Assets in all types of trusts, except a qualified diversified trust of the Federal Inspector, shall be considered financial interests until the employee is notified by the trustee that the assets have been disposed of or have a value of less than $1,000. As such, all trust assets, except those in qualified diversified trusts, shall be subject to the financial interest restrictions of § 1506.207 of section 208 of title 18 of the United States Code, and of any other Federal conflict of interest statutes or regulations.