New Financial Interest

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Developing or acquiring a new financial interest is an exciting new opportunity that may also result in additional compliance requirements depending on the nature of the new financial interest. Understanding of the range of compliance requirements related to financial interests will help you:

Make a better decision on what type of financial interest you acquire (ex. CEO or member of the Scientific Advisory Board);
Prepare for the impact on your existing and future research portfolio; and
Plan for possible future activities between UCI and your new financial interest.

In addition to reviewing the below resources, please contact the COI Team to receive additional guidance for your specific opportunity and plans.

1. Considering, Planning

2. Acquired, Developed

3. Changing, Evolving

1. Considering, Planning

The decisions you make regarding the nature of your new financial interest/relationship will have a direct impact on which and how many additional compliance requirements are necessary.

Recommendations

Review the Startup Guide
- Learn about the additional compliance requirements (including but not limited to conflict of interest in research) to help you decide how best to move forward with this new financial interest;
- Choose the level of financial interest (and subsequent compliance requirements) that match your interests and plans; and
- Contact the COI Team for additional guidance and referrals
Review and if applicable, share the Statement of UCI Employee Obligations related to External Individual Engagements, which highlights key UCI policies to remember when considering a new relationship with an outside entity
Faculty covered by APM-025 and APM-671: contact your department Academic Personnel representative to determine if prior approval through UC OATS is required for your new financial interest (ex. co-founding a company)
- For faculty on the health compensation plan, see Category I Prior Approval Checklist for more information
Potential consulting activities: send a copy of the proposed consulting agreement to Beall Applied Innovation (David Gibbons or Casie Kelly), to confirm the terms and conditions do not conflict with your UC obligations

Basics

Startup Guide- highlights the main compliance requirements related to create a new company or developing a new financial interest
Statement of UCI Employee Obligations related to External Individual Engagements
Forms & Policies- summarizes the four conflict of interest in research policies
Addressing Potential COI Risks- provides examples of how other researchers have addressed the potential conflict of interest risks in their studies

2. Acquired, Developed

Congratulations on your newly established financial interest/relationship! Now, you should determine what additional compliance actions are necessary.

Recommendations

Contact COI Team
- To update your financial interests and receive instructions on next steps
- To plan for projects related to/involving your financial interest to facilitate upcoming Conflict of Interest Oversight Committee reviews

Basics

Disclosure Requirements- summarizes researchers' different conflict of interest disclosure requirements
Research Security & International Engagement- highlights researchers' other disclosure requirements

Disclosure Procedures

Forms & Policies- summarizes the four conflict of interest in research policies
Disclosure Requests- instructions and resources related to the COI Forms the COI Team requests
Addressing Potential COI Risks- provides examples of how other researchers have addressed the potential conflict of interest risks in their studies

3. Changing, Evolving

A new opportunity? A change? This might be a good time to check in with the COI Team to see how these changes might impact your research and compliance requirements.

Recommendations

Contact the COI Team to discuss the changes to your financial interest or the entity; and
If necessary, update your disclosures

Basics

Forms & Policies

Small Business Innovation Research (SBIR), Small Business Technology Transfer (STTR)

Resources:

NSF SBIR/STTR Subaward Restriction: Per NSF Solicitation requirements, no person who is an equity holder, employee, or officer of the proposing small business may be paid under a subaward unless an exception is recommended by the Program Director and approved by the Division Director for the Division of Industrial Innovation and Partnerships.
SBIR/STTR Tutorial: "Using Subcontractors and consultants to enhance your team"
SBIR/STTR Phase 1 F&A Rate Reduction Pilot Program
Guidelines for UCI Employee Participation in the SBIR & STTR Grant Programs
UCI Guide and FAQs: SBIR and STTR Programs

