9 - Ethics, Rules of Conduct and Professionalism

Question 1

Ethics, Rules of Conduct and professionalism - Extract from Candidate Guide - Aug 2018 (updated Feb 2022)

Answer 1

Question 2

You see that a colleague is having some unwanted attention from a male colleague and it has happened a few times, what action if any would you take and what is this?

Answer 2

Consider this as a potential form of workplace harassment. I would go and speak to the male colleague and tell him its not acceptable behavior, I would also report to my senior.

Question 3

You set up your own business but you decide to go off on a skiing holiday for 2 weeks, you break your leg and the doctors say you must have complete bed rest and no access to emails or work phone, what do you need in place to cover this situation?

Answer 3

A Locum agreement

Question 4

How many different types of RICS document statuses are there ?

Answer 4

There are a number of document types. This includes (can be found within the first few pages of many RICS documents) :
• Rules of conduct for members and firms, updated Feb 2022
• International standards - High-level standard developed in collaboration with other relevant bodies
• RICS professional statements (PS) - Mandatory requirements for RICS members and regulated firms
• RICS guidance note (GN) - A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners
• RICS code of practice (CoP) - A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note
• RICS jurisdiction guide - This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally

Question 5

What is the status of a RICS professional statement ? who does it apply to ?

Answer 5

Mandatory
RICS trainees, members, regulated firms

Question 6

What would you do if you considered your directors advice to be incorrect ?

Answer 6

Consider :
• The implications of the advice
• Is it legal ?
• Discuss with managers, colleagues
• Refer to the Ethics decision tree

Question 7

How does your behavior differ professionally and personally ?

Answer 7

My approach and behaviour does not change.

Question 8

What information is required by the RICS for registration and in the annual return?

Answer 8

• Type of business and staffing details
• Statutory regulated activities - such as for financial services
• Nature of clients
• Complaints handling procedure and records
• Professional indemnity insurance certificate
• Whether the firm hold clients’ money

Question 9

How do you keep up to date with current affairs and topic issues ?

Answer 9

On mailing list, office discussion, CPD email group, magazines and publications etc

Question 10

Why do you want to become chartered ?

Answer 10

• Gold standard in my profession
• Offers guidance and support from RICS
• Designation will help my career
• I am committed to lifelong learning
• I want to give back to the up and coming surveyors

Question 11

What is the RICS ethical decision tree?

Answer 11

The RICS decision tree assists me in making informed decisions , confirming my actions are ethical and legal.

Question 12

What are ethics?

Answer 12

Moral principles that govern an individuals behaviour.

Question 13

Why are ethics important?

Answer 13

Act as an anchor to appropriate behaviour and ensure consistency and clarity in the market. It allows us to provide the best service for the client and recognise the wider public.

Question 14

What does it mean to act ethically as a Chartered Surveyor?

Answer 14

Acting ethically means complying with standards and ensuring that you are acting on behalf of your clients best interests.

Question 15

What are the three types of due diligence?

Answer 15

• Simplified Due Diligence – Where you determine the business relationship is low risk of money laundering/terrorism
• Enhanced Due Diligence – for high risk customers and transactions with greater threat to financial sector
• New Customer Due Diligence – doing the checks to ensure your client is who they say they are.

Question 16

What are the three benefits of regulation for firms?

Answer 16

CPS:
• Confidence - for client as regulated firms are monitored by RICS regulation
• Professionalism - firms have to provide clear, impartial and expert advice
• Security - firms have to have recognised CHP, access to ADR and PII cover

Question 17

Why does you firm have Terms of Engagement? What should be included in Terms of Engagement?

Answer 17

Creates a contract with the client and clear definition of what is expected and on what terms etc.

Sets out the proposed fee basis, payment of expenses and that a copy of the firm’s complaints handling procedure is available upon request.

Question 18

How would you close down a practice?

Answer 18

• Inform the RICS
• Inform clients and arrange for them to be handed over to a new firm
• Return any clients’ money
• Set-up professional indemnity run-off cover for a minimum of 6 years
• Retain a copy of client files and record for a minimum of 6 years

Question 19

How long should files be kept for?

Answer 19

• A minimum of 6 years before disposing and destroying them securely (although can be sued for negligence for up to 15 years)

Question 20

What do the new rules state about the use of the RICS logo and designation?

Answer 20

• Use of the RICS logo has been restricted to members and regulated firms only
• The ‘regulated by RICS’ designation must be displayed clearly to ensure visibility
• Prescribed text that must be included in the terms of engagement
• Companies are only allowed to use ‘chartered surveyor(s)’ designation in trading name and not company name

Question 21

How would you limit the risk of working with a client or contractor who may be financially unstable ?

Answer 21

• Screening process:
• Dun & Bradstreet credit check
• Company search (Account information from Companies House)
• Internet search (Client website for additional information judgement on reliability)

Question 22

If your client asked you to lower your fees because of their limited funding, what would you do ?

Answer 22

The client would have to pay the required price for the level of service required or reduce the scope of works involved. I could consider if the scope of work could be reduced however on the client request i would not just lower my fees.

Question 23

How do you know you are competent ?

Answer 23

Having the knowledge and skills to undertake an instruction. If you have dealt with that type of property and location and you’ve carried out that task, you are deemed as competent. This can be defined as :

• Skills
• Knowledge
• Attitude
• Training
• Experience

Question 24

Can you advise somebody as an individual ?

Answer 24

Unless you have the correct insurances in place, you should not be giving any professional advice to anybody, friend or family or strangers. I would advise them to contact me during normal working hours as long as it does not become a conflict of interest and TOE can be defined etc.

Question 25

How do ethics link with conduct rules?

Answer 25

Rules of conduct are a detailed description of how we are expected to carry ourselves and how to set the highest possible level of standard.

Question 26

If faced with a situation that you felt was unethical, how would you proceed?

Answer 26

Using the decision tree:
• Do I have sufficient facts?
• Is the matter legal?
• Is it in line with RICS Professional and Ethical Standards?
• Have I consulted with appropriate people?
• Do I have clear reasoning in reaching my decision?
• Would I be content for my actions to be made public?
If answered no to any of the above, I would not proceed with the situation alone and would consult senior staff with direction on how to proceed.

Question 27

Why are ethics important?

Answer 27

• Prevents any issues with consistent behaviour
• Sets a standard of expertise and professionalism
• Promotes trust in the company and industry

Question 28

What are the CPD requirements?

Answer 28

• Qualified/MRICS member – 20 hrs per year, min 10 hours formal
• Student member – 48 hrs per year (Min 24 formal)

Question 29

What is the difference between formal and informal training ?

Answer 29

Formal has a learning objectives and a defined learning outcome, i could reference the CPD decision tree for further guidance.

Question 30

What is your CPD strategy ?

Answer 30

My CPD plan is dictated by my skills and or knowledge gap considering future requirements and sectors etc. This is review bi annually to confirm i am getting suitable and appropriate CPD to my role.

Question 31

What is a complaints handling procedure?

Answer 31

A procedure to allow and define the procedure for clients to raise a complaints. This may include ADR and relevant timescales for the process.

Question 32

What must a complaints handling procedure include ?

Answer 32

The procedure must include an Alternative dispute mechanism approved by the standard and regulation board. The procedure can be based on the RICS forms. Issued with terms of engagement, nominated person also details investigated within 28 days, record the complaints, advise PI insurers of complaint etc.

Question 33

What is a Complaints Handling Procedure ?

Answer 33

• A firm must have a CHP and maintain a complaints log
• If there is a complaint, it must be addressed to the Complaints Handling Officer and handled within 28 days of receipt. If the complaint cannot be resolved, it can be referred to an independent 3rd party
• You can be your own Complaints Handling Officer as a sole practitioner but most refer it to a 3rd party

Question 34

What must a complaints handling procedure include?

Answer 34

• A form to fill out
• Redress mechanism
• Details should be issued to clients with the terms of business
• Clear, quick, transparent and impartial and free of charge
• Names and contact details of nominated investigating person must be stated
• Complaint must be investigated within 28 days
• All complaints and progress and outcomes must be recorded
• Advise PI insurers of a complaint
• Two stages: 1 – consideration, 2 – referral to third party

Question 35

What options are available if you couldn’t resolve the complaint?

Answer 35

• Property Ombudsman
• RICS Dispute Resolution
• Escalation etc

Question 36

What is the property ombudsman?

Answer 36

Independent government approved body who provides redress to consumers whose complaints are considered on a case by case basis. They are not regulators and have no authority to take legal action or dictate action.

Question 37

Where would you find the RICS requirements for professional indemnity cover ?

Answer 37

• Professional indemnity insurance requirements
• Regulation Document
• Version 9 with effect from 1 April 2022

Question 38

In relation to professional indemnity insurance, what is the minimum limit of indemnity for turnover under £100,000(in the preceding year )?

Answer 38

• £250,000. This is dependent on predicted turnover based on the previous year’s turnover
• The RICS defines 3 levels of cover:
o up to £100,000 = £250,000
o £100,001 - £200,000 = £500,000
o £200,001 + = £1,000,000 of cover

Question 39

How many years after an instruction has been completed can a Professional Indemnity claim be made ?

Answer 39

15 years (Limitations Act)

Question 40

What type of cover would you need to cover a claim brought after a firm or member ceases to trade ?

Answer 40

Run off cover

Question 41

What cover do you need?

Answer 41

• PII insurance - Professional indemnity insurance covers financial loss, personal injury and property damage resulting from your negligent act or error while you’re working for a client.
• PLI insurance - Public liability insurance is there to protect you if a member of the public is injured (or their property is damaged) and your business is faced with a compensation claim as a result. It can cover you when you’re working at client sites or in public.
• Employers Liability Insurance - Employers’ liability insurance covers you and your business for compensation costs if an employee becomes ill or injured as a result of the work they do for you. It’s legally required of all businesses with one or more employees.
• Building Insurance (if you own your own premises)

Question 42

Why do you need PII insurance?

Answer 42

Consultants provide expert advice and therefore face risks associated with making mistakes or errors in judgement that could cost a business in profits. When profits are lost due to any negligence or perceived negligence businesses often respond with lawsuits. It also protects the client, surveyor and firm.

Question 43

What are the providers for PI insurance? Under RICS PII Requirements guidance – July 2019

Answer 43

Minimum levels of indemnity cover
• up to £100,000 = £250,000
• £100,001 - £200,000 = £500,000
• £200,001 + = £1,000,000 of cover
Run off cover
• Run off cover must also be held for a minimum of 6 years for a limit of £1million.
Maximum uninsured excess
• Up to and including £500,00 = the greater of 2.5% of the sum insured, or £10,000
• Over £500,000 = 2.5% of the sum insured

Question 44

What would you do if you dropped your camera on someone’s car bonnet during a survey?

