Conflicts avoidance, management and dispute resolution Flashcards
What is the RICS professional statement relating to Conflicts of Interest?
RICS Professional Statement Conflicts of interest global 1st edition march 2017 effective from January 2018
What does the RICS Conflict of Interest professional statement do?
Provides clear rules for RICS members and regulated firms to identify and manage potential conflicts of interest
what is a conflict?
A conflict is a struggle and a clash of interest, opinion, or even principles.
When do disputes arise in your role?
Miscommunication, Ambiguities in documentation
What is a conflict of Interest?
where an agent acts for a client who has competing interests
OR
where an agents personal interests conflicts with that of their clients
What do the RICS Rules of Conduct say about avoiding conflicts of interest?
Rule 1 - says - Members and firms must idensity actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises,
UNLESS they do so in accordance with the current edition of Conflicts of interest, RICS professional statement
Give examples of ways that conflict can be avoided
Effective identification
Effective management
Keep records of decisions made
What are the two/three fundamental requirements contained in the Conflicts of Interest Professional Statement
- Members and firm MUST not advise or represent a client where doing so would involve a Conflict of Interest or a significant risk of a Conflict of Interest - unless prior informed consent is obtained
- MUST identify and manage Conflicts of Interest in accordance with the professional statement
- KEEP RECORDS of the decisions made in relation to whether to accept individual professional assignments, the obtaining of Informed Consent, and any measures taken to avoid Conflicts of Interest arising
When can Informed Consent be given?
Informed consent - may only be sought where the RICS Member is SATISFIED that proceeding despite a conflict of interest is
a) in the interest of all those affected
b) it is not prohibited by law
c) the conflict will NOT PREVENT the member from providing competent and diligent advice
Why is good management important?
A surveyor who proactively manages a project for which he or she is
responsible or the duties that they have to theirclient in respect of the appointment is an excellent starting point for the avoidance of disputes.
Proactivity and planning and managing future work, as well as raising early any issues of concern, provide confidence in the surveyor’s ability,
enabling problems to be analysed and managed
How can good record keeping avoid conflict?
Many disputes can be resolved by referring records that have
been kept during the course of assignment. evidence of what has or has not been done
What are the three pillars of Dispute resolution?
Negotiation, Mediation, Adjudication
what does Adjudication refer to?
Litigation, arbitration and expert determination
What are the 3 types of conflict of interests?
Party Conflict, Own interest Conflict and Confidential information conflict
