Ethics Flashcards
1
Q
What are the hot topics RICs have recently looked at that impact you as a QS?
A
- Changes to NRM (in line with RIBA stages, Code of measurement & ICMS)
- Ethics Rules changing in Feb 2022
- COP26 - value the planet & sustainability:
- RICS implementing UN Sustainable Development Goals:
- RICS guidance on Resource Management: Improving Efficiency and Reducing Waste
- SKA ratings
We can be:
- Mindful of WLC
- Accountable
- Collaborative - PII requirements - added fire following grenfell
2
Q
What is your RICS membership number?
A
1234950
3
Q
Who is the president of the RICS?
A
Clement Lau (Sept 2021)
4
Q
Who is the president elect of the RICS?
A
Ann Gray
5
Q
Who is the vice president of the RICS?
A
Tina Paillet
6
Q
Who is the head of regulation in the RICS?
A
Dame Janet Paraskeva
7
Q
Who is the head of the privy council?
A
Lord President - Jacob Rees Mogg
8
Q
Who is the CEO RICS?
A
Richard Collins (Oct 2021) - Interim - replaces sean tompkins
9
Q
How many members of the RICS are there?
A
140,000 across 146 countries
10
Q
What is the RICS London HQ address?
A
12 Great George Street (Parilament Square)
Westminster
London
SW1P 3AD
11
Q
What does RICS stand for?
A
Royal Institution of Chartered Surveyors
12
Q
What is the role of the RICS?
A
Regulate and promote the profession
Maintain the highest educational and professional standards
Protect clients and consumers through a strict code of ethics
Provide Impartial Advice, analysis and guidance
13
Q
What are the RICS ethical standards?
A
STIRR: Always Provide a High Level of Service Act with Integrity Act in a way that promotes Trust in the profession Treat Others with Respect Take Responsibility
14
Q
What is the Carsberg report?
A
A third party review of how the RICS regulates itself.
Recommended greater separation of regulatory and representational functions.
Recommended chartered surveyors should still be regulated by the RICS but that this should involve separate regulatory and conduct boards.
15
Q
What are the various RICS statuses?
A
Trainee Student Graduate Assoc RICS Member RICS Fellowship RICS
16
Q
How many RICS professional groups are there?
A
18
17
Q
Name some RICS faculties.
A
Quantity Surveying Building Surveying Project Management Valuation Facilities Management Dispute Resolution
18
Q
What is the ISO Standard for anti-bribery?
A
37001
19
Q
What is the ISO Standard for Corporate Social Responsibility?
A
26000
20
Q
What are the rules of conduct for members?
A
There are 9 - ICE CSCSIC
Interpretation - member means a chartered surveyor, non charted member of honorary member
Communication - RICS will communicate via post, email, telephone, fax, or in person
——————–
Ethical Behaviour - at all times act with integrity, avoid conflicts of interest, and avoid situations inconsistent with professional obligations
Competence - members shall carry out their professional work with due skill, care and diligence and with proper regard to the technical standards expected of them
Service - members shall carry out their work in a timely manner and with propoer regard for standards of service and customer care expected of them
Continuing Professional Development (CPD) - members shall comply with RICS requireiments in relation to CPD
Solvency - members shall enure that their personal and profesional finances and managed appropriately
Information to RICS - Members shall submit in a timely manner such information and in such form that the regulatory board may reasonably require
Co-operation - Members shall fully cooperate with RICS staff and any person appointed by the regulatory board.
21
Q
What are the rules of conduct for firms?
A
There are 15 AS above plus - CCPAAD
Interpretation - “Providing a surveying service to the public,” any services that are considered within the responsibility of the RICS. “Contact Officer” is individual designated by the firm to be the main liaison point between the RICS and the firm and the person authorised by the firm to submit the annual return. “firm” is a partnership, LLP, whole or part of a body corporate or unincorporated practice or sole practitioner concerned with the business of surveying which is regulated by the RICS or equivalent in any other part of the world.
