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PH_APC_2025 > Conflict Avoidance, Management and Dispute Resolution Procedures > Flashcards

Conflict Avoidance, Management and Dispute Resolution Procedures Flashcards

1
Q

When must a RICS member NOT advise a client?

A

When doing so would involve a conflict of interest or a significant risk of a conflict of interest, unless informed consent is obtained from all affected parties

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2
Q

What is the effective date of the RICS Professional Statement on Conflicts of Interest?

A

January 1st, 2018

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3
Q

Under what conditions can informed consent be sought for proceeding with a conflict of interest?

A

Only when:
1. It is in the interest of all affected parties
2. It is not prohibited by law
3. The RICS member/firm is satisfied these conditions are met

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4
Q

What are the key management measures for conflicts of interest?

A
  • Information barriers
  • Geographical separation
  • IT security
  • Password protection
  • Written agreement from all parties
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5
Q

What are the three steps in RICS’s conflict management process?

A
  1. Assess if conflict can be resolved
  2. Provide written advice to all parties with clear disclosure
  3. Implement management measures (information barriers, geographical separation, IT security)
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6
Q

What is a conflict of interest?

A
  1. Party Conflict When your duty to one client conflicts with your duty to another client in related professional work.
  2. Own Interest ConflictWhen your personal or firm’s interests conflict with your duty to act in a client’s best interests.
  3. Confidential Information ConflictWhen you have conflicting duties to provide information to one client while keeping it confidential from another.
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7
Q

Name the three levels of disciplinary action

A
  1. Action by Head of Regulation
  2. Regulatory Tribunal
  3. Appeal Panel
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8
Q

How are disciplinary matters handled within RICS?

A

Disciplinary matters are handled at different levels:
1. Serious breaches lead to formal disciplinary procedures
2. Minor issues are resolved through self-correction or internal processes
3. Disciplinary processes are kept separate from fee disputes and compensation matters

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9
Q

What is the main purpose of RICS disciplinary action?Explain

A

To protect the public interest and safeguard the reputation of the profession

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10
Q

Who authorises and makes the Rules for disciplinary powers?

A

The RICS Charter and Bye-Laws authorise the Standards and Regulation Board to make Rules (Regulatory Tribunal Rules)

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11
Q

What happens when a complaint about a Regulated Member is considered serious?

A

The Head of Regulation investigates and, if supported by evidence, considers taking disciplinary action based on the seriousness of the case

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12
Q

What happens in less serious cases where the member admits allegations?

A

The Head of Regulation may impose a Regulatory Compliance Order (or Consent Order) which can include a fine, caution, or conditions on membership

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13
Q

How are the most serious cases handled?

A

They are referred to a Disciplinary Panel from the independent Regulatory Tribunal, which conducts hearings and can impose sanctions from fines to expulsion

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14
Q

What are the three main types of conflicts of interest?

A
  1. Party Conflict - When dealing with same/related instruction for different parties, including financial/personal relationships
  2. Own Interest Conflict - When personal interests conflict with professional duties
  3. Confidential Information Conflict - When there’s access to confidential information between parties
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15
Q

What important rule was implemented regarding party conflicts in 2018?

A

Acting on both sides of a transaction was banned since 2018

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16
Q

What are the two main approaches to managing conflicts of interest?

A
  1. Avoidance - Decline instruction when conflict cannot be managed
  2. Management - Implement information barriers and obtain written agreement from all parties
17
Q

What are the key considerations when handling a potential conflict of interest?

A
  • Consider impact on professional judgment
  • Assess ability to act impartially
  • Evaluate if conflict can be properly managed
  • Maintain transparency and openness
  • Make decision to accept or decline instruction
18
Q

What steps must be taken for proper conflict management?

A
  1. Declare conflict to all parties
  2. Obtain written confirmation of informed consent
  3. Implement robust information barriers
  4. Ensure physical separation of information
  5. Maintain secure storage
  6. Create clear audit trail
19
Q

What are the essential elements of informed consent in conflict situations?

A
  • Full disclosure to all parties
  • Written confirmation required
  • Clear documentation of consent to act
  • Transparent communication throughout process
20
Q

What are the requirements for information barriers in conflict management?

A
  • Must be robust
  • Physical separation required
  • Secure storage systems
  • Clear audit trail maintained
  • Regular monitoring and documentation
21
Q

What are the key actions to avoid negligence claims?

