Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APC > Ethics > Flashcards

Ethics Flashcards

1
Q

What is the VOA policy in relation to gifts and hospitality?

A

Any gits or hospitality must be placed onto the VOA Gifts and Benefits Register. As a general rule, don’t accept gifts. Proportionality.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the CPD requirements for RICS APC candidates?

A

A minimum of 48 hours’ CPD every 12 months. Crucially, at least 50% of of all recorded CPD for the year must be formal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the four levels of RICS membership?

A

MRICS, FRICS, AssocRICS, StudentRICS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Who is the current CEO of the RICS?

A

Richard Collins

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the hot topics that the RICS have recently looked at that impact you as a Surveyor?

A
  1. Changes to NRM (in line with RIBA stages, Code of measurement & ICMS)
  2. Ethics Rules changing in Feb 2022
  3. 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
  4. PII requirements - added fire following Grenfell
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who is the president of the RICS?

A

Clement Lau FRICS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Who is the president elect of the RICS?

A

Ann Gray

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Who is the Senior Vice President of the RICS?

A

Tina Paillet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Who is the head of regulation in the RICS?

A

Dame Janet Paraskeva

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Who is the head of the privy council?

A

Lord President - Mark Spencer (formerly Jacob Rees-Mogg until February 2022)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the RICS Ethical Standards? (5 Standards / Core Values)

A

Always provide a high standard of Service
Act in a way which promotes Trust
Act with Integrity
Treat others with respect
Treats others with responsibility

(STIRR)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the RICS Bye-Law B5.2.1(a)?

A

Bye-Law: A rule made by a company or society to control the actions of its members.

“Every member shall conduct themselves in a manner befitting membership of the RICS”

  1. Key principle of self regulation
  2. Includes our private lives
  3. Avoid the offence of conduct unbefitting
  4. Do not be complicit in others bad conduct
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the the 5 principles of the RICS Rules of Conduct?

A
  1. Proportionality
  2. Accountability
  3. Consistency
  4. Targeting
  5. Transparency
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

When did the new Rules of Conduct come in to effect?

A
  1. 2nd February 2022
  2. Abolished the former division into separate rules of conduct for firms and members
  3. Also merges Rules or Conduct with previously separate ethical standards
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the new RICS rules of conduct?

A

Ethical behaviour

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

Competence

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

Service

Rule 3: Members and firms must provide good quality and diligent service (service includes timeliness)

Respect & Diversity

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

Public interest

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the professional obligations to the RICS contained with Rules of Conduct Appendix A: Professional obligations to the RICS?

A

The following obligations to the RICS are mandatory for RICS members:

  1. Members must comply with the CPD requirements set by the RICS
  2. Members must cooperate with RICS
  3. Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the professional obligations to the RICS contained with Rules of Conduct Appendix A: Professional obligations of Firms to the RICS?

A

(Replaces former Rules of Conduct for Firms v7 02/03/2020)

  1. Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by the RICS, and maintain a complaints log.
  2. Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by the RICS.
  3. Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
  4. Firms must cooperate with the RICS.
  5. Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
  6. Firms must display on their business literature, in accordance with the RICS published policy in designations, a designation to denote that they are regulated by the RICS.
  7. Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What steps would be taken if a Member was found not to be following the Rules of Conduct?

A
  1. A failure to follow any guidance associated with the Rules is a factor that will be considered should it be necessary to examine the behaviour of a Member.
  2. In such circumstances a Member may be asked to justify the steps they took and this may be taken in to account.
  3. A Member should be guided as much by the spirit of the Rules as by the express Terms.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the Rules for the RICS Regulation of Firms?

A
  1. Rules for the Registration of Firms (Version 7 with effect from 2nd February 2022)
  2. Guidance on the Rules for the registration of firms and Rules for the use of the RICS logo and designations by firms (with effect from 2nd February 2022)
  3. Rules for the use of the RICS logo and designation by firms (Version 6 with effect from 2nd February 2022)
  4. A firm is required to register for regulation by the RICS if the firm provides Surveying services to the public, the firm is operating in the UK and at least 50% of the Firms Principals are RICS Members.
  5. A firm is eligible to register for regulation by the RICS if the firm provides surveying services to the public and at least 25% of the Firm’s Principals are RICS Members

V7 edition changes made to minimum policy wording due to unprecedented market conditions (eg COVID); allows insurers to set their own fire safety exclusions, excludes liability for EWS 1 firms (ie post Grenfell)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Why would you register your firm for regulation by the RICS?

