Ethics Level 3 Flashcards
Confidential Valuation for Acquisition of a Purpose-Built Student Accommodation Asset
Gas Lane, Bristol (Confidential)
Why did you maintain strict confientiality?
The RICS bye-laws state that ‘client confidentiality must be maintained for all client affairs’
RoC - Rule 3, 4 & 5
How did you maintain strict confidentiality with the Gas Lane example?
- Confidential documents were clearly classified
- Strong passwords, and firewalls for confidential data
- Limited access to those only involved in the valuation
Why is transactional data confidential?
- Ensures they have a competitive advantage
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Proprietary Information
Pricing models and strategies often involve proprietary information, such as cost structures, profit margins, and pricing algorithms. - Negotiating leverage
In the Gas Lane example how did you ensure everything remained classified?
- Password protected files
- Secure networks – VPN
- Titled confidential
- Limited access to files
- Did not discuss to anyone not involved
How was your example at Gas Lane in line with RoC?
Rule 3 – Service
I provided a quality of service to my client by keeping their information confidential
Rule 4 – Respect
I respected the confidential nature of my clients transactional data
Quarterly Accounts Valuation of PBSA, Dublin
Montrose (Yield pressure)
How did you act ethically in the Dublin example?
- I did not secome to the pressure of my client
- I acted with integrity, objectivity and independence.
Were you competent to work in Dublin?
How did you act in line with RoC for Dublin?
Rule 1 – Honesty and Integrity
I acted honestly and with integrity and adhered to my professional obligations as an RICS surveyor
Rule 3 – Service
I provided good quality service showing true valuations
Rule 5 – Responsibility
I acted responsibly without bribe, ensuring I maintained public confidence in the profession
What other guidance were you following for Dublin example?
Red Book Global
PS 2 Ethics, competency, objectivity and disclosures
States:
‘must always act in a professional and ethical manner free from any undue influence, bias or conflict of interest.’
What is PS2 of RICS Valuation - Global Standards (‘Red Book’) (2022)
Ethics, competency, objectivity and disclosures
Co-living Valuation, Battersea
Folk - (Conflict management)
How did you do a Conflict of Interest check?
- Internal system dating back at least 10 years
- Property address highlighted that it had been valued for another client
What process did you undertake to manage the conflict?
- Informed client of the conflict
- They provided written consent
- And signed ToE
- Information barriers in place
What type of conflict was Folk?
Party conflict
How did you determine there was no conflict? (Folk)
- CBRE had previously valued the site for Loan Security purposes
- We do not consider it a CoI because…
- It was for a different purpose
- Different personnel working on the instruction
We informed both parties who confirmed in writing they were happy for us to proceed
What is an information barrier?
A safeguard designed to prevent the flow of confidential information between different departments or individuals within an organization.
How did you incorporate an information barrier?
- Robust enough to ensure no information passing
- ‘reasonable steps’ to operate an effective barrier
- Physical separation - different buildings or different floor
- Virtual IT barrier
- Clear audit trail of conflict check process and all communication
How did you act honestly?
In line with Rule 1 of the Code of Conduct
What specialist advice did you give on PBSA in Dublin?
- opinion of market rents
- advice on management fees
- advice on cladding
Did you inspect the property?
I did not - we agreed in ToE that no material changes had occurred to the property
