Job opening & Terms of Engagement

Question 1

When a client instruction is accepted what checks are undertaken?

Answer 1

Conflict of interest checks

Anti-money laundering check

Non-disclosure agreements

Question 2

What is a Non-disclosure agreement?

Answer 2

A legally binding contract that establishes a confidential relationship. The party or parties signing the agreement agree that sensitive information they may obtain will not be made available to any others

Question 3

What should you be aware of when negotiating fees?

Answer 3

Firms should avoid price fixing, aggressive fee cutting or collusion with competitors

Fee should be market based

Be aware of allowing enough of a fee to still be able to provide a high standard of service.

Must be transparent in fees and state if receipt of or offering a referral fee

Question 4

What do terms of engagement consist of?

Answer 4

Fee proposals and Terms and Conditions.

Question 5

What is contained in a fee proposal?

Answer 5

Introduction outlining our instructions as we understand them

Proposed scope of works

Timescales

Appointment of consultants

Fees

Standard Terms of Appointment

Question 6

What is in your companies terms and conditions?

Answer 6

Client and consultant obligations

Payment terms

Additional Services

Limitations of liability

Professional indemnity insurance

Complaints handling procedure

Question 7

What steps should you follow before accepting an instruction?

Answer 7

Check that you are professionally competent

No conflicts of interest or personal interest

Confirm terms of engagement in writing and get written approval from the client before you commence work on the instruction (CIT)

Question 8

When might you decline an instruction

Answer 8

not competent

conflict of interest

professional indemnity does not cover works

client is on the UK government sanctions list