CNSC Conflict of Interest Policy

1. Effective date

This policy takes effect on November 1, 2023, and replaces the 2022 Conflict of Interest Policy for the Canadian Nuclear Safety Commission (CNSC).

2. Application

This policy applies to all CNSC employees. Together with the requirements set out in the Nuclear Safety and Control Act, the Values and Ethics Code for the Public Sector, the CNSC Values and Ethics Code, and the CNSC Directive on Reporting and Managing Financial Conflicts of Interest, this policy forms part of the conditions of employment with the CNSC.

Employees’ duties and responsibilities are detailed in section 6.1 of this document. Where applicable, employees are also expected to observe any specific conduct prescribed by their professional associations.

3. Definitions

See appendix A.

4. Policy statement

CNSC employees contribute fundamentally to good government, democracy and Canadian society through their loyal, impartial and non-partisan support for the CNSC and its stakeholders. As dedicated professionals, CNSC staff serve the public interest and maintain public confidence by taking all reasonable steps to recognize, avoid, prevent and resolve any real, apparent or potential conflicts of interest between their official CNSC responsibilities and their other activities. This policy elaborates on the Values and Ethics Code for the Public Sector and on the CNSC Values and Ethics Code and is aligned with their content. It provides direction and measures to assist the CNSC and its employees in dealing effectively with real, potential and apparent conflicts of interest that may arise during and after employment at the CNSC.

A conflict of interest may arise through relationships; receiving gifts; fundraising; political activities; personal financial transactions, investments, securities and other assets; the transfer of an economic benefit; and numerous other situations and events described in this policy. It is important to remember that a conflict of interest may arise both during and after your CNSC employment.

A conflict of duties situation may arise as a result of one or more concurrent or competing official responsibilities between their primary employment with the CNSC and their role in an outside organization that forms part of their official duties, such as a membership in a science-based organization for the purpose of exchanging information.

Maintaining the trust of Canadians by being an independent regulator is vital to our ability to fulfill our mandate. As a regulator, it is important to be, and be perceived as being, impartial and objective in all our dealings with CNSC licensees, Indigenous Nations and communities and other parties. Care must be taken to keep our relationships and behaviours professional and to avoid any real, apparent or potential conflict of interest.

5. Objectives and expected results

The objective of this policy is to minimize the risks associated with conflict of interest and conflict of duties situations and to enable CNSC employees to uphold the values and ethics of the CNSC and the public sector and uphold the public interest.

The expected results of this policy are as follows:

• The CNSC has the appropriate mechanisms in place to help individuals identify, report and effectively resolve real, apparent or potential conflict of interest and conflict of duties situations that arise during and after leaving their employment at the CNSC.
• CNSC employees take appropriate action to identify, prevent, report and effectively resolve real, apparent or potential conflict of interest and conflict of duties situations.
• CNSC employees are able to identify and make ethical decisions to resolve conflicts between private and public interests in a manner that upholds public trust.

5.1 Confidentiality

Information concerning the private interests of employees shall be treated in confidence in accordance with the Privacy Act.

6. Roles, responsibilities and requirements

6.1 Responsibilities for all CNSC employees

All CNSC employees are responsible for the following:

General requirements

• Complying with the requirements of this policy
• Identifying, preventing and resolving conflict of interest or conflict of duties situations during their employment with the CNSC and when they leave the CNSC on either a permanent or temporary basis
• Reporting, in writing, to the CNSC Senior Ethics Advisor all outside employment and activities, assets, liabilities, relationships and interests that might give rise to a real, apparent or potential conflict of interest in relation to their official duties and responsibilities
• Reporting, in writing, to the CNSC Senior Ethics Advisor when concurrent or competing official responsibilities give rise to a conflict of duties situation
• Refraining from having private interests and engaging in outside employment or activities that may subject them to demands incompatible with their official duties, or that could be seen to impair their ability to perform their duties and responsibilities in an objective and impartial manner
• Consulting the CNSC political activities guidelines and reporting, in writing, to the CNSC Senior Ethics Advisor before engaging in political activities that could constitute a conflict of interest or impair their ability to perform their duties and responsibilities in an objective and impartial manner

