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APC > Conduct rules, ethics and professional practice > Flashcards

Conduct rules, ethics and professional practice Flashcards

1
Q

What does RICS stand for?

A

Royal Institution of Chartered Surveyors

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2
Q

Why do you want to become a member of the RICS?

A

The RICS is one of the largest global professional bodies and is very well respected. I want to be a professional person and ensure that I am associated with an institution which promotes best practice within the industry.

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3
Q

Who is the president of the RICS?

A

Chris Brooke

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4
Q

Who is the president elect?

A

Time Neal

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5
Q

Who was the previous president?

A

John Hughes

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6
Q

Who is the CEO?

A

Dr Sean Thompkins

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7
Q

Who is the senior vice president?

A

Kath Fontana

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8
Q

When was the RICS founded?

A

1868 became chartered in 1881

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9
Q

What is the structure of the RICS?

A

Privy Council -> Governing Council -> Regulatory board, audit committee and management board

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10
Q

What are some current challenges facing the RICS?

A
  • Sustainability – responsibility to ensure the industry contributes to sustainable development by becoming more environmentally aware and taking steps to improve energy performance
  • Maintaining standards and consistency of approach across the world – adopting international standards to ensure everyone follows best practice
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11
Q

How much CPD is required as a qualified surveyor?

A

A minimum of 20 hours per year.

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12
Q

What are the five core principles?

A
  1. Act with Integrity
  2. Always provide a high standard of Service
  3. Act in a way that promotes Trust in the profession
  4. Treat others with Respect
  5. Take Responsibility
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13
Q

What are the Rules of Conduct for members?

A
  • interpretation of member
  • communication
  • Ethical behaviour - act with integrity and avoid conflicts of interest
  • Competence – carryout work with due skill, care and diligence
  • Service – carry out work in a timely manner
  • CPD – comply with RICS requirements
  • Solvency – ensure personal and professional finances are managed appropriately
  • Information to the RICS – submit info required in a timely manner
  • Co-operation – cooperate with RICS staff
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14
Q

Rules of conduct for firms?

A
  • Definition of firm
  • Communication
  • Clients money
  • PII
  • Advertising must be truthful
  • Arrangements to cover death
  • Use of designations
  • Information yo RICS
  • Co-operation
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15
Q

What are the principles of RICS regulation?

A
  1. Proportionality
  2. Accountability
  3. Consistency
  4. Targeting
  5. Transparency
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16
Q

What would you need to do before starting your own business?

A
  1. Statutory – Disclose name of business, comply with relevant statute including Money Laundering Act (2007), H&S Act (1974), Equality Act (2010), Data Prot (2018) to name a few, inform HMRC for taxation purposes
  2. RICS – Inform RICS, register for regulation, CHP, Client’s Account, PII, Succession Plan
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17
Q

What is your company’s client acceptance procedure?

A

For non-agency instructions, I must be satisfied that I know my client and if I consider them high risk i.e. based in a high risk country where AML deficiencies exist or sanctions are in place then I should refer to my compliance team. If for an agency instruction I would undertake the standard Money Laundering checks.

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18
Q

What do you include in Terms of Engagement?

A
  • Address of the property
  • Scope of works
  • Fee arrangements
  • PII cover
  • Complaints handling procedure
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19
Q

What are the PII bands?

A
  • Turnover less than £100,000 = £250,000 minimum
  • £100,000 to £200,000 = £500,000
  • Over £200,000 = £1,000,000
20
Q

What is the purpose of PII and who does it protect?

A

Professional Indemnity Insurance protects surveyors, clients and third parties against negligence claims when there is a duty of care breached and a claim for damages arises.

21
Q

How would you handle client’s money?

A
  • Keep clients’ money in a designated account
  • Advise the client on and agree terms of account handling in writing
  • Ensure there are sufficient funds in the account to pay amounts owing to clients as they fall due under the firm’s terms and conditions of engagement
  • Obtain clients’ written approval to make payments from their accounts
22
Q

How would you treat a fee that had been paid in advance?

A

I would treat this as client’s money until completion of the instruction, so I would hold it in a separate client account and wouldn’t draw down on it until the work was complete.

23
Q

What are the offences under the Bribery Act?

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign public official
  4. Failing to prevent bribery
24
Q

Who polices the Bribery Act and what are the penalties?

A

The serious fraud office. 10 years imprisonment and/or an unlimited fine.

25
Q

What would you do if your client sent you a case of wine in thanks after the completion of an instruction?

A

I would consider whether accepting the gift would impact on my professional objectivity and whether the gift was proportionate to the size of the instruction. If I decided that it would not affect my objectivity I would accept the gift and log it in my company’s gifts register.

26
Q

What is your company’s gift acceptance policy?

A

I am able to accept gifts up to the value of £50 as long as they do not impact my professional objectivity. Above £50 I must seek permission from my line manager to accept it and register the gift in my company’s gift register.

27
Q

If a friend asks you to advise them on the sale of their house in the pub, what should you do?

