Advisory Opinion No. 95-53

Patricia A. Daniel, Ed.D.

A. Question Presented

Whether Ms. Daniel's husband, Alfred Daniels, a licensed financial planner and insurance representative, may present seminars and solicit and accept business from employees of the East Providence Public Schools, while his wife serves as the Superintendent of those schools.

B. Summary

Alfred Daniels presently offers seminars and otherwises solicits and accepts business from public employees, including employees of various school departments in Rhode Island, as part of his regular business practice. In offering seminars and obtaining clients from among the employees of the East Providence Public Schools he would neither obtain information that was not otherwise available to the public, nor would he have access to employees that was not afforded to any other business person similarly situated. Also, by codes of professional conduct Mr. Daniel is barred from disclosing the names, or any information, about clients or prospective clients to anyone, including his wife. Therefore, the Code of Ethics does not preclude Mr. Daniel from soliciting and accepting business from employees of the East Providence Public Schools.

C. Discussion

1. Facts

Patricia A. Daniel is the Superintendent of Schools for the East Providence School Department. Her husband, Alfred Daniel, is a duly licensed Financial Planner/Registered Representative (NASD and State of Rhode Island) and Life and Health Insurance Producer (Rhode Island). He is employed by CPI Financial Services Inc., Providence RI. As a means of obtaining business Mr. Daniel periodically presents seminars on financial planning, retirement planning, wealth creation, estate planning and college education planning. Among the audiences he has targeted in the past with these seminars are various public employee groups, including employees of school departments in Rhode Island communities. He intends to offer such seminars, and otherwise solicit and accept business from employees of the East Providence School Department.

At a hearing before the Commission Ms. Daniel advised that she has no knowledge of, or involvement in, her husband's business. She further stated that she insulates herself from any knowledge about the identity of her husband's clients. Mr. Daniel stated that as part of his professional responsibilities he does not disclose the names of his clients to his wife.

Mr. Daniel advised the Commission that he advertises seminars in a variety of general publications. He and his wife confirmed that neither his advertising nor more direct solicitations will benefit from him obtaining information that is not as equally accesible to any other member of the public. Finally, no solicitations of East Providence School Department employees will be made during working hours or with Mr. Daniel identifying himself as being related to or otherwise connected with his wife.

2. Analysis

As Superintendent of Schools for the East Providence School Department Patricia A. Daniel is a municipal appointed official and an employee of local government. As such she is subject to the provisions of the Rhode Island Code of Ethics. See R.I. Gen. Laws § 36-14-2(2), (3) and (4)(b). Her husband, Alfred Daniel, has a private financial practice. His conduct does not fall within the purview of the Code of Ethics, except to the extent his being a person within his wife's family implicates provisions of the statute.

Based on the factual representations made by Ms. Daniel and Mr. Daniel at an April 19 hearing, the Commission concludes that the Code of Ethics does not bar the latter from offering seminars or otherwise soliciting or accepting business from employees of the East Providence School Department.

The Commission further observes, however, that notwithstanding the good faith efforts of Ms. Daniel to keep herself insulated from her husband's business, it is entirely possible that she will become aware that one or more employees of the school department she oversees are, in fact, clients of her husband's. The Commission advises Ms. Daniel that should she become aware that an employee of her department is also a client of her husband's that it is incumbent upon her not to take any official action regarding that employee unless and until she seeks further guidance from this Commission. The Commission does not wish to adversely impact the legitimate business efforts of Mr. Daniel, but it is also mindful that those business efforts may have occasion to intersect with the public responsibilities that are part and parcel of his wife's position as the Superintendent of Schools. Should such interests intersect, Ms. Daniel, whose conduct is subject to the Code of Ethics, should return here for further advice.

Keywords

Nepotism

Family: Financial Interest

Solicitation

Business Interest