Conflict of Interest

Question 1

Can you explain what a conflict of interest is

Answer 1

Something that hinders the ability to act impartially due to having a material interact that conflicts

Question 2

Has RICS published any information on conflicts of interest

Answer 2

Conflicts of Interest 1st ed - professional statement

Question 3

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

Answer 3

Party Conflict
Own Interest Conflict
Confidential Information Conflict

Question 4

What is an effective conflict of interest procedure

Answer 4

· Identify
· Manage
· Monitor

Question 5

What is informed consent

Answer 5

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

Question 6

How would you deal with a situation that you felt was unethical?

Answer 6

I would use the RICS professional & ethical standards decision tree to inform my course of action
1. Do I have sufficient facts on the issue?
2. Is it legal?
3. Is it in line with RICS Rules of Conduct?
4. Have I consulted with appropriate people to make an informed decision?
5. Do I have clear reasoning in reaching my decision? Is the decision informed?
6. Would I be content for my actions to be made public?

Question 7

Can you proceed with an appointment after identifying a conflict of interest

Answer 7

· If there is a conflict of interest [or a real risk of one] you must not accept the instruction or continue acting for the client(s) unless:
o You are satisfied that you can in fact give independent and objective professional services to the client
o It would be in the best interests of the client (or both clients where relevant) for you to continue to act
o You have shared relevant information with the parties, and they have given informed consent

Question 8

If a Client gives Informed Consent, should you always proceed

Answer 8

· You are NOT obliged to proceed. Only proceed if you are satisfied all relevant client interests will be served.
· You must still exercise professional judgment and decide whether it is the correct thing to do and be sure that they will not cause professional embarrassment by proceeding where there is a Conflict of Interest.

Question 9

What must you consider when Multidisciplinary firms provide services for the same client

Answer 9

· Informed Consent
· Information Barriers
· Appropriate systems and controls for confidential information

Question 10

How does F+G deal with Conflicts of Interest

Answer 10

· Conflict of Interest annual training
· Conflict of interest disclosure form which must be filled out to notify the company
· Portal to notify a conflict of interest
· Keeps records