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APC MANDATORY > Conduct rules and ethics > Flashcards

Conduct rules and ethics Flashcards

1
Q

What are the Five Global Professional and Ethical Standards

A

Five Global Professional and Ethical Standards

  1. Service (high standard) - best advice /performance
  2. Integrity (Act with) - Honesty and straightforwardness
  3. Trust (promote it) - Professional and private life
  4. Respect (Treat others) Cultures, politeness
  5. Responsibility (Take it) be accoutable/ whistleblow STIRR
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2
Q

What is the professional and ethical standards decision tree?

A
  • Provides questions you can ask yourself when you are in an ethics situation to help you determine the best ethical outcome as per RICS rules of conduct
  • Helps you consider your actions.
  • e.g. would you happy to read about your actions in a newspaper/the media?
  • There is also a regulation hotline for assitance with ethical issue
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3
Q

What are the international Ethics Standards 2016

A
  • ethical framework for the gloval property market
  • Not from RICS but RICS promotes them
  • Current review they may be incorporated by RICS
  • 8 ethical standards.
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4
Q

What are the Rules of Conduct for Members?

A

A set of 7 rules for how to behave in compliance with the RICS professional standard.

  1. Ethical Behaviour -integrity, avoid COIs
  2. Competence - Due skill, care and diligence
  3. Service - timely, as per service standards
  4. Continuing Professional Development - comply with RICS regs.
  5. Solvency - mange personal &professional finances
  6. Information to the RICS - as reasonabley required.
  7. Cooperation with RICS staff or regulatory board.

ECS CPD SIC

Every Candidate Spends CPD Snoring In Cinemas

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5
Q

What is the RICS’s Motto?

A

Est modus in rebus “There is measure in all things”

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6
Q

Can you outline some of the stages within the decision tree?

A
  1. FACTS - Sufficient facts to support decision
  2. LEGAL? - Is it legal?
  3. RICS STANDARDS - does it confirm to these?
  4. CONSULTATION with appropriate people
  5. REASONING - clear?
  6. RISKS - what are they?
  7. PUBLICITY - would you be content for your decision to be made public?

THEN ACT AND REFLECT

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7
Q

What are the Rules of conduct for firms?

A

A set of 7 rules for how to behave in compliance with the RICS professional standard.

  • Professional Behaviour -integrity, avoid COIs
  • Competence - Due skill, care and diligence, proper regard for technical standards
  • Service - timely service, as per service standards
  • Continuing Professional Development - Properly trained competent staff
  • Client’s Money- keep secure
  • Indemnity all work covered by appropriate indemnity and run off as approved by the regulatory board
  • Complaints handling- operate a CHP including ADR approved by regulatory board

PCS CPD CIC

Property & Construction Surveyor’s CPD Comes In Cakes

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8
Q

State 3 benefits of a regulations for firm

A
  1. Confidence-(for clients)
  2. Professsionalism - you know you’re receiving expert impartial advice
  3. Security CHP, indemnity

CPS CRIME PREVENTION SERVICES!

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9
Q

Can you register as an RICS regulated firm with no RICS members?

A

NO!

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10
Q

What types of regulated firm are there?

A
  1. sole practitioner
  2. LLP (Limiated liability partnership)
  3. Partnership
  4. Corporate Body
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11
Q

What do the RICS rules of regulation 2019 for firms state and when were they effective from?

A
  1. Effective from April 2020
  2. 50% of principals RICS members the firm MUST BE REGULATED
  3. 25% can apply to be regulated.
  4. Responsible principle - must be nominated to ensure compliances with regulatory and RICS practice and report to RICS. they are someone with authority who can act without supervision - e.g. sole practioner or director, partner.
  5. Disputes with the RICS about a firms regulation are heard by the Registration Panel
  6. Logo rules -only RICS registered firms and RICS members can use the logo.
  7. Regulated firms include a prescribed text in the terms of engagement to explain what being RICS means.
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12
Q
  1. What are the rules of firm administration?
A

THE SIX rules of firms administration

  1. ADVERTISING - promote truthfully
  2. SOLVENCY - manage finances appropriately
  3. DEATH/INCAPACITY COVER (sole practicitoner)
  4. DESIGNATION - display on company literature it is regulated by RICS
  5. INFORMATION - submit as regulatory board reasonabley require
  6. COOPERATION - cooperate fully with Regulatory board.

Awesome Surveyors Dont Drive inexpensive Cars

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13
Q

Who are the RICS groups involved in disiplinary action?

A
  1. Action by head of regulation
  2. Disciplianrry panel
  3. Appeal Panel
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14
Q

What events could trigger disciplinary proceedings?

