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APC TH > Ethics > Flashcards

Ethics Flashcards

1
Q

What is the motto of the RICS?

A

“Modus est rebus
There is a measure in all things
“

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2
Q

What would I do if I accidentally sent sensitive information to a third party?

A
  • Consider whether information is personal data protected by legislation or information deemed confidential by the Terms of Engagement
  • Follow procedures to report breach, report to client and to regulators where necessary (data protection officer, manager)
  • Identify what you could do differently to prevent it from happening next time
  • Destroy confidential information that is sent to you
  • Ask person who you sent it to to destroy it
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3
Q

What are the RICS Mandatory rules?

A

…

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4
Q

When was the RICS founded?

A

1868

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5
Q

When was the RICS’ Royal Charter granted?

A

1881

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6
Q

What sets out the governance of the RICS?

A

Regulations and bye-laws

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7
Q

What are the four levels of RICS memberships?

A

“1. FRICS
2. MRICS
3. AssocRICS
4. Trainee/Student”

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8
Q

How do you become a fellow of the RICS?

A

“Evidence of four Fellowship characteristics:
1. 5 or more years at MRICS
2. A leadership role
3. Professional/technical achievement
4. Academic achievement”

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9
Q

What is the Governance structure of the RICS?

A

“Internal councils/boards/and associations
- Governing council runs the RICS (21 seats plus 7 covering the presidential team)
- Regulatory Board/Management Board and committees report to Governing Council
- 17 specialist professional groups - each have an elected board “

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10
Q

Who is the Interim Chair of Governing Council?

A

Nick Maclean

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11
Q

Who is the interim Chief Executive Officer?

A

Richard Collins

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12
Q

Who is the current president?

A

Clement Lau (until 31st Dec 2022)

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13
Q

Who is the president elect?

A

Ann Gray (new president from 1st Jan 2023)

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14
Q

What is the RICS structure in the UK?

A

“4 National Associations
10 regional boards
Local Associations”

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15
Q

Why was the Levitt Review (2021) comissioned?

A
  • Commissioned by the RICS in 2018 following a treasury management audit
  • RICS had had to extend its overdraft facility by c£3 million due to inaccurate cashflow forecasting
  • Treasury management audit offered a ‘no assurance verdict’ on RICS internal financial control procedures and following this the Levitt Report was commissioned as an independent review.
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16
Q

What is the three roles of the RICS?

A

“1. Maintain the highest standards of education and training
2. To protect consumers through strict regulation of professional standards
3. Leading source of information and independent advice on the built environment”

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17
Q

Who is the RICS accountable to?

A

Members and the public

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18
Q

What is the purpose of the Lord Bichard Review?

A

“1. Clarify purpose of RICS
2. Making recommendations on governing structure
3. Provide proposals for future culture and strategy of the RICS”

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19
Q

Following the Lord Bichard review who is the first Senior Independent Governor?

A

Lord Bichard

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20
Q

What on the 8th September did the RICS implement following the Lord Bichard review?

A

”- New composition of the governing council
- Election process for Governing Council Seats are to be reviewed
- The RICS president will chair the governing council for the duration of their term”

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21
Q

What are the five benefits of being an RICS member?

A

“1. Status
2. Recognition
3. Market Advantage
4. Knowledge
5. Network”

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22
Q

What are three benefits of regulation for firms? (CPS)

A

“1. Confidence for client’s
2. Professionalism
3. Security “

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23
Q

Does the RICS have have a guidance note for regulating firms

A

Yes - RICS ‘ Rules for the regulation of firms, 2019 (effective 1st April 2020)

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24
Q

What are the 6 areas of information required by RICS for registration?

A

“1. Type of business and staffing details
2. Statutory regulated activities
3. Nature of clients
4. Complaints handling procedures
5. Professional indemnity insurance details
6. Whether the firms holds client’s money”

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25
Q

When were the new Rules of Conduct published and when were they effective?

A

“October 2021
2nd February 2022”

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26
Q

What did the Rules of Conduct replace?

A

The old rules and the 5 Global Professional and Ethical Standards

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27
Q

What are the five Rules of Conduct?

A

“1. Members and firms must be honest, act with integrity and comply with their personal obligations, including obligations to RICS
2. Members and firms must maintain their professional competency and ensure that services are provided by competent individuals who have the necessary expertise
3. Members and firms must provide good quality and diligent service
4. Members and firms must treat others with respect and encourage diversity and inclusion
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 their profession”

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28
Q

Appendix A of the Rules of Conduct sets out professional obligations - what are three that RICS members must comply with?

