Episode 195 - New ARB Guidances

This week we will be talking about the three newly published guidance notes released by the ARB to accompany the new Code of Conduct. This episode content meets PC1 - Professionalism of the Part 3 Criteria.

Resources from today's episode:

Websites:

• https://arb.org.uk/architect-information/architects-code-standards-of-conduct-and-practice/
• https://arb.org.uk/wp-content/uploads/Conflict-of-Interest-guidance-document.pdf
• https://arb.org.uk/wp-content/uploads/Managing-finances-guidance-document.pdf
• https://arb.org.uk/wp-content/uploads/Raising-concerns-and-whistleblowing-guidance-document.pdf

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Transcript

Episode 195:

Hello and Welcome to the Part3 with me podcast. 

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I am your host Maria Skoutari and this week we will be talking about the newly published guidance notes released by the ARB to accompany the new Code of Conduct. Todays’ episode meets PC1 of the Part 3 Criteria.

And make sure to stay until the end for an example scenario.

In the last episode that we covered the new ARB Code of Conduct, episode 183, I briefly mentioned that guidance notes relating to Managing Conflicts of Interest, Managing Finance Appropriately and Raising Concerns and Whistleblowing where up for consultation. 

Well these are now, as of November 2025, been formally published for use by ARB members. These resources clarify ARB expectations without imposing rigid rules and architects can deviate if justified, but must explain their reasoning as to why.

These guides emerged from extensive consultation, as mentioned, and aim to bridge the gap between Code standards and real-world practice, especially in high-stakes areas like ethics, finance, and safety. They offer concrete examples of professional judgment and demonstrating competence in risk management.

So let’s start by looking at the first new guidance, Managing Conflicts of Interest:

One of the most critical areas covered is managing conflicts of interest. According to ARB, a conflict of interest arises when an architect’s ability to exercise impartial professional judgment is, or could be, impaired by personal, financial, or relational interests. This includes not only the architect’s direct interests but also those closely associated with them, such as family members or business partners. The guidance highlights that conflicts are often unavoidable in architecture, especially in complex procurement routes like design and build, where architects may be asked to serve multiple roles simultaneously.

Transparency and early declaration are the cornerstones of managing these conflicts. Architects must declare any known conflicts in writing at the time of engagement, and update declarations if new conflicts arise during the project. This might involve alerting all relevant parties including clients, consultants, and contractors. It’s not sufficient simply to disclose, architects also need to obtain informed consent before continuing to act in ways that present a conflict. For example, if an architectural practice is appointed by a design and build contractor, they should avoid roles requiring impartial certification of that contractor’s work, such as certifying interim payments or practical completion. Instead, these duties should be fulfilled by an independent Employer’s Agent acting solely in the client’s interest.

The guidance also stresses the importance of documenting conflict management through formal registers of interests, written records of declarations, and meeting minutes. This is particularly important in governance roles whether on practice boards or design review panels, where periodic declarations should be made and reviewed, ensuring sound decision-making free from bias. For smaller firms, where close relationships and repeated collaborations are common, the guidance supports mitigating risks through independent review or recusal from decisions where conflicts could unduly influence outcomes.

Some common examples include:

• An architect’s relative owning a subcontracting firm bidding for the project.
• Directors holding shares in businesses that supply services to the practice.
• Architects participating in procurement boards while also having personal ties to bidders.

By managing conflicts openly and diligently, architects uphold client trust and maintain public confidence in the profession. The ARB clarifies that failing to declare or manage conflicts appropriately can be a breach of the Code of Conduct.

Now moving on to the second guidance, Managing Finances Appropriately:

The second guidance document addresses financial management, a crucial element of professional responsibility that extends beyond mere bookkeeping. The ARB expects architects to maintain accurate, timely, and transparent financial records that safeguard client funds and support honest business operations. Although the guidance may not be mandatory, the ARB still requires any architect departing from it must be prepared to justify why. 

A fundamental requirement of this guidance is the segregation of client monies. Any funds received in advance from clients for fees, disbursements, or other purposes must be held in a designated client account that is separate from the practice’s operating or personal accounts. This ensures that client money is protected from business cash flow issues and provides clarity in case of insolvency. Regular reconciliations and documentation around these accounts are essential. Architects who choose to hold client money should seek appropriate professional advice to ensure they meet all relevant obligations, including those related to financial regulation, taxation and anti-money laundering procedures. In some circumstances, handling client money may fall within the scope of regulated financial activity and require compliance with specific legal frameworks, including those overseen by the Financial Conduct Authority (FCA). It is an architect’s responsibility to understand and comply with such requirements. 

The guidance also expands on financial instability and insolvency which are significant risks for architects and their clients, but careful monitoring and early action can reduce the likelihood of failure. Architects have a professional duty to help ensure their practice meets its obligations to clients and HMRC, even if they are not the main person responsible for financial management. They should watch for warning signs such as unpaid fees, loss of clients, growing debts, or difficulty paying tax, and seek professional financial advice promptly if these appear. Early advice can allow steps like restructuring payments so that cashflow is stabilised and projects can continue without abandoning clients. If a practice does enter liquidation or administration, any architect who is a director must notify the ARB within 28 days, explain the circumstances leading to insolvency, and contact affected clients with the information they need. Directors must cooperate with the insolvent practitioner and comply with legal duties. Continuing to trade while insolvent or failing to minimise losses to creditors can amount to wrongful trading and lead to personal liability. Simply becoming insolvent or facing financial difficulty is not, by itself, a disciplinary matter but the ARB will only take regulatory action where there is evidence that the architect has acted without integrity or has deliberately neglected their financial responsibilities.