A
  1. Complaint to the RICS
  2. Allegation by a client
  3. information established by RICS
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15
Q

What rules might be breached to result in diciplinary proceedings?

A
  • RULE 3 proffesional behaviour breaches - passing confidential client information, continuing to trade knowing firm was insolvent
  • RULE 6 CPD not doing enough of it.
  • RULE 8 failing to protecting clients money
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16
Q

What actions may be undertaken upon completion of formal investigation by the Head of Regulation

A
  1. FIXED PENALTY NOTICE
  2. REGULATORY COMPLAINCE ORDER
  3. CPD SANCTION
  4. DISCIPLINARY PANEL ACTION

FRICS REALLY CANT DANCE!

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17
Q

When might a fixed penalty be used by RICS?

A

Disciplinary action for failure to supply information to RICS

This is a disciplinary action following investigation by the head of regulation due to breach of the rules, failure to supply the correct information to the RICS by firms and members.

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18
Q

What is a regulatory Compliance Order?

A
  1. A discplinary proceedure used by RICS for minor breachesof the rules whicj are easily corrected
  2. Written document
  3. States the actions the member or firm must or must not do.
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19
Q

Why might happen if you fail to carry out your CPD as per the RICS rules of conduct

A
  1. Could be subject to discplinary action by RICS
  2. CPD sanctions in the first instance to follow the CPD requirement.
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20
Q

What might happen to you if you were involved in a serious breach of conduct?

A
  1. head of regultion investigates
  2. may decide a hearing required
  3. hearing panel has 50% non RICS members
  4. Can issue a penalty such as a compliance order or fine.
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21
Q

Can you name all the penalties avaiable to an RICS disciplinary panel?

A
  1. Compliance Order
  2. Fine (proportionate to the offence)
  3. Conditional RICS Registration
  4. Expulsion
  5. Publication of hearing results in Modus, website local newspaper
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22
Q

Who can you appeal a disciplinary proceedure to and what happens?

A
  1. Appeal Panel
  2. Review decision inlight of new evidence and previous
  3. Can vary the penalty imposed before
  4. 50% Of the membership are ‘lay’ members (non RICS).
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23
Q

Are you aware of any recent changes to the RICS disciplinary proceedure

A
  • On 2 March 2020, the Conduct and Appeal Committee was renamed the Regulatory Tribunal, tribunals are now undertaken in birmingham and parliament square and can be witnessed by the public
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24
Q

What are the RICS international Standards and give me 3 examples?

A
  1. Mandatory standards developed in collaboration with other organisations e.g.:
    1. IPMS international property measurement standards
    2. ICMS (construction!)
    3. RICS valuation
  2. pofessional statements
    3.
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25
Q

What are RICS Professional Statements and can you name three?

A

mandatory

include:

  1. conflicts of interest 2017
  2. Property measurement 2018
  3. RICS Home Survey Standards 2019
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26
Q

What are practice statements?

A

Mandatory guidance from RICS

E.g.

Surveyors acting as Expert Witnesses

Surveyors acting as advocates.

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27
Q

What are RICS Guidance Notes

A
  1. Voluntary
  2. e.g. Reinstatement cost Assessment of Buildings 2018
  3. Surveying Safely 2018
  4. Surveyors acting as Adjudicators 2017
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28
Q

What are RICS codes of practice

A

Can be mandatory or recomended good practice

Examples include#:

S/C Residential management code 2016

Rating Consultancy code of practice 2017

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29
Q

What RICS core material is mandatory and which are voluntary?

A

MANDATORY

  1. international standards
  2. professional statements
  3. practice stateements
  4. some codes of practice.

VOLUNTARY

Guidance notes

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30
Q

kCan you describe best practice for fee negotiations?

A
  1. AVOID COLLUSION (competition and markets authority)
  2. AVOID PRICE FIXING
  3. AVOID UNDERCUTTTING OTHER COMPANIES
  4. PROFESSIONAL RENEGOTIATION OF FEES IS ALLOWED AFTER INITIAL PROPOSAL
  5. TRANSPARENCY on referral fees (bribery act, 5 global ethical standards!)
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31
Q

You grant referral fees on behalf of your client,what should you consider?

A
  1. RICS ethical standards
  2. Bribery Act 2010
  3. Be transparent with your client
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32
Q

What are terms of engagement?

A

Terms of engagement

  1. Signed agreement with the client to a surveyors fee proposal
  2. Confirmed terms of engagement in writing
  3. must state how calculated
  4. Must state copy of firms CHP available on request
  5. MUST CHECK NO CONFLICT OF INTEREST
  6. MUST BE COMPETENT to carry out the works
  7. Must get client approval before starting works.
  8. There is a 14 day cooling off period under The Consumer Rights Act
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33
Q

When would it be appropriate to decline an instruction?

A
  1. Not competent, outside limitations
  2. Not enough information (FACTS)
  3. Conflict of interest
  4. Client wont sign terms of engagemetn or sign AML checks (Anti money Laundering)
  5. PI insurance cap cannot be agreed
  6. PI wont cover
  7. Client is in government sanctions list
  8. Not happy for actions to be made public (ethics test)
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34
Q

What would you include in your terms of engagement for?

A
  1. Description of the works
  2. List of services to be included
  3. List of services not to be included
  4. Limitations of liability
  5. Timescales
  6. Fee and how calculated
  7. Terms and conditions (CHP, payment terms)
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35
Q

What is a conflict of interest, can you provide an example?

A

When a member or firm is not able to act impartially or independtely on an instruction due to conflicting interests

3 types:

  1. party conflict -between two client interests e.g. acting for the tenant and landlord on same instructions ooposing sides
  2. confidential information - between the duty of an RICS member to provide material information to one client and their duty or that of a regulated firm to another client to keep that same information confidential (restricted to the member)
  3. own interest - personal interest by member directly/indirectly involved in the instruction conflicts

Conflicts of interest global professional statement 2017 provides a framework of the principles that must be followed when assessing whether there is a conflict of interest, and what action should be taken if there is.

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36
Q

How would you deal with a conflict of interest?

A
  1. Obtain full facts
  2. I would consult the Conflicts of interest global professional statement 2017 which provides a framework of the principles that must be followed when assessing whether there is a conflict of interest, and what action should be taken if there is.
  3. 2 possible actions
    1. conflict avoidance
      • If impartiality will be compromised
      • dont accept instruction, politely decline.
    2. conflict management
      • TELL CLIENT IN WRITING
        1. nature of conflict
        2. any relevant facts
        3. proposal for dealing with it
        4. inform to seek independent advice if required.
        5. Request written confirmation of their consent
      • set up measures to protect client with the written agreement of all parties such as an information barrier or chinese wall.
      • Information barriers are arrangements that are designed to prevent the flow of information between separate departments or individuals.
      • In practice, they may consist of restricting access to electronic documents; and/or separating personnel so that they are located on separate floors of the same office or in different locations completely.
      • Management does not work unless there is informed consent
      • informed consent should only be sought if the surveyor is happy that proceeding is in the interest of both parties and legal.
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37
Q

When would you decline an instruction on the grounds of a conflict of interest?

A
  • I would use the RICS Global Professonal Statement 2017 on conflict of interest to determine the best action.
  • If it was not in the interests of both parties or legal to proceed I would decline the instruction.
  • If I could not obtain informed consent from both parties to manage a conflict of interest for example with an information barrier.
  • I would seek advice also from a more senior colleague.
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38
Q

What must firms do regarding conflicts of interest?

A
  • Manage in accordance with the professinal statement.
  • Have effective controls in place appropriate to the size fo their business
  • Keep records to demonstrate compliance with the RICS Professional global staement on COI 2017
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39
Q

What are the 3 types of conflict of interest?

A

3 types:

  1. party conflict -between two client interests e.g.
    1. DUAL AGENCY -acting for the tenant and landlord on same instructions opposing sides at the same time (MUST NOT BE UNDERTAKEN as per the conflcit of interest professional statement 2017.
    2. MULTIPLE INTRODUCTIONs - real estate agents dealing with multiple buyers for a property -must state exclusive (decline other instructions) or non exclusive basis (manage but obtain informed consent)
    3. INCREMENTAL - e.g. act for seller of property re disposal then for buyer afterwards to provide a valuation
  2. confidential information - between the duty of an RICS member to provide material information to one client and their duty or that of a regulated firm to another client to keep that same information confidential (restricted to the member)
  3. own interest - personal interest by member directly/indirectly involved in the instruction conflicts - connected person e.g. famil relationship - must declare
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40
Q

What examples of conflicts of interest do you know?

A
  1. financial interests
  2. personal interests
  3. commercial relationships
  4. acting on both sides of a transaction
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41
Q

What is an information barrier?

A
  1. A type of conflict of interest management proceedure
  2. Information barriers are arrangements that are designed to prevent the flow of information between separate departments or individuals.
  3. Must be robust so no info passes
  4. you must take reasonable steps to operate the barrier
  5. Information must be securely stored
  6. In practice, they may consist of restricting access to electronic documents; and/or physical separation of personnel so that they are located on separate floors of the same office or in different locations completely.
  7. Firms compliance manager should over see
  8. Keep records and audit trail of corrospondance and oral communication e.g. telephone calls.
  9. Management does not work unless there is informed consent
  10. informed consent should only be sought if the surveyor is happy that proceeding is in the interest of both parties and legal.
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42
Q

What three pieces of legilsation would you consider in relation to bribery, inducements, hospitality and gifts?

A
  1. Bribery Act 2010
  2. Proceeds of crime act 2002
  3. Money laundering regulations 2017
43
Q

What is the bribery act 2010 and what does it do?

A

The Bribery Act 2010

AIM

To reduce bribery in business in the UK and abroad.

A Bribe is

  • giving, offering, promising or receiving of an advantage for an action which is ilegal or a breach of trust.
  • The advanatge may be a payment, gift or service.

FOUR OFFENCES UNDER THE ACT

  1. bribing
  2. receiving a bribe
  3. bribing a foreign official
  4. failing to prevent bribery
  • Hospitality is not prohibited under the act but it must be reasonable and proportional and be declared and recorded on a company gift register.
  • Companies must take steps to prevent bribery:
    • training
    • clear policies
    • regular reviews
44
Q

What consitutes a bribe and can you give an example?

A

A Bribe is

  • Giving, offering, promising or receiving of an advantage for an action which is ilegal or a breach of trust.
  • The advanatge may be a payment, gift or service.
  • e.g. lavish corporate entertainment suring tender consideration.

FOUR OFFENCES UNDER THE BRIBERY ACT 2010

  1. bribing
  2. receiving a bribe
  3. bribing a foreign official
  4. failing to prevent bribery
45
Q

Is a company responsible for an indivisuals corrupt actions?

A
  • Yes
  • Unless they can provde they had adequate policies and proceedures in place to prevent bribery which is a defence under Bribery ACt 2010.
  • money laundering regulations 2017 say no cash payment of more than 10,000 euros is acceptable to reduce opportunity for bribes.
46
Q

What are the principles of the Bribery Act 2010?

A

There are six principles of the Bribery Act 2010:

  1. Proportionality
  2. Top level commitment
  3. Risk assessment
  4. Due digiligence
  5. Communication
  6. Monitring and review.

PTRDCM

People taking recreational drugs cant move

47
Q

What is the penalty for bribery and who polices this?

A
  1. The serious fraud office polices
  2. max 10 years imprisonment
  3. unlimited fine (as well as custodial sentence)
  4. RICS fine
  5. Sweett group 2016 Uk construction company bribe offered to win middle eastern companies businessfined 1.4mill and 125K +costs RICS plus exceutive who destroyed evidence was jailed.
48
Q

Have you ever accepted a gift or hospitality from anyone?

A

Yes bottle of wine from contractors at chrismas time BUT…

In accordance with the bribery act 2010 ensured:

  • It was proportional
  • there was no expectation from the other party in return and that I could remain impartial and it didnt conflict with any current consideration e.g tender process
  • i also ensure transparency by registering on my companieds gift register as per their policy and in compliance with my employment contract.

Also consider - tax implications and money laundering

49
Q

What is money laundering?

A

Money laundering

When the proceeds of criminal acitvity are hidden or coverted into legitimate assets.

50
Q

What are a firms responsbilities under the money laundering regulations 2017 (ammended 2020)?

A

Responsbilities under the money laundering regulations 2017 (ammended 2020)

  1. Money laundering/terrorist financing RA
  2. implement policies and proceedures meet regs
  3. appropriate internal controls
  4. Staff training
  5. New customer due diligence
  6. AML checks (confirm source of funds)
  7. include high risk factor consideration e.g. high risk countru transactions.
51
Q
  1. What is the RICS professional Statement countering bribery, corruption, money laundering and terrorist financing 2019
A
  • Its a professional statement from RICS with 3 parts to guide surveyors these are:
  1. Mandatory requirements on bribery and corruption and money laundering e,g,
    1. not offer or accept bribes
    2. procedures in place to comppy witjh the law
    3. Report suspicions
    4. Verify basic ID check on clients, AML, Dunham Bradsrteet checks
    5. only accepteing money throguh bank transfer - audit trail proof of funds
  2. Good practice e.g.
    1. have written policy
    2. set up a gifts register
    3. foster transparency
  3. Supplmentary guidance
    1. Risk base approach Who What Why?
52
Q

What would you do if there was a complaint about you?

A
  1. Get all the facts
  2. Try to resolve it informally first e.g. waive the fee

FIRST STAGE

  1. Acknowledge a written complaint within 7 days
  2. Refer them to the company CHP which includes RICS approved ADR (although for clients this would have been in the engagement agreement they signed).
  3. Log the complaint - details progress and outcome
  4. Notify PI insurer in case escalates to a negligence claim
  5. Should be investigated within 28 days

SECOND STAGE

  1. ADR -Independent redress e,g, RICS dispute resolution service or the centre for dispute resolution (CEDR)
  2. RICS usually only become involved if you fail to operate the complaints handling proceedure effectively.
53
Q

Tell me about some current affairs issues of interest to the RICS

A
  • COVID-19
    • Economic impact
    • Contract Administration
  • Brexit
    • Economic Impact
    • Regulatory
  • Grenfell
    • Fire regulatioms
  • Sustainable building
    • Carbon Neutral
  • House supply and demand
    • empty buildings in cities
  • Flooding
    • Building on flood plains
    • Recent floods
  • Education and training
    • PRME
54
Q

When was the RICS founded and how?

A

1868 by Royal charter granted by the Privy council

55
Q

How many levels of RICS membership are there?

A
  1. FRICS
  2. MRICS
  3. AssocRICS
  4. Student
56
Q

What do you need to do to become a fellow?

A

Provide for the fellowship assessor:

  1. evidence of achievement of 4 charateristics
    1. (5+ years mRICS)
    2. leadership role
    3. technical or professional achievement
    4. academic achievement or raising RICS profile
    5. Portfolio of professional achievement INC CPD
57
Q

How is RICS Goverened?

A
  1. By the governing council
  2. 33 members
  3. provides management and strategic direction
  4. 17 specialist groups inc property land and construction
  5. Each group has an elected board and outlines standards of competenc and practice.
58
Q

What is the UK structure of the RICS?

A
  1. 4 national associations
  2. 10 regional boards
  3. local associations
  4. Current president is Timothy Neal
  5. President elect Kath Fontana
  6. Current CEO is Sean Tomkins
59
Q

What major changes are currently facing RICS and what are their initiatives?

A

Its’s a really exciting time at the moment our workld is changing , there are a lot fo opportunities we can harness.

  1. technology such as drones, prop tech, artificial intelligence.
    1. AI receptionist in one building
  2. Harness technologu to free us up to spend more time on the things which create value for our client.
  3. Big data - internet sensors on building How we collect it manage it, protect it from cyber attack keep up to date with fast moing technology, data is more instantly obtained such as the other day my contractor live streamed video to me from an abseil survey of a particular issue.
  4. Urbanisation and climate change how do we manage usage of finite resource, I know I want the world to be a better place in the future for my son and his children and the built environment will have a large influnce on that.
  5. Workplaces are changing (especially in light of corona virus to more flexible).
  6. International security - protecting spaces from terrorism whih is a threat to business and our way of living - HVM hostile vehicle mitigation
60
Q

What changes were voted in to the Royal Charter and bye laws in November 2018?

A
  1. Smaller more diverse governing council
  2. more powers to workd regional boards
  3. new chair of the governing council will act for up to 6 years.
  4. President will contimmiue to focus on abassador duties, still elected on annual basis.
    Regulatory board will dcide on policy and regulatory matters.
61
Q

What is the RICS and what is it’s role?

A

The RICS is a highly respected global regulatory body for prfesssionals within the land, property and construction sector.

REMEMBER: EVERY PENGUINS IGLOO!

it has 3 main roles:

  1. EDUCATION/TRAINING - maintain highest standards
  2. PROTECT CLIENTS - by strict regulation and professional standards.
  3. INFORMATION/ADVICE - leading source of information and indepedent advice
62
Q

What are the benefits of being an RICS member?

A

Benefits of RICS Membership

  1. STATUS =professional credentials give cleints confidence
  2. RECOGNITION = promotion of excelelnece to government and markets
  3. MARKET ADVANTAGE - competition
  4. KNOWLEDGE - international practice standards CPD
  5. NETWORK - access to 125,000 professionals.
63
Q

What are the five principles of better regulation within the RICS regulation for members and firms?

A

The five principles of better regulation

PACTT

  1. Proportionality (penality proportional to the breach)
  2. Accountability - to all members and the public
  3. Consitency - treat all members the same
  4. Targeting - serious breaches
  5. Transparency
64
Q

Why do you want to join the RICS?

A

Why do you want to join the RICS?

  1. Because I love building surveying, I’ve been doing it for a few years and i want to be the best I can be
  2. I want to join a respected professonal body forspecific to my industry
  3. Status and recognition
  4. Market advantage over competitors

Why not just CIOB - because RICS has a wider perspective and it is also a closer match to what I do now.

65
Q

What is the RICS motto?

A

Est

Modus

in

Rebus

66
Q

How much CPD do today’s qualified surveyors have to do?

A
  • Minimum 20 hours at least 10 hours must be formal CPD.
67
Q

What is the complaints procedure set up as part of RICS rules - explain main principles.

A
68
Q

Assuming that you are successful with the interview, what CDP do you propose to do in the

future?

A

I would also like to attend the RICS conference in July if there is still a space as I missed it last year, it’s a good way to udnerstand the latest news within RICS and the economy, to network with other progessionals and receive CPD from leading experts.

I would also like to do some CPD on BIM as it is something i dont currently use but would like to understand more about and pronbbably do an autocad course.

69
Q

What is the difference between formal and informal CPD?

A

Formal - structured learning with clear learning objectives

Informal - self managed learning relevant to my professional role

There is a helpful flowchart on the RICS website to help me decide whether CPD is informal or formal

70
Q

If you decided to move out of BS work into street sweeping what would you be required do in respect of PI?

A

I would be requried to ensure run off insurance cover was in place once I stopped working .

  1. Consumeer claims -1 million aggregate cover over 6 years.
  2. Commercial -adequate and appropriate for 6 years minimum
  3. RICS advises longer than 6 years as claims can occur up to 15 years before they are statue barred under the limitation act 1980
71
Q
  • How would you start a new RICS practice and comply with RICS standards?
A

Mneumonic IRRIMCTACSL

I rarely reach in my clothes though architects can scratch lots.

  1. INFORM RICS (firm detail form)
  2. RESPONSIBLE PRINCIPLE (appoint for comms
  3. REGULATORY BOARD - register with RICS RB
  4. INSURANCE - Arrange PI cover, inform RICS
  5. MONEY HANDLING PROCEEDURE for clients
  6. COMPLAINTS HANDLING PROCEEDURE -set up a log and appoint CH officer
  7. TRAINING PLAN - for staff
  8. ANNUAL RETURN online RICS form (info on CHP and PI)
  9. CPD - logged online on RICS system
  10. SUCESSION PLAN - for handover
  11. LOGO kit

If stuck say the information can be found on the RICS website or I would give them a ring to discuss any concerns or queries

72
Q
A
73
Q

How would you close a practice?

A

MNEUMONIC

I Have Many Dirty Red Cars

  1. INFORM RICS and Clients asap
  2. HANDOVER arranged
  3. MONEY - return it!
  4. DATA - keep files for 6 years.
  5. RUN OFF COVER - insurance inform them winding up 6 year min
  6. COMPANIES HOUSE -not rics requirements - London Gazette notice if disolving the company
74
Q

Can you name me statutory standards or legal requirements you might need to comply with if you were to set up your own company

A
  1. Disclose business name
  2. Health and safety act 1974 compliance
  3. Equality Act 2010
  4. Bribery Act 2010
  5. RR Fire safety 2005
  6. Mponey laundering officer (money laundering regulations 2017)
  7. Asbestos register
  8. GDPR - register for it
  9. Employer and public liability insurance
  10. Employment law - e.g. working hours
75
Q

What can you tell me about client money handling?

A
  • I dont handle client’s money myself but I know the rules of conduct for firms states firms must keep clients money secure.
  • There is also a Professional statement on client momney handling produced this year 2020 with 6 main principles of good practice in RICS:
  1. Holding
  2. Information
  3. Receipts
  4. Payments
  5. Accounting records
  6. Compliance
  • keep client money separate to the firms
  • Word client on the account/check book
  • Client should get access to their money on demand
  • Interest payments agreed with client
  • keep accurate records of the balance
  • Display the proceedures on their website.
  • RICS also runs 2 schemes to protect client money one for residential agents and one for surveying firms.
76
Q

What level of PI insurance does a firm need?

A
  • It is linked to turnover
    • Under 100K (250,000min)
    • 100-200K (500,000)
    • 200k + (1 mill)
77
Q

What type of insurance is it mandatory to have for practicing surveyors and why?

A
  • Professsional Indemnity Insurance
  • Protect surveyors, clients and third parties from negligence claims
  • Neglicence claims arise when a duty of care is breached and a claim for damages occurs.
  • Professional Indemnity Insurance Requirements 2019
  • Has to be underwritted by RICS approved insurer.
78
Q

How would you reduce /avoid chances of a negligence claim?

A
  1. client objectives - clear confirm instruction in writing
  2. ensure competent
  3. use rics standards and guidance to undertake work
  4. make detailed file notes and take photos
  5. keep knowledge up to date CPD
  6. cap professional liability excess on PII policy terms of engagement
79
Q

Name the legislation that governs limitation periods for negligence claims and tell me what they are?

A
  • The Limitation Act 1980
    • UNDER CONTRACT
    • 6 years from the date of the negligent act/braech of contract
    • 3 years from the date of knowledge of the damage 15 year long stop.
    • UNDER LAW OF TORT
    • 6 years from the date the claimant suffered the loss.
80
Q

What are the six main areas of good practice from RICS Professional Statement ‘Client Money Handling’ 2019?

A
  1. HOLDING
  2. INFORMATION
  3. RECEIPT
  4. PAYMENTs
  5. ACCOUNTING
  6. COMPLIANCE

HIRPAC

Hairless Irish Rats persued Affectionate Cats

81
Q

What does the RICS the maximum level of uninsured excess to be for PI?

A

MAX EXCESS

  1. ​Liability up to £500,000
    1. 2.5% of the sum insured or £10,000 which ever is greater
  2. Over £500,000
    1. ​2.5% of the sum insured
82
Q

What are RICS requirements for PI insurance?

A
  1. Mandatory to have PI
  2. RICS Professional Indemnity Insurance Requirements 2019 guidance
  3. Must be underwritten by RICS approved insurer
  4. Amounts based on previous years turnover of firm (if new firm - estimate it then adjust after 1st year)
  5. Must be retroactive, claims made basis (insured regardless of if the act was before the insurance.
  6. Adequate and appropirate run off cover - 6 years
  7. Most firms cap their liability on instructions with clients
83
Q

If your friend asked you to carry out a check on a property they were considering buying; what would you tell them?

A

I would tell them I would need to have the appropriate PI insurance in place as RICS requires this for PROBONO work (as you can still be sued if they rely on your advice whether it is unpaid or not!) I’d also need a written and signed agreement with them for the scope of services and Ts and Cs.

84
Q

What if you cannot arrange PI cover?

A

There is a RICS assigned risk pool (still costs) for members whp cannot arrange cover and also an RICS low earners scheme for part time or retired members,

85
Q

What could you do if you are facing a claim for work carried out for an employer who has gone into administration?

A

RICS runs a Member Support Service MSS for this to offer help and advice.

86
Q

What is the most important thing you should do if you think a potential negligence claim might arise?

A

INFORM YOUR PI INSURER AS THEY REQUIRED EARLY NOTICE

87
Q

What do you know about client confidentiality?

A
  1. RICS BYE LAW: ‘client confidentiality must be maintained for all client affairs’
  2. Includes historic information provided by client
  3. Hold all old files for 6 years min before destroying
  4. If confidential information is overhead this can not be used for ones own benefit and the party disclosing and client should be informed and the companies compliance officer.
  5. Confidential material should be disposed of securely if received by accident or no longer needed.
88
Q

Whart would you do if an email was sent to you in error with confidential information from another firm?

A
  1. Inform the sender
  2. Client should be informed
  3. Companies compliance officer informed
  4. Must not be used for my own benefit
  5. The confidential information must be disposed of securely
89
Q

What can you tell me about fee negotiations

A
  1. Avoid aggresive rate fee cutting
  2. Do not collude to price fix with other firms
  3. You can enter into further fee negotiations with client after initial proposal as long as in a professional manner.
  4. If vary fee proposal may want to vary proposed level of service - ensure still able to provide a high level of service.
  5. BE TRANSPARENT - especially where a referral fee is earned. (9 bribery act and global and ethical standards important here)
90
Q

What different documents does RICS Produce to guide surveyors?

A
91
Q

What is the Royal Charter of RICS and what is an example of an RICS bye law?

A

Our Royal Charter requires us to promote the usefulness of the profession for the advantage of the UK public and in other parts of the world. In practice, the charter means that important changes to our constitution – its bye-laws – have to be ratified by the UK Government, through the Privy Council, even after they’ve been approved by a majority of our members voting at a general meeting.

The continued demand for royal charters, which may seem an antiquated concept, shows that they retain their cachet in the modern professional world as a “gold standard” of excellence and integrity.

92
Q

Give me a couple of examples of the RICS professional and ethical standards and tell me how they relate to your work

A
  1. Service - I ensure my client received a high standard of service for example I make sure my client knows what to expect from the terms of engagemnt and that they are kept informed throughout, and i can maintain that level of service.
  2. Trust I always aim to be transparent to promote trust and remain professional for example Im careful with social media to ensure I stay professional at all times
  3. Integrity - I ensure any information remains confifdential e.g. carrying out dilaps inspections where I am entering an occupied premises. I ensure any gifts are registered on my companies gift register and that they are appropirate and not considered a bribe under the bribery act 2010.
  4. Respect - I treat others as I woudl wish to be treated, for example I treat contractors and clients with equal respect.
  5. Responsible I act responsibley ensuring contractors are fulfilling their health and safety obligations.
93
Q

Why do we have Professional indemnity insurance?

A

As a firm regulated by RICS we are required to have professional indeminity insurance that covers my clients in the case of negligence and also protects me and the firm not having to pay out personally

94
Q
  1. What would you tell your friend if they asked you to value their house?
  2. What if they asked you to carry out a building survey on their house?
A
  1. I would tell them I am not a registered valuer, this is not my expertise and I am not compet to provide this information. I could put them in touch with one of my colleagues qualified to give that advice or refer them to the RICS contact/find a surveyor system for advice.
  2. Probono unpaid work is ok but must be instructed formall and I would also have to have the correct PI insurance in place.
95
Q

What must you do every 3 years in terms of CPD

A

Reread the RICS core material, ethical standards and rules for members firms etc to stay up to date.

96
Q

What is the most important thing you need if you decide to manage a conflict of interest?

A

INFORMED CONSENT FROM BOTH PARTIES!

97
Q

How would you ensure against money laundering in your practice?

A
  1. Keep up to date with current regulation and good practice standards
    1. RICS countering bribery and corruption, money laundering and terrorist finace 2019 document.
    2. Money laundering and terrorist financing (amendment) regulations 2019
  2. Have good policies in place to meet the regs:
  3. Money laundering/terrorist financing risk assement for business activities
  4. Train staff to
    1. indentify money laundering
    2. Report any supcious acitvity
  5. Carry out basic ID check on clients and new customer due diligence
    1. AML checks
    2. Dunham Bradsrteet checks
    3. Be aware of higher risk countries.
  6. Robust proceedures and internal controls e.g.
    1. Confirming the source of the clients funds
    2. only accepteing money through bank transfer to ensure audit trail
  7. Responsbilities under the money laundering regulations 2017 (ammended 2020)
  8. Staff training
  9. New customer due diligence
  10. AML checks (confirm source of funds)
98
Q

How would you be alert to modern slavery in the construction sector?

A

The modern slavery 2015

99
Q

What is the Modern Slavery Act 2015 and who does it apply to?

A
  • It is designed to combat modern slavery in the UK and consolidates previous offences relating to trafficking and slavery
  • Modern slavery is severe exploitation of vulnerable people for personal or commercial gain
  • Victims cannot refuse or leave because of threats, violence, coercion, abuse of power or deception
  • In construction this could mean people trafficked into the UK and forced to work for no or little renumeration.
  • The Act applies to all organisations with a turnover, or group turnover - that is, the total turnover of a company and its subsidiaries - of £36 million or more which are either incorporated in the UK or carry on a business in the UK.
100
Q

Why is construction a high risk industry for modern slavery?

A
  1. Fragmented structure.
  2. temporary/irregular work
  3. low skilled low wage jobs
101
Q

What is modern slavery?

A
  • Modern slavery is severe exploitation of vulnerable people for personal or commercial gain
  • Victims cannot refuse or leave because of threats, violence, coercion, abuse of power or deception
  • Film Slumdog millionaire shows forced begging (children blinded to improve begging prospects and cooerced to sing) and forced prositution (lathika)
102
Q

What is the Equality Act 2010?

A
  • Consolidates discriminiation law
  • Including the DDA
  • Obligations on controllers of let permises
  • unlawful to discriminiate or victimise an occupier
  • Make reasonable adjustments to help disabled people if they would be placed at a substantial disavtange if the works were not carried outl
  • Make alterations to a building.
  • Must be reasonalbe (cost, extent and disruption).
  • Access stateement/audit for all properties setting out access arrangements and alternative arrangemetns if access cannot be reasonably provided.
  • Most requiremetns in part M
103
Q

What are the choices the equality act provides when faced with an obstacle to access for disabled persons?

A
  1. REMOVE
  2. ALTER
  3. AVOID ( provide a reasonable means to avoid)
  4. ALTERNATIVE

Test for reasonableness

  1. Effectiveness
  2. ppracticality
  3. cost and disruption
  4. Financial/resources available to the service provider.
104
Q

What are the choices the equality act provides when faced with an obstacle to access for disabled persons?

A
  1. REMOVE
  2. ALTER
  3. AVOID ( provide a reasonable means to avoid)
  4. ALTERNATIVE

Test for reasonableness

  1. Effectiveness
  2. ppracticality
  3. cost and disruption
  4. Financial/resources available to the service provider.

APC MANDATORY (13 decks)

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