Ethics, Rules and Conduct - Conflicts of Interest

Question 1

What is a conflict of interest?

Answer 1

An actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment.

Question 2

What is a ‘party conflict’?

Answer 2

A situation in which the duty to act in the interest of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.

Question 3

What is an ‘own party conflict’?

Answer 3

A situation in which the duty to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/firm.

Question 4

What is a ‘confidential information conflict’?

Answer 4

A conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.

Question 5

What are some key indicators in identifying a potential conflict of interest?

Answer 5

• Is someone personally benefitting?
• Are there multiple roles which may conflict?
• Are there conflicting client interests?
• Do any parties have a financial interest in the outcome of a decision?

Question 6

What do you do if a conflict is identified?

Answer 6

1. Disclose the conflict
2. Obtain informed consent
3. Step aside
4. Document actions

Question 7

What is informed consent?

Answer 7

An explicit agreement to proceed given by all parties involved after they have been fully informed of the nature, implications, and potential risks of the conflict.