Conflicts of Interest Practice Statement
From 1 January 2018, all SCSI/RICS professionals will be required to follow the global professional statement on Conflicts of interest, 1st edition.
In March 2017, RICS released a global professional statement giving SCSI/RICS professionals time to familiarise themselves with the new rules. Following industry feedback, additional commentary notes have been added to provide clarification on:
- Competing bidders
- Effective date/transition
- Conflicts arising during professional assignments
- Passing confidential information to insurers and legal advisers
What is the Conflicts of Interest Practice Statement (COI)?
COI cut across the profession regardless of geography or professional specialism. If conflicts arise and are not appropriately identified and managed, the very integrity of the profession and those acting within it is at stake. Properly managing conflicts improves the client experience and enhances general confidence in the global real estate industry. Therefore, it is important that the our sectors are sufficiently regulated to tackle issues arising from COI.
Why are we introducing new mandatory requirements for COI and what does the Statement cover?
The nature of the services provided by chartered surveyors have developed in recent years to respond to client needs. Therefore it is important that our guidance on COI keeps pace to ensure client and market confidence.
The global professional statement covers all world regions and sets out the high level principles for the appropriate identification and management of conflicts across all industry specialisms.
What are the next steps?
The next steps are to work with the profession and stakeholders to develop more detailed guidance on the application of these principles in specific specialisms and geographies. Further market specific requirements will be produced depending on the issues identified and taking into account the relevant risk, regulatory, standard setting and legal frameworks in each territory.