Communication - See rules for members
———————
Professional Behaviour - See rules for members
Competence - See rules for members
Service - See rules for members
Training and CPD - A firm shall have in place all necessary procedures so that all its staff are properly trained and competeant to do their work
Complaints Handling Procedure - A firm shall operate a complaints handling procedure and maintain a complaints log. The complaints handling procedure must include an alternative dispute resolution mechanism that is approved by the regulatory board
Client’s Money - A firm shall preserve the security of Client’s money entrusted to its care in the course of its practice or business
Professional Indemnity Insurance - A firm shall ensure that all previous and current professional work is covered by adequate and appropriate indemnity cover which meets standards approved by the Regulaotry Board.
—————————————–
Advertising - A firm shall promote its professional services only in a truthful and responsible manner
Solvency - See rules for members
Arrangement to cover incapacity or death of a sole practitioner - a firm that has a sole principal shall have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absense
Use of Designations - A firem registered for regulation must display on its business literature in accordance with the Regulatory Boards published policy on designations, a designation to denote that it is regulated by RIC
Information to the RICS - See rules for members,
Co-operations - See rules for members
22
Q
What do you know about the new rules of conduct
A
Released in October 2021, come into effect in Feb 2022
Replace rules for individuals & firms and rules of conduct
Based on behaviours & sustainability
New Rules:
- Members & firms must be honest, act with integrity and comply with their proffessional obligations including obligations to the RICS.
- Members & firms must maintain their proffessional competence and ensure services are provided by competent individuals who have necessary expertise.
- Members & firms must provide good qulity & diligent service.
- Members & firms must treat others with respect and encourgae diversity and inclusion.
- Members & firms must act in public interest, take responsibility for thier actions and act to prevent harm and maintain trust within the proffession.
23
Q
What is the RICS black book?
A
A suite of guidance notes that define good technical standards for Qs & construction proffessionals
24
Q
What are there RICS black books on?
A
Acceleration - Capital Allowances - Commercial Management of Construction
Conflict Avoidance and Dispute Resolution - Cost Reporting - E Tendering
Construction Security and Performance Documents - Extensions of Time - Final Account Procedures
Defining Completion of the Works - Employers Agent D&B - Extentions of Time
Interim Valuations and Payment - Life Cycle Costing - Management of Risk
Lenders Independent Monitoring Surveyor - Retention - Tendering Strategies
Termination of Contract, Corporate Recovery and Insolvency
Value Management and Value Engineering - Valuing Change - Cashflow Forecasting
Cost Analysis and Benchmarking
25
Are guidance notes compulsory to follow?
No. However if there was a case of professional negligence, the court would take into consideration whether or not guidance notes were followed.
26
Are practice notes compulsory?
Yes.
27
What is an RICS Code of Practice (CoP)?
A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note.
28
What is an RICS professional Statement (PS)
Mandatory requirements for RICS members and regulated firms.
29
What is an RICS Guidance Note
A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
30
What is an International Standard
High-level standard developed in collaboration with other relevant bodies - MANDATORY.
31
What is an RICS Jurisdiction Guide
This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally.
32
When was the Bribery Act introduced?
2010, came into force in 2011
33
What are the principles of the Bribery Act? (6)
```
PCR - CDM
Proportionate procedures
Communication
Risk assessment
Top-level commitment
Due diligence
Monitoring and review
```
34
What do you know about the Bribery Act?
It is legislation that makes bribery illegal for companies working in UK.
Also holds UK companies accountable for failing to prevent such acts by those working for or on its behalf, no matter where the act takes place.
35
What happens if you commit an act of bribery?
Up to 10 years in prison
Excluded from RICS
Unlimited fine
Banned from being a director of any company
36
How do you deal with a conflict of interest?
Openness and transparency.
37
What is PII?
Professional Indemnity Insurance
Covers a firm for a claim for financial loss.
Minimum level of cover based on turnover in the previous year.
38
What are the levels of cover advised by the RICS?
