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The Federal Reserve on Thursday announced new rules on investing and trading by central bank officials banning the purchase of individual securities just weeks after the presidents of two regional banks of the Fed stepped down from overseeing their trading activities during the pandemic.

Important facts

The new rules will prohibit Fed politicians and officers, including board members, from buying individual securities, including stocks and bonds, holding investments in agency securities such as government bonds, and entering into derivative contracts.

Officials are required to give 45 days notice prior to buying or selling any security “to avoid even the appearance of a conflict of interest,” the Fed said.

They must also obtain prior authorization to trade in securities and hold their investments for at least a year.

Although the Fed did not specifically refer to the pandemic stock deals that sparked widespread criticism last month, it did say officials are banned from buying or selling investments in times of “heightened financial market stress”.

The rules also require the Fed Presidents to disclose financial transactions within 30 days, as is already required by board members and senior officers.

The Fed, which did not respond immediately ForbesRequest for comment said the new restrictions would be incorporated into Fed rules and guidelines “in the coming months”.