Ethics Flashcards
1
Q
Who do the Rules of Conduct apply to?
A
RICS bye-Law 5.1 the rules apply to all members and firms regulated by RICS
2
Q
When did the rules come into effect
A
2- Feb-2022
3
Q
Can you give me an example of Rule 1 within your work
A
When undertaking an instruction, I check their is no CoI and I record that I have checkec
4
Q
Can you give me an example of Rule 2
A
Competence
5
Q
Can you give me an example of Rule 3 in your work
A
I will agree with the scope of service before accepting a an instruction
6
Q
Can you give me an example of Rule 4 in your work
A
Members must treat others with respect
7
Q
Can you give me an example of Rule 5 in your work
A
Members must take responsibility
8
Q
Within the Rules of Conduct document what does Appendix A cover
A
- Members must comply with CPD requirement set by RICS
- Members must cooperate with RICS
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board
9
Q
What is a conflict of interest
A
A conflict arises in a situation where there be an actual or perceived risk where the judgement of an RICS member maybe comprised when undertaking an instruction.
10
Q
Explain where a conflict may occur
A
- A Party Conflict
- An own interest conflict
- A confidential conflict
11
Q
Explain a Party Conflict
A
A situation in which the duty to act in the interest of a client or other party in a professional assignment conflicts with a duty owed to another client.
12
Q
Explain a own interest conflict
A
A situation in which the duty to act in the interests of a client conflicts with same as the member/firm
13
Q
Explain a confidential information conflict
A
A conflict between the duty of the RICS member to provide material information to one client and the duty of that RICS member to another client to keep that information confidential
14
Q
Give examples of where a conflict may arise
A
Acting for two separate clients
Financial interest
Personal Relationship
Commercial Relationship
Interests of the firm
15
Q
What should you do if a conflict arises
A
- Deal with openness and transparency
- Declare all interests to the parties ASAP.
3.All parties can decide how they proceed.
16
Q
What is an RICS decision tree
A
A flow chart to help members decide how they wish to proceed in difficult situations where their professional ethics maybe at stake.
17
Q
What factors does the decision tree consider ?
A
Sufficient Facts
Legality
Ethical Standards
Consultation of appropriate people
Clear reasoning
Impact of actions made public
18
Q
What the roles of the RICS
A
Global leading professional body promoting the highest standards in the property industry
19
Q
What teams and boards mark up the RICS structure
A
Governing Council
Executive Team
Regulatory Board
Standards and Regulatory board
Presidential Team
20
Q
What is minimum requirement for PII
A
<£100k = £250,000
<£200,000 = £500,000
>£200,000 =£1,000,000
21
Q
How many years after an instruction has been completed can PII claim be made
A
6 Years
22
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
23
Q
What are the conditions under the Limitations Act 1980
A
Contract 6 Years
Tort 6 Years
24
Q
List the 5 new rules
A
25
Tell me about your firms gift policy ?
26
What are the CPD rules ?
Member must comply with CPD hours. 20 per year with 10 of them being formal
27
What is the difference between formal and informal
28
What is PII ? Turnover limits
£250,000 is required under £100,000
£500,000 is required to £200,000
£1m is required if over
29
How did you carry out the conflict of interest and competence check for X
30
Tell me about the advice you gave to DWP on the property in Leeds
31
Why is avoiding a working lunch during Ramadan an inclusive
Behavior
32
What is the difference between a GN, Professional Statement, Code of Practice, international standard, Jurisdiction Guide.
PS - Mandatory requirement for RICS members
GN - Provides recommendations for an approach
CoP - developed in cooperation with other professional bodies & stakeholders that will have status of a PS or GN.
JG Local information guide.
33
What is the role of RICS
Global leading professional body promoting the highest standards in the property industry.
The gold standard of regulation
34
What are the 5 principles of better regulation ?
Transparent
Proportional
Accountable
Consistent
Targeted
35
How many years after an instruction has been completed can a PPI claim be made ?
15 years
36
What type of cover would you need to cover a claim brought after a firm or member ceases to trade
Run off cover
37
When did the Bribery Act 2010 come into force ?
1st July 2011
38
What is the name of the RICS guidance on bribery and money laundering?
PS - Countering bribery and corruption, money laundering and terrorist, financing effect 1st September 2019
39
Name and Explain ADR
1. Meditation - 3rd Party assist the settlement
2. Adjudication- a qualified Adjudicator will make a decision
3. Arbitration - The arbitrator will make decision a private court (legally binding)
4. Litigation - the court imposing a binding judgement
40
What is RICS traffic light system for CoI
Green
Orange
Red Wave-able
Red Non wave-able
41
What are some examples where a conflict may arise
1- Acting for two different parties
2- Financial Interest
3- Personal Relationship
4 - Commercial Relationship
5 - Interest of the firm conflict with the client
42
What would you do if a conflict arose
1- deal with openness and transparency
2- Declare the conflict to all parties and decide how to proceed
3- Use the RICS decision tree & traffic light system for guidance.