A

“1. Comply with the CPD requirements set by RICS
2. Cooperate with RICS
3. Promptly provide all information reasonably requested by Standards and Regulations Board”

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29
Q

What were the reasons behind creating new Rules of Conduct?

A

”- A simpler structure
- Clear examples
- Focusing on respect, diversity and inclusion
- Understanding evolving technology
- Tackling global challenges”

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30
Q

Appendix A of the Rules of Conduct sets out professional obligations - what are seven that RICS regulated firms must comply with?

A

“1. Complaints
2. Adqequate/appropriate PI
3. Sole principal then make cover arrangements
4. Cooperate with RICS
5. Promptly provide all info requetsed by Standards and Regulation Board
6. Display on business literature the RICS designation
7. Report to RICS any matter required to be reported under Rules for the Registration of Firms “

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31
Q

What material can help members with ethical decisions?

A

Ethics Decision tree & RICS Regulation Confidential Hotline

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32
Q

What are the 3 levels of disciplinary action?

A

“1. Action by Head of Regulation
2. Regulatory Tribunal (for more serious breaches
3. Appeal Panel”

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33
Q

First step is a formal investigation by the Head of Regulation of the RICS - they can initiate four actions what are they

A

“1. Serve a Fixed Penalty Notice (breaches for supply for info)
2. Make a regulatory Compliance order (minor breaches)
3. CPD Sanctions
4. Refer the matter to the Disciplinary Panel for consideration under the discipline rules “

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34
Q

What RICS Guidance note relates to social media?

A

Use of Social Media: Guidance for RICS members, 2021

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35
Q

Are RICS International Standards mandatory?

A

Yes, eg RICS Valuation - Global Standards, 2021 (effective 31 Jan 2022)

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36
Q

Are Professional Statements mandatory?

A

Yes - eg, Code for Leasing Business Premises 2020

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37
Q

Are Professional Statements mandatory?

A

Yes

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38
Q

Are Guidance statements mandatory?

A

No - eg surveying safely 2018

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39
Q

What is guidance around Fee negotiations?

A

”- Avoid price-fixing or aggressive fee cutting
- Fees should be market based and agreed on an ad hoc basis
- No colluding with other firms “

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40
Q

What are the three steps to follow when looking at Terms of Engagement (CIT)

A

”- Check professionally competent
- No conflicts of interests or personal interests
- Confirm terms of enagement in writing and get written approval from the client before starting work “

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41
Q

What two acts do you need to comply with for Terms of Engagement in relation to agency work?

A

”- Section 18 of the Estate Agents Act 1979
- Money Laundering Regulations”

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42
Q

Name some reasons why it may be appropriate to decline an instruction

A

“1. You are not competent
2. You do not have sufficient facts
3. Client won’t sign Terms of Engagement
4. Conflict of interest or Personal Interest “

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43
Q

What is a conflict of interest?

A

When a member/firms impartialty is threatened due to existence of conflict between parties

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44
Q

What are examples of conflicts of interest?

A

“Financial interest
Personal interest
Commercial relationships
Acting on both sides of a transaction”

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45
Q

What is conflict avoidance?

A

Do not accept instruction

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46
Q

What is conflict management?

A

Instructions are accepted, steps agreed to manage conflict, information barrier put in place

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47
Q

What are three groupings of conflicts of interests?

A

“1. Party Conflict - between parties
2. Own interest conflict
3. Confidential Information Conflict “

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48
Q

What is informed consent?

A

When party who may be affected by conflict of interest knowingly provides instruction to RICS firm

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49
Q

Does the RICS have any documentation on Conflicts of Interest?

A

RICS Global Professional Statement on Conflicts of Interest, 2017

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50
Q

What are the three steps to handle a conflict of interest?

A

“You should be transparent and open
Step 1 - Conflict avoidance - decline?
Step 2 - Written advice to both parties (disclose, be clear, request informed consent)
Step 3 - Conflict management - set up info barrier”

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51
Q

Is dual agency allowed?

A

No

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52
Q

How must an information barrier be operated?

A

”- allow no info to pass between parties
- ‘Reasonable steps’ to operate
- Surveyors acting for each side must be different and physically separated
- Clear audit trail of comms
- Information securely stored”

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53
Q

Name an example of where your firm managed a conflict of interest?

A

…

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54
Q

When is client’s confidentiality overruled?

A

Statutory duty eg police

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55
Q

How would you deal with a complaint from someone to who you owe a duty of care?

