CLIENT MONEY & BRIBERY Flashcards
What processes do firms need to put in place when handling client money
Have a principal to oversee client money accounting functions
Systems must be secure
Money should be kept separate and be identifiable
Clients must always have access to their money
Client ledgers and balances must be maintained
What are the 2 types of client money accounts
Discrete accounts - hold money for one client
General accounts - hold money for multiple clients
How do the RICS facilitate and insure the protection of clients money
The Clients Money Protection Scheme
Operated by the RICS for anyone to be reimbursed for losses faced as a direct loss by a RICS regulated firm
What is a conflict of interest
When someone in a position of trust has a competing personal or professional interest, making it difficult to fulfill their duties impartially
Chartered surveyors have a duty to make clients aware of potential conflicts of interest and turn down work opportunities where a conflict of interest will occur
What do the Rules of Conduct say about Conflicts of Interest?
Members and firms must act with integrity
Don’t provide advice/service where there is a conflict of interest, unless RICS Conflicts of Interst is complied with
What are the rulings regarding conflict of interest?
Can’t act on behalf of a client where there is a conflict of interest or possibility
Affected parties must be informed of the inability of the member to represent them
Can only act if all parties provide written informed consent
What 3 types of Conflict of Interest are there?
Party Conflict:
The duty owed to one client, conflicts with the duty owed to another
Own Interest Conflict:
The duty owed to one party conflicts with the own/ firms interests
Confidential Information Conflict:
The information owed to one party is meant to be kept confidential for another party
How would you manage a conflict of interest?
- Exclusivity of staff – no cross over of information
- Separate lines of communication to the client
- Separate data storage, separate office/office space
What would you do if there was a conflict of interest, but the client was insistent that you proceeded?
I would check the client understood what a conflict of interest is
I would make them aware of the potential to act impartially.
Seek a letter of informed consent from the client.
I would finally talk through working procedures to manage the conflict of interest.
What does it mean to have information barrier
When information between members of the same firm is restricted, therefore only exclusive members selected to work on the project and kept separated from the other members to prevent information being shared.
What is a bribe?
The offer, promise, giving, demanding or accepting of an advantage for an action that is illegal, unethical or breach of trust
What are the main principles of the Bribery Act 2010
- Making a bribe
- Receiving a bribe
- Bribery of foreign public official
- Faliure of a corporation to prevent bribery
Who does it apply to
All UK Entities and associated persons and companies
What are the 6 principles of prevention companies need to put in place
- Proportiate procedures
- Top level commitment
- Risk Assessments
- Due Diligence
- Communication
- Montioring and review
Under what circumstance is a facilitation payment permitted
Under duress
It should be reported ASAP so a manager or ethics compliance contact