43
What is the RICS decision tree
A flow chart to support member on how to act in difficult situations where professional ethics maybe at stake.
44
What factors does the legal tree consider
1 - Sufficient Facts
2- Legality
3. Ethical Standards
4. Consultation of appropriate people
5. Clear reasoning
6. Impact of actions made public
45
What information is needed by the RICS to register a new firm
1- Type of business and staffing details
2- Statutory Regulated actives (like for financial services)
3- Nature of clients
4- Complaints handling procedure
5 - PII
6 - Whether the firm will hold
Clients money
46
What is the name of the RICS guidance on bribery and money laundering
PS - Countering Bribery and Corruption, money laundering and terrorist financing ( 1st Sept 2019)
47
What Rule does complaints handling apply to ?
Rule 5
48
What Rule does CoI apply too ?
Rule 1
49
Can you give me examples of what Appendix A covers for members?
1. Members must comply with CPD
2. Members must cooperate with the RICS
3. Members must promptly provide all information reasonably requested by the standards and Regulation board, or those exercising delegated authority on its behalf.
50
Within the Rules of Conduct what does the Appendix A cover for firms ?
1. Firms must publish a complaints handling procedure including an ADR provider approved by RICS
2. Ensure previous and current professional work is covered by PII
3. Firms with a Sole Principle must make appropriate arrangements for their work to continue in event of their in capacity/absence/death
4. Firms must cooperate with the RICS
5. Provide all information reasonably requests by the standards and regulation board
6. Firms must display on their business literature in accordance with RICS.
7. Firms must report any matter they are required to report under the rules for registered firms
51
What is a Conflict of interest?
Arises in a situation when they may be an actual,perceived or potential risk that the judgement of a firm or member has been compromised when undertaking an instruction.
52
Can you give me some examples of Conflict of Interest ?
1. Party Conflict
2. An own interest
3. A confidential information conflict
53
Give me some examples where a conflict of interest may arise?
1. Acting for two different parties with competing interests
2. Financial interests
3. Personal Relationship
4. Common relationship
5. Interests of you firm conflict with that if you client
54
What should you do if a conflict did arise?
- Should be delt with by implementing openness and transparency
- Declare conflicts to all parties
- All Parties can then decide how they wish to proceed
- Adhere to the traffic light system for guidance
55
What is the RICS decision tree ?
A flow chart to help members decide how to proceed when their professional ethics are at stake
56
What is the Role of the RICS?
A global leading professional body promoting the highest ethical standards in the property industry
57
What teams make up the RICS structure
- Governing Council
-Executive Team
- Standards and regulations board
- Presidential team
58
In relation to PII what is the minimum limit for Indemnity ?
<£100,000 = £250,000
<£200,000 = £500,000
>£200,000 = £1m
59
How many years after an instruction has been completed can professional indemnity Insurance claim be made ?
60
What type of cover would you need to cover a claim brought after a firm or member ceases to trade
Run off cover
61
Can one chartered surveyor practice work for client whilst another part of the practice is working for a conflicting client ?
Yes
- Implement a Chinese wall
- Teams should be physically separated
- Requires a compliance officer to monitor the wall. Education and training must be given to the compliance officer.
62
What information is needed by the RICS for registration of a new firm?
- Type of business and staff
- Details of whether the form holds clients money.
-Complaints Handling procedure
- PII details
-Nature of clients
- Statutory regulatory activities
63
What is the RICS complaints handling procedure requirement
- Procedure in writing
- How to complain.
- What to do if the client feels compliant is not dealt with adequately
64
what is the name of the RICS guidance on Bribery and Money Laundering?
PS - Countering bribery and corruption, money laundering and terrorist financing- 1 - Sept 2019
65
What is the UK structure of the RICS
4 National Association
10 Regulatory Boards
Local Associations
66
Which Rule does Conflict of interest apply to?
Rule 1 - Members and Firms must identify actual and potential conflicts of interest
67
What Rule does Complaints Handling apply to ?
Rule 5 - Members and Firms must respond to complaints made against them promptly and openly
68
Tell me about the Levitt Report
Criticism of RICS Governance as a result of poor financial controls, the out was an internal power struggle within the RICS
69
What are the five principles of RICS Regulation for Members and Firms
PACTT
- Proportional
- Accountability- to the public
- Consistency - treating all members the same
- Targeting - serious breaches
- Transparency
70
What are the requirement s for RICS registration?
If over 50% of principals are RICS it must be registered & at 25% of principle members
71
What are the levels of disciplinary procedures?
1. Action by head of regulation
2. Regulatory Tribunal
3. Appeal Panel
72
What are common reasons for RICS taking disciplinary action?
- Ethics
- Professional Behavior
-CPD
- Clients Money
73
Why would you decline work?
- Not competent
- CoI
- PII can not be agreed
- Proposed client will not sign ToE
74
How would you avoid neglect when undertaking g an instruction?
-Clear ToE
-Ensure I’m competent when undertaking work
- Undertake work in accordance with RICS standards
- Detailed notes and photos
- Keep up to date with market knowledge and legislation
75
What are the RICS complaints handling procedure?
