Ethics - Conflicts Of Interest 2

Question 1

What is the first step in handling a conflict of interest?

Answer 1

Step One - Conflict Avoidance

Question 2

What is the second step in handling a conflict of interest?

Answer 2

Step Two - Written Advice to Both Parties

1. Provide both parties with information/ethical barriers
2. Be clear and allow parties to make their own decisions
3. Request written consent from both clients for your firm to act

Question 3

What is the third step in handling a conflict of interest?

Answer 3

Step Three - Conflict Management

Set up an information barrier agreed upon by both clients to manage the conflict

Question 4

What is the key aspect of conflict management regarding information/ethical barriers?

Answer 4

Conflict management - Use of information/ethical barriers

Ensure a robust barrier to prevent information passing between parties, take reasonable steps to operate the barrier effectively, physically separate surveyors, maintain a clear audit trail, and store information securely

Question 5

What does the RICS Professional Statement address regarding conflicts of interest?

Answer 5

RICS Professional Statement: Conflicts of interest - UK commercial property market investment agency, 2017

Sets high-level principles for conflict identification and management in the UK commercial investment agency work

Question 6

What is dual agency according to the RICS Professional Statement?

Answer 6

Dual agency

Agent representing both seller and buyer simultaneously is prohibited by RICS members from 1st January 2018

Question 7

What does the RICS Professional Statement say about multiple introductions?

Answer 7

Multiple introductions

Deals with multiple contractual relationships with buyers and the need for informed consent and information barriers

Question 8

What is incremental advice as mentioned in the RICS Professional Statement?

Answer 8

Incremental Advice

Providing additional advice related to existing instructions with consent and information barriers in place

Question 9

What is a personal interest/own interest conflict according to the RICS Professional Statement?

Answer 9

Personal Interest/Own Interest Conflict

Arises when acting for a family member, close associate, or with personal interest, requiring full transparency and declaration of facts