Conduct rules, ethics and professional practice (submission)

Question 1

What would you do if you were asked to do something unethical?

Answer 1

I would speak to someone more senior, such as a supervisor or line manager
I would whistleblow if required e.g. I would report suspected Money Laundering to the MLRO

Question 2

When you taken on a new client, what checks do you make?

Answer 2

Will need to undertake Customer Due Diligence (CDD) to identify the client and verify their identity
If the client is a politically exposed person (PEP), a PEP family member/business associate or from a high-risk third country then you should undertake Enhanced Due Diligence (EDD)

Question 3

How do you undertake a conflict of interest check?

Answer 3

I use my firm’s internal system/database to check the client name and the address of the property again all known jobs.

Question 4

If your agency team sold a property, could you still value it?

Answer 4

Cannot value the property if you have had “previous involvement” which is usually defined as being within the past two years

Question 5

What information barriers does your firm have in place?

Answer 5

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

Question 6

Would you ever receive a gift from a client?

Answer 6

Would be inappropriate if you were doing a job for that client
Would consult the Ethics Decision Tree and my firms anti-bribery procedure
Would consider RICS Professional Statement Countering bribery, corruption, money laundering and terrorist financing, 2019

Question 7

If you thought it was appropriate to accept a gift from a client, how would you proceed?

Answer 7

Record it on my firm’s Gifts and Hospitality Register

Question 8

What would you do if you were suspicious of a client?

Answer 8

Wouldn’t make them aware as that could be ‘tipping off’ which is an offence
Would report and escalate internally to a compliance manager

Question 9

How do you ensure you comply with money laundering regulations?

Answer 9

I am aware of money laundering due diligence checks (KYC). I report any suspicions of money laundering to my firms Appointed Money Laundering Reporting Officer – who will then report any suspicions to the National Crime Agency.

Question 10

Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge?

Answer 10

I would either decline the instruction. Or, with the client’s permission introduce them to a colleague/another surveyor with the required experience and knowledge. If I didn’t know of one I would refer the client to the RICS find a surveyor service (www.ricsfirms.com)

Question 11

Tell me about an instance when you have handled client’s money.

Answer 11

I have had no experience handling client’s money however I am aware that clients’ money is regulated by Section 14 of the Estates Agents Act 1979 and must be held in a designated client account. With the name ‘client’ also included on the account name.

Question 12

Tell me about how you would handle a client complaint.

Answer 12

• I would log this via the Customer Relationship Management System (CRM). This would then be formally logged on our CHP.
• Notify PII as complaint could lead to a case of negligence

Question 13

When would you reject a gift?

Answer 13

If I thought it would affect my impartiality

Question 14

What would you do if you were asked by a client to reduce a fee proposal to win new work?

Answer 14

I would refuse fees should be market based and shouldn’t undercut other firms. I would potentially look at the scope services provided and look to reduce this down if the client wanted a lower overall fee.

Question 15

What would you do if you became suspicious that an agency client was involved in money laundering?

Answer 15

I would inform my firm’s appointed Money Laundering Reporting Officer – who will then report any suspicions to the National Crime Agency.

Question 16

What would you do if you became suspicious that an agency client was involved in terrorist activities?

Answer 16

I would report the suspicions to the police.

Question 17

If you were to set up in practice on your own, tell me about the types of insurance you would need.

Answer 17

Professional Indemnity insurance – to cover the economic loss which you could be sued for in the case of negligence.
Employer’s liability insurance – if business employs anyone you need at least £5m cover.
Building and contents insurance? (Optional)

Question 18

How can you find a solicitor?

Answer 18

The Law Society website has a find a solicitor webpage in which you can select a specific legal issue as well as a local area and the user will be matched with solicitors operating in that area of law.

Question 19

What would you do after you realise sensitive information is on display?

Answer 19

Acting ethically I would alert the practice manager that files have been left out

Question 20

What are implications on the property market of Brexit?

Answer 20

• Reduced labour mobility – concerns for construction – more expensive
• Uncertainty - cost reports only valid for 3 months at the moment rather than 6.
• Investment – freeze and wait for things to happen – yield move out
• Also falling pound has increased demand for non-domestic investors into the UK – Asian investors

Question 21

Tell me about a conflict of interest check you have carried out.

Answer 21

When I was instructed for the disposal used in my case study. I first asked within my firm and then also considered my own interests, personal and financial.

Question 22

What does providing a high level of service mean to you?

Answer 22

• Ensuring that clients and those you have a responsibility over receive the best possible advice and support.
• Providing clarity on what the client wants, and what you are offering.
• Acting within your scope of confidence.
• Being transparent about fees.