Name	Small Business Innovation Research (SBIR)	Small Business Technology Transfer (STTR)
Goal	Encourage domestic small businesses to engage in Federal Research/Research & Development (R/R&D) with potential for commercialization	Expands public/private sector partnership to include the joint venture opportunities for small business and nonprofit research institutions
Small Business Concern (SBC) Eligibility	Organized for profit, with place of business located in the US; At least 51% owned and controlled by either: One or more citizen(s) or permanent resident alien(s) of the US, Another for-profit business concern that is 51% owned and controlled by 1 or more citizen(s) or permanent resident alien(s) of the US; and No more than 500 employees, including affiliates	Organized for profit, with place of business located in the US; At least 51% owned and controlled by 1 or more citizen(s) or permanent resident alien(s) of the US; and No more than 500 employees, including affiliates
Principal Investigator	Principal investigator must have primary employment with the SBC (unless a waiver granted by agency)	Principal investigator does not have to be primarily employed by the SBC
Financial Disclosure Requirements	Phase 1: Principal Investigator and co-Principal Investigator (if applicable) completes Statement of Economic Interests for Principal Investigator (Form 700U) If prime sponsor is PHS/DOE: No disclosure required under the federal COI policy If prime sponsor is NSF/NASA: KR COI Annual Disclosure and if necessary, NSF/NASA email question Phase 2: Principal Investigator and co-Principal Investigator (if applicable) completes Statement of Economic Interests for Principal Investigator (Form 700U) and if prime sponsor has financial disclosure requirements, all Investigators with responsibility for design, conduct, or reporting of research must submit financial disclosures for prime sponsor If prime sponsor is PHS/DOE: KR COI Annual Disclosure If prime sponsor is NSF/NASA: KR COI Annual Disclosure and if necessary, NSF/NASA email question	Phase 1: Principal Investigator and co-Principal Investigator (if applicable) completes Statement of Economic Interests for Principal Investigator (Form 700U) If prime sponsor is PHS/DOE: No disclosure required under the federal COI policy If prime sponsor is NSF/NASA: KR COI Annual Disclosure and if necessary, NSF/NASA email question Phase 2: Principal Investigator and co-Principal Investigator (if applicable) completes Statement of Economic Interests for Principal Investigator (Form 700U) and if prime sponsor has financial disclosure requirements, all Investigators with responsibility for design, conduct, or reporting of research must submit financial disclosures for prime sponsor If prime sponsor is PHS/DOE: KR COI Annual Disclosure If prime sponsor is NSF/NASA: KR COI Annual Disclosure and if necessary, NSF/NASA email question
Nonprofit Research Institution	Not required	Required for Phase I and II Nonprofit Research Institute Eligibility Located in the US Meet one of the following three definitions: Nonprofit college or university, Domestic nonprofit research organization, or federally funded R&D center Must establish an intellectual property agreement detailing the allocation of intellectual property rights and rights to carry out follow-on research, development or commercialization activities between SBC and Nonprofit Research Institution SBC must perform at least 40% of the R&D and the single partnering research institution to perform at least 30% of the R&D
Phase I	Establish technical merit, feasibility, and commercial potential and determine quality of performance before providing further Federal support in Phase II Usually not more than $150,000 for 6 months	Establish technical merit, feasibility, and commercial potential and determine quality of performance before providing further Federal support in Phase II Usually not more than $150,000 for 1 year
Phase II	Continue R/R&D efforts of Phase I; funding based on results of Phase I and the scientific and technical merit and commercial potential of project proposed in Phase II Usually not more than $1,000,000 total costs for 2 years	Continue R/R&D efforts of Phase I; funding based on results of Phase I and the scientific and technical merit and commercial potential of project proposed in Phase II Usually not more than $1,000,000 total costs for 2 years
Phase III	When appropriate, small business pursues commercialization objects SBIR does not fund Phase III	When appropriate, small business pursues commercialization objects STTR does not fund Phase III

Students

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Graduate Division

The Graduate Division's Conflict of Interest (COI) policy regarding graduate students and their mentors (e.g., faculty advisors) may require the appointment of an Oversight Member to the student's advancement/dissertation committee for any financial interest of the graduate student's mentor/thesis/dissertation advisor that has the potential to harm the student's academic interests and degree progress.

For graduate students in the process of establishing their advancement/dissertation committee or already have one, a COI issue may be raised at any time at the academic unit level by the graduate student, the Faculty Mentor/Thesis/Dissertation Advisor, a departmental representative, or the Conflict of Interest Oversight Committee. The first step is to report the potential COI to the Designated Resource Person (usually the departmental graduate advisor) unless the Designated Resource Person is also the student’s conflicted Faculty Mentor/Thesis/Dissertation Advisor, in which case the Department Chair handles the matter.

After the Designated Resource Person (usually the departmental graduate advisor) determines that the Conflict Of Interest (COI) issue includes a component that may be harmful to the student, the Designated Resource Person notifies the Dean of Graduate Division requesting an Oversight Member be appointed.

The “Oversight Member” shall participate, as a non-voting Ex Officio Member, in all student research advisory and/or thesis/dissertation committee meetings. The “Oversight Member” shall be aware of the COI issues and relevant campus policies.

If there do not appear to be any harmful results from COI issues, the “Oversight Member” shall sign a brief statement to that effect after each committee meeting. The “Oversight Member” shall also sign the advancement to candidacy and final exam forms below the signatures of the voting committee members.

However, if the “Oversight Member” perceives that there is a problem arising from COI issues, then the “Oversight Member” shall not sign the advancement to candidacy or final exam forms summarizing the committee deliberation, but shall instead inform the Dean of Graduate Division of the problem in writing. The Dean of Graduate Division is then responsible for determining a solution.

Regardless of the impact of the COI on the student, the “Oversight Member” shall not halt the proceedings during the course of an oral examination.

For more information, contact Andrea Bannigan at alanders@uci.edu or visit The Manual of the Irvine Division of the Academic Senate - Appendix XII: Policy and Procedures for Implementation of Academic Senate Policy on Conflict of Interest and Graduate Education.

Academic Personnel

Per the Conflict of Commitment policies, faculty members must obtain prior approval from before involving a student in an outside professional activity. The involvement of a student in the outside professional activity of a faculty member must not affect, positively or negatively, the faculty member’s evaluation of the student’s performance in any other context.

Prior Approval Form

For more information, contact your Academic Personnel representative.