Assets, securities, investments and liabilities

• Reviewing their assets and liabilities when starting employment at the CNSC and at least once per year following to prevent any real, apparent or potential conflict of interest in relation to their official duties and responsibilities
  • The types of assets that should be reported and the procedures for developing and implementing a financial mitigation strategy are set out in detail in the CNSC Directive on Reporting and Managing Financial Conflicts of Interest and its annexes.
• Completing and/or updating the Declaration of Conflict of Interest and possibly a Confidential Report, as set out in section 6.2, which should include a description of all assets that could result in a conflict of interest, and submitting the declaration/report to the Senior Ethics Advisor
  • Where the Chief Audit and Evaluation Executive determines that any of these assets results in a real, apparent or potential conflict of interest, employees may be required to divest those assets or take other measures to resolve the conflict.
• Refraining from investing in private entities or publicly traded companies that are licensed by the CNSC and from self-directing or self-managing securities of publicly traded companies that are licensed by the CNSC
• Refraining from selling or transferring assets to anyone, including family members, or taking any other measures for the purpose of circumventing the requirements of this policy and the CNSC Directive on Reporting and Managing Financial Conflicts of Interest

Contracts with the Government of Canada

• Seeking the approval of the Chief Audit and Evaluation Executive and their director and/or director general before entering into a contractual arrangement with the Government of Canada for which they are receiving any direct or indirect benefit or income

Non-public information

• Refraining from knowingly taking advantage of or benefiting from information that is obtained in the course of their official duties and responsibilities and that is not available to the public

Preferential treatment

• Refraining from assisting outside entities or individuals in their dealings with the government where doing so would result in preferential treatment or advantages to those entities or individuals
• Refraining from interfering in the dealings that outside entities or individuals have with the government in order to inappropriately influence the outcome of those dealings
• Refraining from granting preferential treatment or advantages to family members, friends or any other person or entity based on information that is not publicly available
• Disclosing to the Senior Ethics Advisor the existence of a relationship between employees where one employee may have influence or direct control over another employee’s employment conditions in a manner that could give rise to a real or apparent conflict of interest or that may contribute to a perception of preferential treatment

Gifts, hospitality and other benefits

• Refusing gifts, hospitality or other benefits if they could reasonably be seen to have an influence on the employee’s objectivity when carrying out their official duties and responsibilities or may place the employee under obligation to the donor
• Reporting to and seeking written direction from the Chief Audit and Evaluation Executive when an employee cannot decline gifts, hospitality or other benefits that do not meet the criteria in this policy, or where it is believed their acceptance would bring sufficient benefit to the organization

For greater certainty, accepting gifts, hospitality or other benefits is permissible if they:

• are infrequent and of minimal value
• are within the normal standards of courtesy or protocol
• arise out of activities or events related to the employee’s official duties
• do not compromise or appear to compromise the employee’s integrity or the CNSC

Note that accepting an award or honorary degree where no conflict of interest exists is permissible.

Financial arrangements, solicitation and use of government property

• Refraining from undertaking any financial arrangements, including procuring goods, contracting services or administering grants and contributions or transfer payments, with outside entities or individuals where there is a risk for a real, apparent or potential conflict of interest or conflict of duties situation
• Refraining from soliciting gifts, hospitality, donations, prizes, or other benefits or transfers of economic value from outside entities or individuals that have, had or may have dealings with the CNSC, without having received prior written approval from the Chief Audit and Evaluation Executive
• Refraining from the direct or indirect use of, or allowing the direct or indirect use of, CNSC property of any kind, including property leased to the CNSC, for anything other than officially approved activities

Relationship with external parties

• Disclosing to their director or director general:
  • any past or present employment with any current or potential CNSC licensee, contractor, or grant or contribution recipient
  • that a family member works where an employee exercises or carries out official CNSC duties with a licensee, Indigenous Nations and communities or other external party
• Seeking the advice of their director, director general or the Senior Ethics Advisor if they are in doubt as to whether their involvement in an activity is appropriate
• Maintaining a professional demeanor in public fora and assessing the impact of personal behaviour on professional duties
  • This is important to avoid a conflict of interest situation, or the impression of one, which may be seen to influence an employee’s judgment and call into question the objectivity of the CNSC.
  • It may be a greater challenge to keep professional and personal lives separate in smaller communities, where regulated industry workers form a visible and significant part of the community.

