Conduct, ethics and professional practice Flashcards
What are the PII minimum requirements for firms?
Look at previous year’s turnover.
Up to £100k = min. £250k limit
Between £100k - £200k = min. £500k limit
Above £200k = min. £1m limit
What about the maximum level of uninsured excess for PII?
Up to £10m turnover = £10,000 or 2.5%, whichever is greater
Over £10m turnover = no limit
How would you determine the time period that run off cover would be
needed?
Check RICS PII “regulation” doc:
- Consumer claims: £1m “in all” for 6 years minimum
- Non-consumer: 6 years minimum
How would you set up an RICS regulated practice?
- First, have a company that offers professional surveying services
- Meeting the minimum % eligibility criteria
- Agree to be bound by “rules of conduct for firms” and “rules of registration for firms”
- “Contact officer” to complete “Firms details” application form
What is a “contact officer”?
- Person at firm who liaises with RICS
- They also submit the firm’s “annual return”
What is a “responsible principal”?
Someone appointed in a firm that has responsibility for ensure that RICS
- technical
- professional
- ethical
standards are applied and upheld.
What is a “General”, and “Discreet/Designated” client bank account?
General: one account for all client’s money
Discreet/designated: one account per client
How would you give client assurance as to how you were going to hold their money, so that it would be securely kept and accounted for?
- Bank Operating Conditions Letter provided. (BOCL)
- Under Rule 1 or ROC we HAVE to “keep client money safe and have appropriate accounting controls”.
- Client Money Handling Professional Statement says firms must confirm to clients that the account is only accessible via that firm.
Who controls client money accounts?
Principals who have signed a mandate with the bank
What are your firm’s timescales for responding to complaints?
- 7 days to acknowledge in writing
- 14 days from there (so 21 in total) for nominated person to investigate and uphold complaint or not.
- Stage 2 – if complainant not happy, it goes to director where Jon has 14 days to investigate/review.
- Still unhappy – go to 3rd party redress mechanism.
NOTE: RICS one was “resolve within 28 days”
Discuss a relevant third-party redress mechanism and their role?
Ombudsman Services - for Consumers
RICS Dispute Resolution Service - for non-consumers
What Laws and regulations govern the formation and workings of RICS?
Royal Charter 1881
Bye-laws (February 2020 edition)
What legislation are you aware of relating to bribery or money laundering?
- Proceeds of Crime Act 2002
- Bribery Act 2010
- Money laundering, terrorist financing, transfer of funds Regulations 2017 (2019 amendment)
Sanctions and Anti-money Laundering Act 2018
-
Tell me something about the RICS Professional Statement on money laundering. Including its full name
Countering Bribery, Corruption, Money Laundering and Terrorist Financing
(CBMT… alphabetical!)
It has:
- Mandatory requirements
- Good practice guidance
- Supplementary guidance
In the RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing - what must RICS Members and Firms do?
- Not be complicit in money laundering activities
- Not facilitate money laundering activity
- Report any suspicion of money laundering
What constitutes an offence under the money laundering regulations?
- Handling criminal property;
- Concealing criminal property
- Criminally obtained money/assets, exchanged for ‘clean money’/assets
What is the Bribery Act 2010?
- Updated and enhanced UK Law on bribery
- inc. foreign bribery
- strict penalties for active and passive bribery by individuals and companies
What MUST you do as a member in relation to bribery and corruption?
- Not offer or accept bribes
- Ensure adequate knowledge of bribery/corruption to comply with PS
- Report activity that breaches bribery/corruption laws
What MUST you do as a member in relation to money laundering/terrorist financing?
- Not facilitate or be complicit in money laundering/terrorist financing
- Report suspicions of activity to authorities
What SHOULD you do as a member in relation to bribery and corruption?
- Declare and record gifts etc
- Attend training
- Know your company policy/code of behaviour
Give me an example of a “party conflict”.
ROL - being asked to represent an affected neighbour in a negotiation with a developer that you are already appointed by (on the same or another development).
BS - being asked by a leaseholder to complete a defect report and lease check for responsibility, as they are taking action against a property manager whom is a long-standing client of yours
Give me an example of a “confidential information conflict”.
ROL - risk of confidential information on a negotiation being shared between surveyors who work together in the same firm but appointed by a neighbour/developer separately
EG. developer is planning material amendment to a scheme, whereas neighbour has agreed deed of release to publicly available plans
Give me an example of an “own interest conflict”.
BS - A tender submission by a friend of mine, I am reviewing his tender. We are good mates and have been for a long time. Would have to inform client, even if consent given may not be appropriate to continue.
BS - Wife writes a proposal from within another company, is client amenable to considering proposal given that wife/me/us would benefit from instruction? With informed consent, would be OK.
