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APC IF > Ethic > Flashcards

Ethic Flashcards

1
Q

What are the RICS 5 rules of conduct ?

A

Rule 1 - Members must be honest, act with integrity and comply with their professional obligations, including obligations to RICS

Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise

Rule 3 - Members and firms must provide good-quality and diligent service

Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion

Rule 5 - Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession

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2
Q

Who is the current RICS President

A

Tina Paillet FRICS- 2024

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3
Q

When was the RICS founded?

A

1968 - first president john clutton and received its royal charter in 1881 - granted self -regulation

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4
Q

Who is chair of the RICS North West Region?

A

Stephen Ashworth

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5
Q

What is the RICS’s Motto?

A

Est modus in rebus”, which is Latin for “There is measure in all things

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6
Q

What is Lionheart?

A

An independent charity run specifically for RICS professionals.Confidential advice & support.

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7
Q

Your set up your own practice tomorrow, what do you need to do?

A
  • Inform the RICS
  • responsible principle
    -register with RICS regulation
    -Insurances
    -client account
  • Complaints handling procdure
  • Staff training and CPD
  • Use of designations
  • register with companies house & for VAT
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8
Q

What must RICS Regulated firms have and produce?

A
  • Complainst handleing system
  • PII
  • Annual returns submitted to RICS
    -25% + partners are MRICS, Responsible principal
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9
Q

What must you do when closing a practice?

A
  • Inform RICS
  • return clients money
  • Inform PII
  • Provide run-off cover
  • retain client files for run-off period
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10
Q

What does the royal charter mean with regards to RICS?

A
  • Consumer protection and example of prestige for body
  • self governance
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11
Q

What are the bye-laws

A

Bye-Laws sit under the royal charter and form the laws for the RICS. Regulations sit under the Bye- laws. - BYE LAW 2 - Membership and registration

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12
Q

Why do you want to become a charted surveyor?

A

To be recognised as a professional capable of providing a high level of service

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13
Q

You suspect money laundering is occurring, what do you do?

A

Consider informing the national crime agency by sending a suspicious activity report

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14
Q

What is the RICS Matrics?

A

A body aimed at newly qualified surveyors. APC support, CPD sessions and networking.

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15
Q

What are the RICS requirements for qualified members?

A

Minimum of 20hrs a year CPD (min 10hrs formal) submitted 31st Jan every year, professional & ethics standards every 3years. Failure = fixed penalty caution, on record 10years, 2nd £150, 3rd disciplinary panel (expulsion

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16
Q

What do you do if a client overpays you?

A

Return excess funds including any interest that has accumulated.

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17
Q

Name different types of documents the RICS produces and what they require.

A

Professional statments - mandatory requirements - RICS Property Measurement Professional Statement, CoI, CB/C/ML&TF, CMH.
Guidance notes - recommendations - RICS SS. CoMP, TDDofCP
RICS Code of Practice - mand / recommended - approved by RICS,
International standard - mand,
RICS Info Paper - best practice.

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18
Q

Name 2 cases relating to negligence.

A
  • Donoghue v Stevenson 1932 - Donoghue drank a bottle with a snail in it, manufacturer owed a duty of care to customer.
  • Merrit v Babb (2001) - surveyor sued for negligence by former client when firms PII cover was cancelled when firm became insolvent.
  • Limitations Act restricts claims of negligence to 15years.
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19
Q

What does the Governing Council do?

A

Main governing body - sets strategy, provides oversight. Elected members from globe.

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20
Q

What does the management board do?

A

Direct RICS affairs under delegation from the governing council. Non members / members & executives

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21
Q

What does the Standards and Regulation board do?

A

Standards, entry & admission to the profession, education & qualification. Members & non members - reports to Governing Council

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22
Q

What does the Audit committee do?

A

Monitor integrity and effectiveness of financial reporting, internal control & risk management systems. Operates independently of the other boards.

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23
Q

Who sits on the Executive Team?

A

Justin young - CEO - responsible for products, pro standards, reputation

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24
Q

What does the Nominations Committee do?

A

oversees and approves changes to global appointments. - succession and planning for gov council - appointment panel - members and non-member

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25
Q

What does the Presidential Nominations Committee do?

A

Assists Gov Council in election of Seniour Vice Presient. Members, non members & executives.

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26
Q

What does the Remuneration Committee do?

A

Sets level of remunerations for seniouremployees. - salerys

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27
Q

What does the Finance Committee do?

A

Accounting globally.

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28
Q

What is the role of the World Regional Boards?

A

Deliver RICS strategy at world regional level, oversee plans and allocating resource.

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29
Q

What is the role of the Market Advisory Panel?

A

Advise Management Board on implementing 3year rolling research & activity plan, forming the RICS business plan. Members, executives & non member

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30
Q

What is the role of the Regulatory Tribunal?

A
  • provide an independent judicial body
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31
Q

Give an example when you have adhered to the 5 ethical standards:

A

1 - act with integrity and be honest and straightforward = when providing options for a refurbishment for Leeds i made sure to include all the relevant information, so they could make an informed decision

2 - Maintain professional competence- ensure services are provided by competent individuals. When undertaking a targeted inspection of damp in great moor coop i not large levels of wet rot in the floor joist . I advised the client that they should enlist a structural engineer to determine if the joists are salvageable

3 - Good Quality and diligent service - When undertaking any condition survey, i ensured to take a methodical approach. Recording down the weather taking plenty of photos and notes, and then display this in a Professional report in a logical order with my recommendations.

4Treat others with respect and encourage diversity - When undertaking surveys od the NHS I ensured to not take any photos with patients in. RLB - head of future professionals and undertook BFR .

5 - public confidence, take responsibility and prevent harm - When undertaking a condition survey at next store i noted that a fire exit was being blocked by storage - i informed the manager

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32
Q

What are the roles of the professional groups?

A

Provide technical advice - professional statements

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33
Q

What is IES?

A

International Ethical standards - to sustain critical roles of ethics in professional practice - RICSS founding member

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34
Q

What is the RICS’ opinion on diversity?

A

A priority of RICS, must become core of strategy, create inclusive workforce, eliminate discrimination and promote equal opportunities.

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35
Q

What is the RICS’ view on fee negotiations?

A

Negotiations are permitted - change to scope of service must allow competitors to adjust price, fee cutting and collusion avoided.

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36
Q

What is the internal structure of the RICS?

A

Diagram

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37
Q

What statuatory considerations must be made when setting up a business?

A
  • Buisness names Act - companies must disclose company infor
  • GDPR (General data protection regulation)
  • Money Laundering Act
  • Equality Act
  • HSWA
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38
Q

What penalties can the disciplinary panel issue?

A

Caution, Reprimand, Undertakings, Fines, Conditions on members continued membership, Condition on firms continued membership, Expulsion, Removal of firm.

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39
Q

What are the new rules brought in for firms?

A

Rules for the registration of firms - 2022

1- interpretation (what a firm, material change, member means)

2- communication (types)

3- firms required to register ( i.e firm providing services to the public)

4 - Firms eligible to register ( at least 25% of the firms principals are RICS members )

5- Registration of practice devisions (surveying services - rule 3 satisfied if the other divsions dont provide survying services ect

6 - Procedure for registraion - application to register to the RICS

7 - Responsible Principal - all firms must have - head of regulation must be satisfeied with them and must be either RICS member or (when nt practicable for the RP to be RICS - that they have suffient experience ect )

8 - Obligations of registration - comply with the rules of conduduct ect

9 - Deregistration

10 - review and appeal - descison by registraion panel - 28 days

11- limits on appliactions for registration and readmission

12 - publication

13 - Fees

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40
Q

What are the 5 principles for better regulation?

