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APC > Ethics > Flashcards

Ethics Flashcards

1
Q

When was the RICS founded?

A

1868

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2
Q

when did the privy council grant the royal charter?

A

1881

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3
Q

What are the four levels of membership?

A

FRICS
MRICS
AssocRICS
Trainee/Student

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4
Q

how many members are in the Governing Council

A

25 members

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5
Q

Who is the president of the RICS

A

Tina Paillet

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6
Q

what is the RICS UK Structure?

A

4 National Associations
10 Regional Boards,
Local associations

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7
Q

What are the three main roles of the RICS

A

To provide the highest standard of education and training

to protect consumers through strict regulation of professional standards

To be the leading source of information and independent advice on land property and construction

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8
Q

What are the 5 benefits of being an RICS Member?

A

1 - Status - professional credentials provide unrivaled client confidence
2 - Recognition - Promotion of your excellence to governments and markets
3 - Market Advantage - Provides you with a competitive edge
4 - Knowledge - CPD and knowledge sharing
5 - Network - access to over 130,000 members worldwide

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9
Q

What are the three benfits of regulation of firms? CPS

A

1 - Confidence
2 - Professionalism
3 - Security - Complaint handling prodecure

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10
Q

What are the Rules for the regulation of firms?

A

50% of principles of a UK firm which provides surveying services are RICS members then it must be regulated

More than 25% then it can apply to be regulated

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11
Q

What are the 6 areas of information required for registration

A

1 - The type of Business and staffing details
2 - Statutory regulated activities - such as financial services
3 - Nature of Clients
4 - Complaints handling procedure details and records
5 - Professional indemnity insurance details
6 - Whether the firm holds client money

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12
Q

When was the Rules of conduct effective?

A

2nd February 2022 - replacing the previous rules of conduct for members and firms

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13
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 and those to the RICS

2 - Members and firms must maintain their professional competency and ensure that services are provided by competent individuals

3 - Members and firms must provide good quality diligent services

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

5 - Members and firms must act in the public interest, take responsibility for their actions and prevent harm maintaining public confidence.

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14
Q

What are the professional obligations of RICS Members? 3

A
  1. Comply with CPD requirements
  2. Cooperate with the RICS
  3. Promptly provide all information reasonably requested by the standards and regulations board
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15
Q

What are the Professional obligations of RICS Firms 7

A
  1. Publish complaints handling procedure, including alternative dispute resolution
  2. 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. If having a sole principle, make appropriate arrangements for their professional work to continue in the event of their incapacity, death, or absence from or inability to work.
  4. Cooperate with the RICS
  5. Promptly provide all information reasonably requested by the standards and regulation
    board
  6. Display on their literature in accordance with RICS’ published policy on designations a designation to denote that they are regulated by the RICS
  7. Report to RICS any matters that they are required to report under the Rules for the registration of Firms
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16
Q

What is the rationale for developing the rules of conduct?

A

A simpler structure
clear examples
focusing on respect
understanding evolving technology
tackling global challenges

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17
Q

Who regulates the disciplinary procedure?

A

Self-regulation by the RICS

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18
Q

What are the three levels of disciplinary action?

A
  1. Action by Head of Regulation
  2. Regulatory Tribunal
  3. Appeal Panel
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19
Q

Who initiates a disciplinary investigation?

A

Head of Regulation of the RICS

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20
Q

What disciplinary actions can the Head of the Regulation initiate?

A
  1. Serve a fixed penalty notice
  2. Regulatory compliance order
  3. CPD sanctions
  4. refer the matter to the disciplinary panel for consideration
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21
Q

What actions can be taken by Regulatory Tribunal?

A
  1. Issue compliance order
  2. impose an unlimited fine
  3. Impose conditions upon future continued RICS registration
  4. Expulsion
  5. Require publication of the results of the hearing in the RICS Modus, on the RICS website and local paper where the firm or member is based.
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22
Q

What is the guidance paper on social media?

A

Use of Social media Guidance for RICS members 2021

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23
Q

What should firms avoid in fee negotiations?

A

Price fixing, aggressive undercutting or collusion with competitors

24
Q

What are the three steps to follow regarding terms of engagement? CIT

A
  1. Check professionally competent
  2. No conflicts of interest or personal interest.
  3. Confirm Terms of engagement in writing and get written approval from the client before you start to work on the instruction.
25
Q

What act allows a 14-day cooling-off period from the date of the agreement?

A

Consumer Rights Act 2015

26
Q

what is required for compliance when carrying out agency work?

A

Section 18 of the Estate agents act 1979 and money laundering checks as per money laundering regulations 2017.

27
Q

what reasons are there for declining an instruction?

A
  1. you are not competent to undertake the work
  2. you do not have sufficient facts.
  3. the proposed client will not sign your terms of engagement and or complete AML checks.
  4. There is a conflict of interest.
  5. A professional indemnity cap cannot be agreed upon.
  6. The advice is for a friend and on a pro bono basis which is not covered by your professional indemnity insurance.
  7. the potential client is included in the government sanctions list.
  8. Would you be content for your actions to be made public?
28
Q

what is a conflict of interest?

A

Arises when a member or firms independence and impartiality are threatened due to the existence of a conflict of interest, such as;
1. Any financial interest
2. a personal interest.
3. commercial relationship
4. acting on both sides of a transaction.

29
Q

What is the difference between conflict avoidance and conflict management?

A

conflict avoidance is when you do not accept the instruction
Conflict management is when the instruction is accepted and steps agreed upon and put in place to manage the conflict such as information/ ethical barriers.

30
Q

what does the RICS Global Professional Statement on conflicts of interest state?

A

member must not advise or represent a client where doing so would involve a conflict of interest or a significant risk of a conflict of interest. other than those who are or maybe affected provide informed consent.

31
Q

When may informed consent regarding conflict of interest be sought?

A

Where RICS members or regulated firm is satisfied that proceeding despite a conflict of interest is in the interest of all those affected and is not prohibited by law.

32
Q

What are the three types of conflict of interest defined?

A
  1. party conflict - relating to work on the same or related instructions for two different parties.
  2. own interest conflict - relating to a personal interest.
  3. Confidential information conflict - relating to working between two parties that is confidential.
33
Q

regarding conflict of interest how is informed consent given?

A

Given in writing by the party if the person explaining the position to them is entirely transparent about the material factors and sure the affected party understands.

Surveyors should only seek informed consent if satisfied that all relevant parties are best served by doing so.

34
Q

Should a conflict of interest arise what is the three step process?

A
  1. Conflict avoidance
  2. Written advice to both parties.
  3. conflict management
35
Q

Should a conflict of interest arise and wish to proceed with the instruction what are the three steps regarding written advice to both parties?

A

1 Disclose the nature of the conflict, the circumstance surrounding it, and the facts.
provide a proposal on how the firm deals with the conflict such as information/ ethical barriers.
2. Be clear as you can - ensure both parties can make their own decision
3. Request written confirmation from both clients of their informed consent.

36
Q

What does the RICS Professional statement: Conflicts of interest - UK commercial property market investment agency 2017 cover?

A

Relates only to UK commercial investment agency work where a specific risk has been identified.

37
Q

When did the RICS Professional statement: Conflicts of interest - UK commercial property market investment agency 2017 come into effect?

A

1st January 2018

38
Q

What are the main areas of RICS Professional statement: Conflicts of interest - UK commercial property market investment agency 2017

A

dual agency - not allowed to act for the seller and buyer at the same time.

Multiple introductions - where an agent has competing for contractual relationships simultaneously with several buyers for commercial real estate investment.

Incremental Advice - This is where an agent is approached by another party to provide advice to include valuation, building surveying, or planning, related to a purchase or disposal that is incremental to another client.

Personal conflict - this arises when acting for a family member, a close business associate, or someone in you has a financial or personal interest.

39
Q

What do the Bye Laws state regarding confidentiality?

A

Client confidentiality must be maintained at all client affairs.

40
Q

Should a third party want to access your client’s files what do you do?

A

You must first get approval from the client unless you are subject to a statutory duty overring the client’s confidentiality rights such as the police or HMRC investigation.

41
Q

What year was the RICS Guidance note on complaints handling procedure?

A

2016

42
Q

Who approves a firms written complaints handling procedure?

A

RICS

43
Q

When should complaints handling procedure be provided to a client?

A

the same time as terms of business

44
Q

What are the two stages in the minimum procedure for handling a complaint?

A

Stage 1 - In House - details of the CHP should be issued whenever the firm recieves a complaint from someone they owe a duty of care.

Stage 2 - ADR - If the complainant is not happy with the review the CHP involves using an independent redress scheme

45
Q

When does the RICS become involved with an complaint?

A

if a member fails to respond to the complaint or prevents the party from gaining access to an independent redress mechanism.

46
Q

What is formal CPD?

A

Structured learning with clear learning objectives

47
Q

What is informal CPD

A

self - managed to learn that is relevant

48
Q

What is the prupose of professional indemnity insurance?

A

Protect clients, surveyors, and third parties against negligent claims when there is a duty of care.

49
Q

What are the current minimum requirements based on turnover for PI insurance?

A

turnover £100,000 or less = £250,000 for each claim
turnover £100,001 to £200,000 = £500,000 for each claim
Turnover £200,000 and above = £1,000,000 for each claim

50
Q

What is the maximum level of uninsured excess required by the RICS regarding PI insurance?

A

liability up to £500,000 = the greater of 2.5% of the sum insured or £10,000
Liability of over £500,000 = 2.5% of the sum insured

51
Q

How can negligent claims be avoided?

A

Clearly understand the client’s objectives and provide clear heads of terms in writing.

Ensure you are competent

make detailed file notes

Follow RICS standards and guidance notes.

52
Q

waht underpins client money requirements?

A

Rules of conduct - Firms keep client money safe and have appropriate accounting controls

53
Q

what are the 6 main areas of good practice set out in the professional statement client money handling 1st edition 2019?

A
  1. Holding client money
  2. providing information to clients
  3. Receipts of client money
  4. payments from client accounts
  5. accounting records and controls
  6. compliance.
54
Q

what are some of the RICS compliances when starting a new firm?

A

Inform the RICS of your new practice
appoint a responsible principal for all RICS communication
register with the RICS regulation of the firm by the regulatory board
Ensure CPD is logged online on the RICS CPD management system
set up a complaints log
Ensure completion of the RICS annual return at the end of each year.

55
Q

Name some of the statutory compliances regarding starting a new practice

A

Appoint a Money laundering officer
Equality act 2010
Bribery act 2010
Estate agency compliance - Estate agents act 1979 consumer protection regulation 2008
Control of Asbestos regulation 2012

56
Q

what is carried out when closing a Firm

A

Inform the RICS of your retirement
Ensure clients are informed at the earliest opportunity and hand over arrangements with another firm.
Return monies held by the client to their accounts.
Inform insurers and procure PI run off cover.
Retain a copy of clients files and records for a minimum of 6 years.

APC (26 decks)

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