Stage 1 in-house:
Stage 2: ADR
76
Where would you inform the client of the complaints handling procedure ?
With the ToE.
77
What are some points outlined in the RICS PS Client Money Handling 1st Edition
- Holding client money
- Providing information to clients
- Receipts of client money
-Accounting records and controls
- Compliance
78
Tell me statutory legislation for opening & Operating a businesses?
- Bribery Act 2010
- Money Laundering & Regualtions
- Health and Safety Act 1974
- Employment Law
- Fire Compliance
- Register for data protection
- Inform HMRC OK
79
How to close down a firm
- Inform RICS of closure
- inform the clients of the hand over arrangements
- Return clients money
- Inform insurance
- Retain a copy of the client files for 6 years
80
What are the main principles of the Bribery Act 2010
Aim to reduce Bribery in business in the UK.
A bribe is giving, promising, or receiving a gift or payment for an action which is illegal or breach of trust.
81
What are some key provisions in the Money Laundering, Terrorist Financing of Funds regulation
Money Laundering is where proceeds of crime are disguised or converted and then realized as ligament assets.
82
What rule does continuing professional development apply to
Rule 2
83
Can you give me an example how you applied rule 4 in your practice ?
When I disagreed with an agent valuation I ensured I treated them with respect.
84
What is your Organizations Complaints handling procedure ?
Tier 1 - Invested in business stream
Tier 2 - Complaints handling team (VOA)
Tier 3 - Parliamentary Ombudsman @ MPs
85
What are the 7 Rules for firms stated in Appendix A
- Complaints handling procedure
- PII
- Sole Practitioners arrangements for incapacity
- Cooperate with RICS
- Provide all information reasonable requested
- Display Regulated by RICS
- Report to the RICS as required by Rules for regulated firms
86
What are the three rules applied to members as stated in Appendix A
- CPD
- Cooperate with RICS
- Provide Promptly all information reasonably requested by standards and Regulation Board
87
When is a firm required to register with the RICS ?
- Provides surveying survives to the public
- Operating in a regulated area
- At least 50% of principals are members
88
What are the rules for RICS registered firms
- Adequate PII
- Complaints Handling Procedure
- Security’s of clients money
- Comply with employment law
- Training program for employees
- Individual RICS progressional required to take CPD
89
What does the RICS monitor via their annual returns
- Valuer Registration Scheme
- Handling Clients Money
- PII Complaints
- CPD
90
What is a Locum agreement and what does it cover
- Arrangement for incapacity of a sole trader, ensure cover for :
- Long term absence from illness
- Death
- Long term holidays (1month)
- Unseen or unavoidable events
Can be another RICS member or a suitably qualified professional
91
What are the 4 offenses of the bribery ACT 2010
- Offering a Bribe
- Receiving a Bribe
- Bribing a pubic or foreign official
- Failing to cooperate or report an offense.
92
What are the requirements for registering a business ?
- Complaints Handling Procedure
- PII
- Staff Training
- Preserving Clients Money
- Comply with legislation
- Register with RICS & Rules for firms
93
What are the levels of disciplinary action ?
- Action by head of Regulation
- Regulatory Tribunal
- Appeal Procedure
94
What are some reason for disciplinary breaches
- Failure to comply with CPD
- Regulatory Compliance order
- Refer matter to regulatory panel
95
What must you check before accepting an instruction
- Check if professionally competent
- No CoI
- Confirm ToE in writing
96
How to avoid Negligence ?
- Clear ToE
- Ensure I undertake competent work
- Make detailed notes and photographs
- Keep abreast with market knowledge and legislation
- Cap professional liability excess on your PII policy in TOE
97
Explain the VOA CHP
1 Complaint handled in the business
2 Complaints Handling Team
3 MP & Ombudsman
98
Can you give me an example where you have adhered to Rule 2
- CPD
- Reflecting on work
- Glamping Pods: Tight deadline, insufficient knowledge, declined work
99
Can you give me an example of Rule 3 in your work
- ToE
- Timely Manner
-Care, Skill and due diligence
100
Can you give me an example of where you have practiced rule 4
- Undertook CPD on modern slavery
- CPD on identifying racism,
- Everyday part of my professional live and personal life
101
What is the difference between Adjudication and Arbitration
Adjudication:- The adjudicator is selected to resolve and the decision is binding unless resolved
Arbitration (Act 1996) - An Arbitrator is appointed and is legally binding & then can assisting their own facts
102
What would you do if a client t handed you £9,000 for a fee
- I would undertake anti money laundering due diligence as part of my instruction check
- I would check the status for the client who are they acting for.
- I would consider reviewing the sanctions list
103
What are the 6 principles of the bribery Act 2010
- Proportionality
- Top level commitment
- Risk assessment
- Due diligence
- Communication
- Monitoring and review
104
What are some key provisions in the Bribery Act
- Requirement for written money laundering and terrorist financing risk assessment
- Comply with new customer enhanced and simplified due dilligence requirements
- AML & KYC checks
- Provide staff training and internal controls
