1-MANDATORY-L1 - Conflict avoidance, management and dispute resolution procedures Flashcards
(25 cards)
What pre-appointment checks should be undertaken before working with a new client?
Ensure knowledge and competence, check for conflicts of interest, conduct anti-money laundering checks, verify sufficient PII insurance, formalize engagement in writing.
PII stands for Professional Indemnity Insurance.
What procedures should be put in place when setting up a new practice for good client care?
Processes for formalizing terms of engagement, obtaining regular client feedback, developing business development strategies, ensuring client confidentiality, and reporting to clients using tailored documentation.
Business development activities aim to retain existing clients and generate new business.
Why is client care important?
Excellent client care retains clients and generates leads, while poor care leads to dissatisfaction and potential insurance claims, resulting in stress and reduced performance.
Professional Indemnity insurance claims can be costly.
What should be done upon receiving a formal complaint from a client?
Notify the client of receipt, issue complaints handling procedure, report to a senior person, notify PII insurers, meet with the client to address concerns, refer unresolved complaints to RICS.
RICS stands for the Royal Institution of Chartered Surveyors.
What does it mean to act with integrity in client care?
Be honest, open, transparent, and avoid conflicts of interest.
What defines a complaint?
A statement that a situation is unsatisfactory or unacceptable to the client.
Complaints can be made formally or verbally.
What is meant by the term Duty of Care?
The obligation to ensure that another party does not suffer harm or loss due to breach of contractual obligations or Tort of Negligence.
What is the difference between a client and a customer?
A customer engages in one-time transactions, while a client seeks professional services and engages in a long-term fiduciary relationship.
Formal agreements between clients and firms typically include quotas, deadlines, responsibilities, expected results.
How should you conduct yourself with a new client?
Be friendly, engaging, enthusiastic, well-presented, polite, conscientious, and respectful.
What does the term soft landings refer to?
A strategy to transition smoothly from construction to occupation, ensuring optimal operational performance for end users.
What are some quality management procedures in client care?
Peer review process, standardized documentation formats, authorization process, accessible file storage, absence procedures, internal and external audits, lessons learned workshops, client feedback.
These procedures help maintain high standards in client service.
How does your firm obtain client feedback?
Through client performance reviews, use of KPIs, regular informal communication, and lessons learned workshops.
What are KPIs?
Key Performance Indicators are measurable values demonstrating how effectively a company achieves key business objectives.
What are the objectives of the RICS professional statement regarding client money?
To ensure client money is kept safe, used for appropriate purposes, and that firms have controls to safeguard client money.
What is meant by the term client money?
Money held or received on behalf of another that is not immediately due to the firm, excluding fees paid in advance.
What should you do in a conflict avoidance situation?
Advise both parties in writing of the conflict.
How does the VO’s conflict of interest procedure work?
Complete a conflict check, inform the line manager if a conflict is identified, seek informed consent, and proceed or decline based on consent.
What are three RICS recommendations regarding conflict of interest?
- Do not proceed without informed consent. 2. Ensure all parties’ interests are served. 3. Manage and document conflicts throughout work assignments.
What is a professional statement?
Mandatory requirements for RICS members and firms.
What are the three types of conflict?
- Party conflict 2. Own interest conflict 3. Confidential information conflict.
What is an information barrier?
Physical or electronic separation within a firm to prevent confidential information from passing between individuals.
How do you communicate effectively about a complex issue?
Use plain English, avoid jargon, be concise, and use visual aids if suitable.
What is informed consent?
Consent given willingly by a party affected by a conflict of interest.
Describe a negotiation you have done.
Negotiated a valuation for a residential property, held firm on initial value, and ultimately agreed on a revised value after further comparables were presented.
