Section 3.03. Conflicts of interest prohibited.

 

(1)   Policy. The division has a paramount interest in the prevention and elimination of practices and conditions which may adversely affect the interests of members in savings banks, the soundness of savings banks, the provision of economical home financing and other credit for residents of this state, and the accomplishment of the other purposes of ch. 214 , Stats. and rules adopted under it.

(2)   Fiduciary responsibilities. Among the practices and conditions which shall be avoided or eliminated are conflicts between the accomplishment of the purposes of ch. 214 , Stats. , and the personal financial interests of directors, officers, employees and other affiliated persons of savings banks. Conflicts of this type are considered to be inherently unsafe and unsound practices and conditions. The division accordingly holds that each director, officer, employee or other affiliated person of a savings bank has a fundamental duty to avoid placing himself or herself in a position which may create a conflict of interest or the appearance of a conflict of interest.

(3)   Conflicts prohibited. The division recognizes that it is impossible to define every practice or condition which falls within the broad concept of objectionable conflicts of interest. The division has, nevertheless, adopted ss. DFI-SB 3.04 to 3.07 to limit or prohibit certain types of conflicts of interest to implement the purposes of ch. 214 , Stats. However, the fact that the division has not specifically limited or prohibited other conflicts of interest should not be interpreted as tacit approval of them. The division will continue to examine those conflict of interest situations which are not specifically limited or prohibited under the statutes and rules and will take appropriate action to prevent, circumscribe or eliminate those situations.

History: Cr. Register, February, 1994, No. 458 , eff. 3-1-94.

Note

This section interprets or implements ss. 214.335 and 214.345 , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1 This section parallels 12 CFR 563.200 , an OTS regulation applying to savings and loan associations. Microsoft Windows NT 6.1.7601 Service Pack 1