£100k or less turnover - £250k
£100k - £200k turnover - £500k
£200k or over - £1,000,000
RICS advise it should also be on an 'each and every claim' basis.
39
What is the Assigned Risk Pool?
The ARP panel is a facility for trading member / firms who find themselves unable to obtain insurance in the open market.
It comprises a panel of a RICS chairman, members of the professional indemnity insurers and RICS members.
The initial period of cover is 12 months, to allow the firm time to return to the open PII market.
40
What does the RICS advise as the maximum level of uninsured excess on a PII policy?
Up to £500k - 2.5% of the sum insured or £10k, whichever is greater
Over £500k - 2.5% of the sum insured
41
What is run-off cover?
Ensures firms, members and their customers are not exposed to detriment in the period following a firm ceasing to trade. Minimum run-off cover is 6 years.
42
Do you know any case law regarding run-off cover?
Babb v Merrett - The defendant, a chartered surveyor, was employed by a firm of valuers (owned by an individual) as manager of one of the firm's branch offices. In the course of his work the defendant carried out a mortgage valuation for a building society, signing the valuation report in his own name and stating his professional qualifications. By the time the house purchaser sought to bring an action for negligence on the basis of this report the owner of the firm had become bankrupt and the firm's professional indemnity insurance policy had been cancelled. The firm was therefore not worth suing.
The Court of Appeal held by a majority that the purchaser was entitled to recover damages from the defendant personally, despite the fact that the purchaser had not actually seen the valuer's report and was unaware, at the time of purchase, of his identity.
Can come after the individual if business ceases trading therefore need to keep PI run off.
43
What is the name of the RICS journals?
MODUS
44
What punishments can the RICS issue?
Expulsions of Regulated members
In less serious cases where admitted, Regulatory compliance orders to ensure compliance with standards
Where not admitted, referred to single member of conduct and appeal committee
Most serious cases referred to a disciplinary panel
45
What complaints can the RICS investigate?
Any breach of their conduct
| They will not investigate whether a high level of service is provided
46
What is the RICS ethics tree?
```
Sufficient facts?
Legal?
RICS Professional Standards?
Consulted with appropriate people?
Clear Reasoning?
Would you be ok if your actions were made Public
```
47
What was last month's MODUS report?
Oct 2021 - choosing deconstruction over demolition
Designing buildings with the end of their useful life in mind means construction materials can be recycled and re-used in a new project. But the salvage operation means added time and cost.
Made difficult by fused elements (concrete & steel / rebar)
Chinese gov target of 65% construction waste to be recycled by 2025 in reach... cheaper labour & highly supportive of recycling schemes.
48
What are your company's standards?
```
Act respectfully
Add value
Think Creatively
Uphold our hugh level of service
Act with Integrity
```
49
What should you send accompanying a fee proposal?
A set of T&Cs & scope of services
50
What is your company's business plan?
Reach £250k T/o in next 12 months - Y2 £300k - Yr 5 £500k
Work across a range of sectors incl resi, education, healthcare & commercial for a rnage of clients from developers to consultants and contractora & subcontractors.
Work with repeat clients on a regular basis
51
What are your company's KPIs?
Monitor levels of staff retention.
Clients pay 100% paid on time.
75% Repear business from existing clients
Improvements to GP per customer
52
What is the client's money protection scheme?
A scheme run by the RICS for clients to recover money that is lost by a firm.
53
What is the IES?
International Ethical Standards
54
What are the principles of better regulation?
| How the regulator is going to regulate us - i.e. RICS. I will follow rules for members & firms
```
Proportionality
Accountability
Consistency
Targeting
Transparency
```
55
What is the RICS mantra?
Est Modus Rebus' = There is measure in all things
56
What is a conflict of interest?
Anything that may impede, or be could be seen to impede, and firm or individual's ability to act impartially and in the best interest of the client.
57
What are the types of Conflict of interest
Party - i.e company
Confidential information
Personal - i.e. friends and family
58
What is the annual return?
