IMF Ethics Advisor - Terms of ReferenceMarch 16, 2016
1. These Terms of Reference set out the principal responsibilities of the Ethics Advisor. The Ethics Advisor contributes to the good governance of the Fund and assists the organization in maintaining high ethical standards of conduct and the reputation of the Fund and its employees for probity, integrity, and impartiality. The Ethics Advisor promotes awareness of ethics issues among, and provides training and education on ethics for, Fund employees and vendor personnel.1
Appointment and period of service
2. The Ethics Advisor shall be appointed by the Managing Director2, after consultation with the the Staff Association Committee. He or she shall not have had prior employment with the Fund and shall initially be appointed for a period of two years. Prior to the end of that period, the Managing Director, in consultation with the Staff Association Committee, shall decide whether to renew the Ethics Advisor’s appointment for a further and final period of four years. The Ethics Advisor’s appointment may be extended for a further period, normally not to exceed six months, if this is necessary to complete and/or to hand over to his or her successor work in progress at the end of his or her term.
3. Following the initial period referred to in Paragraph 2 above, the Ethics Advisor’s appointment may be terminated prior to the end of his or her appointment by the Managing Director only for cause.
Duties and responsibilities
4. The Ethics Advisor’s responsibilities shall include (a) the provision of advice to management and the Human Resources Department (HRD) regarding the promotion of ethical standards within the Fund; (b) the provision of information, education, and training for Fund employees; and (c) the provision of advice and guidance to managers, staff members, contractual employees, and vendor personnel on questions pertaining to the rules on conduct. The Ethics Advisor should maintain a reasonable balance among these activities. In exercising his or her duties, the Ethics Advisor will report directly to the Managing Director and will be independent of any official, department, office, or other organizational entity of the Fund.3
5. In performing his or her duties, the Ethics Advisor is expected to be prudent and judicious. he Ethics Advisor is to maintain strict confidentiality with respect to information known to him or her in fulfilling the duties of the office, except that he or she may disclose information to others on a strict "need to know" basis including, where necessary, to the Internal Investigator. In contacts with individuals, the Ethics Advisor shall explain the extent to which, in his or her judgment, it may prove necessary to divulge information provided by them to others. The Ethics Advisor may divulge information provided to him/her where it appears to the Ethics Advisor that there is an imminent risk of serious harm.
6. The Ethics Advisor shall issue an annual report, to be made available to all Fund employees, specifying the number and general nature of matters brought to his or her attention and describing the outcome of his or her work over the prior twelve-month period. If, in the view of the Ethics Advisor, certain cases have revealed broad patterns or issues of ethical standards or conduct, the report may discuss the issues involved.
Education, Training, and advisory duties
7. The Ethics Advisor shall provide guidance to HRD and the Managing Director to ensure that staff rules and regulations, procedures, and practices reinforce and promote the ethical standards applicable to Fund employees, and that the ethical standards pertaining to employment with the Fund are clearly understood. In the latter context, the Ethics Advisor shall assist in designing and promoting programs to inform and educate staff by preparing information materials and by organizing, delivering, and/or participating in workshops, training courses, and other similar activities.
8. The Ethics Advisor shall provide advice to the External Compliance Advisor and to support the implementation of the financial disclosure program. The Ethics Advisor may also be called upon to provide advice to FIN, INV, the Investment Oversight Committee and the Investment Committee on conflict-of-interest matters relating to the investments of the Fund.
9. he Ethics Advisor shall be available to managers, staff members, contractual employees, and vendor personnel for consultation on questions pertaining to the Fund’s rules on conduct and ethical behavior. To ensure consistency with relevant rules and regulations, the Ethics Advisor should seek the views of the Director of HRD, General Counsel or other appropriate official in novel situations or when the interpretation or application of the rules and regulations are unclear before he or she responds to such inquiries.
10. Employees are encouraged to seek advice from the Ethics Advisor on matters concerning the Fund’s Code of Conduct, ethical standards, and the Fund’s rules and regulations on conduct. Such advice does not, however, replace the need for employees to obtain approvals for certain external activities (including outside employment), financial investments or publications and public statements through the appropriate channels, as applicable. The identity of the employee may be kept confidential in such consultations.
11. Employees can secure the confidential advice of the Ethics Advisor regarding prospective actions/activities; such advice provides a “safe harbor”, that is staff will not suffer adverse action if they act on the basis of advice given by the Ethics Advisor, provided that they accurately disclose all material facts and act in accordance with the advice given.
12. Seeking advice from the Ethics Advisor on past or currently ongoing conduct would not provide such safe harbor. The Ethics Advisor shall have the discretion to refer to the Internal Investigator information concerning alleged misconduct, taking into account the facts and circumstances and the egregiousness of the misconduct alleged. Where possible, the Ethics Advisor will provide employees with advice on mitigating measures to be taken to address past or currently ongoing misconduct. The implementation of such mitigating measures by the staff member would be a relevant factor for the purposes of assessing the appropriate severity of any disciplinary measure to be imposed. Staff members seeking confidential information or advice on ways of handling past/current matters that may constitute misconduct should rather consult the Ombudsperson, who can obtain the advice of the Ethics Advisor or others who are responsible for the matter (e.g., HRD on outside employment) on an anonymous and confidential basis.4
13. The Ethics Advisor shall periodically apprise HRD and the Legal Department (LEG) and, when applicable, the Director of the Communications Department, of the positions taken as to the application or interpretation of the rules without disclosing the identities of the individuals involved.
3 The Ethics Advisor may also be requested by the Ethics Committee of the Executive Board to provide his or her views ex officio on any matter with which the Ethics Committee is dealing; such services shall not be governed by these Terms of Reference.
4 Consultations with the Ombudsperson do not themselves provide a safe harbor for staff because the Ombudsperson cannot speak for, authorize or clear any acts on behalf of the Fund; nor does informing the Ombudsperson of a matter constitute informing the Fund. It remains the responsibility of the staff member (whom the Ombudsperson may assist) to inform and/or to secure any required authorization or clearance from the appropriate Fund official.