Conflict of Interest

Question 1

Can you explain what a Conflict of Interest is?

Answer 1

• A situation where there is 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

Conflicts of Interest, 1st edition, March 2017.

Question 3

Is the Conflicts of Interest, 1st edition, March 2017 a guidance note or professional statement?

Answer 3

Professional statement.

Question 4

Name 3 types of conflict outlined in the 2017 professional statement?

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 situation in which the duty of an RICS member or regulated firm acts in the interests of a client in a 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 firm to provide material information to one client and the duty of that RICS member/firm to another client to keep that same information confidential.

Question 5

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

Answer 5

• Acting for both the developer and contractor on the same project.
• Having other obligations or pressures that detract you from or affect your relationship with the client.

Question 6

What is informed consent?

Answer 6

• Occurs when a party who might be adversely affected by a conflict of interest, acknowledges the existence of that risk but agrees to instruct with the assignment.

Question 7

What action should you take if a conflict of interest arises?

Answer 7

• Disclose to the client in writing and details 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 questions: could I work on the project without bias or conflict of interest?
• Notify the client in writing of the potential conflict of interest.
• I may need to respectfully decline the commission and off up somebody else in the business who could work on the assignment without bias or conflict of interest.