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§251.31 Financial interests.
No selected arbitrator shall have a direct or indirect financial interest --
in the case of a distribution proceeding, in any claimant to the proceeding whether or not in a voluntary settlement agreement, or any copyright owner who receives royalties from such claimants because of their representation;
in the case of a rate adjustment proceeding, in any individual, organization or entity that would be affected by the outcome of the proceeding.
"Direct or indirect financial interest" shall include: being employed by, being a consultant to, being a representative or agent for, being a member or affiliate of, being a partner of, holding any office in, owning any stocks, bonds, or other securities, or deriving any income from the prohibited entity.
"Direct or indirect financial interest" shall not include-
owning shares in any stock or bond mutual fund or blind trust which might have an interest in a prohibited entity but whose decisions to invest or sell is not under the control of the selected arbitrator, or
receiving any post-employment benefit such as health insurance or a pension so long as the benefit would not be affected by the outcome of the proceeding.
For the purposes of this section, the financial interests of the following persons will serve to disqualify the selected arbitrator to the same extent as if they were the arbitrator's own interests:
The arbitrator's spouse;
The arbitrator's minor child;
The arbitrator's general partner, except that the personal financial holdings, including stock and bond investments, of such partner will not serve to disqualify the selected arbitrator; or
An organization or entity for which the arbitrator serves as officer, director, trustee, general partner or employee.