A

transparency.
consistency.
proportionality.
targeting.
accountability.

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41
Q

What are some of the recent topical issues you know of surrounding the RICS?

A
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42
Q

What is the RICS Ethics Desicion Tress?

A

If members are unsure if decisions are ethical, use the tree to arrive at the correct outcome.

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43
Q

What is a recent article you have read in Modus?

A
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44
Q

What do each of the coperate governance bodies do within the RICS?

A

Governing Council - main govt bidy, strategy / oversight.
Management Board - reports to Govt Council, oversee RICS affairs.
Regulation Board - standard setting, entry to the profession and regulatory process, penalties.
Audit Committee - monitors financial reporting / risk managment.

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45
Q

What can a member of the RICS recieve a fixed penalty for?

A

Rule 2 of Rules of Conduct in regards to Continuing Professional Development (CPD)
Professional Obligations under Rules of Conduct in regards to providing information to RICS
Rules 13 of the Rules for the Registration of Firms in regards to payment of Fees

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46
Q

What are the 3 types of conflicts of interest?

A

-Party Conflicts - duty conflicts between 2 clients relating to the same project. e.g dilaps on both sides

Own Interest Conflict - interests conflict with the person or firm,

Confidential Information Conflict - breaching confidential information from one party to another - Undertook schools applcaition for funding - was asked if nearby school had applyied

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47
Q

When should informed consent be used with regards to a conflict of interests?

A

Only when both parties have written confirmation for you to proceed / when no one else could possibly perform this task.

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48
Q

What is an information barrier and when is it used?

A

Used when members of the same company may be acting for competing clients. May use digital blocks, may be physical - work in meeting rooms

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49
Q

Give an example when you have experienced a conflict of interests.

A

I was asked to

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50
Q

What is monthly three way reconciliation?

A

Checking clients accounts against : bank statements, cash books and balance sheets

  • check for errors
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51
Q

What are the requirments of the Money Laundering, Terrorist Financing and Transfer of Funds (Information ot the Payer) Regulations 2017?

A
  • Undertake customer due dilgence checks, keep records of checks 5 years, maintain internal procedures to prevent, report to NCA with SAR (nATIONAL Crime agency with susipisious acrivy report)
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52
Q

What are the penalties of the Proceeds of Crime Act?

A

Principal offence - 14years & unlimited fine, Secondary offence - 5years & unlimited fine.

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53
Q

What do you know about the Terrorism Act 2000?

A

Offence if you have cause to suspect someone to be involved in financial activity with terrorists. Penalities - 15years.

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54
Q

What are the requirements of the RICS Professional Statement - counter bribery and corruption, money laundering and terroist financing?

A

Members - not accept bribe, knowledge of laws, report activity.
Firms - not accept bribe, procedures, gift register, max Euros10k for cash transactions.

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55
Q

What are some of the sections of the Serious Crimes Act a Chartered Building Surveyor needs to be aware of?

A

Proceeds of crime, computer misuse, protection of children, miscellaneous.

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56
Q

What is corruption ?

A

misues of public Office or power to gain private advantage or vice versa

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57
Q

What is Money laundering ?

A
  • Concealing the source of the proceeds of criminal activity to disguise their illegal orgin
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58
Q

What is reliance with regards to money laundering?

A
  • a party may rely upon thrid parties customer due diliance checks, however is still liable
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59
Q

What changes have been made by the RICS in regards to PII?

A

1 July 2024, RICS requires listed insurers to provide PII cover for fire safety claims for professional services carried out in respect of buildings 5 storeys and above on the following basis: Negligent act, error, or omission (rather than the full civil liability basis);

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60
Q

What is a bribe?

A

The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or breach of trust.

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61
Q

What laws are applicable to bribery?

A

Bribery Act 2010, Money Laundering Regulations, Proceeds of Crime Act 2002, RICS Guidance - Countering Bribery, Corruption, Money Laundering and Terrorist Financing

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62
Q

What is defined as an offence under the Bribery Act?

A

Section 1 - Offer of a bribe

Section 2 - acceptence of a bribe

section 6 - bribe of a foregin offical

Section 7 - not having adequate policies in a firm to deal with a bribe

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63
Q

What are the penalties for the above?

A

Up to 10 years imprisonment and unlimited fine for firms / £5k for personal.

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64
Q

What is a Politically Exposed Person?

A
  • a politically figure who is more likely to be at risk of bribery or corruption
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65
Q

What is unconscious bias and when have you over come this?

A

A unconscious favouring or discrimination to a social group or gender. I have encountered this within my work when the majority of people I work with have been from the same ethnic background. I attempt to overcome this by participating in educational days at schools in poorer communities to help develope surveying as a genuine career possibility.

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66
Q

Why did the RICS go from 12 ethical values to 5 standards?

A

The 5 cover what the previous 12 did, but more consise, designed to appeal globally.

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67
Q

Can disciplinary decisions be appealed?

A

Yes to the Appeal Panel - 7 days after decision

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68
Q

What are facilitation payments?

A

Payments to officials to speed up admin processes. Not illegal in all countries - illiage in the uk

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69
Q

How would you determine the level of insurance required for your new company in it’s first year?

A

Dependant on: projected TO, value of projects working on, risk of work undertaking.

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70
Q

What would you do if you thought you saw a colleague collect an unoffical cash payment?

A

I would report to the company’s money laundering officer & managing partner. I would consider reporting to the police if I was certain this was a bribe.

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71
Q

How do you ensure your company’s compliance with the RICS Rules for firms?

A

I would discuss the matters with the company’s responsible principle. I have recieved training on how the company complies with the rules for firms within my induction and recieve refresher training every 3years.

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72
Q

What are Royal Charters?

A

Granted by the sovereign, provides the organisation to to govern its own affairs

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73
Q

What ways can you get involved with the RICS?

A

Matrix events, Lionheart, Professional Groups, working groups, Insight Communities, Leaders forums, sector forums.

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74
Q

who is the CEO

A

Richard Collins

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75
Q

What does contra proferendum?

A

Judges will favour the party who hasn’t written the contract as the written party is deemed to have an advantage where there is ambiguity

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76
Q

What is Quantum Meruti?

A

Where work has been completed before a contract is signed, the contractor is legitmetly owed the price for the works

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77
Q

What is the role of the RICS?

A

Enforce industry standards by ensuring members work to a high professional standard and maintain ethical standards

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78
Q

What is collusion?

A

a non competitive secret, ullegal agreement between rival companies to disrupt market equilibrium

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79
Q

What is the new homes ombudsman

A

The New Homes Ombudsman Service (NHOS) was set up in 2022 to provide a free and independent service to people who have bought a new build home and have concerns about the buying process, snagging or building defects that arise within the first two years from reserving the property or completing the purchase.

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80
Q

You see that a colleague is having some unwanted attention from a male colleague and it has happened a few times, what action if any would you take and what is this?

A

Consider this as a potential form of workplace harassment. I would go and speak to the male colleague and tell him its not acceptable behavior, I would also report to my senior.

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81
Q

You set up your own business but you decide to go off on a skiing holiday for 2 weeks, you break your leg and the doctors say you must have complete bed rest and no access to emails or work phone, what do you need in place to cover this situation?

a

A

A Locum agreement

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82
Q

How many different types of RICS document statuses are there ?