Question 23

What does promoting trust in the profession mean to you?

Answer 23

• Acting in a manner to promote you and the organisation you work for and the profession in a professional way.
• Promoting what the profession stands for.
• Understanding that this should be reflected within your personal life.
• Fulfilling obligations, doing what you say you will do.
• Meeting the spirit of the standards, not just the words.

Question 24

What does acting with Integrity mean to you?

Answer 24

• Being trustworthy.
• Being Open and transparent.
• Not taking advantage of those whom you have a duty of care.
• Not allowing bias or a conflict of interest to override business judgement.
• Not offering or accepting gifts.
• Acting consistently in the public interest.

Question 25

What does taking responsibility mean to you?

Answer 25

• Being accountable for your actions and not blaming others.
• Always act with skill, care and diligence.
• Where complaints are made against you, respond in an appropriate and professional manner to aim to resolve the issue.
• If you don’t think something is right be prepared to raise the matter with the appropriate person.

Question 26

What does treating others with respect mean to you?

Answer 26

• Being courteous, polite and considerate to others. Also being aware of culture sensitivities.
• Never discriminate.
• Encourage the firm to work in a fair and respectful manner.

Question 27

What would you do if a contractor offered to take you to a hospitality event?

Answer 27

• I would decline, as because I have been targeted directly, it could be seen as trying to impair my judgement.
• If the gift was directed at the company as a whole, I would secondly consider the timing, i.e. will I be awarding any sub-contracts soon, which this could be seen as influencing.
• Finally, I would consider the proportionality of the gift, i.e. is it proportional to our business relationship.
• I would also record any gifts I receive within the business register.

Question 28

How do you keep up-to-date with topical issues?

Answer 28

• Receive email notifications from the RICS
• Building.co.uk
• Propertyweek.co.uk
• RICS news online.
• Gov.uk (Public Procurement & Regulation)

Question 29

What would you do if a client offered you hospitality?

Answer 29

• Politely decline.
• I wouldn’t want to attend anything that may compromise my impartiality.
• If they insist then I would pay my own costs.

Question 30

How do you judge if it is a conflict?

Answer 30

: The job would need to be for a conflicting department and relatively recent. I would discuss with the person their instruction and would refer to our compliance officer for advice if in any doubt.

Question 31

Can you do a valuation for a buyer 6 months after acting on an acquisition?

Answer 31

The RICS states that a valuer should not revalue within 12 months therefore I would decline the instruction.
Why? – As a valuer would be driven by their previous acquisition figure so close to the valuation.

Question 32

In your terms of engagement – how did you structure your fee (for example with your Crit project)?

Answer 32

It was a fixed fee agreed.

Question 33

Is a fixed fee the only way to structure a fee?

Answer 33

No, a fee can be either commission based or based on an hourly rate.

Question 34

You have to submit a bid on a property to acquire it on his behalf and the closing date is midday
tomorrow. You enter the office and a secretary has left another bid open and you see the other bid – what
should you do there?

Answer 34

I need to demonstrate integrity and would not use the information and would keep the findings confidential.
I would not discuss bids with my client and if they needed to discuss bid levels I would suggest referring to a colleague who had not seen the relevant information.

Question 35

You conduct a disposal successfully and your client would like to reward you with a case of champagne.
What do you do?

Answer 35

I would consider a crate of champagne to be a gift in excess and I would refuse this.

Question 36

If you have just sold an investment for £500m – would you still just expect a box of chocolates?

Answer 36

Yes as it would not vary dependent on my job. I could accept a nominal gift, not on a sliding scale.

Question 37

Under what circumstances would you accept a gift?

Answer 37

A nominal gift to thank me for my work or for Christmas would be acceptable, or where it would be
culturally impolite to refuse – in this instance I would contact my compliance officer to inform and log this in
the company gift register.

Question 38

Why do you want to be a chartered surveyor?

Answer 38

I want to be part of upholding the best standards of the profession. From a personal point of view I look
forward to moving my career upwards and look forward to developing my role within the RICS Matrics to
become chair. This will be the starting point of my career progression.

Question 39

How do you present a positive image of the RICS?

Answer 39

I apply the five principles in my daily role and am a member of the Greater Member RICS Matrics where I aim to uphold the enthusiast for lifelong learning within my role in the CPD team.

Question 40

What is your role within the RICS?

Answer 40

Whereas I am currently a graduate member of the RICS, I hope to become a Chartered Surveyor and to
become a good ambassador for the highest standard of the profession.

Question 41

What would you do if you overheard a confidential conversation between another surveyor and his client?
Or seen a confidential email between two parties which was not addressed to you?

Answer 41

I would uphold integrity of the profession and would not use this information for my advantage as I should
not have had access to such.

Question 42

Can you give a friend some free (pro bono) advice? What are the implications of doing so?

Answer 42

: Advice can be given without a fee but this should be with full terms of engagement stating a zero fee, to
ensure professional protection. The personal relationship would also need to be stated. This is on the assumption that the surveyor is not conflicted. It would be best for the work to be carried out by another party such as another firm or different office.

Question 43

Can you cut fees in the face of competition from another practice?

Answer 43

It would not be appropriate to cut fees as you have already scoped out the job and quoted accordingly by
you could re-scope the job afresh

Question 44

How would you deal with a request from your client to reduce your proposed fee for an instruction?

Answer 44

This is dependent on the situation and the client. You can reduce a fee as long as the service is the same and appropriate resources are allocated to the job.

Question 45

How would you deal with a client offering you cash for the payment of a fee account?

Answer 45

We would be unable to accept cash payment as it would not be compliant with Money Laundering
Regulations 2007.

Question 46

Tell me about the Help Sheets (Information Papers) produced by the RICS. Tell me about a time you have
referred to one of these?

Answer 46

Comparable Evidence in Property Valuations (2012) used to understand the process of collating and
interpreting comparable data for valuations. The help sheet assists to benchmark evidence and understand
the hierarchy of evidence.

Question 47

Where can you find further help and advice regarding the RICS?

Answer 47

Go to the RICS website or Isurv, and depending on the nature of the advice, lionheart may be able to assist.

Question 48

Give me an example of when you have acted with integrity?

Answer 48

When assisting with the valuation of a rural farmhouse conversion in Prudhoe, the Borrower made persistent attempts to increase my Supervisor’s opinion of value. After undertaking further investigations I was unable to find any evidence supporting the Borrower’s opinion. My Supervisor subsequently politely dismissed their solicitations. This ensured that we acted with integrity and objectivity.

Remember I did it – I checked the evidence, and considered whether it made any difference to my opinion of MV.

PERHAPS YOU SHOULD HAVE ADDITIONAL EXAMPLE OUTSIDE SUBMISSION? see also generic below -

I demonstrate this in my daily work, ensuring that I do not release any confidential information when working on a valuation such as not informing employees of the business of my reason for inspection and understanding of the requirement for confidentiality.

Question 49

Tell me about when you have provided a high standard of service.

Answer 49

I believe whilst undertaking a loan security portfolio valuation (Sagger, Newcastle, mainly student housing) for a lender client I provided a high standard of service. I ensured that I provided the client with the information required to make decisions - i.e. to discuss report progress, explain the valuations to the client, provide draft reports and promptly deal with all PVQs.

I also kept in regular communication with the client to ensure they had sufficient progress updates.

Could also mention industrial unit Blaydon - but perhaps causing issues for the LSV part of the report.

Question 50

Tell me about how you have promoted trust in the profession?

Answer 50

Could think of something better - consider - When I was negotiating heads of terms for a property in Blyth, I learned the occupier was acting without legal advice. I advised the occupier to engage a solicitor so they were clear of the terms they were agreeing to. As the occupier was unsure where to find a solicitor, I advised that the law society website would be a good place to start. Rather than taking advantage of the situation I believe this promoted trust in the profession.

OR

Use client care example - advising client that would be in best interest to abort the instruction? i.e. like this -

When undertaking auction appraisals for a client, I provide advice on suitability for auction but would advise where a vendor may wish to sell by private treaty, despite this foregoing my fee. This promotes trust in the profession as the advice provided is honest, even in the event I lose my fee.

Question 51

Explain how you have taken responsibility in your current role?

Answer 51

Consider - although this is probably the right sort of answer - unless you want to say you made a mistake and fixed it…

In my daily role I am given the opportunity to prepare the valuation and report ready for reviewing with colleagues. I take responsibility for the decisions I make on the valuation and in the preparation of the report, acknowledging any area which need work to improve moving forward.

Question 52

Tell me about how you treat clients with respect.

Answer 52

I ensure that I always listen carefully to clients when they are talking. I take on board their views to help ensure they receive the best possible outcome.

Question 53

Tell me about how you treat other surveyors with respect.

Answer 53

I ensure that I always listen carefully to other surveyors. I take on board their views and I am polite when conversing with them. I understand that surveyors may be acting in the best interest of the client and so if I disagree with another surveyor I ensure I am not rude in my response.

Question 54

How did you deal with the client’s request to assist with a valuation instruction (Handles, ethics)? / How did you ensure a high level of service was still provided?