A
  1. Confidence (for clients from knowing a regulated firm is subject to RICS regulation / supervision)
  2. Professionalism (firm required to give clear, impartial expert advice)
  3. Security (a recognised complaints procedure; free independent redress, firm has approved PII)

Regulation provides a ‘gold standard ‘ of quality control for Clients.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the RICS compliance Rules for starting a new practice?

A
  1. RICS Firm Details Form
  2. Appoint Contact Officer for all RICS Communications
  3. Register for RICS Regulation
  4. Register for RICS Registered Valuer scheme
  5. Send PII details to the RICS
  6. Get RICS approval for Complaints Handling Procedure (& appoint CPH)
  7. Make arrangements for succession (if sole practitioner)
  8. Set up procedures for Clients money
  9. RICS logo kit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the statutory requirements for Starting a new practice?

A
  1. Business Names Act 1985 & Companies Act 1985
  2. Equality Act 2010
  3. Financial Services Acts (2000,2012)
  4. Bribery Act 2010
  5. Money Laundering Regulations 2007
  6. Health & Safety Act 1974 (as amended) + Fire + Asbestos Regs
  7. GDPR 2018 (previously Data Protection Act 1998)
  8. Estate Agents Act 1979, Misrepresentation Act 1967, Consumer Protection Regulations 200&
  9. HMRC - VAT and Tax registration
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is Indemnity Insurance, is it mandatory, and why?

A
  1. Yes it is mandatory as it protects Surveyors, Clients and 3rd parties against negligence claims when duty of care breaches and claim for damages
  2. Covers claims 1st made in insurance period even if negligent act earlier
  3. RICS need to see Certificate every year
  4. Minimum level of indemnity required varies with firm’s turnover
  5. Run off cover?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is the Minimum limit of indemnity?

A

Firms turnover in the preceding year:

£100,000 or less: £250,000
£100,001 to £200,000: £500,000
£200,001 and above: £1,000,000

Some firms may wish to hold a higher amount of cover.

New firm? Base figure on estimated turnover

Maximum levels of uninsured excess are also set

RICS: Professional indemnity insurance requirements Version 5 (2019)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What should a firm consider when looking to take out Indemnity Insurance?

A
  1. Ensure that the amount of cover purchased is consistent with the nature of your firm’s practice and proportionate to the risks taken by your firm
  2. Always consult specialist insurance brokers in arranging your firm’s PII
  3. VOA? Crown takes the risk
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What steps must be taken when closing down a Firm?

A
  1. Inform the RICS
  2. Inform Clients and make had over arrangements to the new firm
  3. Return any monies held by Clients
  4. Inform your insurer and procure professional indemnity insurance run off cover for a minimum 6 years and £250,000 cover (but RICS recommends 15 years)
  5. Retain copy of Client files and records for a minimum of 6 years
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What’s included within the Limitation Act 1980?

A

Tort:

6 years from the days the Claimant suffered the loss

Contract:

  1. 6 years from date of the negligent act, breach of contract or omission

OR

  1. S14A - alternative limitation period of 3 years from date of knowledge of the damage subject to 15 year long stop from the negligent act or omission (Scotland: 20 years long stop)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is included in Run-Off Cover

A
  1. From April 2019: RICS clarified that ‘adequate and appropriate’ to mean a minimum of 6 years for consumer claims.
  2. Under the new policy, insurers will provide a £1,000,000 aggregate limit for consumer claims, included automatically in the minimum wording. No premium payment will be required to trigger this.
  3. Firms can obtain run off for
    Longer periods than six years, or with higher cover levels, if they deem that ‘adequate and appropriate’
  4. Firms will still be required to take out “adequate and appropriate” cover for commercial claims, which RICS would normally expect cover six year after closure.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What are the 6 principles of the Bribery Act 2010?

A
  1. Proportionality
  2. Top level
    Commitment
  3. Risk assessment
  4. Due diligence
  5. Communication
  6. Monitoring and Review
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is a Bribe?

