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RICS APC - Project Management > 3 - Ethics > Flashcards

3 - Ethics Flashcards

1
Q

Tell me about RICS PII Requirements

A
  • Rule 9 for Firms
  • Must be Each and Every or ITAWRTCR
  • Must be as per minimum levels and uninsured excess
  • Must be by RICS approved insurer
  • Must have run off cover
  • Take note of minimum policy wording
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2
Q

What are the different types of RICS Publications?

A
  • Professional Statements
  • Guidance Notes
  • Data Standards
  • International standards
  • Assessment standards
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3
Q

Name some Professional Statements

A
  • Client Money Handling
  • Conflicts of Interest
  • Countering Bribery, money laundering, corruption and terrorist financing
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4
Q

Name some Guidance Notes

A
  • Asbestos
  • Surveying Safely
  • Lessons Learned
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5
Q

Explain the Principles of Better Regulation

A

Better Regulation Executive set out 5 principles:

  • Proportional
  • Accountable
  • Consistent
  • Targeting
  • Transparent
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6
Q

Explain how the RICS abides by the Principles of Better Regulation

A
  • Proportional - Fines fit the punishment
  • Accountable - To the members and public
  • Consistent - Treats all members/firms equally
  • Targeting - Doesn’t have a scattergun approach
  • Transparent - Clear, concise and easily followed
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7
Q

Name all the RICS Standards of Conduct

A
  • Countering Bribery, corruption, money laundering and anti-terrorist financing
  • Conflicts of Interest
  • Ethics
  • Rules of Conduct
  • Client Money
  • Risk, Insurance and Liability
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8
Q

What are the RICS requirements for a CHP?

A
  • Rule7 for Firms
  • Must be in at least two stages 1) deal with it internally and 2) refer to independent redress
  • Acknowledge within 7 days, respond within 28
  • Must be clearly stated as available in the ToE/Service Agreement
  • Must be freely provided
  • Must have a form of ADR approved by the RICS
  • Must keep a Complaints Log
  • Must notify insurer if required!
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9
Q

When does the RICS get involved in Complaints?

A

Usually only if the Firm has not responded to the complaint or has prevented the complainant accessing the independent redress mechanism in some way

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10
Q

What are the Ethical Standards? Name them.

A

The standards set by the RICS that all members should uphold in the course of their work.

  • Act with integrity
  • Act in a way that promotes trust in the profession
  • Always provide a high standard of service
  • Treat other with respect
  • Take responsbility
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11
Q

When was RICS formed? What is the structure?

A
  • Formed in 1868
  • Awarded Royal Charter in 1881
  • Privvy Council - Awards RC and ratifies changes
  • Governing Council - Sets strategic direction
  • Management Board - Day to day management
  • Standards and Regulation Board - Sets S&Rs
  • Audit Committee - Internal audit across entire organisation
  • Regulatory Tribunal - Independent body that acts as the disciplinary panel
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12
Q

What do you need to do when setting up a Firm?

A
  • Register with Companies House
  • Register with RICS - at least 25% of directors needs to be MRICS
  • Appoint a contract officer/principal representative
  • Comply with the Rules for Firms
  • Submit an Annual Return to RICS
  • Abide by Companies Act 2006
  • Submit annual accounts
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13
Q

What do you need to do when closing down a Firm?

A
  • Inform RICS
  • Hand over Clients to others
  • Return Client Money
  • Keep files for 15 years (recommended)
  • Obtain run-off cover
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14
Q

Can you tell me what is in the Countering Bribery Professional Statement?

A

Split in to 3 parts:

1 - Effectively sets out what firms must and must not do, such as:

  • have procedures in place to prevent such as doing identify/credit checks
  • report suspicious activity
  • retain records
  • conduct reviews and risk assessments of activity

2- Sets out Guidance and Good Practice such as:

  • Having a record of all hospitality

3- Offers further Guidance and a Glossary of terms

  • Examples of suspicious purchases, e.g. an unknown young person buying a flat for millions in cash
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15
Q

Tell me about the Proceeds of Crime Act 2002

A
  • Allows Government to recover proceeds of crime

Also established the following crimes:

  • Using criminal property
  • Knowingly entering in to an agreement where criminal property/proceeds are involved
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16
Q

Tell me about the Money Laundering and Terrorist Financing Regulations 2019

A
  • Duty for companies to undertake risk assessment
  • Perform DD on Clients
  • Be aware of PEPs or PSC
  • 10K Euro limit on Cash transactions
  • Keep records and data for 5 years
  • Be aware of the RICS Red Flag Indicators
  • 14 years in Prison / Unlimited Fine
  • 5 years in Prison / Unlimited Fine for Tipping Off
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17
Q

What is T&T’s CHP process?