A

RICS are in the process of reviewing its standards portfolio because the standards and regulation board wants to ensure that RFICS standards and advice documents are up-to date and easy to use

RICS have simplified their document structure :

  • Professional standards = Documents which set requirements for competent and ethical practice = existing professional statements and guidance - mandatory and recommended
  • example surveying safely
  • Practice information =documents provide advice or practice support to RICS members and firms = definitions, processes, toolkits, checklists, insights, research and technical information or advice. not mandartory
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83
Q

What would you do if you considered your directors advice to be incorrect ?

A

Consider :
* The implications of the advice
* Is it legal ?
* Discuss with managers, colleagues
* Refer to the Ethics decision tree

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84
Q

How does your behavior differ professionally and personally ?

A

My approach and behaviour does not change

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85
Q

What information is required by the RICS for registration and in the annual return?

A
  • Firm must be eligible to register = provides surveying services to the public - at least 25 % of the Firm’s Principals are RICS Members ( can be deemed satisfied if they have a plan to gain 25%/ supported by another RICS FIREM
  • Responsible principal ( l take all reasonable steps to ensure that the Firm complies
    with its regulatory and statutory obligations).
    Type of business and staffing detail
  • statutory regulated activities such as for finacial services
  • nature of clients
  • complaints handling procedure and records
  • professional indemnity insurance certificate
  • whether the firm holds client money
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86
Q

How do you keep up to date with current affairs and topic issues ?

A

On mailing list, office discussion, CPD email group, magazines and publications, modus

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87
Q

Why do you want to become chartered ?

A
  • gold standard in my profession
  • Offers guidance and support from RICSW
  • Designation will help my career
  • lifelong learning
  • Give back to up and coming surveyors
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88
Q

What is the RICS ethical decision tree?

A

The RICS decision tree assists me in making informed decisions, confirming my actions are ethical and legal

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89
Q

What are ethics?

A

Moral principles that govern an individuals behaviour.

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90
Q

Why are ethics important?

A

Act as an anchor to appropriate behaviour and ensure consistency and clarity in the market. It allows us to provide the best service for the client and recognise the wider public.

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91
Q

What does it mean to act ethically as a Chartered Surveyor?

A

Acting ethically means complying with standards and ensuring that you are acting on behalf of your clients best interests.

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92
Q

What are the three types of due diligence?

A

Simplified Due Diligence – Where you determine the business relationship is low risk of money laundering/terrorism
* Enhanced Due Diligence – for high risk customers and transactions with greater threat to financial sector
* New Customer Due Diligence – doing the checks to ensure your client is who they say they are.

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93
Q

What are the three benefits of regulation for firms?

A

CPS:

  • Confidence - for client as regulated firms are monitored by RICS regulation
  • Professionalism - firms have to provide clear, impartial and expert advice
  • Security - firms have to have recognised CHP, access to ADR and PII cover
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94
Q

Why does you firm have Terms of Engagement? What should be included in Terms of Engagement?

A

Creates a contract with the client and clear definition of what is expected and on what terms etc.

Sets out the proposed fee basis, payment of expenses and that a copy of the firm’s complaints handling procedure is available upon request.

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95
Q

How would you close down a practice?

A
  • Inform the RICS
  • Inform clients and arrange for them to be handed over to a new firm
  • Return any clients’ money
  • Set-up professional indemnity run-off cover for a minimum of 6 years
  • Retain of copy of client files and record for a minimum of 6 years
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96
Q

How long should files be kept for?

A
  • A minimum of 6 years before disposing and destroying them securely ( although can be sued for negligence for up to 15 years)
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97
Q

What do the new rules state about the use of the RICS logo and designation ?

A
  • Use of the RICS logo has been restricted to members and regulated firms only
  • The ‘regulated by RICS’ designation must be displayed clearly to ensure visibility
  • Prescribed text that must be included in the terms of engagement
  • Companies are only allowed to use ‘charted surveyors’ designation in trading name and not company name
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98
Q

How would you limit the risk of working with a client or contractor who may be financially unstable ?

A
  • Screening process:
  • Dun & Bradstreet credit check
  • Company search (Account information from companies house )
  • internet search (client website)
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99
Q

If your client asked you to lower your fees because of their limited funding, what would you do ?

A

The client would have to pay the required price for the level of service required or reduce the scope of works involved. I could consider if the scope of work could be reduced however on the client request i would not just lower my fees.

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100
Q

How do you know you are competent ?

A

Having the knowledge and skills to undertake an instruction. If you have dealt with that type of property and location and you’ve carried out that task, you are deemed as competent. This can be defined as :

  • Skills
  • Knowledge
  • Attitude
  • Training
  • Experience
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101
Q

Can you advise somebody as an individual ?

A

Unless you have the correct insurances in place, you should not be giving any professional advice to anybody, friend or family or strangers. I would advise them to contact me during normal working hours as long as it does not become a conflict of interest and TOE can be defined etc.

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102
Q

How do ethics link with conduct rules?

A

Rules of conduct are a detailed description of how we are expected to carry ourselves and how to set the highest possible level of standard.

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103
Q

If faced with a situation that you felt was unethical, how would you proceed?

A

Using the decision tree:
* Do I have sufficient facts?
* Is the matter legal?
* Is it in line with RICS Professional and Ethical Standards?
* Have I consulted with appropriate people?
* Do I have clear reasoning in reaching my decision?
* Would I be content for my actions to be made public?
If answered no to any of the above, I would not proceed with the situation alone and would consult senior staff with direction on how to proceed.

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104
Q

Why are ethics important?

A

Prevents any issues with consistent behaviour
* Sets a standard of expertise and professionalism
* Promotes trust in the company and industry

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105
Q

What are the CPD requirements

A

Qualified/MRICS member – 20 hrs per year, min 10 hours formal
* Student member – 48 hrs per year (Min 24 formal)

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106
Q

What is the difference between formal and informal training ?

A

Formal has learning objectives and a defined learning outcome, i could reference the CPD decision tree for further guidance

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107
Q

What is your CPD strategy ?

A

My CPD plan is dictated by my skills and or knowledge gap considering future requirements and sectors etc. This is review bi annually to confirm i am getting suitable and appropriate CPD to my role.

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108
Q

What is a complaints handling procedure?

A

A procedure to allow and define the procedure for clients to raise a complaint. This may include ADR and relevant timescales for the process.

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109
Q

What must a complaints procedure include? 28

A

The procedure must include an Alternative dispute mechanism approved by the standard and regulation board. The procedure can be based on the RICS forms. Issued with terms of engagement, nominated person also details investigated within 28 days, record the complaints, advise PI insurers of complaint etc.

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110
Q

What is a Complaints Handling Procedure ?

A

A firm must have a CHP and maintain a complaints log
* If there is a complaint, it must be addressed to the Complaints Handling Officer and handled within 28 days of receipt. If the complaint cannot be resolved, it can be referred to an independent 3rd party
* You can be your own Complaints Handling Officer as a sole practitioner but most refer it to a 3rd party

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111
Q

What must a complaints handling procedure include?

A

A form to fill out
* Redress mechanism
* Details should be issued to clients with the terms of business
* Clear, quick, transparent and impartial and free of charge
* Names and contact details of nominated investigating person must be stated
* Complaint must be investigated within 28 days
* All complaints and progress and outcomes must be recorded
* Advise PI insurers of a complaint
* Two stages: 1 – consideration, 2 – referral to third party

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112
Q

What options are available if you couldn’t resolve the complaint?

A
  • Property Ombudsman
  • RICS Dispute Resolution
  • Escalation
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113
Q

What is the property ombudsman?

A

Independent government approved body who provides redress to consumers whose complaints are considered on a case by case basis. They are not regulators and have no authority to take legal action or dictate action.

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114
Q

Where would you find the RICS requirements for professional indemnity cover ?

