16 C.F.R. § 5.2

(a) Pursuant to 18 U.S.C. 208(b)(1) and 5 CFR 2640.301, certain disqualifying financial interests may be waived by the FTC upon a written determination that they are not so substantial as to be deemed likely to affect the integrity of an employee's services.

(b) Employees or special Government employees will not be subject to remedial or disciplinary action or to criminal prosecution under 18 U.S.C. 208(a), if they make a full disclosure in writing to the official responsible for their appointment of the nature and circumstances of the particular matter involved and of their conflicting financial interest relating thereto, and receive in advance a written determination made by such official that the interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect from the employee or special Government employee.

(c) Prior to issuing a written determination as described in paragraph (b) of this section, the official responsible for appointment must obtain from the FTC's Designated Agency Ethics Official a written recommendation to issue the Section 208 waiver. Pursuant to 5 CFR 2640.303, the FTC's Designated Agency Ethics Official must consult with the U.S. Office of Government Ethics prior to issuing the written recommendation.

(d) For the purposes of paragraph (b) of this section, the “official responsible for appointment” is the Executive Director in all cases where the employee is classified at grade GS-15 or below, or at a comparable pay level, except that each Commissioner is the “official responsible for appointment” of advisors in the Commissioner's immediate office, and the Inspector General is the “official responsible for appointment” of employees in the Office of the Inspector General.

(e) In all other cases (except with respect to the Chairman himself or the Inspector General), the Chairman is the “official responsible for appointment.”