A transaction so negotiated must not be entered into without full consideration of its effects on actual and apparent professional independence. In the case of an adult client company, the restrictions under the companies legislation must be observed. No person in a practice, or near relative of any person in the practice, shall accept from a client goods or services on terms more favourable than those generally available to others. Hospitality or gifts on a scale which is not commensurate with normal courtesies of social life must not be accepted. It is recognised that from time to time unavoidable conflicts of interest or of duty will occur.
Conflicts are generally of two types.
On the one hand, there may be an actual or apparent conflict between the duty owed by the practice or a person in the practice to a client, and the personal interest of the practice or a person in the practice. On the other hand, there may be an actual or apparent conflict between the respective interests of two or more clients of a practice. Additionally, in serious cases of conflict of duty, such as where two clients are, or are about to become, in dispute on a matter, the practice must not advise both clients on the matter. The practice may elect to continue to advise one client on the matter provided that the interest of the other client would not be materially prejudiced thereby. The practice may, however, if asked by both clients, put forward proposals for settling the dispute.