Purpose:
The purpose of this policy is to ensure that elected officials act in the best interest of the public and eliminate any perceived or actual conflicts of interest in their financial dealings by restricting their investment activities to diversified and transparent financial instruments.
Policy Overview:
Restricted Investment Vehicles:
Members of Congress and the Senate, along with their immediate family members (spouses and dependent children), are prohibited from directly investing in individual stocks, bonds, or other securities.
Investments in privately held companies, hedge funds, private equity, or any other non-publicly traded financial assets are also restricted.
Permitted Investments:
Members may only invest in broad-based, low-cost index funds or diversified mutual funds that track market indices (e.g., S&P 500 Index Funds, Total Market Index Funds).
Investments in U.S. Treasury bonds and widely diversified government bond funds are permitted.
Blind Trusts Requirement:
Any permitted investments must be placed in a qualified blind trust managed by an independent trustee, with no knowledge of or involvement in the investment decisions by the member or their family.
Disclosure Requirements:
Members must disclose their investment holdings and any changes to these holdings annually.
Disclosures must be made available to the public and presented in a clear and accessible format to ensure transparency.
Enforcement and Penalties:
A bipartisan ethics committee will oversee compliance with this policy.
Violations of this policy will result in financial penalties, censure, or other disciplinary actions as deemed appropriate by Congress.
Repeated violations could result in removal from office following an ethics review.
Review and Updates:
This policy will be reviewed every two years and updated to reflect any necessary changes to ensure continued financial transparency and ethical behavior among members.