CH6- Objectivity

Question 1

Awareness

Answer 1

Member should be aware of any factor that might affect their independence or objectivity in respect to a matter e.g. close relationships, long association

Question 2

Conflicts of interest

Answer 2

Can arise between:
A member and a client
2 or more of a member’s clients or potential clients

Question 3

Managing potential conflicts of interest

Answer 3

Immediately seek a solution once a conflict or potential conflict of interest arises
Should inform client of the existence of conflict
Client should be given the opportunity to take independent advice to decide if they want us to continue to act
Where conflict of interest cannot be managed, decline to act
How the conflict was handled should be noted on file

Question 4

Acting for more than one party to a transaction

Answer 4

Member has 3 choices:
To act for one client
To act for both clients- with safeguards
To act for neither party

Question 5

Financial involvement with clients or 3rd parties

Answer 5

Member must disclose to their client if they are receiving commission, incentives or any other advantages, and the amounts they receive from a 3rd party relating to the matter upon which they are advising

Question 6

Actual and perceived conflicts of interesTS

Answer 6

Outsiders perceptions are relevant since both actual and perceived conflicts of interests need to be avoided or resolved

Question 7

Ethical walls

Answer 7

Separate teams within the same firm of tax advisers deal with 2 or more clients.
Strict confidentiality of info is maintained

Question 8

Instalment arrangement with a client for fee payment

Answer 8

The Consumer Credit Act