Answer 44

Make numerous attempts to contact the owner to detail what has happened along with an sincere apology. If not available I would leave a note, take pictures etc. I would escalate this to the management team. This may prompt a claim under professional or public indemnity insurance.

Question 45

What status is the RICS Professional Indemnity Insurance Requirements document?

Answer 45

A regulation document

Question 46

When closing down a practice what sort of insurance should you take out?

Answer 46

Run off cover
• Run off cover must also be held for a minimum of 6 years for a limit of £1million.

Question 47

According to the PII Policy Document, if your firm turned over £137,500 in the previous year, what is the minimum level of insurance required this year?

Answer 47

£500,000 cover

Question 48

Who does PII protect ?

Answer 48

Clients from financial loss, the firms form loss resulting in being able to continue trading and the surveyor.

Question 49

How long should the run off cover last for ?

Answer 49

RICS details a minimum of 6 years with £1 million per claim of cover.

Question 50

What is meant by each and every claim ?

Answer 50

• This is one of the two types of cover/policy
• Each and every is cover for each claim that does not add up, the opposite is aggregates, where the claims and added up to a certain agreed value.
• You could have each and very claim up to £100,000 per claim or you could have £100,00 aggregate(which is a lot lower cover)

Question 51

What are the April 202 PI Insurance updates ?

Answer 51

• Fire safety cover - Since 2020, insurers have imposed a blanket fire safety exclusion on PII terms provided due to concern following high profile fire safety failures, meaning chartered surveying firms have increasingly been left uninsured for fire safety exposure on all aspects of their business.
• Under the new terms, insurers are not permitted without specific dispensation to exclude fire safety claims on a property four storeys or less and fire safety coverage must be provided as a minimum on an aggregate, defence cost inclusive basis.This aspect of the changes will come into effect on 1 May 2021.
• Cyber cover - There is a new regulatory requirement for insurers to clarify the cyber cover provided in PII policies. The changes do not restrict the cover provided in PII policies, but clarifies existing requirements on insurers from their regulator the Prudential Regulatory Authority.
• Approved Insurers -A new insurer has joined the list of RICS Approved Insurers, providing a greater competition and increasing the availability of cover.

Question 52

What measures should be taken to try and avoid PI claims?

Answer 52

• Keep full and detailed records of meetings, conversations etc
• Record recommendations and advice given
• Use proper letters of engagement, scope of services and terms of engagement
• Don’t advise on a specialism outside your field of experience
• Use RICS guidelines
• Avoid poor management and excessive workloads

Question 53

What if the loss exceeds the cover provided by the PII insurance?

Answer 53

The professional / firm is liable for the difference – in assets etc

Question 54

What does PII stand for ?

Answer 54

PII is Professional Indemnity Insurance - This is in place to protect the client, surveyor and profession in the event of financial loss as a results of neglect, error or omission.

Question 55

What basis should PII be underwritten ?

Answer 55

On a claims made basis

Question 56

What does claims made basis mean ?

Answer 56

When the insurance policy covers when the claim is made not from the work was caried out

Question 57

What is the significance of claims made basis ?

Answer 57

Promotes the need for run off cover so this could not continue.

Question 58

how long should run off cover be around for ?

Answer 58

Contract under hand = 6 years, a deed - 12 years, 15 years under the limitations act

Question 59

What is run off cover ?

Answer 59

‘Run off’ insurance is professional indemnity insurance which covers the historic liabilities of a business and its directors when the business ceases or is acquired.

Question 60

How can you avoid the chance of claims ?

Answer 60

• Keep full and detailed records of meetings, conversations etc
• Record recommendations and advice given
• Use proper letters of engagement, scope of services and terms of engagement
• Don’t advise on a specialism outside your field of experience
• Use RICS guidelines
• Avoid poor management and excessive workloads

Question 61

What does PII stand for ?

Answer 61

PII is Professional Indemnity Insurance - This is in place to protect the client, surveying and profession in the event of financial loss as a results of neglect, error or omission.

Question 62

What benefits does it provide for the profession ?

Answer 62

Protected from financial loss, improve trust in the profession,

Question 63

What basis should PII be underwritten ?

Answer 63

On a claims made basis

Question 64

What types of insurance will you require and why?

Answer 64

• PII insurance - Professional indemnity insurance covers financial loss, personal injury and property damage resulting from your negligent act or error while you’re working for a client.
• PLI insurance - Public liability insurance is there to protect you if a member of the public is injured (or their property is damaged) and your business is faced with a compensation claim as a result. It can cover you when you’re working at client sites or in public.
• Employers Liability Insurance - Employers’ liability insurance covers you and your business for compensation costs if an employee becomes ill or injured as a result of the work they do for you. It’s legally required of all businesses with one or more employees.
• Building Insurance (if you own your own premises)

Question 65

What else does the RICS guidance state with regards to PI insurance?

Answer 65

• Insurance should be on an each and every claim basis rather than aggregated so that you have sufficient protection regardless of how many claims have been made against you
• It is the policy in place at the time of the claim that is relevant, not the policy in place when the negligent work was carried out.
• Policy should be on a claims made basis

Question 66

What should a PII policy contain?

Answer 66

• Must be on a claims made basis
• Must be on an each and every claim basis
• Policy wording is written on a full civil liability basis
• Underwritten by a listed insurer
• Covers past and present employees
• Run-off cover
• Minimum level of indemnity required by the RICS

Question 67

Explain the term ‘claims made Basis’

Answer 67

A ‘claims made’ basis covers claims that are made and reported during the policy period only and not once the policy period is over.

Question 68

Explain the term ‘each and every claim Basis’

Answer 68

The limit of indemnity covers each claim individually (instead of a accumulatively for that year, which is referred to as ‘in the aggregate’)

Question 69

What does having the PII policy written on a full civil liability basis mean?

Answer 69

A full civil liability basis means if a claim isn’t specifically excluded, it’s included (as opposed to a ‘negligence only’ policy, where if a claim is not specifically included, it’s excluded)

Question 70

What happens to PII when you retire?

Answer 70

Run-off cover ensures firms, members and customers are not exposed to financial detriment in the period following a firm ceasing to trade or a member’s retirement

Question 71

How would you determine what is sufficient in terms of PII runoff cover?

Answer 71

Should be for a minimum of 6 or 12 years, depending on how the contract was executed, however negligence claims can be made up to 15 years after work was undertaken - advice from an insurance broker should be sought as to whether to maintain for the full 15 years

Question 72

What are the minimum levels of PII based on ?

Answer 72

Minimum level of indemnity is based on the firm’s turnover in the previous year (or estimated within a business plan for a new firm)

Question 73

What are the minimum levels of PII required?

Answer 73

The RICS defines 3 levels of cover:
o up to £100,000 = £250,000
o £100,001 - £200,000 = £500,000
o £200,001 + = £1,000,000 of cover

Question 74

What is meant by the term ‘maximum level of uninsured excess’?

Answer 74

The part of each claim the firm must pay itself

Question 75

What are the levels of maximum uninsured excess?

Answer 75

Question 76

What should you do in case of a potential claim on your PII?

Answer 76

Must notify insurer in the event of:

1. An actual claim
2. A written or verbal threat of a claim
3. Any circumstance that the firm has reason to believe may result in a claim
4. Any complaint notified via the firm’s CHP

Question 77

What would you do if you dropped your camera on a car during a survey?

Answer 77

Should have public liability insurance to cover cost of repair to car.

Question 78

What year did the Money Laundering Regulations come into force in the UK?

Answer 78

1994

Question 79

In the RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing February 2019 - RICS Members and Firms must do what in relation to bribery and corruption ?

Answer 79

In relation to bribery and corruption RICS-regulated firms must:
• not offer or accept, directly or indirectly, anything that could constitute a bribe
• have plans in place to comply with applicable laws governing bribery and corruption, and ensure that these are followed
• report any activity they are aware of that breaches anti-bribery and corruption laws to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager
• act with due diligence to perform periodic written evaluations of the risks that face the firm and that may lead to the facilitation of bribery or corruption; in determining Countering bribery, corruption, money laundering and terrorist financing 6 RICS professional statement Effective from 1 September 2019 the appropriate level of due diligence, the firm may consider the type of business activities they engage in and the environment in which they operate
• retain information detailing how the firm has met the requirements of this professional statement.

In relation to bribery and corruption RICS members must:
• not offer or accept, directly or indirectly, anything that could constitute a bribe
• ensure that they have adequate knowledge of bribery and corruption to be able to comply with the requirements of this professional statement
• report any activity they are aware of that breaches applicable anti-bribery and corruption laws to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager.

Question 80

Can you name any Money Laundering Red Flags?

Answer 80

• Cash-only buyers
• An unusual sale price (too low or too high)
• Payments from multiple/different source to counterparty
• Funds provided by unknown third parties

Question 81

What due diligence do you apply in relation to money laundering ?

Answer 81

My company has a policy relevant to this, I would always air on the side of caution. For example as a business do not accept cash or cheque payments. Any red flag would be raised suitably.

Question 82

What is money laundering?

Answer 82

Concealing the source of proceeds of criminal activity to disguise their illegal origin. This may take place through hiding, transferring and or recycling illicit money or other currency through one or more transactions, or converting criminal proceeds into seeming legitimate property.

Question 83

Client comes into your office with 10k cash to pay builder, what can you do?

Answer 83

I would politely decline as under RICS guidance, one should not facilitate or complicit any money laundering acts. Should I be concerned if there is money laundering then this should be reported to local legislation. Under the Money Laundering Act 2007 (updated 2017), under HMRC guidance, which advise that necessary due-diligence should be completed to ensure the money is clean. HMRC advise that these checks should be done if these transactions are occasional and of a value of €10k and you are not registered high value dealers. A high value dealer is a firm who has registered with the HMRC as they receive regular high value payments of €10k or more in cash for goods. Companies such as jewellers or car dealers. Such due-diligence checks include; checking who they say they are, financial statements, where the money came from.

Question 84

How would you advise the client to deal with the 10k cash?

Answer 84

I would advise that the money needs to be put into the bank and proof of where the money was obtained will also need to be shown to their bank as banks can become suspicious of irregular payments of large amounts.

Question 85

Why is real estate a money laundering risk ?

Answer 85

Money laundering through real estate transactions integrates black funds into the legal economy while providing a safe investment. It allows criminals to enjoy assets and derived funds having camouflaged the origin of the money used for payment.