The guidance then continues to further remind architects acting as company directors or partners of their statutory duties. These include acting in the best interest of the company, prioritising creditors where insolvency is a threat, avoiding conflicts of interest, ensuring that company accounts and returns are accurate and up to date and ensuring that the company complies with its tax, employment and regulatory requirements. Continuing to trade recklessly or failing to disclose financial risks can lead to both professional misconduct findings and legal consequences.

From an operational perspective, the guidance encourages practices to implement clear policies for invoicing, credit control, payment authorisations, and financial risk monitoring. Architects in senior roles should demonstrate oversight of financial governance and controls to ensure sustainability and compliance.

Key points include:

• Client funds must not be mixed with practice or personal funds.
• Financial records must support accountability and transparency.
• Directors must act prudently and seek advice when necessary.
• Adequate internal controls and financial policies strengthen practice robustness.

And lastly looking at the third guidance, Raising Concerns and Whistleblowing:

The third guidance document focuses on raising concerns and whistleblowing, emphasising the architects’ duty to uphold public safety and acting with integrity, reporting concerns where appropriate.

The guidance explains when and how architects should raise concerns, distinguishing between issues related to:

• Professional misconduct by architects, such as dishonesty or incapacity.
• Health, safety, and environmental risks on sites or buildings.
• Workplace issues including bullying, harassment, or discriminatory practices.

Issues relating to whistleblowing and workplace concerns may also be governed by legal protections and obligations and architects should seek advice from legal advisors where appropriate.

As mentioned, architects have a professional obligation, as per Standards 1 and 2 of the code, to act in the public interest and must not ignore the behaviour or actions of others that may break the law or compromise health and safety. Architects should use their own discretion in deciding whether to escalate their concerns. Issues that are more likely to require reporting to ARB or another appropriate authority include:

• Unlawfulness
• Discrimination, bullying or harassment
• Unsafe building design or site practices
• Dishonest or misleading conduct
• Unjustifiable damage to the environment
• Bribery or fraud

The guidance then highlights that raising concerns should preferably begin with internal mechanisms such as HR policies or designated whistleblowing channels, unless doing so is unsafe or ineffective. In cases of imminent danger or unresolved risks, concerns should be escalated externally to ARB’s Professional Standards team, Health and Safety Executive, or relevant building control authorities.

A vital part of this process is careful record-keeping. Architects should document observations, communications, and actions taken to protect themselves and demonstrate responsible conduct.

The ARB also requires mandatory reporting if an architect becomes subject to certain adverse events, including:

• Criminal convictions beyond minor driving offences.
• Bankruptcy or formal insolvency processes.
• Disqualification as a company director.
• Regulatory disciplinary actions from other professional bodies.

Legal frameworks such as the Workers Protection Act 2023 and the Public Interest Disclosure Act 1998 provide whistleblowers with protection against dismissal or victimisation when concerns are raised in good faith as well as providing legal protection from retaliation against anyone making a disclosure of sexual harassment. 

The guidance encourages creating a workplace culture that supports speaking up, with leadership playing a crucial role in fostering safety, fairness, and openness.  Architects should be prepared to challenge wrongdoing and act in the public interest.

So that covers the three newly released guidance notes from the ARB:

A key item to highlight is that the three guidance areas are not isolated but they complement each other. Conflicts of interest might intersect with financial decisions, and whistleblowing could relate to both governance and safety issues, highlighting the need for integrated practice policies.

These new guidance documents are essential tools to help architects navigate ethical challenges, financial responsibilities, and professional risks with integrity and transparency. They set clear expectations for managing conflicts of interest, ensuring appropriate financial conduct, and responsibly raising concerns. All grounded in the fundamental principles of honesty, independence, and public interest.

For further details, you can access the full guidance documents on the ARB website. Understanding and applying these guidance notes will not only prepare you for successful registration but contribute to raising standards across the profession, building trust, and protecting users of architectural services.

The guidances still pending, include Building Safety, Equality, Diversity and inclusion, Leadership, Mentoring and Sustainability. Which I will cover in episodes to come when formally released. 

Before I move on to an example scenario, let’s sum up what I discussed today:

• ARB’s three new guidance notes emphasise transparent conflict management, robust financial governance, and proactive, well‑recorded escalation of concerns as integrated pillars of ethical practice for architects. Together they clarify expectations under the new Code without being rigid rules, but any departure must be justified with sound professional judgment.
• The managing conflicts of interest guidance highlights that conflicts must be identified early, declared in writing to all relevant parties, documented, and managed through measures such as recusal or use of independent roles, with informed consent obtained before proceeding. Poorly managed or undisclosed conflicts can amount to a breach of the Code and undermine client and public trust. 
• The second guidance relating to Financial management stresses that client monies should be held in separate client accounts, records must be accurate and transparent, and architects, especially directors and partners, must monitor financial health, seek timely advice, and meet obligations to clients, creditors, HMRC and regulators. Insolvency or instability is not automatically disciplinary, but trading recklessly, failing to report insolvency, or neglecting financial duties can trigger both regulatory and legal consequences. 
• And the third new guidance, relating to raising concerns and whistleblowing are framed as duties flowing from acting in the public interest. Architects should not ignore unlawful behaviour, unsafe design or site practices, discrimination, harassment, environmental harm, dishonesty, bribery or fraud, and should use internal routes first where safe, escalating to ARB, HSE or other authorities if risks are serious or unresolved. Careful record‑keeping of observations and actions, and awareness of statutory protections for whistleblowers, are essential to demonstrate integrity and protect those who speak up.