COIs

Question 1

What is a conflict?

Answer 1

A circumstance where your impartiality may be threatened.

Question 2

What types of COIs are there?

Answer 2

 Party Conflict – is where a duty to a client conflict with a duty owed to another client in relation to the same professional assignment (client vs client conflict)

 Own Interest Conflict – is where a duty owed to one client conflicts with a (personal) interest of anyone within the regulated firm, whether directly or indirectly related to that professional assignment. (client vs me)

 Confidential Information Conflict – is where there is a conflict in the duty to provide material information to one client but a duty to another client to keep that information confidential (client v client re info)

Question 3

What is the RICS COI document?

Answer 3

Professional Statement on Conflicts of Interest
2017

Question 4

What is Fisher Germans COI procedure for NEW clients?

Answer 4

New client COI check when preparing ToE & must identify:
a) Who the client is
b) location of the relevant property
c) nature of the instruction
d) any potentially affected third parties

Saved on file

Question 5

What is Fisher Germans COI procedure for RETAINED clients?

Answer 5

 Annually
 Whenever a new instruction outside of the management agreement is made
 When the structure of the client changes

Question 6

When you take on a new client, what checks do you make?

Answer 6

Customer Due Diligence (CDD) required you to identify the client and verify their identity – proof of identity and proof of address

If the client is a politically exposed person (PEP), a PEP family member/business associate or from a high-risk country then you should undertake Enhanced Due Diligence (EDD).

Question 7

What is enhanced due diligence?

Answer 7

Enhanced Due Diligence (EDD) is a more detailed, risk-based approach used to check and analyse higher-risk customers.

Fisher German use SmartSearch

Question 8

How do you approach a COI?

Answer 8

1. Conflict avoidance - decide whether the conflict is manageable and whether proceeding is in the best interest of all parties
2. Written advice to both parties - disclose the nature of the conflict, explain how you will manage it and request written confirmation of informed consent
3. Conflict management - set up information barrier in accordance with provisions agreed with the clients

Question 9

What information barriers does your firm have in place?

Answer 9

Restricted access to files
Clear desk policy
Private meeting rooms
Physical barriers e.g. restricted floor access

Question 10

What would you do if you identified a conflict before taking instruction?

Answer 10

1. Notify line manager/ partner
2. Inform all parties
3. Only seek Informed Consent if satisfied that all relevant parties will be served by you doing the work
4. In seeking Informed Consent the prospective client must be told, and understand, the nature of the competing interest. If it is not possible to achieve that without breaching a duty of confidentiality owed to another client or party
5. Information Barrier
6. Informed consent form
7. If during a sale, the conflict must be stated on the particulars