A
  • Regulation document
  • Professional indemnity insurance requirements
  • 2024
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115
Q

In relation to professional indemnity insurance, what is the minimum limit of indemnity for turnover under £100,000(in the preceding year )?

A
  • £250,000 = based on the predicted turnover based on the previous years turnover
  • RICS defines 3 levels of cover:
  • 0 -100,000 = £250,000
    -100,001 - £200,000 = £500,000
  • £200,001 + = £1,000,000 OF COVER
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116
Q

How many years after an instruction has been completed can a Professional Indemnity claim be made ?

A

15 years according to the limitations act

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117
Q

What type of cover would you need to cover a claim brought after a firm or member ceases to trade ?

A

run off cover

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118
Q

What cover do you need?

A

PII insurance - Professional indemnity insurance covers finacial loss, personal injury and property damage resulting from your negligent act or error while working for a client

PLI insurance - Public liability insurance is there to protect you if a member of the public is injured / property damaged

ELI - Employers liability insurance covers you and buisness if employee becomes ill or injured due to work

Building insurance

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119
Q

Why do you need PI insurance?

A

Why do you need PI insurance?

120
Q

What is the guidance for sums PI insurance?

A

Minimum levels of indemnity cover

  • up to £100,000 = £250,000
  • £100,001 - £200,000 = £500,000
  • £200,001 + = £1,000,000 of cover

Run off cover
- run off cover must also be held for a minimum of 6 years for a limit of £1 mil

Maximum uninsured excess
* Up to and including £10m = the greater of 2.5% of the sum insured, or £10,000
* Over £10m = no maximum

121
Q

What would you do if you dropped your camera on someone’s car bonnet during a survey?

A

Make numerous attempts to contact the owner to detail what has happened along with an sincere apology. If not available I would leave a note, take pictures etc. I would escalate this to the management team. This may prompt a claim under professional or public indemnity insurance.

122
Q

What status is the RICS Professional Indemnity Insurance Requirements document?

A

A regulation document

123
Q

When closing down a practice what sort of insurance should you take out?

A

Run off over = should last a minimum of 6 years for a limit £1 mil

124
Q

According to the PII Policy Document, if your firm turned over £137,500 in the previous year, what is the minimum level of insurance required this year?

A

£500,000 cover

125
Q

Who does PII protect ?

A

clients from financial loss, the firms from loss resulting in being able to continue trading.

126
Q

How long should the run off cover last for ?

A

RICS details a minimum of 6 years with £1 million per claim of cover.

127
Q

What is meant by each and every claim ?

A

This is one of the two types of cover/policy
* Each and every is cover for each claim that does not add up, the opposite is aggregates, where the claims and added up to a certain agreed value.
* You could have each and very claim up to £100,000 per claim or you could have £100,00 aggregate(which is a lot lower cover)

128
Q

What measures should be taken to try and avoid PI claims?

A
  • Keep full and detailed records of meetings, conversations etc
  • Record recommendations and advice given
  • Use proper letters of engagement, scope of services and terms of engagement
  • Don’t advise on a specialism outside your field of experience
  • Use RICS guidelines
  • Avoid poor management and excessive workloads
129
Q

What if the loss exceeds the cover provided by the PII insurance?

A

The professional / firm is liable for the difference – in assets etc

130
Q

What basis should PII be underwritten ?

A

On a claims made basis

131
Q

What does claims made basis mean ?

A

It means that the
relevant policy for any claim is the policy in place when the claim
is made (not when the work is provided to the client, or any other
time)

132
Q

What is the significance of claims made basis ?

A

Promotes the need for run off cover

133
Q

How long after negligent act can a claim be brought (financial loss/property )

A

15 years

134
Q

how long should run off cover be around for ?

A

Contract under hand = 6 years, a deed - 12 years, 15 years under the limitations act

135
Q

What is run off cover ?

A

Run off’ insurance is professional indemnity insurance which covers the historic liabilities of a business and its directors when the business ceases or is acquired.

136
Q

How can you avoid the chance of claims ?

A
  • Keep full and detailed records of meetings, conversations etc
  • Record recommendations and advice given
  • Use proper letters of engagement, scope of services and terms of engagement
  • Don’t advise on a specialism outside your field of experience
  • Use RICS guidelines
  • Avoid poor management and excessive workloads
137
Q

What does PII stand for ?

A

Professional Indemnity Insurance - there to protect the client, surveying and profession in the event of financial loss as a result of neglect, error or omission.

138
Q

What benefits does PII provide for the profession ?

A

Protected from financial loss, improve trust in the profession,

139
Q

What basis should PII be underwritten ?

A

On a claims made basis

140
Q

What types of insurance will you require and why?

A
  • PII insurance - Professional indemnity insurance covers financial loss, personal injury and property damage resulting from your negligent act or error while you’re working for a client.
  • PLI insurance - Public liability insurance is there to protect you if a member of the public is injured (or their property is damaged) and your business is faced with a compensation claim as a result. It can cover you when you’re working at client sites or in public.
  • Employers Liability Insurance - Employers’ liability insurance covers you and your business for compensation costs if an employee becomes ill or injured as a result of the work they do for you. It’s legally required of all businesses with one or more employees.
  • Building Insurance (if you own your own premises)
141
Q

What else does the RICS guidance state with regards to PI insurance?

A
    • Insurance should be on an each and every claim basis rather than aggregated so that you have sufficient protection regardless of how many claims have been made against you
  • It is the policy in place at the time of the claim that is relevant, not the policy in place when the negligent work was carried out.
  • Policy should be on a claims made basis
142
Q

What should a PII policy contain?

A

Must be on a claims made basis
* Must be on an each and every claim basis
* Policy wording is written on a full civil liability basis
* Underwritten by a listed insurer
* Covers past and present employees
* Run-off cover
* Minimum level of indemnity required by the RICS

143
Q

Explain the term ‘each and every claim Basis’

A

The limit of indemnity covers each claim individually (instead of a accumulatively for that year, which is referred to as ‘in the aggregate’)

144
Q

The limit of indemnity covers each claim individually (instead of a accumulatively for that year, which is referred to as ‘in the aggregate’)

A

A full civil liability basis means if a claim isn’t specifically excluded, it’s included (as opposed to a ‘negligence only’ policy, where if a claim is not specifically included, it’s excluded)

145
Q

What happens to PII when you retire?

A

Run-off cover ensures firms, members and customers are not exposed to financial detriment in the period following a firm ceasing to trade or a member’s retirement

146
Q

How would you determine what is sufficient in terms of PII runoff cover?

A

Should be for a minimum of 6 or 12 years, depending on how the contract was executed, however negligence claims can be made up to 15 years after work was undertaken - advice from an insurance broker should be sought as to whether to maintain for the full 15 years

147
Q

What are the minimum levels of PII based on ?

A

Minimum level of indemnity is based on the firm’s turnover in the previous year (or estimated within a business plan for a new firm)

148
Q

What is meant by the term ‘maximum level of uninsured excess’?

A

The part of each claim the firm must pay for itself.

149
Q

In the RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing February 2019 - RICS Members and Firms must do what in relation to bribery and corruption ?

A

In relation to bribery and corruption RICS-regulated firms must:
* not offer or accept, directly or indirectly, anything that could constitute a bribe
* have plans in place to comply with applicable laws governing bribery and corruption, and ensure that these are followed
* report any activity they are aware of that breaches anti-bribery and corruption laws to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager
* act with due diligence to perform periodic written evaluations of the risks that face the firm and that may lead to the facilitation of bribery or corruption; in determining Countering bribery, corruption, money laundering and terrorist financing 6 RICS professional statement Effective from 1 September 2019 the appropriate level of due diligence, the firm may consider the type of business activities they engage in and the environment in which they operate
* retain information detailing how the firm has met the requirements of this professional statement.