A
  • Complain received and logged
  • Raise to Director and Client Lead
  • CAR (Corrective Action Record) created to record actions needed to be taken. Agreed by the parties.
  • Review the CAR at later date to see if resolved.
  • If not, chain of escalation.
  • Ultimately, use form of ADR in appointment. If none stated, use RICS DRS for Business claims
  • Insurer Notified
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18
Q

How do you act with Integrity? Give an example for your Case Study

A
  • Be honest and trustworthy in all that I do; never accept a bribe.
  • I was honest about my concerns over the programme benefit offered in Option 2.
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19
Q

How do you treat others with respect? Give an example for your Case Study

A
  • Practice Active Listening

- Respected the Developer by ensuring they were aware of the offer from Contractor and could go back to back

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20
Q

How do you act in a way that promotes trust in the profession? Give an example for your Case Study

A
  • I conduct myself professionally in both my work and personal life, particularly with regards to social media.
  • Short timescales for the production of Options Appraisal - promised the Client I would have it done in time and I did.
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21
Q

How do you provide a high standard of service? Give an example for your Case Study

A
  • Have reports, some forms of communication and complex emails peer reviewed and checked by colleagues.
  • I went above and beyond for the Sustainability team to help them understand more about the conventions of construction and relevant project processes,
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22
Q

How do you take responsibility? Give an example from your Case Study

A
  • On behalf of the team I own any mistakes made by the project team and manage them fully to resolution, including keeping the Client informed of progress.
  • Consulted extensively with Planning Consultant to show the impact to the master schedule.
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23
Q

What is a Bribe? Tell me about the Bribery Act.

A
  • A payment in money or in kind as an inducement for a party to act unethically, illegally or a breach of trust.
  • Bribery Act 2010 - Sets out 4 main crimes:

1) To bribe
2) To be bribed
3) To bribe a foreign official
4) Corporate offence of failing to prevent Bribery

  • 6 Principles of prevention that companies must engage with:

1) Top level commitment
2) Due Diligence
3) Communication
4) Risk Assessment
5) Proportionality
6) Monitoring and Review

  • Outlaws Facilitation Payments - be aware!

10 year sentence/unlimited fine for individuals
Unlimited fine for companies

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24
Q

What should be in a Service Agreement or Terms of Engagement with a Client?

A
  • Scope
  • Basis on which fee is calculated
  • Liability Cap (specific attention drawn)
  • Advise over CHP
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25
Q

What actions must you take before undertaking work for a Client?

A
  • Check whether any conflicts of interest
  • Risk assessment over DD if applicable
  • Have a contract/agreement in place
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26
Q

What questions does the RICS Ethical Decision Tree post?

A
  • How does your action fit with the ethical standards?
  • Is what you’re doing legal?
  • Ultimate test - Would you be happy to have your actions made public?
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27
Q

What is T&T’s Gifts and Hospitality Policy?

A
  • Fundamentally follow the ABC training and assess your decision in line with the ethical standards and best practice
  • No cash or vouchers
  • Anything else must be below certain levels and recorded on the hospitality register
  • Should not be more than once every 3 months
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28
Q

What are the RICS Disciplinary Proceedures?

A
  • CPD Sanctions and Fines for when members have not completed CPD or provided information when required. Usually a stepped process (i.e. first time is a warning)
  • Regulatory Compliance Order - Agreement between Firm and RICS that something needs to be improved. Action plan to address.
  • Disciplinary Panel Hearing - For serious cases or continued breaches.

Usually only gets involved when it finds something in audit, information isn’t provided, CPD isn’t done or complain/whistleblowing from another party

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29
Q

What are the most common causes for RICS to conduct disciplinary proceedings?

A
  • Not completing required CPD
  • Mishandling Client Money
  • Not acting in a professional manner
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30
Q

Tell me about the Modern Slavery Act 2015

A

Sets out the varying types of modern slavery including:

  • Debt bonded labour
  • Arranged/Child Marriage
  • Human Trafficking

Require companies to:

  • Produce S.54 statement stating what they have done in the past year to combat MS.
  • Perform Due Diligence checks on Clients/Supply Chain as required.
  • Report anything suspicious to the Home Office
31
Q

What did RICS do as a result of the Merrett vs. Babb Case?

A
  • Set up the Member Support Service
  • Set recommended liability wording
  • Mandated run off cover
32
Q

What are the 3 Key Sectors in the RICS?