```
It is for RICS regulated firms to complete online and collects information on;
Whether firm hold client's money - if they do, an auditor from RICS regulation will periodically visit the firm
Principals
Training
General Activities
PII
Complaints
General insurance mediation work
Client's money
```
59
When was RICS founded?
1868
60
What groups run RICS?
Privvy Council - Grants and awards royal charter
Governing Council - Sets direction and strategy
Regulatory Board - Administers regulation - indep chair
Management Board - Day to day performance and business plan
Audit commity - indep chair
61
What are the RICS requirements for a complaints handling procedure?
It should be a 2 stage policy
Complaints considered by a senior member of staff and response within 28 days
If not happy, complaint referred to independent 3rd party - property ombusman o CEDR - Centre of effective DR or RICS ADR
62
How should client's money be looked after?
Client's money accounts can be 'discreet' or 'general'
Accounts should be separate and clearly identifiable
The word 'client' should be used in the account name
Money should be available on demand
You should have written agreement with client regarding the payment of interest
63
What are the offencecs under the Bribery Act 2010?
Giving / receiving of a bribe
Offer or request of a bribe
Bribing a foreign official / politically exposed person (PEP)
Failing to prevent bribery
64
What can you do to mitigate PI claims?
Keep full and detailed records of meetings
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
65
A junior surveyor in your team incorrectly over-certifies an interim valuation - what do you do?
Check the facts and find out if it is actually over-certified
Check if the valuation has been processed
Withdraw and re-certify if not
If already certfied, explain to the parties and rectify next time
Ensure there are procedures in place for it not to happen again
If within correct timeframes issue a pay less notice to amend the error
66
What are the RICS requirements regarding professional indemnity insurance?
It provides minimum wording
It sets out minimum levels of indemnity
It sets out the maximum levels of uninsured excess
Run off cover must be in place for at least 6 years
It should include for past and present employees, directors and partners
67
What happens if the loss suffered exceeds the level of cover provided by the PI insurance?
The professional / firm is liable for the difference
68
Are you familiar with the term limit of liability? If so where would it be used?
It is the maximum value an insurance policy will pay out in the event of a claim.
69
What is a net contribution clause?
It seeks to ensure that the consultant's liability is only for the loss they caused
If another party is also responsible, the client will have to sue them separately
70
If an estimate is incorrect, can the client claim damages against the QS?
Not necessarily, only if they can prove that the QS did not act with reasonable skill and care
71
What does the royal charter mean to you?
It is a decree that states the RICS must promote the usefulness of the profession
It shows RICS has a gold standard of excellence and integrity
72
If you are a sole trader, what shoud you have in place should you be unable to perform your duties?
You should have employed the services of a locum practitioner
73
What are the crimes under the Bribery act 2010?
```
Offering a bribe
Accepting a bribe
Promising a bribe
Requesting a bribe
Receiving a bribe
Giving a bribe
```
74
If you have declared a conflict of interest to your client and they state that they are happy for you to continue working on the project, what else do you need from them?
'Informed Consent' RICS provide a template
75
What is the ethical standards coalition?
They create international ethics standards
76
Who is RICS preferred PI provider?
I would refer to RICS published list of approved suppliers
77
What is Pledge 150?
In light of the 150th anniversairy of RICS, they have pledged to try and eliminate youth homelessness
78
When did the Money Laundering Regulations come into affect?
2017
The update to this was the sanctions and anti-money laundering Act 2019, into force Jan 2020.
They make individuals and firms responsible for preventing money laundering by using similar principles to the Bribery Act.
They also cover the funding of terrorism
79
What are facilitation payments?
They are a payment made to a government official to expediate an admin process such as getting a visa overseas, common in Africa - Usually illegal unless it is totally above board. Can be seen as Bribery.
80
What are the dispute resolution procedures listed in your company's terms of appointment?
Adjudication via the Scheme for Construction Contracts
81
How is the RICS governed?
It is self governed by the governing council
| This is chaired by the president and includes members from all world regions
82
What are the CPD requirements?