Question 86

If you ran your own firms who would you report suspicious activity to ?

Answer 86

• National crime agency(NCA)
• HMRC
• The Police

Question 87

Can you rely on someone else’s due diligence ?

Answer 87

No it is your responsibility to ensure the checks are suitable and sufficient.

Question 88

What is tipping off ?

Answer 88

the process of alerting the suspect party of a potential forthcoming investigation following the reporting of a potential red flag.

Question 89

Give me some examples of how your firm might comply with the Money Laundering Regulations.

Answer 89

We report cash payments over £10K. Carry out risk assessments to make sure that we take the necessary procedures when working with clients from high risk countries or high risk sectors.

Question 90

What are the principles of the Money Laundering Regulations?

Answer 90

Sets additional obligations for private sector firms working in areas of high money launder risk. Aims to stop criminals using professional services to launder money and to investigate large or regular cash transactions. You have a duty to report cash payments over £10K. Carry out risk assessments to make sure that you take the necessary procedures when working with clients from high risk countries or high risk sectors.

Question 91

If you were given a gift what would you do ?

Answer 91

Log in within the gift log, I may decline the gift taking into account timings and proportionality and my companies gift handling policy.

Question 92

Would you accept a gift from a contractor ?

Answer 92

I would take into account the proportionality and timings. If I did It would be logged in our gifts handling record.

Question 93

If you were offered a bottle of wine at xmas what would you do ?

Answer 93

Consider the proportion and circumstances of the gift, including the timings. In some cases this maybe include being aware of cultural differences.

Question 94

When would accepting or providing hospitality be acceptable ?

Answer 94

Once al the works are complete on site and the final account agreed and there is no conflict of interest. also consider the scale, time and suitability of the hospitality and or gift.

Question 95

What’s the difference between a gift and a bribe ?

Answer 95

A gift is a small gesture, a bribe is under the impression that some gain will result.

Question 96

Would you accept a gift or hospitality?

Answer 96

Consider the timing and proportionality. Could always check this against the guide in the Bribery Act 2010. Ensuring it does not influence decisions, should not be regular, should be openly received, keep a gift of the items received.

Question 97

What would you do if a contractor took you out for a coffee?

Answer 97

I would question the intentions firstly. If I felt like it was a genuine business reason, I would accept but offer to pay for myself and log the meeting in the companies gift register if they end up paying.

Question 98

There is some case law relevant to PII and discusses the Liability of individuals. What is the name of the case law?

Answer 98

Merrett v Babb
Hart v Large

Question 99

Can you please expand on your knowledge of Merret Vs Babb ?

Answer 99

• Considered if a professional employee was vulnerable to claims brought directly against them for advice given on behalf of their employers.
• Essentially, an individual provided valuation advice and was negligent. The firm the person worked for did not have adequate run off insurance, the company shut down and the client made a claim which was passed to the employee that gave the advice.

Question 100

Can you please expand on your knowledge of Hart V Large ?

Answer 100

The Claimants brought claims in negligence against the architects instructed by the previous owners, the Claimants’ conveyancing solicitors and Mr Large. The claims against both the architect and the solicitors settled prior to trial.

Against Mr Large, the Claimants alleged that he was negligent in: (1) failing to recommend a full building survey, rather than HomeBuyer report; (2) failing to draw attention to the issues of water ingress / damp in the HomeBuyer report; and (3) failing to recommend that the Claimants obtain a professional consultant’s certificate.

The key take-aways from this case:
• Being clear on the report about the scope of inspection including limitations, caveats and actions available to the client;
• Recommending justifiable further investigation;
• Taking all reasonable steps to ensure clients understand the differences between the levels of service, including the extent and limitations of each option

Question 101

What is the RICS mission statement ?

Answer 101

Our mission is
• To be recognised in key worldwide markets as the leading body that sets and enforces standards
• Offers access to the most sought after professional status in land, property and construction.

Question 102

When was the RICS founded ?

Answer 102

15th June 1868,

Question 103

What does the RICS stand for ?

Answer 103

Royal Institution of Chartered Surveyors

Question 104

What are the key roles of the RICS?

Answer 104

• Maintain the highest standards of training and professional experience
• Protect customers and consumers through a strict code of ethics
• Provide impartial advice, analysis and guidance
• Regulate and promote the profession

Question 105

Why do you want to join the RICS?

Answer 105

• Globally recognised professional institution
• Highly regarded reputation which I want to be a part of
• Professional status within my profession
• Lifelong learning/CPD

Question 106

What are the 5 principles of better regulations?

Answer 106

PACTT
• Proportionality
• Accountability
• Consistency
• Targeting
• Transparency

Question 107

What are the roles of the RICS ?

Answer 107

• Maintain the highest standards of training and professional experience
• Protect customers and consumers through a strict code of ethics
• Provide impartial advice, analysis and guidance
• Regulate and promote the profession

Question 108

What parts are there to the RICS ?

Answer 108

• Governing Council
• Regulatory Board
• Management Board
• Executive Team
• President Team

Question 109

When did the RICS start ?

Answer 109

First meeting 1972, by 1868 had expended to 48 members

Question 110

How many members does the RICS have ?

Answer 110

RICS has 140,000 members who operate out of 146 countries

Question 111

How is the RICS structured ?

Answer 111

• Privy council
• Governing council
• Standard and regulation board (overseeing he standard and upholding them), management board (inform and oversee RICS affairs via the strategy), audit committee (monitor the effectiveness,

Question 112

Who is the president of the RICS ?

Answer 112

Clement Lau 2021/2022

Question 113

What is the RICS motto ?

Answer 113

Est modus in rebes - there is measure in all things

Question 114

Why do you want to become chartered ?

Answer 114

• This is the gold standard in my profession
• Offers guidance and support from RICS
• Designation will help my career
• I am committed to lifelong learning

Question 115

What is Clement Lau working on in during his term ?

Answer 115

He is determined to extend the reach and influence of RICS’ thought-leadership and to drive the organisation’s digital capability during his term

Question 116

Who gave the RICS Royal Charter?

Answer 116

1881 by Queen Victoria

Question 117

What act covers discrimination ?

Answer 117

The Equality Act 2010, which came into force 1st October 2010

Question 118

What are the 9 protected characteristics of the Equality Act 2010 ?

Answer 118

• Race & Ethnicity
• Disability
• Religion or belief
• Age
• Sexual orientation
• Gender
• Gender reassignment
• Pregnancy & maternity
• Marriage & civil partnership

Question 119

Where are you protected under the Equality Act ?

Answer 119

Within and outside of work

Question 120

What are the key principles for firms to prevent Bribery ? PCR CDM

Answer 120

1) Proportionality
• Are the procedures proportionate to the bribery risk and the nature of the firms activities?
• Are the procedure clear, practical, effectively implemented?
• Are anti-bribery procedures in place for different payments? Hospitality, donations etc.

2) Commitment (Top Level)
• Issue a statement to staff/partners that communicate the polices
• Zero tolerance
• Select and train a senior employee to take responsibility for procedures and policy.
• Issue internal and external publications

3) Risk Assessment
• Procedures to assess the nature and extent to exposure for potential bribery.
• Accurately identify and prioritise risks a firm may face
• Written record of risk assessments and findings
• Internal risks – bonus culture, lack of bribery messages from top management
• External risks – Country (is the country particularly known for bribery) or Sectoral

4) Communication
• Embed an understanding of procedures and zero tolerance with internal and external communications
• Training should be continuous
• Whistle blowing policy established

5) Due Diligence
• Firms should carry out due diligence on their staff and partners
• Credit checks, internet checks, interviews etc
• Should get a clear statement of the nature of services offered

6) Monitoring and Reviewing
• Periodically review anti-bribery policies and assess effectiveness.
• Use bribery risk assessment to make decisions
• Review process in response to external or internal stimuli
• Review financial control mechanisms

Question 121

When did the bribery act 2010 come into force ?

Answer 121

01-Jul-11

Question 122

What is the name of the RICS guidance on bribery and money laundering and when is it effective from ?

Answer 122

Professional Statement (Mandatory) - Countering bribery and corruption, money laundering ad terrorist financing, 1st edition, February 2019

Question 123

What due diligence do you apply in relation to bribery ?

Answer 123

My company has a policy relevant to this, I would always air on the side of caution. For example as a business do not accept cash or cheque payments.

Question 124

What is bribery ?

Answer 124

The offer, promise, giving, demanding to acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.

EVIC - Exchange of value for an improper cause

Question 125

What is the bribery act ?

Answer 125

The bribery Act 2010 details the 4 offences as :
• giving a bribe
• receiving a bribe
• bribery an official
• no procedure in place

Question 126

What is corruption

Answer 126

The misuse of public office or power for private gain, or misuse of private power in relation to business practice and performance

Question 127

What are the four main offenses noted in the bribery act 2010 ?

Answer 127

The bribery Act 2010 details the 4 offences as :
• giving a bribe
• receiving a bribe
• bribery an official
• no procedure in place

Question 128

What are the principles for mitigating bribery ?

Answer 128

Suitable procedure in place, training,

Question 129

What’s does the bribery act 2010 say about hospitality/gifts ?

Answer 129

Consider timings, reasonable, cultural differences,

Question 130

What is a facilitation payment ?

Answer 130

A facilitation payment is a type of bribe and should be seen as such. A common example is where a government official is given money or goods to perform (or speed up the performance of) an existing duty. Facilitation payments were illegal before the Bribery Act came into force and they are illegal under the Bribery Act, regardless of their size or frequency.

Question 131

What is the difference between a bribe and an offer of hospitality ?

Answer 131

A bribe is expecting an offer of unfair advantage to something, you must consider the proportionality and timing of the offer.

Question 132

Can you amme some bribery warning signs

Answer 132

Bribery warning signs include :
• Be aware of high risk areas for bribery and corruption. Even the suspicion of impropriety could be very damaging to the firm’s reputation and your reputation. Always check the policy and if in doubt, ask
• Lavish gifts or hospitality being given or received
• Unexplained preferment of certain individuals for receipt of benefits, especially when outside of normal selection and control procedures, such as secondments, training contracts, employment, placements and internships
• Individual never takes time off even if they are ill, for holidays, or insists on dealing with specific contractors themselves
• Making unexpected, uncommercial or illogical decisions when accepting projects or contracts
• Raising barriers around specific roles or departments which are key in the tendering or contracting process
• Unusually smooth process of cases where individual does not have the expected level of knowledge or expertise
• Abusing decision-making processes or delegated powers in specific cases
• Agreeing contracts not favourable to the organisation either with regard to terms or time period
• Unexplained preference for certain contractors during the tendering period
• Avoidance of independent checks on tendering or contracting processes
• Bypassing normal tendering or the contractor’s procedure
• Invoices being agreed in excess of the contract without reasonable cause or explanation
• Missing documents or records regarding meetings or decisions
• Firm procedures or guidelines not being followed
• The payment of, or making funds available for, high value expenses (e.g. school fees) on behalf of others
• Requesting or making donations to charitable or political causes connected to key individuals or companies that business is being done with
• Abnormally high commission percentage being paid to a particular agency. This may be split into multiple accounts for the same agent often in different jurisdictions
• Private meetings with public contractors or companies hoping to tender for contracts
• Abnormal cash payments
• Pressure exerted for payments to be made urgently or ahead of schedule
• Payments being made through a third party country, i.e. goods or services supplied to country A, but payment to be made usually to shell company in country B

Question 133

Who does the crown prosecution service prosecute on behalf ?