A
  1. The giving, offering, promising or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust?
  2. Applies in the UK and abroad
  3. A new corporate offence of failing to prevent bribery - policed by Serious Fraud Office - unlimited fines / 10 years imprisonment
  4. Companies responsible for their employees corrupt acts unless they can show adequate policies/procedures/training in place to combat it
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Explain how hospitality, gifts and cash could be seen as Bribery?

A
  1. Certain types of lavish corporate entertainment could be classified as bribery
  2. But offering a client reasonable and proportionate hospitality will not constitute an offence as long as this is accurately recorded in a gifts / hospitality register eg sporting tickets; a meal
  3. Never accept gifts/hospitality from a 3rd party supplier or contractor
  4. Cash? Money Laundering Regulations 2007 (as amended) - no cash payment in excess of 10,000 Euros. Income tax liability?
32
Q

What is the Fifth Money Laundering Directive (5ALMD)?

A
  1. Effective date on 10th January 2020
  2. Builds on 4ALMD
  3. Enhanced Due Diligence L
  4. Enhanced Customer Diligence
  5. Transparency of beneficial ownership
  6. Implemented by The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (MLR 2019)
33
Q

What legislation and guidance is available to protect against Money Laundering?

A
  1. Terrorism Act 2000 (as amended by the anti terrorism, crime and security act 2001)
  2. Proceeds of Crime Act 2002
  3. Money Laundering Regulations 2007 onwards
  4. Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 etc
  5. RICS Professional Statement: Countering bribery and corruption, money laundering and terrorist financing (1st edition, effective from 1st September 2019)
34
Q

What is customer due diligence (CDD)?

A

Involves collecting standard evidence to verify the identity of different types of clients when assessing risks to your business.

  1. Consider the three W’s ‘Who you act for, What you are doing and Why you are being asked to do something’
  2. Identify the transacting party/parties - who, from where, frequency?
  3. Verify the identification is valid
  4. Carry out the additional checks where necessary (risk assessed)
  5. Look out for ‘Red Flag Indicators’

Simplified Due Diligence (SDD)
Enhanced Due Diligence (EDD)

35
Q

Money Laundering Regulations

A

Business within the regulated sector must:

  1. Perform Client due diligence (identify client and their assets and business relationship)
  2. Keep records of checks undertaken
  3. Maintain systems to identify and prevent money laundering
  4. Nominate a money laundering reporting officer
  5. Provide training for employees on money laundering regulations and internal procedures
  6. Failure to comply with MLR can lead to an unlimited fine or two years imprisonment
36
Q

Client Money Handling

A

RICS professional statement: Client money handling (1st edition, October 2019)

Any money received and held by a firm that does not solely belong to it.

For example:

  1. Tenants deposits, Arbitration fees, Service charges
  2. Fee money taken in advance, sale proceeds, rents
  3. Money held by members appointed as a Receiver
  4. Interest (if in an interest bearing client account)
  5. Clients money held but due to be paid to contractors
37
Q

What does the RICS Members Accounts Regulations detail about Handling Clients’ Money?

A
  1. Obligation to keep client accounts (separate & identifiable)
  2. Obligation to keep accurate records
  3. Reporting obligations (regular bank reconciliation & audit)
  4. Payment of interest
  5. Protect Clients’ Money against: insolvency, misappropriation by any party; death of a sole practitioner
38
Q

What details would you expect to be found within Client Accounts?

A
  1. Keep Client money in a designated account(s)
  2. Include the name of the firm and the word “Client”
  3. Obtain bank confirmation of account conditions
  4. Agree terms of account handling in writing with Client
  5. Ensure sufficient funds available for payments
  6. Obtain clients written approval to make payments from their accounts
39
Q

What are some of the Client Money Handling guidance documents?

A
  1. Countering bribery, corruption, money laundering and terrorist financing
  2. RICS rules for the registration of firms
  3. RICS rules of conduct for firms
  4. RICS rules of conduct for members
40
Q

What are the top six clients money issues that the RICS have identified?

A
  1. Reconciliations
  2. Review and sign off reconciliations
  3. Overdrawn client ledger balances
  4. Authorisation of client account electronic payments by non principals
  5. Reconciliation issues - old uncleared, reconciling items and differences, plus or minus
  6. The word ‘client’ not appearing in the bank statement title
41
Q

What are the three steps the RICS have adopted for identifying a potential Conflict of Interest?

