Conflict of Interest (CoI) and Modern Slavery

Question 1

52. Can you explain what a CoI is?

Answer 1

A CoI arises in a situation where there is an actual or perceived potential risk the professional judgement of an RICS regulated Firm or Member may be compromised when undertaking an assignment.

Question 2

53. Have the RICS published any information on CoI?

Answer 2

Yes. CoI 1st edition March 2017

Question 3

54. Is the CoI 1st edition March 2017 a guidance note or professional statement?

Answer 3

This is a Professional Statement. RICS members and firms Must follow this standard

Question 4

55. Can you name 3 kinds of conflict outlined in the CoI professional statement?

Answer 4

1. Party conflict
   a. A situation in which the duty of an RICS regulated member or firm acts in the interest of a client or other party in a professional assignment which conflicts with the duty owed to another client or party in relation to the same or a related professional assignment.
2. Own interest conflict
   a. 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 the interests of the same RICS member/firm
3. Confidential information conflict
   a. A conflict between the duty of an RICS member or regulated firm to provide information to one client that the member or firm has a duty to keep confidential.

Question 5

56. Can you provide a working example of a CoI or potential CoI?

Answer 5

I was invited by my boss to a meeting with a Contractor to discuss the project aims/scope of service for an MOD job the Contractor was on the tender list for. Upon my return to the office I carried out an internal CoI check and found out that another office in business was already engaged with a competitor to my potential client. I inform my boss and then i wrote to the Contractor and had a discussion w to inform them of the CoI. The Contractor informed me that they were still ok with us performing the work for them but I still declined the offer as there was the potential for even a perceived CoI.

Question 6

57. What is informed consent?

Answer 6

This is where a party who might be adversely affected by a COI acknowledges the risk but still instructs the firm or member to undertake the agreed duties. This happened with my first involvement with the EA WEM framework. I was working as a cost manager while an internal sister company carrying out design work for the client. An ethical wall was erected and I was not to be involved in any project where they were the designers for the sake of a proposed CoI.

Question 7

58. What action should you take if an CoI or potential CoI arises?

Answer 7

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

Question 8

73. What is modern slavery?

Answer 8

• Is the illegal exploitation of people for personal or commercial gain
• It covers a wide range of abuse and exploitation including sexual exploitation, domestic servitude, forced labour, criminal exploitation or organ harvesting

Question 9

74. What is the relevant legalisation for modern slavery?

Answer 9

Modern Slavery act 2015