A
  • Understand client objectives clearly
  • Confirm instructions in writing via terms of engagement
  • Ensure competency for the instruction
  • Follow RICS standards and guidance notes
  • Maintain detailed file notes and photographs
  • Stay current with market knowledge and legislation
  • Record CPD activities
  • Cap professional liability excess in terms of engagement
22
Q

What is alternative dispute resolution (ADR)?

A

ADR refers to processes and techniques used to resolve conflicts outside of court litigation.

23
Q

What are the key advantages of alternative dispute resolution?

A
  • Speed
  • Lower costs
  • Informality
  • Greater negotiation opportunities
  • Confidentiality
24
Q

What are the main forms of alternative dispute resolution?

A
  • Mediation
  • Arbitration
  • Adjudication
  • Independent expert determination
  • Expert witness proceedings
25
Q

Complaints

What must be issued to clients with terms of business?

A

A complaints handling procedure must be issued to clients along with the terms of business.

26
Q

What documentation must be maintained for complaints?

A

A complaints log must be maintained.

27
Q

What must firms include in their complaints handling procedure?

A

Firms must include an RICS-approved Alternative Dispute Resolution (ADR) mechanism in their complaints handling procedure, which must comply with the RICS Guidance Note on Complaints Handling 2016

28
Q

What are the timeframes for handling complaints?

A
  • Complaints must be acknowledged within seven days
  • Full investigation and response must be provided within 28 days
29
Q

What does Alternative Dispute Resolution provide?

A

ADR provides third-party resolution options.

30
Q

Complaints handling (effective July 2016)

What is a complaint according to RICS?

A

Any expression of dissatisfaction that needs to be handled reasonably and consistently to minimize reputational and financial risk

31
Q

Complaints handling (effective July 2016)

What are the key requirements for RICS-regulated firms regarding complaints?

A
  • Must publish a complaints handling procedure (CHP)
  • Must include an approved ADR provider
  • Must maintain a complaints log
32
Q

Complaints handling (effective July 2016)

What should an effective Complaints Handling Procedure (CHP) include?

A
  • Be fit for purpose and reflect business size/structure
  • Be available and understood by all staff
  • Be regularly reviewed at senior level
  • Be agreed with PII brokers
  • Provide details for independent redress
  • Be readily shared with complainants
33
Q

Complaints handling (effective July 2016)

What are the initial steps when receiving a complaint?

A
  • Listen carefully to the customer
  • Record details promptly and accurately
  • Establish identity of complainant
  • Take ownership of the issue
  • Provide clear timeframes
  • Issue CHP to the customer
  • Consider if insurers need to be notified
34
Q

Complaints handling (effective July 2016)

What are the timeframes for handling complaints?

A
  • Acknowledge complaints within seven days
  • Provide full investigation and response within 28 days
35
Q

What are the three main roles of RICS?

A
  1. Maintain the highest standards of education and training
  2. Protect consumers through strict regulation of professional standards
  3. Be the leading source of information and independent advice on land, property, construction and environmental issues
36
Q

What are the key steps when starting a new RICS-regulated business?

A
  • Appoint responsible principal for RICS communication
  • Register with RICS Regulatory Board
  • Arrange professional indemnity insurance
  • Set up client money handling procedures
  • Register for value registration scheme
  • Establish complaints handling procedure
  • Set up complaints log and appoint handling officer
  • Ensure CPD log setup
  • Create staff training plan
  • Complete annual RICS returns
37
Q

What are the essential insurance and financial requirements for a new RICS business?

A
  • Professional indemnity insurance
  • Client money protection scheme
  • Value registration scheme
38
Q

What are the compliance and documentation requirements for a new RICS business?

A
  • Complaints handling procedure with RICS approval
  • Complaints log
  • CPD management system
  • Annual RICS returns
  • Staff training documentation
39
Q

What are the key statutory compliance requirements when starting a new practice?

A
  • Business name disclosure
  • Equality Act 2010 compliance
  • Financial services compliance
  • Bribery Act 2010 compliance
  • Money laundering reporting officer appointment
  • Health and safety compliance
  • Asbestos register management
  • Fire safety compliance
  • Data protection registration
  • Estate agency compliance
  • HMRC registration (VAT and tax)
  • Employment law insurance

PH_APC_2025 (19 decks)

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