A
  1. Conflict Avoidance (irresolvable conflict which either cannot be properly managed or where you would not wish to proceed, for personal conflict, resolved by someone else doing case; for party conflict, by dropping the case)
  2. Written advice to both parties (and written Informed Consent response required)
  3. Conflict Management
42
Q

What is the document produced by the RICS which details about Conflicts of Interest and what are its key details?

A

RICS professional statement ‘conflicts of interest’ (1st edition - March 2017)

  1. Effective from 1st January 2018
  2. Identifies several different forms of potential conflict
  3. Requirement for Record Keeping
  4. Requirement for Informed Consent

“An RICS member or regulated firm must not advise or represent a client where doing something would involve a conflict of interest, or a significant risk of a conflict of interest, other than where all of those who are or may be affected have provided their prior Informed Consent.”

43
Q

What is Informed Consent in relation to a Conflict of Interest?

A

Informed Consent may be sought only where satisfied that proceeding despite a Conflict of Interest is:

  1. In the interests of all of those who are or may be affected and
  2. Is not prohibited by law,

and that the conflict will not prevent provision of competent and diligent advised to those that may be affected

44
Q

What are the 4 types of Conflict of Interest?

A
  1. Own Interest Conflict of Interest (personal)
  2. Party Conflict of Interest (professional)

When providing services to more than one untied Client

  1. Party Conflict of Interest (professional)

Between untied work and statutory / regulatory work

  1. Confidential Information Conflict of Interest
45
Q

Explain more about the Party Conflicts of
Interest

A

The RICS note that a threat to a Valuer independence or objectivity may arise in many situations, including:

  1. Valuing a property previously valued for another Client
  2. Acting for two or more parties competing for an opportunity
  3. Acting for the buyer and the seller of a property in the same transaction
  4. Undertaking a valuation for third party consumption where the VOA has other fee-earning relationships with the Client
  5. Duty of care and confidentiality extends to previous Clients as well as current Clients and this can compromise ability to give best advice
  6. Confidential Information Conflict: If you have information gained from a first Client which is vital to the Valuation, it may not be possible to disclose that material information in later advice to someone else who subsequently asks you to act
46
Q

How might our organisation identify a potential Conflict?

A
  1. Initial search when looking at a Case to determine whether the VOA is currently acting, or has previously acted, with regard to the property for another Client
  2. History working sheet check, CDB, TRACS
  3. Importance of ongoing communication between Valuers to help identify clashes
  4. Notify Team Leader in first instance
  5. Advice available from CVG PS Professional Guidance Team
47
Q

Conflicts of Interest: Party Conflicts

A
  1. Duty of care and confidentiality extends to previous Clients as well as current Clients and this can compromise the ability to give best advice
  2. Confidential Information Conflict: If you have information gained from a first Client which is vital to the Valuation, it may not be possible to disclose that material information in later advice to someone else who subsequently asks you to Act
48
Q

How might your organisation manage Conflict?

A
  1. Correspondence with potentially both Clients (past & present) to notify them of the issue, suggest a way forwards, and obtain their Informed Consent in writing to act
  2. Establish with earlier Client whether there is confidential material information not to be passed on; if yes; info will not be available for use. We would then consider whether or not we can properly act for the new Client in its absence
  3. Otherwise where both parties content and informed consent obtained, proceed and manage the conflict through the life of the case
  4. Always consider early on the potential for a joint appointment where public bodies are the parties (potential for a single independent valuation). Ensure it accords with government guidance for the public sector
49
Q

What is a Conflict Management Information Barrier?

A

This is known as a Chinese Wall, where this must be embedded in a firms culture and ‘reasonable steps’ are not enough.

  1. Needs to be robust enough to offer no chance of information passing through it
  2. Individuals (& support staff) acting for conflicting clients must be different
  3. Physical separation (different parts of building)
  4. Information held must be inaccessible to the “other side”
  5. Must be actively monitored

In the VIA any Chinese Wall procedures will be carried out by the CVG PS Professional Guidance Team for approval. They are tough to achieve in practice and could lead to embarrassment. Team Leader will be required to set up the barrier and understand + oversee it.

50
Q

How must Complaints be handled?