Answer 133

National crime agency, HMRC, The Police , crown prosecution service.

Question 134

Are you familiar with any RICS guidance on money laundering ?

Answer 134

RICS counter bribery, corruption, money laundering and terrorist financing. 1st Edition - February 2019

Question 135

What is the status of this document (RICS counter bribery, corruption, money laundering and terrorist financing) ?

Answer 135

RICS Professional statement - Mandatory requirements for RICS regulated members and firms.

Question 136

What is a PEP ?

Answer 136

Politically exposed person

Question 137

What act governs bribes ?

Answer 137

The Bribery Act 2010, this came into affect on 1st July 2011

Question 138

Why is real estate in general attractive to potential money laundering ?

Answer 138

Safe investment, good return on investment, fixed abode for further activates, good reputation

Question 139

Which factors did you take in consideration to make your decision regarding the gift? (RICS decision tree)

Answer 139

• Checked the cost of the gift
• Check if it was given to just me or the company and at an appropriate time?
• Is it reasonable?
• Is it a bona fide expenditure?

Question 140

What is the definition of IESC ?

Answer 140

International Ethics Standards Coalition

Question 141

How many different partner companies or institutions are involved in the coalition (IESC)?

Answer 141

100+

Question 142

The International Ethical Standards will serve as what?

Answer 142

An anchor to appropriate behavior, Consistency and clarity

Question 143

The (IESC) Coalition came together because?

Answer 143

To veomce a key factor in market certainty and transparency, it believes in creating one shared standard

Question 144

Why are the Professional and Ethical Standards so important?

Answer 144

60% of global wealth is in land and real estate and 50% of property transactions are international

Question 145

What is the purpose of the International Ethics Standards (IESC) ?

Answer 145

The purpose of the international ethics standard coalition of professional organisations in construction/property is to assert and sustain the critical role of ethics in professional practice to meet the needs of the global market and maintain public trust.

1. Accountability
2. Confidentiality
3. Conflict of Interest
4. Financial Responsibility
5. Integrity
6. Lawfulness
7. Reflection
8. Standard of Service
9. Transparency
10. Trust

Question 146

What is required to register a firm with the RICS ?

Answer 146

Offer professional services in surveying disciplines to professional, corporate, institutional and other clients who rely on such services. Have at least 25% principals (a senior manager, partner or owner), who are qualified RICS professionals (MRICS, FRICS, AssocRICS). Agree to observe and comply with RICS Rules for members and firms, including working to RICS standards.

Question 147

What is the obligation of a RICS regulated firm ?

Answer 147

Avoid conflicts of interest, ensure competence, procedures for CPD, complaints handling procedure, suitable indemnity insurance, use of suitable designation, cooperate with RICS.

Question 148

What is a contact officer ?

Answer 148

The designated person to liaise between company and the RICS. In my company this is ????

Question 149

What steps would you need to take to set up a proactive regulated by the RICS ?

Answer 149

• Inform RICS
• Appoint a contact officer
• Register with RICS for Regulation
• Arrange suitable insurance (PI, PII, specific item insurance etc)
• Set up client business account for client money
• Complaints handling procedure
• CPD training

Question 150

What is required to register a firm to RICS?

Answer 150

‘A Firm is required to register for regulation by RICS if: a. the Firm provides surveying services to the public. the Firm is operating in Regulated Area A (UK);c. at least 50% of the Firm’s Principals are RICS Members. ‘New requirement from April 2020 that 25% of principals must be RICS-qualified members.FRICS,MRICS< AsRICS

Question 151

Which firms CAN volunteer to be regulated by the RICS?

Answer 151

If 25% of the principles are members, then it is voluntary to become regulated.

Question 152

Why would a firm volunteer to be regulated?

Answer 152

It allows you to use RICS designation and logo’s on marketing material to show that you offer the highest level of service and given the RICS reputation and access to clients, this would be beneficial to the company.

Question 153

As a sole practitioner, which additional safeguards do the RICS require? (for example if you are ill or pass away?)

Answer 153

• Use of a locum who can complete any outstanding works and arrange for adequate run-off cover
• Third party named for Complaints Handling

Question 154

Who can you use the RICS logo ?

Answer 154

RICS Regulated firms and members.

Question 155

Can you advise on what a conflict of interest is and how you would deal with it?

Answer 155

An example of this would be where you may be asked to undertake work on behalf of a contractor but another part of the business is already working for the client on the same project. In these circumstances you would need to explain the situation to your prospective client and then politely decline the opportunity. Try and relate your answer to your working experience gained to date – you may already have experienced such a situation which you could talk about.

Question 156

How do you undertake a conflict of interest check

Answer 156

We have a system that checks appointments based on information such as address, name and partied involved, in addition to verbal conversations between the surveyors.

Question 157

What is the difference between conflict avoidance and management ?

Answer 157

• Conflict avoidance is a person’s method of reacting to conflict, which attempts to avoid directly confronting the issue at hand
• Conflict management is the process of limiting the negative aspects of conflict while increasing the positive aspects of conflict. The aim of conflict management is to enhance learning and group outcomes, including effectiveness or performance in an organizational setting

Question 158

What is a conflict of interest?

Answer 158

A conflict of interest occurs when an individual’s personal interests – family, friendships, financial, or social factors – could compromise his or her judgment, decisions, or actions in the workplace

Question 159

What information barriers does your firm have in place?

Answer 159

• Restricted access to files
• Clear desk policy
• Private meeting rooms
• Physical barriers e.g. restricted floor access

Question 160

How would you proceed if a client was insistent that you continued to work for them despite a conflict of interest?

Answer 160

• Check their understanding of reduced impartiality
• Seek letter of instruction to continue
• Agree working procedures to manage the conflict
• Keep them updated of any risks
• Seek informed consent

Question 161

What are the RICS Bye-Laws?

Answer 161

1. Application and definition
2. Membership and Registration
3. Designations
4. Contributions to funds
5. Conduct
6. Governing Council, officers and staff
7. Subordinate Boards, committees and groups
8. Procedure for general meetings
9. Accounts and audit
10. General

Question 162

What are the penalty’s for non compliance with the RICS

Answer 162

• Fixed Penalties
• Regulatory Compliance Orders
• Regulatory Sanctions, which may be imposed by a Disciplinary or Appeal Panel (the ‘Panels’) or a Single Member of the Regulatory Tribunal

Question 163

What methods of disciplinary to RICS use?

Answer 163

• Fixed Penalties
• Regulatory Compliance Orders
• Regulatory Sanctions, which may be imposed by a Disciplinary or Appeal Panel (the ‘Panels’) or a Single Member of the Regulatory Tribunal

Question 164

Do all firms need to be regulated by the RICS ?

Answer 164

Any firm where 50% of its partners and directors are RICS members must be regulated. a firm of less than 50% may still register if they wish. If there are no RICS members the firm cannot be registered.

Question 165

Why does the RICS have rules of conduct ?

Answer 165

To provide a framework for all members to work towards resulting I clients having trust in the profession, helps to guide the institution members

Question 166

What is a regulatory compliance order ?

Answer 166

An agreement between rics and member that they are liable for a disciplinary action could be from falling Shotr of standards such as CPD

Question 167

What is a fixed penalty

Answer 167

Administrative fine issued by RICS when a member fails to provide the information requested, remains upon members record for a defined period

Question 168

What are the five global and professional standards ? Can you expand on one please ?

Answer 168

STIRR
• High level of service - Providing the best advice, support and performance
• Trust - Actin professionally in both private and professional settings
• Integrity - Make sure mi honest open and transparent in all my dealing, looig to avoid conflict of interest
• Respect - Having courtesy, polite and being aware of cultural difference
• Responsibility - Being accountable for my actions

Question 169

Why does the RICS have rules of conduct ?

Answer 169

To provide a framework for all members to work towards resulting I clients having trust in the profession, helps to guide the institution members

Question 170

What do you understand about the current RICS Rules of conduct consultation?

Answer 170

In consultation, Identified failings within current standard, new ethical standards to be released , We propose a simplified structure of five rules that will bring all ethical standards into one, single document. The new rules also introduce new example behaviors expected of RICS professionals globally, including behaviors that embed sustainability and respect.

The rules have now been released and adopted. Please see additional questions regarding the ‘New Rules’

Question 171

What were the main changed to the rules for firms and members ?

Answer 171

• A simpler structure. We are making it easier for RICS members and firms to understand our rules, providing more confidence for clients and the public.
• Clear examples. We want to support members’ professional judgement, so each Rule is illustrated with examples of how members and firms can behave to comply with the Rule. There are also 12 case studies showing real-life application of the Rules.
• Focusing on respect, diversity and inclusion. Whether it’s encouraging diversity and inclusion, or tackling modern slavery, respect and courtesy underpin all our professional ethics.
• Understanding evolving technology. The Rules highlight the importance of understanding the evolving use of data and technology, and the associated benefits and risks.
• Tackling global challenges. The Rules show that ethical practice by RICS members and firms has an important role when it comes to global challenges, including creating sustainable development and tackling climate change.

Question 172

What are the new RICS rules of conduct ?

Answer 172

Rule 1 – Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Rule 2 – Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Rule 3 – Members and firms must provide good-quality and diligent service.
Rule 4 – Members and firms must treat others with respect and encourage diversity and inclusion.
Rule 5 - Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

Question 173

Have you ever been involved with Client accounts?

Answer 173

No, however I am aware that my firm operates a Client Money Handling procedure. And the RICS have numerous guidance documents etc.

Question 174

What do you have to do if you are handling clients’ money?

Answer 174

• Separate bank account
• Client have access to money on demand
• Accurate records must be kept. Agree interest with client
• Use only in agreed draw down amounts
• Check where it comes from – not money laundering
• Can implement RICS Client Money Protection Scheme (£50k recoverable)

Question 175

Can you give me some examples of clients money ?

