Level Three - Example Two (COI)

Question 1

What are the 3 types of conflict?

Answer 1

1. Party conflict = relating to work on same instruction for two different parties
2. Own conflict = personal interest
3. Confidential information – relating to work between parties that is confidential

Question 2

What does the RICS global professional statement on Conflicts of Interest (2017) state?

Answer 2

Mandatory statement = must not undertake an instruction if doing so would involve a conflict of interest, unless informed consent given

Question 3

Anything relating specifically to agency work?

Answer 3

Section 21 of Estates Agents Act 1979 – declaration of conflicts required for estate agency work
Also consider AML, Bribery etc.

Question 4

What other due diligence may you undertake ?

Answer 4

Anti-Money Laundering checks – CDD e.g. check for independent identify documents, bank statement

Question 5

What would you if I conflict arises?

Answer 5

Where a conflict arises, follow 3 steps (conflict of interest 2017):
Conflict avoidance
Written advice (1. Disclose nature, 2. Be clear, 3. Request written permission)
Conflict management – e.g. information barrier

Question 6

Why are conflict checks important?

Answer 6

Ensure impartiality and integrity as per Rules of Conduct (2022)
Ensure accurate work is undertaken that isn’t influenced by external factors – this has various knock on effects e.g. an incorrect valuation that has come out due to the bias of the valuer may impact whether or not the firm can be sued – conflicts noticed but not addressed could void PI cover etc.

Question 7

What RoC do conflict checks relate to?

Answer 7

1. Integrity
2. Quality & Diligent Service
3. Arguably public interest also