| Date: | 06/05/1979 |
|---|---|
| Organization: | State Ethics Commission |
- This page, EC-COI-79-81, is offered by
- State Ethics Commission
Opinion
Opinion EC-COI-79-81
Table of Contents
Discussion
You are an employee of the Banking Division, Department of Banking and Insurance. You ask whether you can, without violating General Laws Chapter 268A, establish a private consumer credit consulting service which would offer advice and assistance in the preparation of credit applications to consumers and advice on the development of credit policies and underwriting procedures to financial institutions, including those chartered by the state.
The Section of the Banking Division, of which you are an employee, conducts administrative compliance examinations of state-chartered financial institutions.
As a state employee, you not only participate in such examinations personally, but also review examinations conducted by other members of your Section. The Banking Division itself conducts detailed examinations of state-chartered financial institutions, including their credit activities.
Section 23 of Chapter 268A prohibits state employees from using or attempting to use their official positions to secure unwarranted privileges or exemptions for themselves or others. It further prohibits state employees from giving, by their conduct, reasonable basis for the impression that any person can improperly influence them or unduly enjoy their favor in the performance of their official duties. The Commission has concluded that as long as you are an employee of the Banking division, your provision of the consulting services described above would violate § 23. The Commission has reached this conclusion because of the implicit pressure on banking institutions to contract for your services and to accede to your requests on behalf of consumers, the unfair advantage you would have in attracting consumer customers, and the reasonable basis for the impression that banks with whom you had at any time contracted could enjoy your favor in the performance of your official duties.
In light of the above, the Commission does not now reach the issue of whether your proposed consulting work would also violate § 4(a) of Chapter 268A. That provision might serve to bar your consulting work even after you leave the Division if you continue to serve as a state employee. If you leave the Division and then wish to engage in such work while a state employee, you should seek a further advisory opinion from us at that time.
End Of Decision