Answer 54

As the client was through my introduction I still had a duty of care to this client. I asked that my colleague keep me updated as the instruction progressed to ensure a high standard of service was still being received.

Question 55

Can you give me an example of a time when you have used the RICS ethical decision tree in your personal life? consider

Answer 55

.

Question 56

What is JT gifts policy? Is your firm able to accept cash payments?

Answer 56

.

Question 57

What have you read in Modus recently? consider

Answer 57

.

Question 58

Have you seen an example of a conflict of interest in your firm?

Answer 58

• Sagger portfolio, for lender
• Did checks etc. – not in previous 2 year period, and no anticipated future involvement, therefore got written consent from all parties, recorded conflict situation in TOE and report.

Question 59

Please give me an example of some professional development which you have undertaken outside your office? What did you learn? consider

Answer 59

.

Question 60

What CPD have you undertaken since handing in your submission? consider

Answer 60

.

Question 61

What work have you been doing recently? consider

Answer 61

.

Question 62

For your valuation instruction in Gateshead, why was it essential your client understood and returned signed TOE? What did the TOE set out?

Answer 62

• Dispute management
• Clear, clarity, scoping out client requirements (client care)
• Protecting both parties.

The Terms of Engagement set out the fee basis, valuation assumptions, procedures and scope of work, bases of value and the level of indemnity cover

Question 63

What was fee basis for your valuation in Gateshead and what if agency?

Answer 63

Fixed

Question 64

What is your firm level of indemnity cover?

Answer 64

PROBABLY CONFIDENTIAL?

Manchester Underwriting Management OR ‘International General Insurance Company (UK) Limited’
Indemnity limit - £5m aggregate plus unlimited reinstatements
Excess - £2,5000 (each and every claim)

The Certificate is designed to provide the minimum insurance requirements of the Royal Institution of
Chartered Surveyors as per the Approved Minimum Wording other than in respect of:
1. Fire Safety Exclusion(s);
2. Unlimited Aggregate Round the Clock Limit of Liability basis of coverage

Question 65

Re. your draft loan sec report to Handles, what did they require in addition, and who did you recommend the services of?

Answer 65

In any instance this was not agreed in the TOE, and I had scoped the work initially. Advised that would be necessary to redo TOE in such circumstances.

● The client requested additional commentary on factors that should be addressed prior to appointing a Receiver. I informed the client that I could not provide further advice beyond valuing the property subject to the Special Assumption of a 3 month marketing period as had been agreed, as this was a specialist area outside of my scope of competence. I directed the client to the RICS Find a Surveyor service (RICS has Registered Property Receivership Scheme – website link –

The Scheme originated in 1999 with the sole objective of accrediting professionals who carry out fixed charge or Law of Property Act receivership work, in order to offer reassurance on the standard of that work to those making such appointments, creditors and the wider public.

They required:

• What property info should be available from the Bank to allow a receiver to maximise realisation?
• Are there any factors which the bank should consider addressing prior to appointing a Receiver?

Question 66

HANDLES ETHICS Q - How did you value subject to this special assumption?

Answer 66

3 month - consider - probably evidence is best - comparison of auction sales vs open market normal sales I guess.

Question 67

In your agency role you issued the client with draft marketing particulars. Why?

Answer 67

In my agency role I issue the client with draft marketing particulars for verification, and conduct follow up investigations if necessary. This ensures that the published particulars provide an accurate and honest description of the property.

CPRs - accurate to my best knowledge, ‘reasonable enquiries’

Question 68

Can you give me another example of when you have acted with integrity?

Answer 68

When I was negotiating heads of terms for a property in Blyth, I learned the occupier was acting without legal advice. I advised the occupier to engage a solicitor so they were clear of the terms they were agreeing to. As the occupier was unsure where to find a solicitor, I advised that the law society website would be a good place to start.

Question 69

Tell me a time when you have treated others with RESPECT?

Answer 69

As a personal principle I always treat others with respect. When acting for the landlord for a rent review of an Asian hot food takeaway the tenant had trouble understanding the terms we were proposing for the review. I ensured the terms were clearly understood so the tenant could make an informed and fair decision.

Question 70

What is JTs gift policy?

Answer 70

Gifts and modest hospitality may be accepted (under £10) without needing to record on the gift register. Anything over £10 should be recorded. Anything over £50 should be rejected or given to charity if refusing the gift could appear disrespectful.

ANY MORE?

Question 71

Is your firm able to accept cash payments?

Answer 71

My firm has a policy not accept cash payments, although the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, 2017 allows for a maximum of €10,000 to be accepted in cash.