Conflicts of interest

Question 1

What is a conflict of interest?

Answer 1

A situation which may lead to a lack of impartiality.

A scenario which you are faced with conflicting duties or obligations

Question 2

What are some examples?

Answer 2

• Offering to buy lunch on the day of a valuation

* My brother is chief estimator of a construction firm who is tendering for a project I am working on.

Question 3

What must be done if there is a conflict of interest by a firm/individual?

Answer 3

Parties should be informed in writing

Offer to stand down

Both parties need to agree in writing if happy for you to continue working

Question 4

What must be done if there is a conflict of interest by a firm/individual?

Answer 4

a) Identify and manage COIs in accordance with the professional statement on COIs
b) Keep records of the decision made to accept assignments, obtaining of Informed Consent, and any measures taken to avoid COIs arising.

Question 5

Why is avoiding COIs important?

Answer 5

rules of conduct
Being honest and acting with integrity
Client confidentiality and ensured public confidence in the profession

Question 6

What types of COI are there according to the RICS?

Answer 6

• Party Conflict – Duty owed to 2 conflicting parties e.g. novation
• Own Interest Conflict – Duty owed to a client conflicts with interest of that member or regulated firm e.g. brother in law
• Confidential Information Conflict – A conflict to provide information under paragraph 2.2 (a member or regulated firm must provide al the information that is material to that client’s professional assignment of which that member has knowledge) to provide material information to one client, and the duty of that RICS member or regulated firm under paragraph 2.1 to keep that same information confidential e.g. benchmarking data, NDAs