A
  1. Complaint Handling procedure must be approved by the RICS
  2. Procedures must be captured in Client Terms of Engagement
  3. Create, use and maintain a complaints log

Stage 1: In House (Sole practitioner? Nominate CHO surveyor in other firm)

Stage 2: ADR - Third party resolution (such as The Property Ombudsman; RICS Dispute Resolution Service)

VOA has Tier 1 (Business Stream); Tier 2 (Agency CIT), then as a Government body it can be referred to an Ombudsman

51
Q

Give some examples of Dispute Resolution methods?

A
  1. Court proceedings (after pre-action protocols)
  2. Arbitration
  3. Expert determination
  4. Mediation
  5. Ombudsman
52
Q

What is GDPR?

A
  1. Data Protection Act 2018
  2. General Date Protection Regulation (GDPR) from 25 May 218
  3. Concerns the protection of personal data
  4. Personal data: any information relating to an identified or identifiable living individual
  5. Includes the address of a property and unique reference numbers
  6. HMRC Data Protection Officer (DPO) responsible for the VOA, assisted by Team oDPO
  7. HMRC Privacy Notice covers HMRC and VOA (HMRC is also the data controller for the VOA)
53
Q

Explain how Brexit and GDPR affect each other?

A
  1. EU GDPR does not apply in the UK after the end of the Brexit transition period on the 31st December 2020
  2. However, GDPR has been incorporated into U.K. data protection law as the “U.K. GDPR” - so in practice there is little change to the core data, protection principles, rights and obligations
  3. Firms must comply with the DPA (Data Protection Act) 2018 and U.K. GDPR if processing domestic data. If providing services to the EU, then we must of course adhere to and comply with the EU GDPR legislation
54
Q

Surveyor as Expert Witness

A

Key text: RICS Surveyors acting as expert witnesses (Scotland have their own)

Internally at the VOA: S17 DVS Principles & Practices Manual

  1. RICS practice statement & guidance note follows the Civil Procedure Rules (CPR)
  2. CPR 35.3: It is the duty of experts to help the Court with matters within their expertise
  3. This duty overrides any obligation to the person from whom the expert has received instructions or by whom they are paid to give evidence. The expert must be impartial and uninfluenced by them.
  4. An expert also owes his Client a duty to act with reasonable skill and care
  5. Can be sued for negligence
55
Q

Surveyor as Expert Witness during testimony

A
  1. Must be the independent, objective and unbiased product of the expert in relation to matters within their expertise
  2. Must be impartial & influenced as to form and content by the Client who instructs or pays the expert
  3. Must state the main facts and assumptions upon which their opinion is based
  4. Must not omit material facts that could detract from their concluded opinion
  5. September 2020: Additional wording to Statement of Truth following Victoria Insurance Co. Ltd v Zafar (2019) [re contempt of court for false statements]
  6. Expert Witness should advise Client in writing of the nature of the experts obligation under the RICS expert witness guidance - in particular the overriding duty of the expert witness to the Tribunal
  7. Offer to supply a copy of the RICS practice statement in the form of the Client Guide version
  8. Client Guide intended by the RICS to reduce misunderstandings and remove potential Client pressures
56
Q

Surveyor as an Advocate

A
  1. Key text: Surveyor-advocate must have regard to RICS revised edition of ‘Surveyors acting as advocates’
  2. Surveyor is representing their Client at the judicial hearing / tribunal, promotions their case and interests
  3. Surveyors duty is solely to instructing their Client
  4. Surveyor must act in a manner that maintains integrity of the judicial process
  5. Surveyor-advocate must not express expert opinion
  6. Advocates argue an outcome for their Clients so their own opinion on any issue is irrelevant
  7. Must avoid terms and expressions that signify any form of personal belief
57
Q

Behaviours expected when Acting in Dual Role - Advocate & Expert Witness?

A
  1. Prohibited by many tribunals as dual role considered incompatible and creating a conflict of interest.
  2. Permitted in lower tribunals as it can be proportionate to the circumstances and needs of the Client, giving access to justice in a manner and at a cost which permits such cases to be brought forward
  3. Vital to distinguish at all times which role is being undertaken at any time
  4. Be aware that the weight attached to the evidence given by you as an expert witness and to the submissions made as an advocate, could be adversely affected if the dual role is undertaken
58
Q

When might acting in a Dual Role of Advocate & Expert Witness not be appropriate?