A

I would not give this advice as I do not have Professional Indemnity Insurance and I would encourage my friend to seek advice through my company, being careful to acknowledge any conflict of interest.

28
Q

What is the difference between mandatory RICS codes and guidance notes? Which ones are mandatory?

A
  • International Standards – mandatory e.g. International Ethics Standards, International Property Measurement Standards
  • Practice Statement - mandatory e.g. Global Practice Statement in Real Estate Agency & Brokerage, Valuation Professional Standards The Red Book
  • Code of Practice – can be mandatory or just recommended e.g. Code of Measuring Practice
  • Guidance Note – recommended e.g Conflicts of Interest, Surveying Safely
  • Information Paper – info only e.g. Valuation of Development Land, Comparable Evidence in Property Valuation
29
Q

What are the RICS decision trees?

A

The decision tree provides step-by-step advice on how to deal with ethical issues we may face as professionals.

  1. Do I have sufficient facts?
  2. Is it legal?
  3. Is it in line with RICS ethical standards?
  4. Have you consulted with the appropriate people to make an informed decision?
  5. Do you have clear reasoning?
  6. Would you be content for your actions to be made public?
30
Q

What would you do if a Client tried to pay you in cash?

A

Under the Money Laundering Regulations, I am not able to accept payments in cash of over 15,000 euros (£10,000). It is my company policy not to accept any payments in cash, even below this threshold.

31
Q

Why is the RICS Global professional standards important?

A

It maintains five key principals which promotes trust within the profession.

32
Q

What is your firms CHP?

A

Try and settle mutually.
If a written complaint, send it to the CHO which is confirmed within 7 working days
Will write to the complainant within 20 working days to confirm the outcome.
If, in the case of a consumer complaint, the matter has still not been resolved to your satisfaction, we will agree to the referral of your complaint to the Ombudsman Service
If in the case of a business to business complaint the matter has still not been resolved to your satisfaction, we will agree to the referral of your complaint to The Neutral Evaluation Procedure for Surveying Disputes operated by IDRS Limited. Or RICS DRS

33
Q

What are the RICS Rules of conduct for firms and how does it differ for members?

A

Members:

  • Definition of member type, communication
  • Professional standards, competence, service, CPD, Solvency, information to RICS, Co-operation

Firms include the above and:
- Advertising, death, Use of Designations, Complaints Handling, Clients Money, Indemnity

34
Q

What are the MLR 2017?

A

Came into force on 26 June 2017. They implement the EU’s 4th Directive on Money Laundering. In doing so, they replace the Money Laundering Regulations 2007

Requires more DD into clients and cannot accept large cash payments over €10,000

35
Q

How would you undertake an AML check?

A

I complete the form filling out the entering the office ID, entering the type of business and name and address and submit
This goes to CO and notifies of any risks

36
Q

How would you undertake a conflict check?

A

Log onto my internal system
I enter the property address or post code and press search
Export to excel and print and sign
If there is a conflict I notify the party

37
Q

What does the RICS Conflicts of interest outline?

A

March 2017 with a blue square pattern on the front
set an overarching obligation on both members and RICS regulated firms at all times to: act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with its professional obligations

38
Q

What does the RICS standard form of consultant’s appointment set out?

A

sets out the parties and consultants involved, the terms of appointment and consultants obligations, H&S

39
Q

What is the purpose of the EA79?

A

The Estate Agents Act 1979 regulates work as an estate agent. Its purpose is to make sure that an agent works in the best interests of your clients, and that both buyers and sellers are treated honestly, fairly and promptly.
references estates in land and warning orders from local authorities

40
Q

What does RICS client’s money general advice for firms outline?

A

Blue honeycomb on front page
• Keep clients’ money in a designated account
• Advise the client on and agree terms of account handling in writing
• Ensure there are sufficient funds in the account to pay amounts owing to clients as they fall due under the firm’s terms and conditions of engagement
• Obtain clients’ written approval to make payments from their accounts

41
Q

What are the 10 international ethical standards?

A 
Accountability
Confidentially 
Conflict of interest 
Financial responsibility 
Integrity
Lawfulness 
Reflection
Standards of service 
Transparency
Trust
42
Q

What are the principles of the bribery act?

A 
DD
risk assessment 
Proportionality 
Top level commitment 
Monitoring and review
Communication.
43
Q

What is the RICS motto?

A

Modus Ed Rebus - measure in all things

44
Q

What are the CPD requirements?

A

20 hours and 10 must be formal.

45
Q

Under what law must companies police thier employees on tax evasion?

A

Criminal Finances Act 2017

46
Q

What does the proceeds of Crime act 2002 enforce?

A

one must not tip someone off under suspicion or assist or fail to report the person, firms must have a nominated officer

47
Q

What does the RICS UK Commercial Estate Agency Professional Statement 2016 outline?

A 
Standards and Ethics
Securing Instructions - TOE
Marketing the property - inspections
implementing the disposal - methods of sale
Acquisitions
Ending the instruction

APC (15 decks)

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