Answer 175

Money collection from service charge, money collect from ground rent, money collected from rent.

Question 176

Can you give me some example of office money ?

Answer 176

Money collected for an agreed fee

Question 177

How can you look after a clients money ?

Answer 177

• Separate bank account
• Client have access to money on demand
• Accurate records must be kept. Agree interest with client
• Use only in agreed draw down amounts
• Check where it comes from – not money laundering
• Can implement RICS Client Money Protection Scheme (£50k recoverable)

Question 178

What is clients money ?

Answer 178

Rent – either collected for or to be paid on behalf of client, Client money to be paid to contractor, service charges, Interest on client account moneys

Question 179

Having an RICS Clients’ Money Protection Scheme in place allows what?

Answer 179

Allows firms to offer their clients the security of knowing their money is protected

Question 180

What are the objectives of the RICS clients money protection scheme ?

Answer 180

To keep client Money safe, To ensure client money is only used for appropriate purposes, To ensure RICS regulated firms have appropriate controls and procedures in place to safeguard client money

Question 181

What steps must you take for the handling of clients money ?

Answer 181

• Clients have access
• Clients in the account name
• Separate and clearly identifiable
• interest agreed by the clients
• Maintain a log of transactions
• Agree the terms
• Never allow account to be overdrawn

Question 182

Which advice would you give to a client who would like to pay for your fees in advance?

Answer 182

I can accept the money if I was sure that it did not facilitate money laundering and I would need to comply with the RICS professional statement for handling clients money. I would inform the client that the money would not be protected by the RICS client money protection scheme which doesn’t cover payment of services in advance.

Question 183

If your company started to deal with clients money, would you need to notify the RICS? Why?

Answer 183

If you hold clients money, you must join the protection scheme as part of the rules of registration.

Question 184

What is an escrow account?

Answer 184

It is a separate holding account controlled by an independent third party that releases the payment subject to agreement from both parties consenting.

Question 185

Can you pick one of the 5 principles of better regulation and explain your understanding of it ?

Answer 185

Proportional - this is the measures implanted are suitable to the size of the business and the nature of its employees.

Question 186

What are the RICS 5 principle of Better Regulation? (How the RICS is a self regulating body)

Answer 186

PACTT
• Proportionality - Making penalties proportional to the breach
• Accountability - To all members and the public
• Consistency - Treating all members the same, fair and level playing field
• Targeting - focus on any problems and not a scatter gun approach, Serious breaches
• Transparency - To all member, clients and the public, including those how have been fined use dot be published in the rear of modus now on the RICS website. linked to the communication

Question 187

What are the 5 professional/ethics standards ?

Answer 187

STIRR
• High standard of Service
• Act in a way that promotes Trust in the profession
• Act with Integrity
• Treat others with respect
• Take responsibility

Question 188

What are the 5 global and ethical standards ?

Answer 188

STIRR
• High standard of Service
• Act in a way that promotes Trust in the profession
• Act with Integrity
• Treat others with respect
• Take responsibility

Question 189

Give me an example where you have shown integrity?

Answer 189

I always ensure that I act with integrity, especially when dealing with clients, during my measured survey and design options of a property in location XI had to manage the clients expectations regarding the scope and suitable of the project taking into account budget constraints. It was vital to be honest and transparent at an earl stage to avoid disappointment form the client.

Question 190

What steps must you take for the handling of clients money ?

Answer 190

• Clients have access
• Clients in the account name
• Separate and clearly identifiable
• interest agreed by the clients
• Maintain a log of transactions
• Agree the terms
• Never allow account to be overdrawn

Question 191

What is the purpose of the 5 Principles of Regulation?

Answer 191

• The RICS is a self regulated professional body that has a duty to the public interest.•
• The 5 Principles of better regulation set out how the RICS regulates itself internally to maintain the highest standards of professionalism and integrity in the benefit of the public interest

Question 192

Pick two of the 5 principles of better regulation and explain what they mean to you?

Answer 192

• Proportionality meaning RICS should only intervene when necessary and any remedies imposed should be proportionate. For example late payment of RICS fees by a member may be dealt with by a verbal warning whereas continued failure to pay fees would result in expulsion.
• Accountability regulators must be able to justify their actions under public scrutiny to promote complete fairness Clearly explain why decisions have been taken
• Consistency complete fair and level playing field treat everybody the same Targeting Focused on the problem and minimize side effects from a scattergun approach, also be unambiguous on any regulations that are introduced
• Transparent keep regulations simply and user friendly, to be effectively communicated assist back in line with regulation rather than a heavy handed approach

Question 193

What are the Principles of Better Regulations - PACTT

Answer 193

• Proportionality – Regulators should only intervene when needed. Solutions must be proportionate to the problem. Help those that break the regulations to get back into line rather than heavy handed approach.
• Accountability – Regulators should have clear lines of accountability to ministers, Parliaments and Assemblies and the Public.
• Consistency – Regulators must adopt a common-sense approach and that rules and standards must be joined up and implemented fairly. Regulators should be consistent with each other.
• Targeting – Regulators should be focused on the problem and minimize side effects and that regulations should focus on the problem and avoid a scattergun approach. Should adopt a goals-based approach.
• Transparency – Regulators should be open and keep regulations simple and user-friendly. Policy objectives should be clearly defined and well communicated.

Question 194

In the RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing February 2019 - RICS Members and Firms must do what in money laundering and terrorist financing ?

Answer 194

In relation to money laundering and terrorist financing RICS-regulated firms must:

• not facilitate or be complicit in money laundering or terrorist financing activities
• have systems and training in place to comply with these laws, and ensure these are followed
• report any suspicions of money laundering or terrorist financing activities to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager
• evaluate and review periodically the risks that prospective and existing business relationships present in terms of money laundering or terrorist financing offences taking place • ensure that their responses to the risks identified are appropriate, including conducting appropriate checks on clients and customers
• use reliance only where there is an appropriate level of confidence in the quality of the information provided by the third party – reliance should only be taken from third parties with standards conforming to the legal requirements, that provide the obliged market participant with a complete exchange of all legally required AML information regarding the identified party and only by confirming the identity and verification of identity of the client or counterparty in question; ultimate responsibility for the assessment of risk and actions taken based on this remain with the member or regulated firm
• take appropriate measures to understand the client and the purpose of the transaction
• verify the identity of their client by undertaking basic identity checks
• record and retain information detailing how the firm has met the requirements of this professional statement.

In relation to money laundering and terrorist financing RICS members must:

• not facilitate or be complicit in money laundering or terrorist financing activities
• report any suspicions of money laundering or terrorist financing activities to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager.

Question 195

What third party redress does your company use ? and why ?

Answer 195

My company use the property ombudsman, as this is suited to our type of instruction and business.

Question 196

Have you ever had to deal with a complaint ?

Answer 196

Candidate specific. Answer should include :

• Ref to the RICS Guidance Note ‘Complaints handling’ 1st edition July 2016
• Timescale
• Two stage
• Escalation
• Initial response
• Third party redress

Question 197

Are you aware of the new Rules of Conduct ? Can you expand on one of them please.

Answer 197

• Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
• Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
• Rule 3 - Members and firms must provide good-quality and diligent service.
• Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion.
• Rule 5 - Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

Question 198

Can you give me some example behaviours from Rule 1 (RICS Rules of Conduct) ?

Answer 198

• 1.1 Members and firms do not mislead others by their actions or omissions, or by being complicit in the actions or omissions of others.
• 1.2 Members and firms do not allow themselves to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments) or by their own selfinterest.
• 1.3 Members and firms identify actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises, unless they do so in accordance with the current edition of Conflicts of interest, RICS professional statement.
• 1.4 Firms have effective processes to identify actual and potential conflicts of interest, to enable appropriate decisions to be made on whether to accept work, and to keep records of decisions made about actual and potential conflicts of interest.
• 1.5 Members and firms providing advice and opinion in a professional context do so honestly and objectively based on relevant and reliable evidence, and firms have processes to ensure that directors, partners and employees do so.
• 1.6 Members and firms are open and transparent with clients about their fees and services.
• 1.7 Members and firms act to prevent others being misled about their professional opinion.
• 1.8 Members and firms do not take unfair advantage of others.
• 1.9 Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law.
• 1.10 Firms keep client money safe and have appropriate accounting controls.
• 1.11 Members do not misuse client money and comply with controls intended to keep it safe.
• 1.12 Members and firms do not facilitate any financial crime including money laundering, tax evasion, bribery or corruption. Firms have effective processes to prevent directors, partners or employees from doing so.

Question 199

Can you give me some example behaviours from Rule 2 (RICS Rules of Conduct) ?

Answer 199

• 2.1 Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently
• 2.2 Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently.
• 2.3 Members and firms check that subcontractors have the necessary knowledge, skills and resources to do their tasks competently.
• 2.4 Members and firms reflect on the work they have undertaken and its impacts, and consider how they might apply what they have learned to their future work.
• 2.5 Members maintain and develop their knowledge and skills throughout their careers. They identify development needs, plan and undertake continuing professional development (CPD) activities to address them and are able to demonstrate they have done so. Firms encourage and support directors, partners and employees to maintain and develop their knowledge and skills, and check that they are complying with CPD requirements set by RICS.
• 2.6 Members and firms stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards. Firms ensure that their directors, partners and employees do so.

Question 200

Can you give me some example behaviours from Rule 3 (RICS Rules of Conduct) ?

Answer 200

• 3.1 Members and firms understand clients’ needs and objectives before accepting any professional work.
• 3.2 Members and firms agree with clients the scope of the service to be provided and its limitations, and timescales for the work.
• 3.3 Firms inform clients that they are regulated by RICS and that they may need to disclose records to RICS where required for regulatory purposes.
• 3.4 Members and firms inform clients promptly and seek their agreement if it is proposed that any of the terms of engagement or estimated fees or costs be changed.
• 3.5 Members and firms undertake their work in a timely manner; with due care, skill and diligence, and in accordance with RICS technical standards.
• 3.6 Members and firms communicate to clients the material information on which their professional advice and opinion is based.
• 3.7 Members and firms communicate with clients and others clearly and in a way they can understand.
• 3.8 Members and firms ensure that any referral or introduction they make for a client is in the best interests of the client and inform clients about any financial or other benefits to the member or their firm from a referral or introduction.
• 3.9 Members and firms keep proper records of their work and decisions in enough detail to allow them to answer questions from clients and to allow their work to be audited for quality assurance or regulatory purposes.
• 3.10 Members and firms, when advising clients about projects, encourage solutions that are sustainable in that they minimise harm and deliver balanced economic, social and environmental benefits.
• 3.11 Members and firms understand the risks and benefits of using relevant technology.
• 3.12 Members and firms check that all data used is accurate and up to date, is kept securely, and that they have proper legal rights to use it and, where required, share it.
• 3.13 Firms have effective quality assurance processes for their work.

