Conflicts of Interest Flashcards
In what year was the RICS professional statement, Conflicts of Interest 1st Edition, published?
2017
What level of advice / publication is RICS Conflicts of Interest 1st Edition, 2017?
Professional Statement
What are the three sections of RICS Conflicts of Interest 2017?
- Professional Statement (sets out mandatory rules)
- General Commentary (sets out how the Statement can be applied)
- Supporting Commentary (how can you meet the rules set out in Section 1?)
What is the principle rule provided in relation to Conflicts of Interest, in the 2017 Professional Statement of the same name?
An RICS member or regulated firm must not advise or represent a client where doing so would involve a Conflict of Interest or a significant risk of a Conflict of Interest; other than where all of those who are or may be affected have provided their prior Informed Consent.
What is the key principle which can allow for work to proceed despite a Conflict of Interest?
Informed Consent
What are the three different types of Conflict of Interest defined within the 2017 Professional Statement of the same name?
- Party Conflict (conflict between two clients)
- Own Interest Conflict (conflict between client and member)
- Confidential Information Conflict (where one client requests information that is held confidentially for another client)
What steps must firms take to demonstrate compliance with RICS Conflicts of Interest 2017?
Every RICS regulated firm must have in place effective systems and controls (appropriate to the size and complexity of their business) to ensure compliance
Every member and firm must keep records of the decisions made in relation to whether to accept individual professional assignments, the obtaining of Informed Consent, and any measures taken to avoid Conflicts of Interest arising
Is Informed Consent always sufficient grounds to proceed with work where a Conflict of Interest exists?
NO
In many instances, often with Party Conflicts (between two clients) it will not be possible to overcome the existence of a Conflict through Informed Consent.
How would you go about obtaining Informed Consent, where a Conflict of Interest exists
(according to the RICS Conflicts of Interest 2017 Professional Statement)
The Professional Statement includes a template form for obtaining Informed Consent. It should be sent to the client(s) prior to accepting an instruction.
What three tests / checks must be undertaken to determine whether Informed Consent can be sought, in instances where a Conflict of Interest has been identified?
(Conflicts of Interest, 1st Ed. 2017)
Informed Consent may be sought only where the RICS member or regulated firm is satisfied that proceeding despite a Conflict of Interest is:
in the interests of all of those who are or may be affected
not prohibited by law
that the conflict will not prevent the member or regulated firm from providing competent and diligent advice to those that may be affected
When worried about a conflict of interest, what should you do?
Follow RICS Conflicts of Interest 2017
Make the client aware of the potential conflict, and seek their approval to proceed - provided you think it is in the client’s best interest.
What is likely to happen if all complaints handling procedures (including CEDR) have been exhausted?
Claimant will serve a Letter of Claim - signalling their intention to proceed with litigation.
With what other RICS publication does the Conflicts of Interest, 2017 professional statement align / support?
It supports the RICS Rules of Conduct, and places an
overarching mandatory requirement on all RICS members and regulated firms and specifies RICS’ expectations of how compliance with the Rules of Conduct should be achieved.