In relation to bribery and corruption RICS members must:
* not offer or accept, directly or indirectly, anything that could constitute a bribe
* ensure that they have adequate knowledge of bribery and corruption to be able to comply with the requirements of this professional statement
* report any activity they are aware of that breaches applicable anti-bribery and corruption laws to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager.

150
Q

Can you name any Money Laundering Red Flags?

A
  • Cash-only buyers
    -an unusual sale price (too low or too high
  • payments from multiple/different source to counterparty
  • Funds provided by unknown third parties
151
Q

What due diligence do you apply in relation to money laundering ?

A

My company has a policy relevant to this, I would always air on the side of caution. For example as a business do not accept cash or cheque payments. Any red flag would be raised suitably.

152
Q

What is money laundering?

A

Concealing the source of proceeds of criminal activity to disguise their illegal origin. This may take place through hiding, transferring and/or recycling illicit money or other currency through one or more transactions, or converting criminal proceeds into seeming legitimate property.

153
Q

Client comes into your office with 10k cash to pay builder, what can you do?

A
  • decline
  • sublimit a suspisous activit report to the National Crime Agency (NCA)
  • HMRC guidance, which advise that necessary due-diligence should be completed to ensure the money is clean. HMRC advise that these checks should be done if these transactions are occasional and of a value of €10k and you are not registered high value dealers.
  • Under the Money Laundering Act 2007
154
Q

How would you advise the client to deal with the 10k cash?

A

I would advise that the money needs to be put into the bank and proof of where the money was obtained will also need to be shown to their bank as banks can become suspicious of irregular payments of large amounts.

155
Q

Why is real estate a money laundering risk ?

A

Money laundering through real estate transactions integrates black funds into the legal economy while providing a safe investment. It allows criminals to enjoy assets and derived funds having camouflaged the origin of the money used for payment.

156
Q

f you ran your own firms who would you report suspicious activity to ?

A
  • National crime agency (NCA)
    -HMRC
    -The Police
157
Q

Can you rely on someone else’s due diligence ?

A

No it is your responsibility to ensure the checks are suitable and sufficient.

158
Q

What is tipping off ?

A

the process of alerting the suspect party of a potential forthcoming investigation following the reporting of a potential red flag.

159
Q

Give me some examples of how your firm might comply with the Money Laundering Regulations.

A

we report cash payemets over 10k - HMRC considers a high value payment to be: a single cash payment of 10,000 euros or more for goods;

  • Carry out risk assessments to make sure that we take the necessary procedures when working with clients from high risk countries or high risk sectors.
160
Q

What are the principles of the Money Laundering Regulations?

A

Sets additional obligations for private sector firms working in areas of high money launder risk. Aims to stop criminals using professional services to launder money and to investigate large or regular cash transactions. You have a duty to report cash payments over £10K. Carry out risk assessments to make sure that you take the necessary procedures when working with clients from high risk countries or high risk sectors.

161
Q

If you were given a gift what would you do ?

A

Log in within the gift log, I may decline the gift taking into account timings and proportionality and my companies gift handling policy.

162
Q

Would you accept a gift from a contractor ?

A

I would take into account the proportionality and timings. If I did It would be logged in our gifts handling record.

163
Q

If you were offered a bottle of wine at xmas what would you do ?

A

Consider the proportion and circumstances of the gift, including the timings. In some cases this maybe include being aware of cultural differences.

164
Q

When would accepting or providing hospitality be acceptable ?

A

Once all the works are complete on site and the final account is agreed and there is no conflict of interest. Also consider the scale, time and suitability of the hospitality and or gift.

165
Q

What’s the difference between a gift and a bribe ?

A

a gift is a small gesture, a bribe is under the impression that some gain will result.

166
Q

what consititues a bribe under the bribery act 2010 ?

A

bribing a person: The act of bribing another person
Being bribed: Offences related to being bribed
Bribing a foreign official: The act of offering, promising, or giving an advantage to a foreign public official with the intent to influence them or obtain business
Corporate offence: A commercial organization is guilty of this offence if a person associated with it bribes another person to obtain or retain business

167
Q

Could you accept a gift or hospitality?

A

Consider the timing and proportionality. Could always check this against the guide in the Bribery Act 2010. Ensuring it does not influence decisions, should not be regular, should be openly received, keep a gift of the items received.

168
Q

What would you do if a contractor took you out for a coffee?

A

I would question the intentions firstly. If I felt like it was a genuine business reason, I would accept but offer to pay for myself and log the meeting in the companies gift register if they end up paying

169
Q

There is some case law relevant to PII and discusses the Liability of individuals. What is the name of the case law?

A

Merrett v Babb
Hart v Large

170
Q

Can you please expand on your knowledge of Merret Vs Babb ?

A
  • Considered if a professional employee was vulnerable to claims brought directly against them for advice given on behalf of their employers.
  • Essentially, an individual provided valuation advice and was negligent. The firm the person worked for did not have adequate run off insurance, the company shut down and the client made a claim which was passed to the employee that gave the advice.
171
Q

Can you please expand on your knowledge of Hart V Large ?

A

The Claimants brought claims in negligence against the architects instructed by the previous owners, the Claimants’ conveyancing solicitors and Mr Large. The claims against both the architect and the solicitors settled prior to trial.

Against Mr Large, the Claimants alleged that he was negligent in: (1) failing to recommend a full building survey, rather than HomeBuyer report; (2) failing to draw attention to the issues of water ingress / damp in the HomeBuyer report; and (3) failing to recommend that the Claimants obtain a professional consultant’s certificate.

The key take-aways from this case:
* Being clear on the report about the scope of inspection including limitations, caveats and actions available to the client;
* Recommending justifiable further investigation;
* Taking all reasonable steps to ensure clients understand the differences between the levels of service, including the extent and limitations of each option

172
Q

What is the RICS mission statement ?

A

To qualify and equip members to the highest standards
* To enforce those standards
* To lead solutions to combat challenges in the built environment

173
Q

When was the RICS founded ?

A

1868 - june 15th

174
Q

What are the key roles of the RICS?

A
  • mainatin the highest standrads of training and professional experience
  • protect customers and consumers through a strict code of ethics
  • provide impartial advice analysis and guidance
  • regulate and promote the profession
175
Q

Why do you want to join the RICS?

A
  • globally recognised professional body
  • higly regarded repuation which i want to be a part of
  • prpfessional status within my profession
  • lifelong learning/CPD
176
Q

What are the 5 principles of better regulations?

A

PACTT
* Proportionality
* Accountability
* Consistency
* Targeting
* Transparency

177
Q

What parts are there to the RICS?

A
  • Governing Council
  • Regulatory Board
  • Management board
  • executive team
    -president team
178
Q

Who is the president of the RICS ?

A

tina paillet

179
Q

What is the RICS motto ?

A

Est modus in rebes - there is measure in all things

180
Q

Why do you want to become chartered ?

A
  • gold standard in profession
  • offers guidance and support from RICS
  • Designation will help my career
  • i am committed to lifelong learning
181
Q

Who gave the RICS Royal Charter?

A

1881 by Queen Victoria

182
Q

What act covers discrimination ?

A

The Equality Act 2010, which came into force 1st October 2010

183
Q

What are the 9 protected characteristics of the Equality Act 2010 ?

A
  • Race & Ethnicity
  • Disability
  • Religion or belief
  • Age
  • Sexual orientation
  • Gender
  • Gender reassignment
  • Pregnancy & maternity
  • Marriage & civil partnership
184
Q

Where are you protected under the Equality Act ?

A

Within and outside of work

185
Q

What are the key principles for firms to prevent Bribery ? PCR CDM

A

1) Proportionality - are the proceedures proportionate to the briabry risk
2) Commitment - zero tolarence
3) Risk assessment - assess extend of exposure to bribery
4) Communication = training
5) Due Diligence - credit checks - interviews
6) Monitoring and reviewing = assess policys

186
Q

When did the bribery act 2010 come into force ?

A

01st july 2011

187
Q

What is the name of the RICS guidance on bribery and money laundering and when is it effective from ?

A

Professional Statement (Mandatory) - Countering bribery and corruption, money laundering ad terrorist financing, 1st edition, February 2019

188
Q

What due diligence do you apply in relation to bribery ?

A

My company has a policy relevant to this, I would always air on the side of caution. For example as a business do not accept cash or cheque payments.

189
Q

What is bribery ?

A

The offer, promise, giving, demanding to acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.

EVIC - Exchange of value for an improper cause

190
Q

What is the bribery act ?

A

The bribery Act 2010details 4 offences as :
- giving a bribe
- receiving a bribe
- bribery of an official
- no procedure in place

191
Q

What is corruption

A

The misuse of public office or power for private gain, or misuse of private power in relation to business practice and performance

192
Q

What are the principles for mitigating bribery ?

A

Suitable procedure in place, training,

193
Q

What’s does the bribery act 2010 say about hospitality/gifts ?

A

Consider timings, reasonable, cultural differences.

194
Q

What is a facilitation payment ?

A

A facilitation payment is a type of bribe - a common example is where a government official is given money or goods to perform (or speed up the performance of) an existing duty.

Facilitation payments were illegal before the Bribery Act came into force and they are illegal under the Bribery Act, regardless of their size or frequency - but are not illegal in all countries.

195
Q

What is the difference between a bribe and an offer of hospitality ?

A

A bribe is expecting an offer of unfair advantage to something, you must consider the proportionality and timing of the offer.

196
Q

Can you amme some bribery warning signs

A

Agreeing contracts not favourable to the organisation either with regard to terms or time period
Missing documents or records regarding meetings or decisions
* Firm procedures or guidelines not being followed
Lavish gifts or hospitality being given or received
Private meetings with public contractors or companies hoping to tender for contracts

197
Q

Who does the crown prosecution service prosecute on behalf ?

A

National crime agency, HMRC, The Police , crown prosecution service.

198
Q

Are you familiar with any RICS guidance on money laundering ?

A

RICS Professional standard on Countering bribery,
corruption, money laundering
and terrorist financing 2019

199
Q

What is a PEP ?

A

Politically exposed person

200
Q

What act governs bribes ?

A

The Bribery Act 2010, this came into affect on 1st July 2011

201
Q

can you tell me some headings of The Bribery Act 2010 ?

A

1.Offences of bribing another person

2.Offences relating to being bribed

3.Function or activity to which bribe relates

4.Improper performance to which bribe relates

5.Expectation test

Bribery of foreign public officials

6.Bribery of foreign public officials

202
Q

Which factors did you take in consideration to make your decision regarding the gift? (RICS decision tree)

A

Checked the cost of the gift
* Check if it was given to just me or the company and at an appropriate time?
* Is it reasonable?
* Is it a bona fide expenditure?

203
Q

What is the definition of IESC ?

A

International Ethics Standards Coalition

204
Q

The International Ethical Standards will serve as what?

A

An anchor to appropriate behavior, Consistency and clarity

205
Q

Why are the Professional and Ethical Standards so important?

A

60% of global wealth is in land and real estate and 50% of property transactions are international

206
Q

What is the purpose of the International Ethics Standards (IESC) ?

A

The International Ethics Standards Coalition for construction and property promotes ethics in professional practice to meet global market needs and uphold public trust through principles such as

accountability,
confidentiality,
conflict of interest management, financial responsibility,
integrity,
lawfulness,
reflection,
service standards,
transparency, and trust.

207
Q

What is the obligation of a RICS regulated firm ?

A

Avoid conflicts of interest, ensure competence, procedures for CPD, complaints handling procedure, suitable indemnity insurance, use of suitable designation, cooperate with RICS.

208
Q

What is a contact officer ?

A

The designated person to liaise between company and the RICS.

209
Q

What steps would you need to take to set up a proactive regulated by the RICS ?

A

Inform RICS
* Appoint a contact officer
* Register with RICS for Regulation
* Arrange suitable insurance (PI, PII, specific item insurance etc)
* Set up client business account for client money
* Complaints handling procedure
* CPD training
responsible person

210
Q

What is required to register a firm to RICS?

A
  • the firm provides surveying services to the public
  • the firm is operating in a regulated area
  • at least 50% of the firms princiapals are RICS members
211
Q

Which firms CAN volunteer to be regulated by the RICS?

A

If 25% of the principles are members, then it is voluntary to become regulated.

212
Q

Why would a firm volunteer to be regulated?

A

It allows you to use RICS designation and logo’s on marketing material to show that you offer the highest level of service and given the RICS reputation and access to clients, this would be beneficial to the company.

213
Q

As a sole practitioner, which additional safeguards do the RICS require? (for example if you are ill or pass away?)

A
  • Use of a locum who can complete any outstanding works and arrange for adequate run-off cover
  • third party named for the complainst handling
214
Q

Who can you use the RICS logo ?

A

RICS regulated firms and members

215
Q

Can you advise on what a conflict of interest is and how you would deal with it?

A

i was act to assisst with working on a project acting as PM for refurb project but my brother was working as the managing contractor - i declined and explained to my manager

An example of this would be where you may be asked to undertake work on behalf of a contractor but another part of the business is already working for the client on the same project. In these circumstances you would need to explain the situation to your prospective client and then politely decline the opportunity

216
Q

How do you undertake a conflict of interest check

A

We have a system that checks appointments based on information such as address, name and partied involved, in addition to verbal conversations between the surveyors.

217
Q

What is the difference between conflict avoidance and management ?

A

Conflict avoidance = method of reacting to conflict - avoid - confront the issue

conflict management = is the process of limiting the negative aspects of conflict while increasing the positive aspects of conflict. The aim of conflict management is to enhance learning and group outcomes, including effectiveness or performance in an organizational setting

218
Q

What is a conflict of interest?

A

An individuals personal interest family, friendships, financial, or social factors – could compromise his or her judgment, decisions, or actions in the workplace

219
Q

What information barriers does your firm have in place?

A

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

220
Q

How would you proceed if a client was insistent that you continued to work for them despite a conflict of interest?

A

Check their understanding of reduced impartiality
* Seek letter of instruction to continue
* Agree working procedures to manage the conflict
* Keep them updated of any risks
* Seek informed consent

221
Q

What are the RICS Bye-Laws?

A

1) Application and definition

2)Membership and Registration

3)Designations

4 ) Contribution to funds

5) Conduct

6 ) Governing Council, officers and staff

7 ) Subordinate boards, committees and groups

8) Procedure for general meetings

9 ) Accounts and audit

10) General

222
Q

What are the penalty’s for non compliance with the RICS?

A
  • Fixed penalties
  • Regulatory Compliance orders
  • Regulatory sanctions which may be imposed by a Disciplinary or Appeal Panel (the ‘Panels’) or a Single Member of the Regulatory Tribunal
223
Q

Do all firms need to be regulated by the RICS ?