A
  1. Case involves difficult points of law which are material
  2. One or both parties regard initial hearing as 1st step to a higher tribunal
  3. Other party will be legally represented
  4. Numerous issues of fact / opinion requiring evidence from several witnesses
  5. Amount at stake is substantial
59
Q

What is PII?

A

Professional Indemnity Insurance

60
Q

What is an RICS Practice Statement and are they Mandatory?

A

RICS members MUST comply with RICS Practice/Professional Statements, maintaining the highest professional standard and yes they are mandatory.

61
Q

What is the RICS Code of Practice and is it mandatory?

A

Standard, approved by the RICS, and endorsed by another professional body, that provides users with recommendations for accepted good practice as followed by conscientious practitioners

The document itself will confirm whether it is Mandatory or good recommended practice

62
Q

What is an RICS Guidance Note and is it mandatory?

A

Document that provides users with recommendations for accepted good practice as followed by competent and conscientious practitioners?

No, it is Recommended good practice

63
Q

What is an RICS Information Paper and is it mandatory?

A

Practice based information, that provides users with the latest information and/ or research

No, it is there for information and/or explanatory commentary

64
Q

What is the RICS Global Ethics & professional standards (launched in 2012)?

A
  1. Behaving ethically is at the heart of what it means to be a professional, it distinguishes professionals from others in the marketplace
  2. The RICS have created a clear and streamlined set of professional and ethical standards to guide members and ensure that all those we deal with have confidence in us.
  3. The Five Ethical Standards (now part of the Rules of Conduct): (Service, Trust, Integrity, Respect, Responsibility)
65
Q

What are the RICS Rules of Conduct for Firms/Members?

A

They apply to all RICS members worldwide. The rules focus on our regulatory goals and adopt the five principles of better regulation (PACTT):

  1. Proportionality (making the penalty proportional to the breach)
  2. Accountability (to all members and the public)
  3. Consistency (treat all members the same)
  4. Targeting (serious breaches)
  5. Transparency - To all members, Clients and the Public
66
Q

Who are the RICS and what do they do?

A
  1. The Royal Institution of Chartered Surveyors
  2. Global leading professional body promoting the highest standards in the property industry. Gold standard of professional regulation.
  3. Incorporation by Royal Charter
  4. Consumer protection, influence policy, set standards, accredit professionals, quality assurance and self regulation
67
Q

What is the purpose of PII?

A
  1. Protect firms from financial loss in the event of a negligence claim and consequences to pay third party damages and to protect Clients from financial losses which the firm cannot meet
  2. Firms must have adequate PII cover under Rule 9 of the Rules of Conduct for Firms.
  3. Includes the RICS minimum policy wording. Provides a minimum level of indemnity based on turnover. Provided a maximum level uninsured excess. Underwritten by an RICS approved insurer. Covers past and present employees, includes run off cover when a firm or member ceases to trade
68
Q

What are the CPD requirements for a qualified member of the RICS?

A
  1. Minimum of 20 hours CPD each year (completed by 31st December and recorded online by 31st January)
  2. At least 10 hours must be formal, eg structured learning with clear objectives and outcomes
  3. Every three years, members must undertake CPD relating to professional ethics, eg the RICS online ethics walkthrough
69
Q

What happens if you commit an act of bribery?

A
  1. Up to 10 years in prison
  2. Excluded from the RICS
  3. Unlimited fine
  4. Banned from being a director of any company
70
Q

What is the RICS Assigned Risk Pool?

A

The ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of the RICS (insurance facility). Can stay in the scheme for a maximum of 3 years.

71
Q

What are the four offences under the Bribery Act 2010?

A
  1. Bribing another person 2. Being bribed 3. Bribing a foreign public official 4. Failure by a commercial organisation to prevent bribery
72
Q

What is a Chinese Wall?

A

An information barrier

73
Q

What are the minimum levels of PII required?

A

Based on turnover. Turnover less than £100k - PII £250k. Turnover between £100k-£200k - PII £500k. Turnover over £200k - PII Minimum £1m.

74
Q

In what instances would you decline an instruction?

A
  1. If there is a conflict of interest
  2. If you are not qualified to complete the instruction, refer them to the Chartered Surveyors Voluntary Service (CSVS)
75
Q

What are the three market sectors covered by the RICS?

A
  1. Property
  2. Land
  3. Inspection

APC (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions