Published: Aug 31, 2010 6:32 PM EDT
Updated: Aug 31, 2010 3:32 PM EDT

WASHINGTON (AP) - Scandalized by federal regulators who had sex with oil company executives and negotiated with them for jobs, the agency that oversees offshore drilling is imposing a first-ever ethics policy that bars inspectors from dealing with a company that employs a family member or personal friend.

Michael Bromwich, head of the Bureau of Ocean Energy Management, says the new policy should help restore credibility to the beleaguered agency, formerly known as the Minerals Management Service. President Barack Obama has pledged to end the agency's "cozy relationship" with the oil industry.

Besides the rule on family and friends, the new policy bars inspectors from work involving their former employers for two years.