A

…

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56
Q

How long should old client files be held for before disposal?

A

6 years

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57
Q

Tell me about complaints handling procedures

A

”- Written CHP must be approved by RICS
- Details set out in RICS Guidance Note on Complaints Handling 2016
- Always notify PII insurers as soon as possible
- CHP plus Terms of Business given to Client
- Complaints Log
- Firm must include RICS approved ADR in their CHP”

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58
Q

Two stages of CHP

A

“1. In house - issue CHP, CHP officer, acknowledge complaint within 7 days, investigate within 28 days
2. ADR - Third party resolution “

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59
Q

What rules are their on CPD for members?

A

“20 hours
Half informal
Log it on the RICS website”

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60
Q

Is Professional Indemnity Insurance mandatory (PII)? What is it?

A

yes - insurance to cover negligence and duty of care - should be fully retroactive

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61
Q

What are the minimum level of PII cover for firms?

A

“Firms Turnover (new business estimate)
£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 and above = £1,000,000”

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62
Q

What is negligence?

A

Duty of care exists to clients and third parties , using ‘reasonable care and skill’ - when breached and there is a loss, a claim for damages arises

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63
Q

Name a case which relates to negligence and duty of care

A

Yianni v Edwin Evans (1981) - Resi valuer instructed by mortgage lending could owe a duty of care in tort to a mortgagee purchaser relying on a valuation

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64
Q

What are the limitations for negligence under the Limitation Act 1980?

A

“1. Contract - 6 years from the negligence/breach
2. Tort - 6 years from the date the claimant suffered the loss
“

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65
Q

How do you avoid negligence?

A

”- Clear instructions confirmed in writing
- Ensure own competence
- Follow RICS Guidelines
- Good documenting of work undertaken
- Keep up to date market knowledge
“

66
Q

What RICS document looks at handling money?

A

RICS Professional Statement ‘Client Money Handling’ 1st Edition 2019, effective Jan 2020

67
Q

What 6 areas of good practice does RICS Professional statement ‘Client Money Handling’ 1st Edition cover?

A

“1. Holding client’s money
2. Providing information to clients
3. Receipt of client money
4. Payments from clients accounts
5. Accounting records and controls
6. Compliance”

68
Q

Tell me about whats best practice when handling client money

A

”- Client accounts must be kept separately and clearly identifiable
- Client must be able to have their monies on demand
- Accurate records kept
- Signatories must be agreed with authorised staff and 2 signatures should be required
- Payment of interest is agreed with a client and accounts kept in credit”

69
Q

What is the RICS Client’s Money Protection Scheme?

A

”- Provides last resort protection for Client’s in instances where RICS regulated firm is unable to repay client’s money
- Has two parts:
Client Money Protection for Surveying Services
Client Money Protection for Residential Agents”

70
Q

How do you set up a RICS practice? (RICS compliance)

A

“1. Inform RICS fill out Firm Detail Form
2. Appoint Responsible Person (communicates with RICS)
3. Register with RICS for regulation of the firm
4. Arrange PII cover
5. Set up Client Money Handling Procedures
6. Obtain RICS approval for Complaints Handling Procedure”

71
Q

How do you set up a RICS practice? (Statutory compliance)

A

“-Disability discrimination compliance (Equality Act 2010)
- Financial Services Compliance (Financial Services and Markets Act 2000, Financial Services Act 2012)
- Bribery Act 2010 compliance
- Money Laundering officer (Money Laundering Regulations 2017)
- Health and Safety compliance (Health and Safety Act 1974)
- Asbestos register (Control of Asbestos Regulations, 2012)
- Fire Safety Compliance (Regulatory Reform (Fire Safety) Order 2005)
- HMRC register for VAT
- Ensure compliance with employment law
- Register for data protection (GDPR 2016 and Data Protection Act 2018)
- Estate Agent Compliance (Estate Agents Act 1979, Misrepresentation Act 1967, Consumer Protection Regulations 2008)

”

72
Q

What do you need to do if closing an RICS practice?

A

“1. Inform RICS
2. Ensure client’s are informed as early as possible
3. Return client money
4. Inform insurers, obtain PII run off cover for min of 6 years
5. Retain copy of client’s files for 6 years”

73
Q

What are the two key pieces of legislation in relation to Gifts, bribery and corruption?