Outside employment, consultancy or volunteering activities

• Refraining from employment, consultancy, volunteer work or board membership outside official CNSC duties where these paid or unpaid activities are likely to give rise to a real, apparent or potential conflict of interest or would undermine the CNSC’s impartiality or the employee’s objectivity
• Refraining from engaging in any employment with a foreign government or entity unless permission is granted by the Chief Audit and Evaluation Executive and your director or director general
• Submitting a Declaration of Conflict of Interest, and possibly a Confidential Report, to the Senior Ethics Advisor that outlines the outside employment or activities in which an employee is or intends to become engaged, where these may impose demands that are inconsistent with their official duties and responsibilities or call into question their capacity to perform them

Post-employment

• Before leaving the CNSC either temporarily or permanently, reporting in writing to the CNSC Senior Ethics Advisor all intended future employment and activities that might give rise to a real, apparent or potential conflict of interest in relation to the employee’s most recent duties and responsibilities at the CNSC
• Reporting in writing to their director or director general all firm offers of employment and activities that might give rise to a real, apparent or potential conflict of interest in relation to the employee’s most recent duties and responsibilities at the CNSC
• Having accepted an offer of employment, recusing themselves from all official dealings with that new employer while still working for the CNSC
• Refraining from giving advice to new clients, employers or other entities by using information obtained as a result of their CNSC duties and responsibilities where that information is not publicly available
• Refraining from seeking preferential treatment or privileged access to the CNSC after leaving the CNSC

For employees occupying a designated position:

If employees occupy a position designated as at risk for post-employment conflict of interest, there are additional responsibilities and requirements, including:

• Reporting in writing to the President all firm offers of employment or proposed activities outside the CNSC that could place them in a real, apparent or potential conflict of interest with their CNSC employment, and immediately disclose the acceptance of any such offer of employment. During the 1-year post-employment period after leaving the CNSC, having the President’s pre-authorization to:
  • accept an appointment to the board of directors of, or employment with, private-sector entities with which the employee had significant official dealings during the period of one 1-year immediately prior to the termination of employment with the CNSC; these significant official dealings may have been conducted directly by the employee or through their subordinates
  • make representations to any government organization on behalf of persons or entities outside of the CNSC with which the employee had significant official dealings during the 1-year period year immediately prior to the termination of employment with the CNSC; these significant official dealings may have been conducted directly by the employee or through their subordinates
  • give advice to clients or employers using information that is not publicly available concerning CNSC programs or policies, or departments or organizations with which the employee had a direct and substantial relationship
  • have the 1-year post-employment period waived or reduced

6.2 Declaration of Conflict of Interest — Forms I and II

Reporting a conflict of interest involves:

1. Submitting a Declaration of Conflict of Interest – Form I: In this form, employees are required to declare that they have read the Values and Ethics Code for the Public Sector, the CNSC Values and Ethics Code, the Conflict of Interest Policy, and the CNSC Directive on Reporting and Managing Financial Conflicts of Interest, and state whether they are involved in outside activities or have assets or liabilities that may give rise to a real, apparent or potential conflict of interest in relation to their official duties.
2. Submitting a Confidential Report – Form II, if necessary: In this form, employees are to provide information on outside activities, assets or liabilities that might give rise to a real, apparent or potential conflict of interest.

Reporting should be done when beginning employment with the CNSC, during the CNSC annual review, and if there is a change in personal circumstances.

6.3 Management of the Conflict of Interest Program

The Director of the Internal Audit, Evaluation and Ethics Division is responsible for the following:

• Putting in place the infrastructure and controls to:
  • effectively administer this policy and ensure that conflict of interest and conflict of duties risks are identified and resolved
  • provide consistent information, advice and assistance on preventing and resolving conflict of interest situations
• Identifying and updating the list of reportable assets and liabilities that must be reported by CNSC employees
• Ensuring that persons offered employment and persons employed are informed about this policy and of the fact that compliance is a condition of employment and that non-compliance may result in termination of employment
• Coordinating with Human Resources and the President’s Office to ensure that persons offered employment in a designated position are informed of their responsibilities
• Reminding CNSC employees who have indicated their intention to leave of the ongoing application of this policy
• Reviewing and approving individual financial mitigation strategies, including the selection of trustees, managers or agents, including their replacements or additions and any reimbursement of reasonable administration costs incurred by the CNSC employee as a result of implementing a financial mitigation strategy

