A brokerage in BC uses designated agency to manage an in-house transaction. Licensee A represents the seller and Licensee B represents the buyer. Under BCFSA rules, which of the following must occur to maintain the designated agency structure?
Correct Answer
A) The brokerage must maintain information barriers so confidential client information is not shared between the designated licensees
In a designated agency arrangement, the brokerage must implement information barriers (sometimes called 'ethical walls') to prevent the sharing of confidential client information between the two designated licensees. Each licensee owes full duties to their respective client, and the managing broker must oversee compliance with these barriers.
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