48 hours/yr while in structured training, at least 50% formal
20 hours/year for members, at least 50% formal, recorded online
Ethics training every 3 years
83
What is the RICS Code of Conduct?
Rules for Members and Rules for Firms
84
What are the RICS 5 Core Ethical Standards?
```
Service
Trust
Integrity
Respect
Responsibility
```
85
What is your firm's complaints handling procedure?
Complaints are made in writing to the project owner
Complaint is responded to in 28 days
If the complainant is not happy with resolution it is escalated to Director
If still not happy, may be a requirement to refer to the property ombusman
86
What should you do if you receive a serious complaint?
Notify your professional indemnity insurance provider.
87
What is the Bribery Act?
Legislation introduced in 2010 that made bribery illegal in the UK.
It also holds UK companies accountable for it's employees working abroad.
If you commit an act of bribery you will be excluded from RICS and could face up to 10 years in prison.
```
The principles of the Bribery Act are;
Proportionate procedures
Top level commitment
Risk assessment
Due diligence
Communication
Monitor and review
```
88
What is NDA?
Non-Disclosure Agreement
Legal contract between at least two parties that outlines confidential material
They are used by our clients to make sure commercially sensitive information is not shared
89
How does the RICS define best practice?
The RICS sets out best practice in it's 'Black Book' suite of guidance notes
These are not compulsory but if there is a claim of professional negligence the courts will look at whether best practice was followed
90
What are Quality Assurance system standards?
ISO 9001
91
What would you do if your firm was holding client's money that you couldn't account for?
Try and locate owner
Hold for 6 years in a suspended account
If no-one comes forward you give it to a charity and obtain a receipt
RICS's Lionheart do receipts
If the client comes forward they can reclaim their money from Lionheart
92
What is Lionheart?
LionHeart is the charity for RICS professionals, past and present, and their families.
The services range from financial support, health and wellbeing packages, free professional counselling, work-related support and legal advice, and help if you or one of your loved ones become seriously ill.
93
How do you carry out a valuation?
Review and arithmetic check application
Visit site to review progress
Use your company's standard valuation template
Ask EA / CA to confirm if there's any work not in accordance with the contract
Make sure any variations being claimed for have had instructions issued
Does payment for materials off site meet the requirements of the contract?
Has the amount stated as previously certified been checked against the last payment notice?
Has the employer been notified of any right to deduct liquidated damages?
Have the reasons for any deductions in the valuation been communicated in accordance with the contract?
Has the valuation been signed off by a director?
94
What are the timeframes for valuations under JCT 2016 contracts?
Due date every 4 weeks
Contractor to submit application no more than 7 days prior to due date
CA to submit payment notice no more than 5 day from due date
Latest date for payment is 14 days from due date
95
What does ISO stand for?
International Organisation for Standardisation
96
What changes do the new Ethics rules released Sept 2021 impose?
Live Feb 2022
| Combine the Rules for businesses & individuals with focues on behaviours & sustainability
97
Example of conflict of interest
Working for a MC, asked to provide services to a SC.
Disucssed with MC to ensure openess & transparency. MC agreed with agreement SC package internally would be dealt with by another member of staff and overseen by MQS.
Received formal consent from MC
98
Why are gifts considered bribery?
Depends what is it and if it is proportionate & reasonable
Could sway judgement
What would others think
May suggest improper obligation
Have a duty to fulfill obligation (not for expectation on a gift)
Could this lead to prefferential treatment in the future
99
Example of importance of acting ethically
Employee at Savills recently dismissed after racist tweets posted post Euro finals (Sept 2021)
Plagarism within an APC submission resulted in an RICS displinary for individual & employer. Expelled from RICs as acted without integrity.
Can impact on employment and other proffessional bodies also.
100
Responsibility of a principle
Ensure that all the RICS requirement are met - annual return, training, that all proffessional, technical & ethical standards are met
101
Responsibility of Company Director
As a director, you’re legally responsible for running the company and making sure information is sent to companies house on time.