A

Any firm where 50% of its partners and directors are RICS members must be regulated. a firm of less than 50% may still register if they wish. If there are no RICS members the firm cannot be registered.

224
Q

Why does the RICS have rules of conduct ?

A

To provide a framework for all members to work towards resulting I clients having trust in the profession, helps to guide the institution members

225
Q

What is a regulatory compliance order ?

A

an agreement between rics and member that they are liable for a disciplinary action could be from falling short of standards such as CPD

226
Q

What is a fixed penalty

A

Administrative fine issued by RICS when a member fails to provide the information requested, remains upon members record for a defined period

227
Q

What were the main changed to the rules for firms and members ?

A

changed to the 5 rules of conduct to make a more simpler structure

228
Q

What are the new RICS rules of conduct ?

A

Rule 1 – Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Rule 2 – Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Rule 3 – Members and firms must provide good-quality and diligent service.
Rule 4 – Members and firms must treat others with respect and encourage diversity and inclusion.
Rule 5 - Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

229
Q

Have you ever been involved with Client accounts?

A

No, however I am aware that my firm operates a Client Money Handling procedure. And the RICS have numerous guidance documents etc. -client money handlining 2020

230
Q

What do you have to do if you are handling clients’ money?

A

Separate bank account
* Client have access to money on demand
* Accurate records must be kept. Agree interest with client
* Use only in agreed draw down amounts
* Check where it comes from – not money laundering
* Can implement RICS Client Money Protection Scheme (£50k recoverable)

231
Q

Can you give me some examples of clients money ?

A

Money collection from service charge, money collect from ground rent, money collected from rent.

232
Q

Can you give me some example of office money ?

A

Money collected for an agreed fee

233
Q

Having an RICS Clients’ Money Protection Scheme in place allows what?

A

Allows firms to offer their clients the security of knowing their money is protected

234
Q

What are the objectives of the RICS clients money protection scheme ?

A

To keep client Money safe, To ensure client money is only used for appropriate purposes, To ensure RICS regulated firms have appropriate controls and procedures in place to safeguard client money

235
Q

Which advice would you give to a client who would like to pay for your fees in advance?

A

I can accept the money if I was sure that it did not facilitate money laundering and I would need to comply with the RICS professional statement for handling clients money. I would inform the client that the money would not be protected by the RICS client money protection scheme which doesn’t cover payment of services in advance.

236
Q

If your company started to deal with clients money, would you need to notify the RICS? Why?

A

If you hold clients money, you must join the protection scheme as part of the rules of registration.

237
Q

What is an escrow account?

A

It is a separate holding account controlled by an independent third party that releases the payment subject to agreement from both parties consenting

238
Q

Give me an example where you have shown integrity?

A

During a feasibility study of refurb project, i advised my client that their would be the requirement to undertake an asbestos survey of the project despite the building being built in 1999 due to the potentail (alothough unlikly ) risk of tehir being asbetso

239
Q

In the RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing February 2019 - RICS Members and Firms must do what in money laundering and terrorist financing ?

A
  • Prohibit involvement in money laundering or terrorist financing.
  • Implement systems and training to ensure compliance with laws.
  • Report suspected illegal activities to relevant authorities or senior management where no legislation exists.
  • Periodically assess and mitigate risks in business relationships.
  • Conduct due diligence on clients and customers; verify identities.
  • Accept third-party reliance only when standards meet legal requirements, but retain ultimate responsibility for risk assessment.
  • Understand client transactions and their purpose.
  • Document and retain evidence of compliance.
240
Q

What third party redress does your company use ? and why ?

A

My company uses the property ombudsman, as this is suited to our type of instruction and buisness

241
Q

What is property ombudsman

A

Goverment approved scheme
ADR

242
Q

Have you ever had to deal with a complaint ?

A

No i havent but i would refer to the professional standard complaints handling

243
Q

Can you give me some example behaviours from Rule 1 (RICS Rules of Conduct) ?

A
  • members dont mislead others by their actions
  • members dont allow others to influence them
  • identify conflicts of interest
  • open and transparent
244
Q

Can you give me some example behaviours from Rule 2 (RICS Rules of Conduct) ?

A
  • only undertake work they have knowledge and skills to do so
  • supervisors ensure employees have the knowledge skills and resources to do tasks
  • ensure subcontractors have the knowledge, skills and resources to do their tasks
  • members reflect and lessons learnt
245
Q

Can you give me some example behaviours from Rule 3 (RICS Rules of Conduct) ?

A
  • understand clients needs and objectives before accepting
  • agree scope of services , limitations and timescales
  • undertake work in a timely manner with due care, skill and dilligence
  • communicate with clients in clear manner
246
Q

Can you give me some example behaviours from Rule 4 (RICS Rules of Conduct) ?

A
  • respect rights others and treat with courtesy
  • treat fairly and dont discriminate inlcuing against the 9 protected charterstics
    -do not bully, victimise or harass
  • work cooperatively with others
  • inclusive culture in their workplace
247
Q

Can you give me some example behaviours from Rule 5 (RICS Rules of Conduct) ?

A
  • question practices and decisions that they suspect are not right, raise concerns with senior management - firms provide processes for concerns raised
248
Q

What is included within Appendix A from the RICS Rules of Conduct ?

A
  • professional obligations to RICS
  • Must comply with CPD requirements
  • cooperate with RICS
  • FIRMS MUST PUBLUCSH COMPLAINT HANDLING PROCEDURE
249
Q

can you expand on your knowledge of Conflicts of interest

A

Personal - family or friend involved or could benefit yourself. E.g. client requests a named s/c that your friend / family member owns.

Project - where not acting in interest of client / own company - e.g. asked to undertake private work for a subcontractor whilst working for a main contractor the s/c is working with.

Confidential Info - you are informed of / come across information not in the public domain that could impede your decision / been seen to impede. Or where you share information considered to be confidential on a project i.e costs / details.

250
Q

What is the RICS doc linked to bribery ?

A

Countering bribery and corruption, money laundering and terrorist financing - professional standard 2019

251
Q

What measures must you introduce regarding money laundering and terrorist financing ?

A
  • having training
  • reporting any suspicious act to the national crime agency or HMRC Fraud Hotline
  • take appropriate measures to understand the client and the purpose of the transaction
  • verify the identify of the client
  • Evaluate and review periodically the risks that prospective and existing business relationships present in terms of money laundering or terrorist financing offences taking place
  • Record and retain information detailing how the firm has met the requirements of this professional statement.
252
Q

What sort of thing would you record to ensure clarity regarding bribery ?

A
  • Gifts
  • hospitality, entertainment
  • customer travel
  • political contribution
  • charitable donations and sponsorships
  • potential conflicts of interest
253
Q

What is a facilitation payment (Bribery) ?

A

A payment to induce officials to perform routine functions in certain favour

254
Q

What acts are there linked to anti money laundering ?

A

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

Proceeds of Crime Act 2002

255
Q

What are the potential penalties for money laundering ?

A
  • 14 years in prison
  • unlimited fines
256
Q

Would you you report money laundering to ?

A
  • NCA
  • Police
  • HMRC
257
Q

What should a firm have in place regarding anti money laundering?

A
  • systems and training
    -measured to understand clients
  • evaluate and review
  • record and retain information
258
Q

What are money laundering red flags ?

A
  • cash only buyers
  • unusual sale price
  • payments from multi sources
  • excessive or rapid transaction timings
259
Q

what are the principles of the bribary act 2010? pcrdcm

A

Principle 1: Proportionate procedures

Principle 2 : Top level commitment

Principle 3 : Risk Assessment

Principle 4 : Due Diligence

Principle 5 : Communication (training

Principle 6 : Monitoring and review

260
Q

What is the value the planet campaign ?

