Conflicts of Interest & Money Laundering

Question 1

Can you explain what a conflict of interest is?

Answer 1

Anything that impedes a firm or individuals ability to act impartially.

Question 2

Can you name 3 types of conflict of interest? With Examples

Answer 2

• Party conflict: were a member is acting for two clients that have intertwined interests, i.e same consultancy acting for both contractor and developer.
• Own interest conflict: the interests of the client or firm you present conflict with your own, i.e friend working for main contractor on scheme you are PQS.
• Confidential information conflict: a conflict were you have a duty to provide information to a client but supply that information goes against the interest of another client you work for. I.e advising both the seller and buyer of property.

Question 3

What action should you take in the event of a conflict of interest?

Answer 3

• Disclose to the client in writing, advise you cannot proceed with duties unless you can 100% guarantee impartiality, the client finds it acceptable and approves.

Question 4

What is informed consent?

Answer 4

• Where a conflict of interest is disclosed to all parties and they agree individual can proceed in current role.

Question 5

What action would you take if the client insist that you continue to work for them despite a conflict of interest?

Answer 5

• Make sure they are fully aware of the conflict and the reduced impartiality.
• Obtain a letter of instruction to continue, this is referred to as informed consent.
• Agree procedures to be in place to manage the conflict, if it a business conflict this could be putting a security wall / block on information to prevent it being viewed by the other party.
• Update the client of any risks.

Question 6

What is a Information Barrier?

Answer 6

An ethical barrier that prevents communication between parties where a conflict of interest may exist.

Question 7

When did the Conflict of Interest Professional standard come into effect

Answer 7

Jan 2018

Question 8

What is an example of a conflict of interest?

Answer 8

Family member working for a contractor when tendering works for your client

Question 9

Tell me about a time you have come across a conflict of interest?

Answer 9

Within my company where there are multiple disciplines who may bid for the same project. There are clear rules set around no information sharing to` improve chances of bidding

Question 10

What is money laundering?

Answer 10

Concealing the source of the proceeds of criminal activity to disguise their illegal origin

Question 11

What could be a sign of money laundering?

Answer 11

Hiding, transferring or recycling money through one or more transactions

Question 12

What act applies to money laundering?

Answer 12

Money Laundering Act 2017

Question 13

How would you assess if there may be a conflict of interest?

Answer 13

Review the professional standard on conflicts

Speak with director to ensure there are no conflicts