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The European Central Bank will restrict investments by its top officials, banning direct holdings in specific stocks or bonds. Private financial moves will be limited to mutual funds or exchange listed funds, with a requirement to maintain a highly diversified strategy. This change is set to take effect this Friday, according to officials from the organization.

The update updates the Code of Conduct governing all senior ECB officials. Previously, individuals could invest on their own, though a recommendation advised handing these decisions to a manager for oversight.

The only existing limitation tied to individual finance remains a ban on trading in bonds, shares, or derivatives issued by financial institutions with a presence in the European Union. ECB staff are also barred from investing in funds whose main purpose is to invest in such loans, creating a clearly defined category of prohibited assets.

Bank executives within the ECB may still hold personal shares or bonds, but they are not permitted to make additional purchases. Any sale of these holdings requires clearance from the ECB Ethics Committee.

To boost transparency, the ECB will publish all financial transactions by its senior officials on an annual basis. In addition, transactions by spouses and dependent children will be disclosed if they exceed a threshold of 10,000 euros in a year.

Under the new framework, investments must remain in the official portfolios for a minimum period of one year, replacing the former mandatory one month holding. Transactions above 50,000 euros must be reported to the Ethics Committee at least 30 days in advance.