A

Bribery Act 2010 and Crime Act 2002

74
Q

Tell me about the Bribery Act 2010

A

”- Aims to reduce bribery in business in UK and abroad
- Four offences: Bribing, receiving a bribe, bribing a foreign public official, failing to prevent bribery
- Gov guidance is that hospitality is not prohibited, must be registered in gift/hospitality register
- Companies responsible for their employees corruption unless they can show adequate policies and procedures in place
- Policed by Serious Fraud Office
- Penalties: max 10 years in prison & unlimited fine for individuals and companies”

75
Q

Tell me about the Money Laundering, Terrorist Financing and Transfer of Funds Regs 2017 (amended 2019)

A

”- Covers estate agency work and ‘relevant financial business work’ inside and outside the UK by a firm’
- Requires a ML/TF risk assessment
- Adopt internal controls
- Provide staff training
- Implement systems, polciies and controls
- AML checks must be taken to confirm identity of proposed purchaser of a property and check source of funds
- Limit of 10,000 EUR for the acceptance of cash
- On going business relationship with a client should be monitored”

76
Q

What is money laundering?

A

When proceeds of criminal activities are disguised to create legitimate assets

77
Q

What was the 2019 amendement to the Money Laundering Act?

A

Letting agents have to register with HMRC if they let individual properties for more than £10,000/month

78
Q

What does CDD stand for?

A

“Customer Due Diligence - checks to be taken under ML Act amends on new sales, any lettings, or relettings
- Identify client and independently verify their identiity
- Identify beneficial owners of the client
- Company name, company number and address of registered office”

79
Q

What does EDD stand for?

A

Enhanced Due Diligence - checks undertaken if Red Flags occur - high risk third country, or PEP (politically exposed person)

80
Q

What are the penalties of failing to comply with ML regulations?

A

”- Max 14 year prison and or unlimited fine for assisting ML
- Max 5 year prison and or unlimited fine for tipping off/or failing to report suspicion”

81
Q

What are the red flags associated with money laundering?

A

”- inability or unwillingness of parties to provide identity documents
- Changes to parties involved in transactions
- Unusual transaction features
- Payment in unusual currencies”

82
Q

Tell me about the Proceeds of Crime Act 2002

A

”- Empowers enforcement authorities in UK to recover assets which are deemed to be the proceeds of crime
- Creates 3 criminal offences to combat AML offences
1. Concealing criminal property
2. Arrangements (that facilitates ML)
3. Acquisition use and posession”

83
Q

What is the RICS professional statement on bribery and ML?

A

RICS Professional Statement - Countering Bribery, corruption, money laundering and terrorist financing, 2019

84
Q

Tell me about the RICS Professional Statement - Countering Bribery, corruption, money laundering and terrorist financing, February 2019, effective September 2019

A

“Divided into 3 parts
1. Mandatory requirements
- Bribery & Corruption
Not offer or accept anything that could constitute a bribe
Have procedure sin place to comply with law
Record that you have met reqs. of the professional statement
Report suspicion to relevant authority
- Money Laundering and Terrorist financing
Have systems in place to comply with the laws
Report suspicion
Evaluate risks you’re exposed to
Verify client
Record that you have met reqs. of the professional statement
2. Practical guidance
Have written policy in place
Publish code for behaviour encourage transparency
Set up gifts register
3. Supplementary Guidance”

85
Q

What are your employers anti-bribery and and anti-money laundering procedures?

A

…

86
Q

Tell me about the Rules of Conduct

A

…

87
Q

If asked about acceptance of cash, gift or hospitality …

A

“Bribery Act 2010
RICS Professional Statement
Your organisations’ procedures
Professional objectivity, openness, transparency
Proportionality
Tax Implications
Employment contract details
“

88
Q

If asked about AML …

A

“Money Laundering, Terrorist Financing and Transfer of Funds Regs 2017
The RICS Professional Statement
Government Guidance for estate agents
DD Procedures
Red Flags
Professional objectivity, openness and transparency
“

89
Q

What are the mandatory RICS materials?

A

“1. International standards
2. Professional statements
3. Practice statements”

90
Q

What are the CPD rules?

A

“Members must undertake 20 hours minimum
- 10 hours formal
- 10 hours informal
- Maintain understanding of Rules of Conduct during a rolling 3 year period”

91
Q

What is the difference between formal CPD and informal?

A

“Formal
- Structured learning (clear objectives and outcomes)

Informal
- Self-managed learning relevant or related to professional role

There is a decision tree to help decide”

92
Q

What should you do first on receiving a negligence claim?

A

Notify PII insurers asap

93
Q

What does integrity mean?

A

…

94
Q

How would you handle a conflict of interest?

A

…

95
Q

If you wish to accept an instruction with a conflict, what should your written advice to both parties include?

A

…

96
Q

What is a ‘personal interest’ and would you be able to act if one was present?

A

…

97
Q

Why have the Rules of Conduct been updated?

A

Updated to help the global profession respond to new risks and opportunities

98
Q

Give me some example behaviours for each Rule of Conduct

A

…

99
Q

What is the Ethics tree and what are the stages of decision making?

A

…

100
Q

How do you deal with a complaint from someone who you have a Duty of Care to? How would you deal with initially and when would you escalate and set CHP in motion?

A

…

101
Q

How do RICS standards ensure consumer protection?

A

…

102
Q

What needs to have occurred or a negligence claim to be made?

A

Duty of care breached - loss - damages

103
Q

How would you handle a conflict of interest?

A

…

104
Q

If you wish to accept an instruction with a conflict, what should your written advice to both parties include?

A

…

105
Q

What is a ‘personal interest’ and would you be able to act if one was present?

A

…

106
Q

When was the previous Rules of Conduct from?

A

2007

107
Q

When are the new Rules of Conduct Global (October 2021) effective from?

A

2nd February 2022

108
Q

What were the new changes of the RICS Rules of Conduct and why were they changed?

A

Had been in place since 2007. Following consultations with members, firms and members of the public majority voted to replace the existing Rules of Conduct for Members and Firms, separate Global Professional and Ethical standards. Desire to create a single document to enable greater clarity for RICS members and firms. Appendix A now contains the professional obligations for members and firms

  1. Simpler structure
  2. Clear examples
  3. Focusing on respect, diversity and inclusion
  4. Understanding evolving technology
  5. Tackling global challenges
109
Q

Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including their obligations to the RICS - name some example behaviors

A
  • Open transparent about fees and services
  • Don’t misuse client’s money
  • Don’t be influenced improperly
  • Identify actual and potential conflicts of interest
  • Processes to identify conflicts of interest
  • Provide honest, objective advice
  • Do not facilitate money laundering, tax evasion, bribery
110
Q

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

A
  • Only undertake work that they have the knowledge, skills and resources to carry out competently
  • Supervise employees carrying out work for them
  • Check subcontractors have necessary knowledge and skills and resources
  • Maintain, develop their knowledge and skills. Comply with CPD requirements set out by RICS
  • Stay up to date with statute and relevant legislation
111
Q

Rule 3 - Members and firms must provide good-quality and diligent service - name some example behaviours

A
  • Understand client’s need and objectives before accepting work
  • Agree with clients scope of service, limitations and timescales
  • Inform clients that firm is regulated by the RICS
  • If terms of engagement or costs change promptly let client know
  • Work undertaken in timely manner, with due care, skill and diligence
  • Clear communication with client
  • Firms have effective quality assurances in place
112
Q

Rule 4- Members and firms must treat others with respect and encourage diversity and inclusion - name some example behaviours

A
  • Do not bully, victimise or harass
  • Work co-operatively with others
  • Develop inclusive culture within the workplace
  • Do not discriminate and treat everyone fairly
113
Q

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

A
  • Report breaches by firm or others to the RICS
  • Manage their professional finances responsibly
  • Consider effect of health conditions on competence
  • Respond to complaints promptly
  • Question practices and decisions that are not right
  • Not to do anything which undermines confidence in the RICS
114
Q

Was it ethical for Boots to withhold rent during the pandemic?

A

Great and complex question. Trade severely impacted even being an essential retailer. It was unprecedented times and cash flow was required to keep the business running and money to keep 60,000 staff in jobs. Parameters were set whereby small landlords of individual properties were excluded. The message was always that rent was not being held indefinitely

115
Q

Prior to working with a new client, what pre appointment checks would you undertake

A
  1. Ensure that I am sufficiently knowledgeable, skilled and competent to carry out the work required.
  2. Checking for conflicts of interest in line with the RICS professional statement conflicts of interest 1st edition effective January 2018
  3. Anti money laundering checks, in line with with the Anti-Money Laundering Directive and RICS Professional Statement Countering Bribery and Corruption, Money Laundering and Terrorist Financing
  4. Ensure that the firm has sufficient PII insurance to cover the value of the insurance
  5. Formalise the engagement in written terms of engagement
116
Q

When setting up a new practice what procedures would you put in place to ensure good client care was being provided?

A
  1. Processes for formalising terms of engagement and clear communication lines with the client, including confirming timescales, resourcing adjustments and obtaining any information required from the client
  2. Set up procedures for obtaining regular client feedback and ensuring this is acted upon for example by holding monthly client performance reviews.
  3. Develop strategies for taking part in business development activities in order to retain existing clients and also generate new business
  4. Procedures to keep client information confidential and using non-disclosure agreements to protect client confidentiality if required
  5. Reporting to clients using agreed and consistently formatted documentation that has been tailored to meet the client’s requirements.
117
Q

Why is client care so important?

A
  1. Surveying practices that provide excellent client care are likely to retain existing clients and develop new business leads
  2. A failure to provide good client care is likely to lead to client dissatisfaction, complaints and in the worst case scenario Professional Indemnity insurance claims for professional negligence
  3. Formal complaints and insurance claims can be costly and result in a stressful working environment, reduced staff performance and be time consuming
  4. Complaints and claims can and should be avoided with diligence, manageable workloads and resource planning and well developed procedures for obtaining and acting on customer feedback
118
Q

On receipt of formal complaint from a client in writing what would you do?

A
  1. Arrange a call with the client as soon as possible to notify them that you have received the complaint and are working to rectify the issue they are experiencing
  2. Issue the client a copy of my firms complaints handling procedure for reference.
  3. Report the complaint with all relevant details to a senior person within the firm or designated complaints handler.
  4. Notify my firms PII insurers in line with our policy requirements
  5. Arrange a meeting with the client to take on board their feedback and address any areas of concern by introducing appropriate procedures if required.
  6. If I am unable to resolve the complaint this would need to be referred to the RICS independent redress mechanisms.
119
Q

What is a complaint and why is this a serious topics area for surveyors?

A
  1. A complaint is a statement that a situation is unsatisfactory or unacceptable to the client.
  2. These can either be made formally either in writing or verbally.
  3. It is important to take complaints seriously as the RICS require these to be handled in line with their complaints handling procedure.
  4. Practices also have an obligation to notify PII insurers.
  5. In the worst case they can result in loss of clients, reputational damage and PII claims against firms.
120
Q

What is meant by the term Duty of Care?

A
  1. A duty of care is to ensure that another party does not suffer harm or loss that can arise as a result of a breach of contractual obligations or Tort of Negligence
  2. General forms of appointment will include contractual duties to perform services with reasonable skill and care that is to a standard expected of a reasonably competent professional.
  3. However if the appointment is made on the basis of specialist capabilities then the duty of care expected would be to the standard of a competent specialist rather than a general practitioner operating in that field.
  4. In the absence of contractual obligations Tort of Negligence can be applied which relies on the courts applying relevant aspects of common law to determine the duty of care that is owed.
121
Q

What is the difference between a client and a customer?

A
  • Customers are best defined as an individual who is purchasing goods and services from a company - typically one time transactions whereas
  • Client refers to a person who looks for professional service from the business.
  • A customer engaging with the company will not have the same relationship as a client who engages in fiduciary relationship with the company
  • Client and firms will work on long term goals and long lasting relationships. Focus on creating a strong bond with the client in order to retain them as a client.
122
Q

How do you conduct yourself with a new client?

A
  • I am always sure to be friendly, engaging and enthusiastic
  • I am inquisitive about key challenges they may be facing
  • I ensure at all times as a minimum I am:
    Well presented, polite, conscientious and respectful
123
Q

Please provide an overview of your quality management procedures

A
  • Peer review process
  • Standard format of documentation
  • Authorisation / signature process prior to release of documentation
  • Accessible storage file systems ( in case of absences)
  • Procedures for absence of staff and staff leavers to ensure handover of information
  • Internal and external auditors
124
Q

What is your firms procedure for obtaining client feedback?

A

Client performance reviews
Use of KPIs
Regular day to day informal communication with the client
Lessons learned workshops

125
Q

What is meant by KPIs?

A
  • A Key Performance indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives
  • High level KPIs may focus on the overall performance of the business while low level KPIs may make focus on processes in departments
126
Q

What is meant by the term client money?

A
  • Money of any currency whether in the form of cash, cheques, draft or electronic
  • An RICS regulated firm hold or receives on behalf of another person or company that is not immediately due or payable on demand to the RICS regulated firm for it’s own account
  • Client money excludes fees paid in advance for professional work
127
Q

If a client was prepared to pay you in advance for services you were providing, how would you ensure this was dealt with?

A
  1. Set up a client account that is properly named and clearly identifiable (with the word client in the name)
  2. Provide the client with a statement of account
  3. Inform and agree drawdowns
  4. Prior to drawing monies send a statement of how much is to be withdrawn and what services and associated fees are made up of, send updated statements of accounts
  5. Once complete, show a final statement, ensure everything is complete and transparent
128
Q

What is the difference between ethics and integrity?

A
  • Ethics are moral values that affect a persons behaviour or the conducting of an activity
  • Integrity is the quality of being honest and having strong moral principles
129
Q

How can professional practices look to encourage ethical environments with high standards of integrity?

A
  1. Set up confidential whistleblowing procedures
  2. Raise awareness and provide CPD on ethical matters
  3. Become an RICS accredited practice
  4. Establish monitoring of ethical performance amongst staff members
130
Q

Please give some examples of matters you may refer to the RICS decision tree in order to seek guidance

A
  1. Receiving gifts in a professional capacity
  2. Equal opportunities
  3. Whistleblowing
  4. Copyright and ownership
  5. Conflicts of interest
  6. Charitable donations
  7. Attendance at hospitality events
131
Q

Explain your understanding of Rule 1?

A
  • Having reviewed example behaviors in adhering to Rule 1, RICS members should not allow themselves to be influenced improperly through the acceptance of work referrals, gifts or hospitality
  • Members and firms must also be sure to identify conflicts of interest and not provide services or advice where these conflicts of interest occur
132
Q

Explain your understanding of Rule 2?

A
  • To ensure compliance with Rule 2, RICS members and firms must only act for clients where they have the necessary knowledge, skills and resources to carry out work competently
  • Firms must supervise any employees or subcontractors undertaking work on their behalf. A suitably experienced surveyor should be involved to ensure compliance.
133
Q

What were the findings of the Levitt Review?

A
  1. RICS Governing Council are to have more oversight over internal dealings of the RICS
  2. The RICS Governing Council are to be briefed by the Management Board as opposed to a single CEO
  3. The RICS Governing Council are to oversee executive management bonuses

The lack of clarity, structure and purpose of the RICS Governance arrangements - called for independent review - triggered Bichard review.

134
Q

What are the professional obligations of members?

A
  1. Must comply with RICS CPD requirements
  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.
135
Q

Explain your understanding of Rule Number 3?

A
  • As an RICS member or regulated firm we must be sure to understand client’s requirements, aims and objectives before acting on their behalf
  • The client’s scope of services should be agreed and timescales before signing up to formal terms of engagement
136
Q

Explain your understanding of Rule 4?

A
  • The RICS also expects its members to respect the right of others and treat others with courtesy.
  • We need to ensure that everyone is treated fairly and look to eliminate any instances of discrimination on the basis of age, disability, gender, pregnancy, race, religion or sexual orientation
  • RICS Members and firms also need to adopt a no tolerance policy of bullying or harassment
137
Q

Explain your understanding of Rule 5?

A
  • Members and firms are required to question practices and decisions that they suspect are not right and raise concerns with colleagues, senior management, clients, or the RICS
  • When making public statement we need to ensure these do not undermine public confidence in the profession
  • When receiving and processing complaints, we need to ensure these are dealt with promptly, openly and professionally
  • Would we be comfortable with standing behind our actions if these were brought into the media or a public forum
138
Q

What are the offences of the Bribery Act 2010?

A
  1. Making a bribe
  2. Receiving a bribe
  3. Bribery of a foreign public official
  4. Failure of a corporate entity to prevent bribery on its behalf
139
Q

What companies does the bribery act apply to?

A

The legislation applies to all UK entities and includes associated Persons for example sub-consultants and external advisors

140
Q

What procedures can companies put in place to prevent bribery on their behalf?

A

6 principles of prevention companies can put in place:
1. Proportionate Procedures
2. Top level commitment
3. Risk assessments
4. Due diligence
5. Communication
6. Monitoring and review

141
Q

Under the Bribery Act, under what circumstances is a facilitation payment permitted?

A

The only circumstance in which it is ok to make a facilitation payment is when you are under duress. Real risk and present danger to life, limb or liberty. Report the matter immediately

142
Q

Are you aware of any RICS Guidance notes on Covid-19?

A

I am aware of the RICS ‘Covid-19 Guide to Surveying Services’ which contains a range of guidance notes to work safely through the pandemic.
Specific guidance on:
1. Physical inspections for non-domestic properties
2. Reopening of Commercial buildings

143
Q

What impact has Covid-19 had on your area of surveying?

A

From a property management perspective: Labour shortages and increased material supplies has meant quotes are incredibly expensive to undertake repairs and causing delays.
Lease renewal: Lack of available comparable evidence from the period and impact on valuation. Higher rates of vacanices. Covid 19 caused many retailers to close doors.

144
Q

How have you helped clients with these issues?

A

…

145
Q

What precautions do you take in your day to day surveying concerning COvid-19?

A

I practice in line with the RICS Covid 19 for inspections and visits for non-domestic properties which requires me to:
- Maintain social distancing
- Minimise physical contact with building occupiers where possible
- Ensuring compliance with H&S procedures being operated by the site team
- Securing as much information as possible from the client prior to the visit and as part of the pre-inspection research
- Sanitise equipment in line with current Public Health Guidance periodically and often as practical

146
Q

How has Brexit affected the UK Property & Construction industry?

A
  • Movement of people is now restricted with free movement having ended on 31st December 2020 and from 1st January 2021 the UK has a new global immigration system
  • Employers are now required to register as sponsors in order to recruit from abroad.
  • To employ someone from outside the UK the individual must meet job, salary and language requirements
  • With the supply of labour being more restricted this has led to labour cost increases and a reduction in the availability of labour.
  • The price of goods moving across borders is expected to increase to increase due to the additional border checks and administrative work
147
Q

Following the Grenfell disaster are you aware of any guidance the RICS has published to support fire safety?

A

‘Cladding for Surveyors 1st Edition March 2021’ - to support surveyors working on multistorey and multi occupancy residential buildings. Fire safety would fall outside my area of expertise . If my client asked for advice I would always recommend that they seek advice via a professional fire risk assessor.

148
Q

What is the new Fire Safety Act 2021?

A
  • Fire Safety Act was introduced in March 2020 and holds significant legal obligations of organisations deemed to be responsible persons.
  • It is introduced as an update to the Fire Safety order 2005.
  • The main focus of the act is the Amendment of the Fire Safety Order to clarify that it will apply to the structure and external walls such as doors, windows and cladding
  • Under the previous regime it was unclear who was responsible for fire safety compliance for these elements of the building
  • Force owners and landlords to take precaution to identify dangerous cladding
149
Q

What is the Data protection Act 2018?

A
  • The act replaces previous 1998 legislation and manages how personal data is processed by organizations and governments
  • It is the UK legislation for the implementation of the EU General Data Protection Regulations
150
Q

What is the Data protection Act 2018?

A
  • The act replaces previous 1998 legislation and manages how personal data is processed by organizations and governments
  • It is the UK legislation for the implementation of the EU General Data Protection Regulations
151
Q

What are the key principles of the Data Protection Act 2018?

A
  • The act ensures that data:
    1. Used fairly, lawfully and transparently
    2. Used in a way that is adequate, relevant, and limited to only the purpose that it is intended
    3. Is retained for no longer than is necessary
    4. Processed securely including the protection against unlawful use, lose of destruction
152
Q

What are a person rights under the Data Protection Act?

A

People have the right to: -
1. To be informed about how their data is being used
2. The right to have access to their data
3. The right to have incorrect information erased
4. To stop or restrict the processing of their data
5. The right of portability
6. To object to the use of their data

153
Q

What insurances would you need if you were setting up your own business?

A

PII
Employers liability
Public liability
Building insurance of own office

154
Q

Tell me your understanding of Donoghue v Stevenson (1932)

A

Modern concept of negligence and duty of care
Donoghue drank a bottle with a snail in

155
Q

Tell me your understanding of Merritt v Babb 2001

A

Surveyor sued for negligence by ex client hen firms PII wa cancelled due to solvency. Highlights run off importance

156
Q

What are the time limits under the Limitation Act 1980 for ability to sue for negligence?

A

Contract Law: 6 (under hand) or 12 years (deed)
Tort Law: 6 years from when damage first occurred
3 years form date of knowledge

157
Q

You become chartered and friend asks you to provide advise?

A

Could not offer advice on my own without PII
If I did have PII, information provided must undergo all through checking and due diligence.
Inform them they can contact you during working hours to discuss T&Cs.
If not comfortable refer them to Find a Surveyor.
Adhere to rules of conduct

158
Q

What if loss exceeds PII

A

Firm covers the difference

159
Q

What are the main elements of a fee proposal?

A

Terms of conditions
Scope of services
Assumptions
Exclusions

160
Q

What are the Rules of Conduct?

A

Set out the standards of professional conduct and practice expected of members and firms

161
Q

What is Duty of Care?

A

In tort law, a duty of care is a legal obligation that is imposed on an individual, requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others. It is the first element that must be established to proceed with an action in negligence

APC TH (18 decks)

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