This includes:
the confirmation statement
the annual accounts, even if they’re dormant
any change in your company’s officers or their personal details
a change to your company’s registered office
allotment of shares
registration of charges (mortgage)
any change in your company’s people with significant control (PSC) details
102
Min run off
£1m for 6 years
103
Levels of PII
under £100k t/o £250k cover
£101-200k t/o £500k cover
£200k plus £1m cover
AND in each and every
104
One of the 5 ethical standards
Integrity - Doing what you say you will when you say you will.
Providing a high level of Service - Undertaking CPD, working with my competencies, providing clear T&Cs in fee proposals.
Responsibility - Hold PI, CHP, report to RICS, Question behaviors
Respect - Kind & Considerate, Promote diversity & inclusion, recognize discrimination
Trust - Promote professionalism of business, do what say you will, uphold good moral standards
105
What do you include in fee proposals
Scope, fee breakdown, clarifications & exclusions, details of insurances & PII
106
Where do you go to for PII
RICS approved suppliers
107
Where can you go if cant seek PII
Assigned Risk Pool - The ARP panel is a facility for trading member / firms who find themselves unable to obtain insurance in the open market.
It comprises a panel of a RICS chairman, members of the professional indemnity insurers and RICS members.
The initial period of cover is 12 months, to allow the firm time to return to the open PII market.
108
What else do you need if setting up a business
1. Notify Companies House
2. Obtain PII & employers liab
3. Inform the RICS of your intentions
4. Prepare a complaints handling procedure
5. Set up financial accounts
6. Set up client's money account
7. Abide by rules for member and firms
8. Use appropriate RICS designations
109
Are you aware of any case law around importance of PI & run off cover?
Merrett & Babb -2002
The Court of Appeal held by a majority that the purchaser (Merrett) was entitled to recover damages from the defendant personally (Babb) , despite the fact that the purchaser had not actually seen the valuer's report and was unaware, at the time of purchase, of his identity.
110
When can you divulge confidential infromaiton
1. If a Court orders
| 2. If you receive informed consent
111
What is confidential
Information that is not in the public domain
112
How do you manage a Conflict of interest
Transparency with all parties involved.
| Information barrier - both physical & electronic.
113
Who does PII protect
The client.
In the event I make a mistake from financial loss.
And my business from bankruptcy
114
When is a firm required to be regulated (mandatory)
1. If undertaking surveying services to public
2. In UK
3. If 50% or more of directors are RICS members
115
When is a firm eligible to register
1. If undertaking surveying services to public
| 2. If 25% or more of principles are RICS members
116
Documents:
Bribery Act 2020
RICS Conflict of Interest proff standards 2017
RICS Countering birbery, corruption & money laundering Proff Statement 2019
RICS PII Requirements 2021
RICS Rules of conduct for members 2020
RICS Rules of conduct for firms 2020
RICS Client money handling 2019
117
Whart are the differences between rules for members and rules for firms
```
9 for members, 15 for firms.
Firms include requirements for:
PII
CHP
Clients Money
Advertising
Locum practitioner
Designations
```
118
What would you do if you were setting up your own firm?
```
Inform the RICS of your intentions
Obtain PII cover
Obtain Employer's liability insurance
Prepare a complaints handling procedure
Set up financial accounts including client's money account
Abide by rules for member and firms
Use appropriate RICS designations
Notify companies house
```
119
How would you determine time period run off cover would be required?
```
Underhand (signed by paties - simple contract) - 6 years
Under seal (signed by parties & witnesses & executed as a deed) - 12 years
Latent defects - 15 years
```
120
What would your approach be if client wanted to pay you in advance for works
Advise clients who pay fees in advance that this money is not covered by the Client Money Protection scheme.
Provide a receipt
RICS advises against cash payments & request made by transfer & held in a client account.
121
Impact of Covid & Brexit on Ethics
Brexit saw changes to GDPR Uk rules that members need to be aware of.
