Conflict of Interest

Question 1

Can you explain what a conflict of interest?

Answer 1

Arises in a situation where there may be an actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment.

Question 2

Has RICS published any information on conflicts of interest?

Answer 2

Professional standard - Conflict of interest, 1st edition, March 2017

Question 3

Is the Conflicts of Interest, 1st edition, March 2017 a practice information or professional standard?

Answer 3

Professional standard

Question 4

Can you name the 3 types of conflict outlined in the 2017 professional standard?

Answer 4

Party Conflict:

A situation in which the duty of an RICS member or regulated firm, acts in the interests of a client or other party in a professional assignment which conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.

Own Interest Conflict:

A station in which the duty of an RICS member or regulated firm, acts in the interests of a dientina professional assignment which conflicts with the interests of the same RICS member/firm.

Confidential Information Conflict:

A conflict between the duty of an RICS member or regulated, to provide material information to one client and the duty of that RICS member/firm to another client to keeps that same information confidential.

Question 5

Can you provide working examples of a conflict, or potential conflict of interest?

Answer 5

1. Acting for both the developer and client on a project.
2. Having other obligations or pressures that detract or affect your relationship with their client (expert witness where you or your firm has an interest in the outcome)

Question 6

What is informed consent?

Answer 6

Informed consent occurs when a party who might be adversely affected by a conflict of interest acknowledges the existence of that risk but still agrees to instruct an RICS-regulated firm or RICS member to proceed with the assignment.

Question 7

What action should someone take if a conflict of interest situation (or potential situation) arises?

Answer 7

As soon as you become aware, disclose to the client in writing and detail the nature of the conflict.

Question 8

You are instructed to work on a proposed development which would require the removal of a nature reserve. You have very strong views on protecting the environment. What should you do?

Answer 8

Ask myself the question - could I work on the project without bias and give the client proper and impartial advice?

Notify the client in writing of the potential conflict of interest.

I may need to respectfully decline the commission and offer somebody else in the business who could work on the development.