A
  • Land
  • Property
  • Construction
33
Q

Name 6 Professional Groups

A
  • Project Management
  • Facilities Management
  • Minerals and Waste
  • Arts and Antiquities
  • Quantity Surveying and Construction
  • Dispute Resolution
34
Q

What is the purpose of the Professional Groups?

A
  • Steer and set the entry and assessment requirements to that pathway
  • Contribute to development of RICS standards, strategy and direction
  • Act as a network for knowledge sharing and support
  • CPD support
35
Q

What is the Levitt Review?

A
  • Review in to dismissal of directors who raised concerns about alleged mismanagement of funds
  • Report has been issued
  • Many recommendations
  • Exec team stepped down
  • Further review being undertaken by Lord Bichard
36
Q

What did RICS do in response to Grenfell?

A
  • Lobbied and provided advice to government
  • Provided guidance to landlords and residents
  • Set up dedicated Fire Safety Hub online
  • Produced documentation on the External Fire Wall review process (EWS) and the EWS1 Form
  • Worked with insurers to remove blanket exclusion on fire safety in terms of PII
37
Q

What are the 4 main roles of the RICS and the purpose under the Royal Charter?

A
  • Regulate and promote the profession
  • Maintain the highest professional and educational standards
  • Protect Clients and Consumers via a strict code of ethics
  • Provide impartial advice and guidance

“Promote the usefulness of the profession for the public advantage in the UK and in other parts of the world”

38
Q

What are the RICS Standards of Conduct?

A
  • Ethics
  • Rules of Conduct for Members and Firms
  • Client Money
  • Conflict of Interest
  • Bribery, Corruption, Money Laundering and Terrorist Financing
  • Risk, Liability and Insurance
39
Q

Can you tell me about Client Money Handling?

A

CMH Professional Statement sets out what firms must do when managing client money. 3 key reasons:

1) Keep Client money safe
2) Ensure that robust processes are in place for managing money
3) Client Money accounts are used for appropriate purposes only

Key requirements:

  • Must never go overdrawn
  • Must have full audit trail and ledger
  • Must have the word ‘Client’ and the full name in the account title
  • Must be fully accessible and visible to the Client at all times
40
Q

What is the Client Money Protection Scheme?

A
  • Provides protection, as a last resort, in instances where an RICS Regulated firm is unable to repay a client’s money, up to the limits and exceptions set out in the scheme rules.
41
Q

What is the Royal Charter?

A
  • Establishes separate legal entity of the body itself rather than just the individuals
  • Allows members to use ‘Chartered’ in their title
  • Requires RICS to promote usefulness of profession
  • Secure advancement of knowledge
  • Sets out rights such as to self regulate, and obligations such as to appoint a governing council
42
Q

What is the RICS Vision?

A

“To be recognised in key international markets as the leading body that develops and enforces professional standards, and offers access to the most sought-after professional status”

43
Q

What is the purpose of the RICS?

A
  • Regulate and promote the profession
  • Maintain the highest professional and ethical standards
  • Protect Clients and Consumers via a strict code of ethics
  • Provide impartial advice and guidance
44
Q

What the 4 key elements of the new business plan? What is the mnemonic?

A

TIPS!

  • Trusted by our stakeholders and society
  • Influential thought leader
  • Professional qualifications remain in demand
  • Sustainable 21st Century professional body
45
Q

What are the 6 key principles of the Bribery Act? What is the mnemonic?

A

DTM and CPR!

  • Due Diligence
  • Top Level Commitment
  • Monitoring and Review
  • Communication
  • Proportionality
  • Risk Assessment
46
Q

What are the 9 Rules for Members? What is the mnemonic?

A

ICE - CSCS - IC

  • Interpretation
  • Communication
  • Ethical behaviour
  • CPD
  • Service
  • Competence
  • Solvency
  • Information to RICS
  • Cooperation
47
Q

What are the 15 Rule for Firms?

A
  • Interpretation
  • Communication
  • Professional Behaviour
  • Training and CPD
  • Competence
  • Service
  • Advertising
  • Solvency
  • Use of Designations
  • Cover Arrangements
  • Client Money
  • Complaints Handling
  • PII
  • Information to the RICS
  • Cooperation
48
Q

Can you tell me about the current senior staff at the RICS?

A 
President - Clement Lau
Interim CEO - Richard Collins
President Elect - Ann Gray
Senior VP - Tina Paillet
Chair of GC - Nicholas Maclean
49
Q

Can you talk about any articles you have seen in Modus?

A
  • IPCC report on climate change

Construction responsible for 39% of emissions

50
Q

What is the RICS HQ Address?