Covid forced everyone online brought new requirements for security of personal and confidential information.
Covid put more pressure on businesses to act responsibly around staffs safety & respect individals opinions around working remotely and vaccinations.
Claims - I acted with integrity, responsibly & provided a high level of service
Importance of remaining solvent & provide required level of PII
Increase PII premiums
122
What are the RICS guidance re gifts & hospitality Give me an axample
Must be reasonable & proportionate.
i.e. not a invite to a sporting event / expensive hamper during a tender process where it could be seen to sway my judgement, however if this sporting event was at the end of a project for the whole team as a thank you, I would not consider this inappropriate.
Gift value internally set at £40.00, must declare all gifts to director. Declined / accepted and shared amongst team.
Depends on value of gift, circumstances if it is appropriate & proportionate.
123
Example of dealing with a complaint
In first instance, speak to individal to hear issue.
Listen & proposed formal response within 48 hours
Proposed solution in writing
Follow up week later to ensure client happy
124
What are Bye-Laws?
```
A law or rule governing the internal affairs of an organization.
A secondary law.
e.g.
1. Definitions set out by RICS
2. Membership & registration
3. Designations
4. Contributions to Funds
5. Conduct
6. Governing council, officers & staff
7. Subordinate boards, officers & staff
8. Procedure for general meetings
9. Accounts & Audit
10. General
-
```
125
What needs to be in place if a business is to cease trading?
PII run off cover
Return any client money
Hold client files for min 6 years
Hand over work to another company to ensure continuity of work
126
What is test for bribery?
Would a reasonable person in UK deem actions reasonable and proportionate
127
What would you do if you suspected money laundering?
1. Report to line manager /money laundering officer
| 2. National crime agency and complete a suspicious activity report (SAR)
128
What must a regulated firm have in place to comply with the RICS bribery PS?
1. Not to offer or accept (directly or indirectly) a bribe
2. Have plans in place to comply with bribery & corruption laws & ensure followed
3. Report any activities of breach
4. Act with due dilligence & evaluate risks that face company
5. Retain information noting how company met requirements of this PS.
129
In relation to bribery & corruption what must a RICS member do ?
1. Not offer /accept a bribe
2. Knowledge of bribery & corruption to comply with PS
3. Report any breaches
130
What sort of things must a regulated firm do in relation to money laundering & terrorism financing?
1. Not facilitate or be complicit
2. Have training in place
3. Report suspicions
4. Understand client and purpose of transactions
5. Verify client & basic identity checks
6. Record & retain how firm met the req of RICS PS
131
What must a member do in relation to money laundering & financing terrorism?
1. Not facilitate to be complicit in money laundering / financing terrorism
2. Report suspicions
132
In relation to bribery, corruption, money laundering & financing terrorism - what guidance does RICS provide & what sort of practical things can a company put in place?
- Witten policy
- Encourage transparency for gifts & hospitality, charitable donations, COI
- Provide training & guidance to staff
- Code of behaviour for staff
- Ensure any third party suppliers also compliant
- Whistle blowing policy
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chair of gov council?
Nick McClean - interim (post levitt report) - Oct 2021 for 12 months
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Chair of management board?
Isabelle O'Regan - Oct 2021 - interim
135
What are the minimum requirements for PII ( As per RICS guidance April 2021)
- Minimum wording (written on a full civil liability basis)
- Run off cover
- Have fire cover (cannot exclude buildings 4 storeys & under)
- Fully retroactive
- Cover past and present employees
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What is the difference between Professional integrity & Professional ethics?
a. Prof integrity – what we do – open honesty & transparency
| b. Prof ethics – how we behave & framework of how we act
137
How does the RICS promote sustainability?
a. RICS SKA rating for internal fitouts
b. Sustainability reports
c. ICMS
d. New rules for firms/ members1.
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36. What would you do if you suspect money mishandling within your business?
a. Report to senior manager / compliance officer
| b. Notify PII or police
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interim ceo
Richard collins