A

A campaign launched by the RICS promoting its member to promote preservation of the planet through the implementation of the UN’s sustainable development goals (SDG).

261
Q

What are the rights under GDPR

A

The right to be informed
Access
rectification
erasure
restrict processing
data portability
object
automated decision making and profiling

262
Q

What are the principals of GDPR ? LADSPAS

A
  • Lawfulness, fairness and transparency
    accuracy
    data minimisation
    storage limiation
    purpose limitation
    accountability
    security/integrity and confidentiality
262
Q

What do/can the RICS impose on members and firms for non compliance ?

A
  • Fixed penalty
  • regulatory compliance order
  • disciplinary panel
263
Q

Can you give me heading or contents from the RICS Surveying Safely Document ?

A
  • personal responsibilities for RICS members and corporate responsibilities for RICS-regulated firms
  • Relevance to RICS professional groups
  • Assessing hazards and risks
  • RICS members’ places of work
  • Occupational hygiene and and health
  • visiting premises or sites
  • Fire safety
  • residentail property surveying
  • general procurement and mangement of contractors
264
Q

what are the updates to surveying safely ?

A

safe person concept
* Consideration of the HASAWA 1974
* Fire safety
* Risk control hierarchy

265
Q

Under RICS guidance notes Surveying Safely, who is primarily responsible for your wellbeing on site?

A

Yourself

266
Q

Why does the RICS have rules of conduct ?

A

To provide a clear framework for all to work to. Everyone working from the same standards.

267
Q

When would you look at the RICS ethical decision tree for guidance ?

A

Receiving a gift
whistle blowing
equal opportunities
COI

268
Q

Regarding PII insurance wHAT is a claims made basis ?

A

The insurance policy in place at the time of the breach covers the claim

269
Q

Where did ethics come from?

A

Exploring why we think the world should be a certain way.

270
Q

what is the new rules for of measurement ?

A

NRM provides a standard set of measurement rules and essential guidance for the cost management of construction projects and maintenance works.

NRM 1 : Order of cost estimating and cost planning for capital building works - ensures clients are advised of and have confidence in the quality and consistency of the cost information being provided to them.

NRM 2 : Detailed measurement for building works - is accompanied by supporting templates available as downloadable Excel files to assist users with the preparation of estimates and cost plans that are in accordance with NRM 2.

NRM 3: Order of cost estimating and cost planning for building maintenance works - links the cost analysis of the capital cost of a construction project with consideration of whole-life-cycle costing, and provides the tools to enable a seamless transfer of cost information from the construction team to the asset management team. In this respect, the use of BIM increasingly plays a significant part in the analysis of cost information

271
Q

can you name some RICS professional standards?

A
  • surveying safely
272
Q

Can you name some RICS Practice information?

A
273
Q

What is the period you can submit your cpd ?

A

CPD activities must be completed by 31 December and recorded online by the following 31 January.

274
Q

What is the RICS Business plan ?

A
275
Q

How often do you calibrate your disto ?

A

Every 6 months or after i damage to the unit

276
Q

Who would you report modern slavery to ?

A

NCA, there is also a freephone helpline

277
Q

Tell tales of modern slavery ?

A

Under the control of someone else
* Reluctant to talk to strangers
* Appear frightened
* Few belongings
* Language barrier

278
Q

what is rule 1 of the rules of conduct and can you name so examples ?

A

members and firms must be honest, act with integrity and comply with their professional obligation, including those to RICS

  • must identify conflicts
  • transparent and open with clients about fees and services
  • gifts
  • offered a bottle of wine
279
Q

what is rule 2 of the rules of conduct and can you name so examples ?

A

Members and firms must maintain their professional competence and ensure the services are provided by competent individuals who have the necessary expertise

  • only undertake work they have the knowledge and skills to - asked to undertake a measured survey i advised I hadn’t undertaken one before, asked for advise
  • employees and subcontractors have the skills
    -CPD
280
Q

what is rule 3 of the rules of conduct and can you name so examples ?

A

Members and firms must provide good-quality and diligent service .

-clients needs and objectives
- agree scope of service
- communication
-records

281
Q

what is rule 4 of the rules of conduct and can you name so examples ?

A

Members and firms must treat others with respect and encourage diversity and inclusion
- respect rights and treat others with courtesy
- dont discriminate
- dont bully
- work cooriptely

282
Q

what is rule 5 of the rules of conduct and can you name so examples ?

A

Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the professions

  • question practices and descisions
  • respind to complaints
  • manage professional finaces properly
283
Q

What is the proceeds of crime act 2002 ?

A

The Proceeds of Crime Act (POCA) 2002 criminalises the use of any property, such as money, shares and goods, that has been obtained through criminal conduct. Examples include tax evasion, bribery and any benefits received as a direct result of a business failing to comply with UK law.

284
Q

What are the offences under the proceeds of crime act 2002 ?

A

These offences relate to the concealing, disguising, converting, transferring, acquisition, use and possession of criminal property, as well as an arrangement which facilitates the acquisition, retention, use or control of criminal property

285
Q

Can you name some recent modus articles you have read ?

A
286
Q

What would you need to do if you notice miss appropriation of funds within your firm ?

A

Should clients’ money be misappropriated, the firm must inform RICS and, where appropriate, the police and their insurers.

287
Q

If a COI arises and the client insists that you continue to act anyway, what are the conditions for being able to continue with the instruction?

A

Ensure there is no legal considerations, i am competent to complete the works, ensure to source informed consent and consider the information barrier internally

288
Q

In relation to Surveying Safely professional standard, can you list the organisational responsibilities relevant to companies?

A
  • corporate structures to manage health and safety
  • lines of accountability
  • policy and procedures
  • identification and management of foreseeable risk
  • training and information
  • process to manage contractors
  • insurances
289
Q

In relation to Surveying Safely professional standard, can you list the personal responsibilities relevant to companies?

A
  • appropriate training
  • keep up to date with the relevant information
  • personal experience
  • awareness
  • vigilance
  • safe person concept
290
Q

What is the safe person concept ?

A

Individual assumes individual behavioural responsibility for their own, their colleagues; and others’ health and safety while at work

291
Q

What is clients money ?

A

Money of any currency (whether in the form of cash, cheque, draft or electronic transfer) that An RICS-regulated firm holds for or receives on behalf of another person, including money held by a regulated firm as stakeholder and∫ is not immediately due and payable on demand to the RICS-regulated firm for its own account, excluding fees paid in advance for professional work agreed to be performed, and clearly identifiable as such, unless the fees are for work undertaken as a property agent as defined by the Rules of the RICS Client Money Protection Scheme for Property Agents.

292
Q

What are the common issues firms face with clients money ?

A
  • reconciliation = comparing the accounting record cash balance against the cash balance on the bank statement -issues - not being completed on a regular basis
  • lack of review and approval of reconciliations
  • Insufficient verification of changes to payee bank details
293
Q

What is the Client Money Protection Scheme ?

A

CMP schemes protect client money (such as rent and deposit monies) which is received by agents. Their schemes make sure landlords and tenants are compensated if an agent cannot repay their money, for example if an agent goes into administration. Membership of a CMP scheme is a legal requirement from 1st April 2019

294
Q

What are the two general categories of money ?

A

All money held or received in the course of practice can be categorised as either client money or office money

295
Q

You mention third party support, where do your competence end ?

A

Dependent on the work, Competence is defined by
* Skills
* Knowledge
* Attitude
* Training
* Experience

296
Q
A

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