Question 201

Can you give me some example behaviours from Rule 4 (RICS Rules of Conduct) ?

Answer 201

• 4.1 Members and firms respect the rights of others and treat others with courtesy.
• 4.2 Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds, including age, disability, gender reassignment, marriage or civil partnership, pregnancy or maternity, race, religion or belief, sex or sexual orientation.
• 4.3 Members and firms do not bully, victimise or harass anyone.
• 4.4 Firms check that supply chains do not involve modern slavery or other abuses of the workforce.
• 4.5 Members and firms report abusive labour practices to proper and recognised authorities if they become aware of, or suspect, them.
• 4.6 Members and firms work cooperatively with others.
• 4.7 Members and firms develop an inclusive culture in their workplaces, support equal access and opportunity for all, and identify and address unconscious bias.

Question 202

Can you give me some example behaviours from Rule 5 (RICS Rules of Conduct) ?

Answer 202

• 5.1 Members and firms question practices and decisions that they suspect are not right, and raise concerns with colleagues, senior management, clients, RICS or any other appropriate person, body or organisation where they believe in good faith that it is necessary to do so. Firms provide processes to allow and support individuals within the firm to raise concerns with senior management.
• 5.2 Members and firms support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns.
• 5.3 Members and firms ensure that public statements made by the firm, or in which members are (or could be) identified as members of the profession, do not undermine public confidence in the profession.
• 5.4 Members and firms respond to complaints made against them promptly, openly and professionally.
• 5.5 Members and firms do not dissuade complainants from approaching an alternative dispute resolution provider, RICS or any other regulatory body.
• 5.6 Members and firms cooperate with investigations into complaints or concerns, and provide information where it is reasonably requested and they can do so lawfully.
• 5.7 Members consider the effect that any health conditions may have on their competence or ability to undertake professional work, and inform management or clients where they require reasonable adjustments or are unable to continue to undertake work competently.
• 5.8 Members and firms manage their professional finances responsibly.
• 5.9 Members and firms take appropriate action when they consider that the rules have been breached, and report suspected significant breaches of the Rules of Conduct by themselves or others to RICS.

Question 203

What is included within Appendix A from the RICS Rules of Conduct ?

Answer 203

This appendix sets out the core professional obligations for members and firms. Additional professional obligations are found in the mandatory requirements of RICS professional statements relevant to a member or firm’s practice.

The following professional obligations to RICS are mandatory for RICS members.
• Members must comply with the CPD requirements set by RICS.
• Members must cooperate with RICS.
• Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.

The following obligations are mandatory for RICS-regulated firms.
• Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
• Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS
• Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
• Firms must cooperate with RICS.
• Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
• Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
• Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.

Question 204

Can you expand on your knowledge of COI ?

Answer 204

Personal - family or friend involved or could benefit yourself. E.g. client requests a named s/c that your friend / family member owns.

Project - where not acting in interest of client / own company - e.g. asked to undertake private work for a subcontractor whilst working for a main contractor the s/c is working with.

Confidential Info - you are informed of / come across information not in the public domain that could impede your decision / been seen to impede. Or where you share information considered to be confidential on a project i.e costs / details.

Question 205

What is the RICS doc linked to bribery ?

Answer 205

Countering bribery and corruption, money laundering and terrorist financing - Professional Statement 1ST ED - FEB 2019

Question 206

What measures must you introduce regarding money laundering and terrorist financing ?

Answer 206

• Not facilitate or be complicit in money laundering or terrorist financing activities
• Have systems and training in place to comply with these laws, and ensure these are followed
• Report any suspicions of money laundering or terrorist financing activities to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager
• Evaluate and review periodically the risks that prospective and existing business relationships present in terms of money laundering or terrorist financing offences taking place
• Ensure that their responses to the risks identified are appropriate, including conducting appropriate checks on clients and customers
• Use reliance only where there is an appropriate level of confidence in the quality of the information provided by the third party – reliance should only be taken from third parties with standards conforming to the legal requirements, that provide the obliged market participant with a complete exchange of all legally required AML information regarding the identified party and only by confirming the identity and verification of identity of the client or counterparty in question; ultimate responsibility for the assessment of risk and actions taken based on this remain with the member or regulated firm
• Take appropriate measures to understand the client and the purpose of the transaction
• Verify the identity of their client by undertaking basic identity checks
• Record and retain information detailing how the firm has met the requirements of this professional statement.

Question 207

What sort of thing would you record to ensure clarity regarding bribery ?

Answer 207

• Gifts
• Hospitality, entertainment and expenses
• Customer travel and hospitality
• Political contributions
• Charitable donations and sponsorships
• Potential conflicts of interest

Question 208

What is a facilitation payment (Bribery) ?

Answer 208

A payment to induce officials to perform routine functions in a certain favour

Question 209

What acts are there linked to anti money laundering ?

Answer 209

• Proceeds of Crime Act 2002
• Money Laundering regulations 2007

Question 210

What are the potential penalties for money laundering ?

Answer 210

• 14 years in prison
• Unlimited fines

Question 211

Would you you report money laundering to ?

Answer 211

• NCA
• Police
• HMRC

Question 212

What should a firm have in place regarding anti money laundering ?

Answer 212

• Systems and training
• Measured to understand clients
• Evaluate and review
• Record and retain information

Question 213

What are money laundering red flags ?

Answer 213

• Cash only buyers
• Unusual sale price
• Payments form multi sources
• Excessive or rapid transaction timings

Question 214

Who is the :
President
President elect
Senior Vice president of the RICS ?

Answer 214

2022
Clement Lau
Anne Grey
Tina Paillet

Question 215

What are the principles of the Bribery Act 2010 ? PCRCDM

Answer 215

• Proportionality
• Top Level Commitment
• Risk assessment
• Communication
• Due Diligence
• Monitor and Review

Question 216

What are the rights under GDPR ? REAR

Answer 216

The right to rectification
The right to erasure
The right of access
The right to restrict processing

The right to be informed
The right of access
The right to rectification
The right to erasure
The right to restrict processing
The right to data portability
The right to object
Rights in relation to automated decision making and profiling.

Question 217

What are the principals of GDPR ? LADSPAS

Answer 217

Lawfulness, fairness and transparency
Accuracy
Data minimisation
Storage limitation
Purpose limitation
Accountability
Security / Integrity and confidentiality

Question 218

What are the RICS Bye Laws ?

Answer 218

1. APPLICATION AND DEFINITIONS
2. MEMBERSHIP AND REGISTRATION
3. DESIGNATIONS
4. CONTRIBUTIONS TO FUNDS
5. CONDUCT
6. GOVERNING COUNCIL, OFFICERS AND STAFF
7. SUBORDINATE BOARDS, COMMITTEES AND GROUPS
8. PROCEDURE FOR GENERAL MEETINGS
9. ACCOUNTS AND AUDIT
10. GENERAL

Question 219

What is the value the planet campaign ?

https://www.rics.org/globalassets/rics-website/media/news/implementing-un-sustainable-development-goals-rics.pdf

Answer 219

A campaign launched by the RICS promoting its member to promote preservation of the planet through the implementation of the UN’s sustainable development goals (SDG). 17 goals in total including ;

• Quality education
• Affordable and clean energy
• Sustainable cities and communities

Question 220

What do/can the RICS impose on members and firms for non compliance ?

Answer 220

• Fixed penalty - Minor breach - Non compliance such as CPD
• Regulatory compliance order - Consent notice - Do something
• Disciplinary panel - Serious breach can be appealed

Question 221

Can you give me heading or contents from the RICS Surveying Safely Document ?

Answer 221

The RICS Guidance note, 2nd edition, Nov 2018 includes :

• Personal responsibilities
• Assessing hazards and risk
• RICS members places of work
• Occupation hygiene and health
• Visiting premises or sites
• Fire Safety
• General procurement and management of contractor

Question 222

What are the updates to surveying safely ?

Answer 222

• Safe person concept
• Consideration of the HASAWA 1974
• Fire safety
• Risk control hierarchy

Question 223

Under RICS guidance notes Surveying Safely, who is primarily responsible for your wellbeing on site?

Answer 223

Yourself

Question 224

Why were the rules for firms and members updated ?

Answer 224

• Last update 2007
• Following consultation
• Provide expected behaviours
• Ensure clarity

Question 225

Why does the RICS have rules of conduct ?

Answer 225

To provide a clear framework for all to work to. Everyone working from the same standards.

Question 226

When would you look at the RICS ethical decision tree for guidance ?

Answer 226

• Receiving a gift
• Whistle blowing
• Equal opportunities
• COI

Question 227

Regarding PII insurance with is a claims made basis ?

Answer 227

The insurance policy in place at the time of the breach covers the claim.

Question 228

What are ethics ?

Answer 228

Ethics are moral values that affect a person behavior.

Question 229

What is NRM ?

Answer 229

NRM provides a standard set of measurement rules and essential guidance for the cost management of construction projects and maintenance works.

NRM 1: Order of cost estimating and cost planning for capital building works
NRM 2: Detailed measurement for building works
NRM 3: Order of cost estimating and cost planning for building maintenance works

Question 230

Can you name some types of RICS docs ?

Answer 230

Professional Statement - Purple
Regulation Document - Navy
Guidance Note - Light blue

Question 231

Can you name three professional statements ?

Answer 231

Client Money Handling
Conflicts of Interest
RICS Property Measurement
RICS Home Survey Standard

Question 232

Can you name some RICS Regulation document ?

Answer 232

RICS rules for firms
RICS rules for members
RICS rules for the use of designation
Professional Indemnity Insurance Requirements

Question 233

Can you name some RICS Guidance Notes ?

Answer 233

Contract Administration
Dilapidations in England and Wales
Surveying Safely
Design and Specification
Code of measuring practice

Question 234

What i the period you can submit your cpd ?

Answer 234

CPD activities must be completed by 31 December and recorded online by the following 31 January.

Question 235

What is the RICS Business plan ?

Answer 235

The RICS have

a short term 3 year plan that finished this year

and a Covid-19 recovery plan which includes an updated business plan (not yet approved)

Question 236

How often do you calibrate your disto ?

Answer 236

Every 6 months or after i damage to the unit

Question 237

Who would you report modern slavery to ?