6.4 Education and oversight

The Director of Internal Audit, Evaluation and Ethics Division will:

1. ensure that employees, and anyone considering joining the CNSC, are informed that the requirements listed in the Nuclear Safety and Control Act (section 66), the Conflict of Interest Policy, the CNSC Directive on Reporting and Managing Financial Conflicts of Interest, the Values and Ethics Code for the Public Sector, and the CNSC Values and Ethics Code are a condition of employment (this obligation is fulfilled by having individuals acknowledge these requirements in their initial acceptance of an offer of employment from the CNSC)
2. ensure that employees are informed on a regular basis of the requirements of this policy
3. provide values and ethics awareness sessions regularly or when requested to staff and briefings on post-employment to employees leaving the CNSC
4. ensure that the operational risks of conflicts of interest related to the CNSC’s specific mandate are identified and managed
5. ensure that the delegation of the responsibilities and authorities for the implementation of this policy are clearly communicated to all employees

6.5 Managing conflict of interest and post-employment situations

The Internal Audit, Evaluation and Ethics Division will:

1. provide accurate, consistent and timely information to employees regarding the reporting and management of conflicts of interest
2. review, in a timely manner, submitted declarations of outside activities, assets or liabilities, requesting further information for the review as needed and communicating the findings to the employees submitting these declarations
3. ensure that employees have access to advice and assistance on the reporting of conflicts of interests or duties when they are unsure if they are in a conflict situation or when they are considering undertaking any political activity
4. ensure that procedures are in place for employees to file a declaration of all situations, activities, assets or liabilities that might give rise to a real, apparent or potential conflict of interest with respect to their official duties; these declarations are to be administered in accordance with the Privacy Act
5. ensure that any conflict arising between the private interests and the official duties of an employee is resolved in favour of the public interest by considering the nature and risk of the conflict of interest in relation to the feasibility and practicality of the measures required to resolve the conflict, and communicating the decision and the reasons for the decision to the employee (a declaration of a possible conflict of interest to the Senior Ethics Advisor may often be sufficient, but additional requirements may be necessary)
6. ensure that benefits provided or offered to the CNSC by outside entities or individuals with whom the CNSC has past, present or potential official dealings are managed appropriately and that any resulting organizational conflict of interest is resolved in the public interest
7. ensure that concurrent outside appointments that are part of an employee’s official duties, such as to a board of directors, are managed appropriately and that any resulting conflicts of duties are resolved in the public interest
8. without unduly restricting employees’ ability to seek other employment, review the operations and organizational structure for post-employment situations
9. identify which positions at the CNSC may be at risk for post-employment concerns because the duties of the position pose a significant risk for post-employment conflicts with one or more outside organizations, and seek President approval of the positions to be considered designated positions
10. ensure that decisions made to resolve conflicts of interest and post-employment situations are, where practicable, made in mutual agreement with the employee in question, using fair and effective means to resolve the disagreements
11. send annual correspondence to staff to remind them of their responsibilities to submit a Declaration of Conflict of Interest if a change in their activities, investments or inheritance has occurred within that year, and other correspondence whenever needed
12. provide lists of reportable assets and liabilities and of prohibited securities, reviewing and modifying the lists as required to ensure that they reflect current investment products.
13. ensure that:
    1. the applicable forms include or make reference to these lists
    2. employees are informed of these lists and any changes to them
    3. employees are requested to report assets and liabilities affected by any changes to the lists
14. ensure that employees report to the Senior Ethics Advisor if they intend to have official dealings with former employees who are or may be governed by the post-employment measures (employees do not need to report a routine provision of service to a former employee); upon receiving such a report, the Senior Ethics Officer will:
    1. determine whether or not the former employee is complying with the post-employment measures
    2. give written instructions to the reporting employee with respect to the matter
15. ensure that an employee who receives instructions pursuant to paragraph (n)(ii) complies with those instructions

6.6 Monitoring requirements

The President is responsible for monitoring the performance of the CNSC with respect to the application and administration of this policy. This includes assessing the CNSC’s service delivery structure, resource allocation, human resources competencies, performance indicators, systems, processes and procedures, and reviewing this policy.

