The European Central Bank (ECB) will prohibit any investment by its top officials in certain stocks or bonds, so private financial transactions will be limited to mutual or exchange-listed mutual funds, and furthermore, have a “highly diversified” strategy, this Friday as stated by the business.
The new rules will update the Code of Conduct applicable to all senior officials of the ECB. According to the previous rules, investment at the individual level was allowed, although it was recommended to be handed over to a manager.
The only previous limitation that ECB members have as reference Individual financial transactions, and the prohibition of trading in bonds, shares or derivatives of financial institutions with a presence in the European Union, which is still in effect. ECB staff are still unable to invest in funds whose primary purpose is to invest in such loans. prohibited assets
“While the current Code has proven to be sound and effective,new rules will take the ECB’s ethical standards to the next level “It will enable us to remain one of the leading institutions in this field,” said ECB President Christine Lagarde.
Personnel holding individual shares or bonds may hold them, but do not make any additional purchases. Its sale will be subject to approval by the ECB Ethics Committee.
Likewise, to increase transparency, the ECB will annually publish all financial transactions made by its senior officials. Moreover financial transactions of spouses and underage children will be included if they exceed EUR 10,000 per year.
Same way, Investments will need to be kept in the portfolio for at least one year, compared to the current mandatory month. All transactions exceeding 50,000 Euros must be reported to the Ethics Committee 30 days in advance.