Answer 237

NCA, there is also a freephone helpline

Question 238

Tell tales of modern slavery ?

Answer 238

• Under the control of someone else
• Reluctant to talk to strangers
• Appear frightened
• Few belongings
• Language barrier

Question 239

What is the proceeds of crime act 2002 ?

Answer 239

The Proceeds of Crime Act (POCA) 2002 criminalises the use of any property, such as money, shares and goods, that has been obtained through criminal conduct. Examples include tax evasion, bribery and any benefits received as a direct result of a business failing to comply with UK law.

Question 240

What are the offences under the proceeds of crime act 2002 ?

Answer 240

These offences relate to the concealing, disguising, converting, transferring, acquisition, use and possession of criminal property, as well as an arrangement which facilitates the acquisition, retention, use or control of criminal property

Question 241

Can you name some recent modus articles you have read ?

Answer 241

Has COVID-19 changed how retail space is valued forever?

Narrowing margins: cost of building materials soars

How COVID-19 brought on the great digital transformation

Question 242

What would you need to do in your notice miss appropriation of funds within your firm ?

Answer 242

Should clients’ money be misappropriated, the firm must inform RICS and, where appropriate, the police and their insurers.

Question 243

If a COI arises and the client insists that you continue to act anyway, what are the conditions for being able to continue with the instruction?

Answer 243

Ensure there is no legal considerations, i am competent to complete the works, ensure to source informed consent and consider and information barrier internally.

Question 244

In relation to Surveying Safely 2018, can you list the organisational responsibilities relevant to companies?

Answer 244

Organisational responsibilities include:
• Selections
• Training
• Information
• Equipment
• Safe systems of work
• Instruction
• Supervision
• PPE

Question 245

In relation to Surveying Safely 2018, can you list the personal responsibilities relevant to individuals ?

Answer 245

Individual responsibilities include:
• Performance
• Control
• Adaptability
• Vigilance
• Awareness
• Teamwork

Question 246

What is the safe person concept ?

Answer 246

RICS considers the concept of a ‘safe person’ to mean that each individual assumes individual behavioural responsibility for their own, their colleagues’ and others’ health and safety while at work.

Question 247

What is clients money ?

Answer 247

Money of any currency (whether in the form of cash, cheque, draft or electronic transfer) that An RICS-regulated firm holds for or receives on behalf of another person, including money held by a regulated firm as stakeholder and∫ is not immediately due and payable on demand to the RICS-regulated firm for its own account, excluding fees paid in advance for professional work agreed to be performed, and clearly identifiable as such, unless the fees are for work undertaken as a property agent as defined by the Rules of the RICS Client Money Protection Scheme for Property Agents.

Question 248

What are the common issues firms face with clients money ?

Answer 248

• 1 - Reconciliations – General bank accounts
• 2 - Lack of review and approval of reconciliations
• 3 - Overdrawn client ledger balances
• 4 - Authorisation of client account electronic payments by non-Principals
• 5 - Insufficient verification of changes to payee bank details
• 6 - Reconciliation issues – old uncleared reconciling items and differences
• 7 - The word ‘client’ not appearing in the bank statement title
• 8 - Written client money handling issues
• 9 - Suspense Accounts
• 10 - Reconciliations not being completed on a regular basis

Question 249

What is the Client Money Protection Scheme ?

Answer 249

CMP schemes protect client money (such as rent and deposit monies) which is received by agents. Their schemes make sure landlords and tenants are compensated if an agent cannot repay their money, for example if an agent goes into administration. Membership of a CMP scheme is a legal requirement from 1st April 2019.

Question 250

What are the two general categories of money ?

Answer 250

All money held or received in the course of practice can be categorised as either client money or office money

Question 251

You mention third party support, where do your competence end ?

Answer 251

Dependent on the work, Competence is defined by
• Skills
• Knowledge
• Attitude
• Training
• Experience

Question 252

What is a conflict of interest check ?

Answer 252

A check to highlight any potential conflicts of a property or client

Question 253

What are the type of conflicts of interest ?

Answer 253

• A ‘party conflict’ – a situation in which the duty to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.
• An ‘own interest conflict’ – a situation in which the duty to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/firm.
• A ‘confidential information conflict’ – a conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.

Question 254

How could you proceed even in a COI is present ?

Answer 254

Informed consent - Informed consent occurs when a party who might be adversely affected by a conflict of interest acknowledges the existence of that risk but still agrees to instruct an RICS- regulated firm or RICS member to proceed with the assignment.

Question 255

What advice would you give your client if there was a conflict of interest ?

Answer 255

The details of what the conflict is prior to engagement, consider any legal ramifications and consider a informed consent, information barrier.

Question 256

Who deals with complaints for your employer?

Answer 256

The Responsible Principal

Question 257

Who deals with escalated complaints for your employer?

Answer 257

Property Ombudsman

Question 258

How would a sole trader deal with escalated complaints given there is no one else in the company to refer the complaint to ?

Answer 258

They would have a named third party to initial manage this, this could fall under the locum agreement.

Question 259

What do you understand is the role of a locum in respect of surveying practices and give me an example of when one might be appointed?

Answer 259

An arrangements to cover the incapacity or death of a sole practitioner. Specifically, it requires ‘a Firm which has a sole principal (i.e. a sole practitioner or a sole director in a corporate practice) to have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absences’.

A locum is effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work, e.g. in the event of an accident/illness, unforeseen circumstances, prolonged absence (e.g. holiday or a sabbatical) or death.

Question 260

Explain how your employer deals with Freedom of Information requests.

Answer 260

Freedom of information (FOI) gives you the right to ask any public sector organisation for information they hold. Anyone can request information. You can also ask for information about yourself under data protection legislation.

Question 261

Explain the contents of the letter of engagement.

Answer 261

• Address
• Client details
• Scope of involvement
• Fee basis
• Details of the complains handling procedure
• Exclusion
• Inspection date

Question 262

Why is it important to agree your appointment in writing ?

Answer 262

To have an accurate, defined and dated record of the agreement in the event of future disagreement

Question 263

How does your organisation gather post project feedback?

Answer 263

Standardised feedback form

Question 264

What are ethics ?

Answer 264

moral principles that govern a person’s behaviour or the conducting of an activity

Question 265

What is the difference between rules and ethics ?

Answer 265

Ethics are moral principles, rules are something that has to be followed.

Question 266

What is the RCIS ethics decision tree ?

Answer 266

A flowchart to help with day to day ethics decisions.

Question 267

What are the RICS Bye-Laws?

Answer 267

• Application and definition
• Membership and Registration
• Designations
• Contributions to funds
• Conduct
• Governing Council, officers and staff
• Subordinate Boards, committees and groups
• Procedure for general meetings
• Accounts and audit
• General

Question 268

What is your Cpd requirements before you are chartered ?

Answer 268

Min 48 hours per year, min 50% formal CPD

Question 269

What is your cpd requirements when chartered ?

Answer 269

Min 20 Hours, at least 10 formal.

Question 270

What are the 5 global ethical standards ? Can you expand on three and what they mean to you / how you implement them into your daily work ?

Answer 270

STIRR
• Always provide a high standard of service
• Act in a way that promotes trust in the profession
• Act with Integrity
• Treat others with respect
• Take Responsibility

Question 271

What are the five principles of better regulation ?

Answer 271

• Proportionality
• Accountability
• Consistency
• Targeting
• Transparency

Question 272

What is the RICS structure ?

Answer 272

Question 273

Why do you want to become chartered ?

Answer 273

• This is the gold standard in my profession
• Offers guidance and support from RICS
• Designation will help my career
• I am committed to lifelong learning

Question 274

What would you do if your boss increases your workload to the point it is unmanageable ?

Answer 274

Be realistic with timescales, raise to manage first then senior managers

Question 275

Can you expand on what the lionheart charity is ?

Answer 275

LionHeart is an independent charity run by our professionals, for our professionals. Through a volunteer network, this benevolent fund offers confidential advice, information and other support to past and present members of the organisation who, for whatever reason, find themselves in difficulty.

Question 276

Can you give me an example of a gift you have been offered ?

Answer 276

I have been previous offered bottles of wine for xmas which is logged in the gifts register or declined if large value or within tender period.

Question 277

What do the RICS say about gift handling ?

Answer 277

RICS members should follow these rules:
• Only offer or accept gifts and hospitality that are customary, proportionate and reasonable in terms of value and frequency
• Never offer or accept any gift or hospitality if it may improperly influence your decisions/judgement or give the appearance of doing so (e.g. consider the timing of the gift)
• Only offer or accept gifts and hospitality that you would be happy for others to know about
• Follow the policies and procedures of your employer in relation to gifts, hospitality and promotional expenditure - e.g. record in company’s gifts and hospitality register
• Report any concerns about bribery to your employer or to RICS Regulation

Question 278

How would you manage a unhappy client ?

Answer 278

Try and understand why they are not happy, try and reach a solution, refer back to CHP

Question 279

What insurance must your practice have ?

Answer 279

• Public Liability
• PII
• Buildings
• Contents
• Gadget cover
• Cyber

Question 280

How does the RICS discipline members ?

Answer 280

• Fixed Penalties
• Regulatory compliance order - mutually agreed
• Regulatory sanction

Question 281

Are you aware of any case law relating to PI insurance ?

Answer 281

Merrett v Babb
Considered if a professional employee was vulnerable to claims brought directly against them for advice given on behalf of their employers.
Essentially, an individual provided valuation advice and was negligent. The firm the person worked for did not have adequate run off insurance, the company shut down and the client made a claim which was passed to the employee that gave the advice.

Hart V Large
The Claimants brought claims in negligence against the architects instructed by the previous owners, the Claimants’ conveyancing solicitors and Mr Large. The claims against both the architect and the solicitors settled prior to trial.

Against Mr Large, the Claimants alleged that he was negligent in: (1) failing to recommend a full building survey, rather than Homebuyer report; (2) failing to draw attention to the issues of water ingress / damp in the Homebuyer report; and (3) failing to recommend that the Claimants obtain a professional consultant’s certificate.

The key take-aways from this case:
Being clear on the report about the scope of inspection including limitations, caveats and actions available to the client;
Recommending justifiable further investigation;
Taking all reasonable steps to ensure clients understand the differences between the levels of service, including the extent and limitations of each option

Question 282

What would you need to register a firm with RICS ?

Answer 282

• PI Insurance
• Responsible Principal
• Contact officer
• CHP
• Procedure for clients money
• Complaints handling procedure
• Suitable MRICS principles

Question 283

What is the bribery act ?

