Conflicts of Interest Flashcards
How do conflicts of interest relate to the new rules of conduct?
Rule 1: Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Members and firms identify 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
What is a conflict of interest?
A situation where there is an actual, perceived or potential risk that a member or firms independence and impartiality is threatened. This may include:
A party conflict - when your professional duty to two parties conflicts.
Own Interest conflict - where the duty to act in the interests of the client conflict with your own interests or the interests of your firm.
Confidential information conflict - where the duty to provide certain information to one client conflicts with your duty to another client to keep that same information confidential.
What is the difference between conflict avoidance and conflict management?
Conflict avoidance is when you do not accept the instruction
Conflict management is when the instruction is accepted and steps are agreed and put in place to manage the conflict, such as an information barrier, with the written agreement of all parties.
When can you proceed where a conflict of interest exists?
Where doing so is in the interests of both parties and is not prohibited by law, and where written informed consent to proceed has been obtained by all parties in accordance with the Conflict of Interest, RICS Professional Statement.
What is an information barrier?
The physical and electronic separation of individuals within the same firm to prevent information passing between them.
What guidance should you follow when handling a conflict of interest?
RICS Global Professional Statement on Conflicts of Interest, 2017
What are the steps in handling conflicts of interest?
- Conflict avoidance - Decided whether the conflict can be effectively managed and if it is the interests of the parties to do so.
- Written advice - if you wish to accept the instruction set out in writing the nature of the conflict and circumstances surrounding it and your proposal as to how to deal with it. Request written confirmation from both parties of their informed consent.
- Conflict management - once written informed consent has been received, set up an information barrier.
What is your companies conflict of interest policy?
Identify the conflict and establish if we can act objectively for the client, if yes then create a detailed record of how the conflict can be managed, obtain informed consent, put in place an information barrier.
