Ethics, Governance and Client Relations
Ethics and governance
This domain tests fiduciary conduct, conflicts of interest, confidentiality, anti-bribery, anti-money laundering, and governance of client and strata meetings. A property manager acts as agent for the owner or management corporation, not as principal. The test is whether you can show independence, transparency, and a decision trail.
Core standards
- Fiduciary duty: act in the client's best interest, avoid self-dealing, and do not profit secretly from the appointment.
- Conflicts: disclose in writing, recuse from the decision, and document the alternative.
- Gifts and hospitality: follow the policy; a commission from a contractor belongs to the client unless expressly agreed.
- Confidentiality: protect tenant and owner data; share only on a need-to-know basis.
- Governance: proper notices, agendas, minutes, quorum, voting, and records for JMB/MC meetings; separate client money.
- Anti-bribery: under Section 17A of the Malaysian Anti-Corruption Commission Act 2009, a commercial organisation can be liable for bribery by persons associated with it; adequate procedures are the defence.
Worked example
A lift contractor offers the manager a 5% referral fee to keep the contract. The manager must refuse, declare the offer, and ensure the procurement is tendered and approved by the client. Taking the fee is secret profit and a conflict; recording it protects the manager and the client. If the manager had already received it, disclose and account for it.
Traps
Accepting undisclosed commissions; acting for both sides without consent; discussing one client's affairs with another; treating a board resolution as unnecessary; failing to minute decisions.