Answer 283

The Bribery Act has been in force since 2011. Bribery is defined as when a person offers, gives or promises to give a “financial or other advantage” to another individual in exchange for “improperly” performing a “relevant function or activity”

Question 284

Are you aware of the latest pi updates and inclusions ?

Answer 284

• Approved minimum wording
• Fire safety cover
• Cyber cover
• Updated approved insurers

Question 285

Can you tell me how you demonstrated one of the five RICS professional and ethical standards within your case study?

Answer 285

Client specific

Question 286

What are the four offences under the Bribery Act?

Answer 286

The Bribery Act creates four categories of offences:
• Offering, promising or giving a bribe to another person;
• Requesting, agreeing to receive or accepting a bribe from another person;
• Bribing a foreign public official; and
• The corporate offence of failing to prevent bribery.

Question 287

Why is trust in the profession important?

Answer 287

To ensure the longevity of the profession

Question 288

What is run off cover?

Answer 288

Cover to a firm when it ceases to trade. RICS require 6 years for consumer claims and a minimum of £1,000,000

Question 289

Explain why the Bribery Act is important to professionals working in the construction industry.

Answer 289

It is for this reason that the Bribery Act has come into being: to prevent acts of bribery, from small gifts to serious donations, from creating a culture of endemic corruption, for the sole purpose of winning overseas contracts and increasing your own revenue.

Question 290

Give me an example of how you could be exposed to fraud in your current role.

Answer 290

If I excepted cash payment or was involved within the sale of property.

Question 291

What do you understand by the term “client’s money”?

Answer 291

Money of any currency (whether in the form of cash, cheque, draft or electronic transfer) that:

An RICS-regulated firm holds for or receives on behalf of another person, including money held by a regulated firm as stakeholder and is not immediately due and payable on demand to the RICS-regulated firm for its own account, excluding fees paid in advance for professional work agreed to be performed, and clearly identifiable as such, unless the fees are for work undertaken as a property agent as defined by the Rules of the RICS Client Money Protection Scheme for Property Agents.

Question 292

How does a firm decide how much PII it requires?

Answer 292

Based on the RICS Regulation Document - Professional Indemnity Insurance - which dictates the minimum levels of PII and the maximum levels of in insured excess.

Question 293

What do you generally understand about the New Rules of Conduct published on 11 October 2021 and coming into force in February 2022 ?

Answer 293

• Simplified structure to consolidate the existing ethical standards and how to maintain competence and service.
• Clear examples of the expected behaviour to illustrate compliance.
• Incorporate sustainability
• Supporting the use of technology – members and firms must understand the risks of technology particularly with data usage.
• Respect – non discrimination, modern slavery, diversity

2020 consultation adds five rules based on existing international ethical standards.
• Rule 1 – Honesty and integrity
• Rule 2 – Maintaining competence
• Rule 3 – Quality Service, Care, Diligence
• Rule 4 – Respect
• Rule 5 - Public interest and responsibility

Question 294

Explain, in detail, how your employer’s complaints handling policy works .

Answer 294

Candidate specific

Question 295

How does your employer gather feedback on completed construction projects ?

Answer 295

We have a standard feedback template that be amended to suit.

Question 296

Explain how you ensure there are no conflicts of interest on the projects you are involved in?

Answer 296

I use an internal system to check against both the client and the address, this is also backed up with a conversation between the surveyors in the office.

Question 297

If you were undertaking a building project at your own home, would you consider asking a contractor who has worked for you professionally to undertake the work - discuss the implications.

Answer 297

I would consider using a contractor that I has professional appointed however I would ensure to make it clear that this project, prices etc will have no bearing on my ability to act impartially and in the interest of my client.

Question 298

Have you ever accepted a gift offered by a contractor or other work-related contact?

Answer 298

I have not. However I would consider the timing and proportionality, anything accepted would be detailed in the gift register.

Question 299

Selecting one of the global professional and ethical standards, explain how you implement that in your role.

Answer 299

Treat others with respect - I ensure in all my dealing to be respectful, courteous and considerate both in my professional and person life.

Question 300

Where do you buy professional indemnity insurance from ?

Answer 300

From a broker ensuring the policy is underwritten by an approved under righter (Approved by RICS)

Question 301

Have you ever had to deal with a compliant from a client ?

Answer 301

I have not , however if I did it would initially be passes to the responsible principal for dealings

Question 302

Assuming you are successful at interview and become a chartered surveyor, you then decide to set up your own practice, what would you need to do to comply with RICS guidance and regulations?

Answer 302

• Register with RICS
• Create CHP
• Register for and have procedures for clients money
• PII Insurance
• Appoint a contact officer
• Appoint a responsible principal
• Potential locum agreement
• Ensure min 25% MRICS principals
• Training and CPD policy

Question 303

How do the requirements of health and safety differ from an office environment to a site environment ?

Answer 303

They do not, different RAMS and CDM

Question 304

Can you expand on your knowledge of surveying safely ? What are the contents ? What is the safe person concept ? What are the update from V1 ?

Answer 304

• Safe Person Concept
• Personal and corporate responsibility
• Legal considerations and duties
• Assessing hazards and risks
• Property professional’s place of work
• Occupational Health
• Visiting premises and sites
• Procurement and management of contractors and construction works.

Question 305

Can you please expand on your knowledge of WAH 2005 Regulation ?

Answer 305

• Aims to eliminate or reduce accidents associated with working at height
• Ensure staff are trained to use ladders, scaffolding and how to be safe at height
• Requirement for Risk Assessment and Method Statement
• Keep ladders and scaffolding secure

Question 306

Given face to face training has been virtually impossible for the last 12 months how have you adapted your approach to fulfilling your CPD requirements?

Answer 306

I have foriflled this via teams and online platforms, As things open up I will endeavor to go to events in person when suitable.

Question 307

Inflation and material shortages (September 2021). Outline some of the key factors to consider in terms of material shortages and inflation.

Answer 307

That the market is particularly volatile and these can increase and decrease, this has an impact of tender prices and timescales attached to this.

Question 308

Domestic reverse charges (September 2021). Explain what domestic reverse charges are and when they apply ?

Answer 308

This is where the main contractor is to allow for VAT and not pay sub contractors, they are responsible to treat the VAT

Question 309

What are the RICS Bye Laws ?

Answer 309

1. Application and definition
2. Membership and Registration
3. Designations
4. Contributions to funds
5. Conduct
6. Governing Council, officers and staff
7. Subordinate Boards, committees and groups
8. Procedure for general meetings
9. Accounts and audit
10. General

Question 310

What is the RICS Structure ?

Answer 310

Question 311

What is the RICS Ethics Decision Tree ?

Answer 311

A tool to help with difficult decisions day to day. Consideration of it is legal ?

Outcome are do not proceed, act or record.

Question 312

What is the RICS CPD decision tree ?

Answer 312

Question 313

What are the latest updates with regards to RICS firms PII ?

Answer 313

• Fire safety cover. Since 2020, insurers have imposed a blanket fire safety exclusion on PII terms provided due to concern following high profile fire safety failures, meaning chartered surveying firms have increasingly been left uninsured for fire safety exposure on all aspects of their business.Under the new terms, insurers are not permitted without specific dispensation to exclude fire safety claims on a property four storeys or less and fire safety coverage must be provided as a minimum on an aggregate, defence cost inclusive basis.
• Cyber cover There is a new regulatory requirement for insurers to clarify the cyber cover provided in PII policies. The changes do not restrict the cover provided in PII policies, but clarifies existing requirements on insurers from their regulator the Prudential Regulatory Authority.
• Approved Insurers A new insurer has joined the list of RICS Approved Insurers, providing a greater competition and increasing the availability of cover.

Question 314

What is the RICS Black book ?

Answer 314

“The ‘Black Book’ is a suite of guidance notes that define good technical standards for quantity surveying and construction professionals.
• Including :
• Subcontracting - 1st Edition
• Acceleration - 1st Edition
• E-Tendering - 2nd Edition
• Extension of time - 1st Edition
• Interim Valuation and payments - 1st Edition
• Retention - 1st Edition
• Tendering Strategies - 1st Edition”

Question 315

What is the need for third party redress panels ?

Answer 315

In the event of a dispute a stand alone/independent third party will be enlisted to manage the manage the dispute.

Question 316

Can you describe some recent professional statement you have read ?

Answer 316

• RICS Property Measurement - 2nd Ed - 2018
• Conflict of interest - 1st Ed - March 2017
• RICS Home Survey Standard - 1st Ed - March 2021”

Question 317

Can you name some recent guidance notes you have read ?

Answer 317

• Surveying Safely - V2 - Nov 18
• Dilapidations in England and Wales - V7 - Sep 2016
• Retention - V1 - 2012

Question 318

If you set up a new business what would you do to win work ?

Answer 318

Networking, social media, website. No client poaching

Question 319

What is the RICS Red Book ?

Answer 319

RICS Valuation - Global Standards (‘Red Book Global Standards’) contains mandatory rules, best practice guidance and related commentary for all members undertaking asset valuations. The Red Book is issued by RICS as part of our commitment to promote and support high standards in valuation delivery worldwide.

Question 320

What is the RICS black book ? what documents are contained within this ? (23)

Answer 320

The ‘Black Book’ is a suite of guidance notes that define good technical standards for quantity surveying and construction professionals.

Including :
Subcontracting - 1st Edition
Acceleration - 1st Edition
Extension of time - 1st Edition
Interim Valuation and payments - 1st Edition
Retention - 1st Edition
Tendering Strategies - 1st Edition
E-Tendering - 2nd Edition

Question 321

What are the RICS Bye Laws ?

Answer 321

Question 322

What is the status of a guidance note ?

Answer 322

This is a guidance note. It provides advice to RICS members on aspects of their practice. Where procedures are recommended for specific professional tasks, these are intended to embody ‘best practice’, i.e. procedures which in the opinion of RICS meet a high standard of professional competence.

Question 323

What is the aim of PI insurance ?

Answer 323

The purposes of having professional indemnity insurance are to:
• ensure that if the firm faces a claim, it is protected from financial loss that it cannot meet from its own resources
• protect the insured member or firm against the consequences of its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activities
• ensure that the firm’s clients do not suffer financial loss, which the firm cannot meet.
Firms will adopt different ways of meeting these aims according to their size, the risks attached
to the type of work they carry out and their resources.

Question 324

What is the PI insurance minimum wording ?

Answer 324

RICS’ minimum policy wording or more comprehensive wording. As a minimum, you should ensure that your policy wording is written on a full civil liability basis and the minimum level of indemnity based on the firm’s turnover in the previous year (or estimated for a new firm). To manage their risk adequately, some firms may wish to hold a higher level of indemnity.