A

12 Great George St. Parliament Square

51
Q

Why do you want to join the RICS?

A
  • Validate my competency in the most prestigious way
  • Access to network of professionals
  • Great base for further development via professional groups and forums
52
Q

What should you check before starting work for a client?

A
  • Terms of Engagement/Service are clear and agreed
  • No conflicts of interest
  • Competent to undertake the work
  • Basis of Fee
  • Scope agreed
  • Statement of liability etc.
53
Q

Can you name me two pieces of legislation that are related to ethics?

A
  • Bribery Act 2010

- Money Laundering and Terrorist Financing Regulations 2019

54
Q

What are the RICS Bye-Laws? Can you give some examples?

A

Set out the specific internal RICS rules that it must abide by itself. Examples:

  • Setting the value of membership fees
  • Specifies what designations can be used by who
  • Members to notify if they may be receiving a custodial sentence
55
Q

What does the RICS stand for?

A

Promotion and enforcement of the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure.

56
Q

What are the three professional statements related to Ethics?

A
  • Conflict of Interest
  • Client Money
  • Countering Bribery, Corruption, Money Laundering, and Terrorist Financing
57
Q

What two tools did the RICS produce to assist with CPD?

A
  • CPD Tree

- CPD Checklist

58
Q

What changes were there to the PII requirements this year?

A
  • Greater fire safety cover
  • Assigned risks pool increased
  • Increased number of insurers
59
Q

What is the Client Money Protection Scheme? What are the limits?

A
  • Last resort to protect Client money in the event RICS firm can’t pay it back.
  • £50k limit per claim
  • Absolute maximum £20.3m aggregate.
60
Q

What are some of the Client Money rules?

A
  • Must have the name and the word ‘Client’ on the account name
  • Ledger must be kept
  • Full access at all times
  • Cannot go overdrawn
  • Full records
61
Q

What is a regulatory compliance order?

A

Agreement between RICS and a member or firm that accepts liability for a wrongdoing and:

  • admits that they have fallen short of the standards expected
  • agrees to an appropriate sanction
  • in some cases, take steps to meet the standards expected and/or to prevent it happening again
62
Q

What are the 7 cautions/reprimand for regulatory compliance orders?

A
  • Caution
  • Reprimand
  • Undertakings in the future
  • Stop doing something
  • Fine (£2000 action)
  • Conditions on individual membership
  • Conditions on firm regulation in future
63
Q

What is the Bichard Review?

A
  • Result of the Levitt review and one of the key recommendations.
  • Independent review of the RICS based on three key requirements from the Governing Council:
  • Clarity on RICS purpose
  • To make proposals for how RICS can become a beacon of best practice, transparency and legitimacy to strengthen its reputation.
  • Ensure governance structure and culture are fit for today and can be more easily changed in future.
64
Q

Why is the 15 year limitation limit the absolute backstop for contract liability?

A

Latent Defect Act 1986 provided an additional 3 years on the 1980 Limitation Act 12 year backstop, from the point they know about the issue, to put together a claim. Hence 12 + 3 = 15.

65
Q

What is the Purpose of the RICS?

A
  • Be leading global body for the profession
  • Create standards that are in the publics interest
  • Develop members professionally
  • Provide opportunities for it members
  • Promote usefulness of the profession for the public advantage in the UK and in other parts of the world
66
Q

A

A

A

67
Q

How is the governing council elected?

A

By members every 3 years

68
Q

How do you become involved in a professional group?

A
  • Sector forum - after APC
  • Leader’s forum - after APC
  • Working group - anyone at any time
69
Q

What is a complaint?

A

Expression of dissatisfaction

70
Q

What is meant by Fully Retroactive?

A

Covers all current and previous work done

71
Q

What is meant by a Full Civil Liability basis?

A
  • Widest cover available - all aspects included unless it’s specifically not.
  • Covers acts of liability that non-negligent.
72
Q

What are the typical PI premiums? What are they based on?

A
  • 1-5% of turnover

- Based on overall risk profile of your firm

73
Q

Who makes the RICS disciplinary rules?

A
  • Regulations and byelaws allow Standards and Regulation board to administer the rules
74
Q

What are the Bye Laws set by the RICS?

A

1 - Definitions
2 - Membership and Registration
3 - Designations
4 - Contribution to funds
5 - Conduct
6 - Governing Council, Officers and Staff
7 - Subordinate Boards, Committees and Groups
8 - Procedure for General Meetings and Voting
9 - Accounts and Audit
10 - General

RICS APC - Project Management (26 decks)

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