7. Resolution

It is expected that conflicts of interest will be resolved through discussion and agreement between the employee and the Senior Ethics Advisor, or director or the President. Disagreements, if any, will be resolved through the appeal and resolution procedures available to the CNSC and its employees.

8. Consequences

Should it be determined that this policy has not been applied appropriately, the Director of Internal Audit, Evaluation and Ethics will recommend that corrective actions be taken. Corrective actions can include training, changes to procedures and systems, the suspension or removal of delegated authority, disciplinary action up to and including termination of employment, or other measures as appropriate.

Appendix A: Definitions

Conflict of duties: A conflict that arises not because of an employee’s private interests, but as a result of one or more concurrent or competing official responsibilities. For example, these roles could include their primary employment and their responsibilities in an outside role that forms part of their official duties, such as an appointment to a board of directors or other outside functions.

Conflict of interest: A situation in which employees have private interests that could improperly influence the performance of their official duties and responsibilities or in which they use their office for personal gain.

• A real conflict of interest already exists.
• An apparent conflict of interest could be perceived by a reasonable observer to exist, regardless of whether it actually exists.
• A potential conflict of interest could reasonably be foreseen to exist in the future.

Declaration of Conflict of Interest: Declaration of Conflict of Interest – Form I and Confidential Report – Form II

Designated position: A position that may cause the employee occupying the position to be vulnerable to increased post-employment conflicts. These positions are subject to requirements for a prescribed period post-CNSC employment, in addition to those binding all former CNSC employees.

Directive: The CNSC Directive on Reporting and Managing Financial Conflicts of Interest. This directive provides direction and instructions on reportable assets and liabilities.

Employees: Persons employed by the CNSC appointed to indeterminate or term positions and who work on a full-time or part-time basis.

External parties: The Canadian public, the Government of Canada, CNSC licensees and contractors, Indigenous Nations and communities, and national and international organizations involved in the nuclear sector.

Family member: Father, mother (or stepfather, stepmother or foster parent), brother, sister, spouse (including common-law spouse resident with the employee), child (including child of common-law spouse), stepchild or ward of the employee, grandparent, grandchild, father-in-law, mother-in-law, and relative permanently residing in the employee’s household or with whom the employee permanently resides.

Investment – direct or indirect: A direct investment is under the employee’s control; for example, buying a stock by name from a company or through a broker or sub-broker. An indirect investment is controlled by entities beyond the employee’s control; for example, buying a mutual fund that has this stock in its portfolio.

Liabilities: Debts or obligations.

Policy: The CNSC Conflict of Interest Policy.

Post-employment: Depending on the position, the period of work before an employee is hired by the CNSC, while they are still employed by the CNSC (e.g., if returning as an alumnus), and after they leave the CNSC.

President: As an Order-in-Council appointee, the President of the Canadian Nuclear Safety Commission is subject to the Conflict of Interest Act, but not to this policy.

Reportable activities: Activities outside the CNSC that may put an employee in a conflict of interest; for example, volunteering in companies or associations that have a nuclear mandate, giving courses on nuclear energy or the nuclear sector, or selling devices that have a nuclear component.

Reportable assets: Benefits, investments, securities or other that may put an employee in a conflict of interest and that they should declare in the Declaration of Conflict of Interest.

Securities: All interests in debts or equity instruments, including secured and unsecured bonds, debentures, notes, securitized assets and commercial paper, as well as all types of preferred and common stock. The term encompasses both current and contingent ownership interests, including any beneficial or legal interest derived from a trust. It extends to any right to acquire or dispose of any long or short position in such securities and includes, without limitation, interests convertible into such securities, as well as options, rights, warrants, puts, calls and straddles with respect thereto.

Senior Ethics Advisor: Officer responsible for the application and administration of the Values and Ethics, the Conflict of Interest and Post-employment, and the Internal Disclosure programs.