Ethics Flashcards
What is the purpose of the Royal Charter?
It required members to promote the profession for the public benefit.
Rules around CPD?
20 hours minimum CPD
10 hours must be formal
Must record online
Every 3 years need to do rules and ethics training.
Rules on Handling Client Money?
MAIN
- Must be held in a seperate account with the word “Client”.
- Must be able to identify client.
Must preserve the security of clients money entrusted to its care in the course of its practice or business.
Money must be clearly linked to client in the event of insolvency, misappropriation, death of a sole practicioner or transfer of money to another organisation.
Money held in seperate accounts, must be handled by competent staff (Principle cannout overide these controls).
A review fee is payable if a firm holds clients’ money (including money insurance levy).
What is a Locum Agreement?
Ensures cover for long term absence, death, long-term holidays (over a month) or unseen or unavoidabl events.
It can be another RICS member or another suitably qualified professional e.g a solicitor
What are the Money Laundering Regulations?
Money Laundering Regulations 2017.
More due dilligence is required, including - stringent ID checks, cannot accept large cash payments (over (e)10,000 euros), firm must have a money laundering officer, keep up to date records and perform AML check on clients.
If you have been found to assist in money laundering - 14 years in prison/unlimited fine.
Found to have tipped the persion off about an investigation - 5 years in prison.
AML Update?
Issued in March 2022, to remind firms and members of their role in ensuring compliance with Financial Sanctions - i.e UK Sanctions list - to include Russia and funding the war against Ukraine.
Why does RICS regulation matter?
The Strength of the being regulated by the RICS:
1. Practise to globally recognised standards.
2. Behave ethically and act with integrity and honesty.
3. Have the required skills and competenceies to do the job.
4. Manage conflicts of interest transparently.
5. Safeguard the security of client money.
6. Mange its finances appropriately.
7. Provide adequate and appropriate indeminity for its work.
8. Handle complaints and disputes fairly.
The RICS monitor this via annual returns and occasional visits to ensure compliance. High risk areas are:
Valuer registration scheme
Handling of clients money
PII concerns
Complaints
CPD Monitoring.
What requirements are there to register for RICS regulation?
Head office address
Date the firm was established
Contact office (member)
Names and Titles of principals
CHP in place
PII Insurance
Surveying service provided - where? e.g Property Management - commercial, UK.
Dont forget the the USUAL Stuff, non specific business needs like client account, VAT registration.
Bribery Act 2010?
A bribe is given in expectation of a change in behaviour.
Offences include:
Giving a bribe, taking a bribe, bribing an official, bribing a foreign official, new offence is not having systems in place to prevent bribery.
Key principles of the Bribery Act 2010?
Due dilligence
Risk assessment
Proportionality (most important)
Top level commitment
Monitoring and review
Communication
Penalties under the Bribery Act 2010?
Committing an offence - could be up to 10 years in prison/unlimited fine.
Company found to have commited an offence - unlimited fine.
What firms are required to register?
If more than 50% of priciples are memebers
If the frim proves surveying services to the public
If the firm is operating in Regulated Area A.
When are firms able to register to the RICS?
If they provide surveying services to the public
at least 25% of a firms priciples are RICS members.
Means will also need to have the following:
Adequate Professional Indemnity
A complains handling procedure
Security of clients money
Comply with employment legislation
A training programme for your employees
Individual RICS prefessionals are required to carry out CPD.
Rules on the use of the RICS Logo?
Logo must be size and colour specified in the document.
RICS Motto
There is measure in all things
Royal Charter
1881 - Promote usefulness of the profession for the public advantage. This means RICS has a seat on the privy council to advise the Crown.
What are the 5 new rules?
Act with honesty and intergrity and fulfil their professional obligations, and those to the RICS.
Ensure competence is maintained and work is carried out by competent individuals.
Good quality work and dilligent service
Treat eveyone with respect
Maintain public confidence in the profession, always in the interest of the general public, prevent harm, take responsibility for actions.
What are the 7 obligations for firms?
Firms must publish a complaints handling procedure which includes ADR approved by the RICS and maintain company log.
Firms must ensure all previous and current professional work is covered by adequate and appropriate PII that meets RICS standards/approval.
Firms with a sole principal mist arrange a Locum Agreement.
First must cooperate with the RICS.
Firms must promptly provide all info reasonably requested by the Standards and Regulation board, or those acting on their behalf.
Firms must display on their business literature, in accordance with RICS policy, a designation to denote that they are regulated by RICS.
Firms must report to RICS any matter that they are required to report under the Rules and Registration for Firms.
Complaints, PII, Locum, Cooperate, S and R, Literature, Report.
Tell me about Rapleys Gift Policy?
Employees are not permitted to donate or accept any gifts from clients, suppliers or other third parties involved with the LLP. Save for minor tokens (promotional pens, stationary, calendars etc)
May be acceptable if refusing a gift will cause offence or embarrassment. In such chases gifts may accepted and subsequently donated to a charity of the LLP’s choice.
Where any employee is minded to donate or accept a gift they should first seek approval from the head of department or inform as soon as possible.
Must keep accurate recor of all gifts/offers received/made - description - estiamted value, why was it accped or rejected, approval obtained? from who? who was it donated to?
All employees are required to obtain approval before offering or accepting any form of corporate hospitality. Approval needed and details within the Hospitatlity and Gift Register.
What are the CPD Rules?
20 hours as a qualified surveyor, 10 hours must be formal, upload online and 3 year updates on ethics and rules.
Difference in formal vs informal?
Formal includes a learning outcome.
Informal is further reading or self study on a specific topic with no direct intended learning outcome.
PII and turnover limits
Must have PII cover, it has to be approved by the RICS approved insurers list.
Up to 100k turnover = £250k cover
Up to 200k turnover = £500k cover
over 200k = over £1 million.
Done on a per claim basis.
How did you carry out a conflict of interest check?
I used the Rapleys internal system which highlights if we have ever worked for said client in any capacity on any type of work.
Also do an email to all.
How do i ensure i was competent?
Have i got relevant experience in this area?
Why is avoiding a working lunch during Ramadam inclusive behavior?
Ramadam is a month of fasting and prayer. Muslims will not eat or drink during daylight hours. Avoiding a working lunch would ensure said effected person would be included.
What are the 5 ethical standards?
Act with Integrity
Always procide a high standard of service
Act in a way that Promotes trust in the profession
Treat others with respect
Take responsibilty.
STIRR
Service, Trust, Integrity, Respect, Responsibility
What information is requried in an RICS firms annual return?
Type of business and staffing details
Statutory regulated activities - such as financial services
Nature of clients
Professional Indemnity Insurance details
Whether the firm holds client money
Why were the new standards brought in?
Updated to help the global profession respond to new risks and opportunities. Challenges relating to sustainability, data usage, diversity and inclusion.
Based on ethical principles of honesty, integrity, competence, service, respect and responsibility.
What is the role of the RICS?
3 main roles:
Maintain highest standards of education and training.
To protect consumers through strict regulation of professional standards.
To be the leading source of information and independant advice on land, property, construction and associated environmental issues.
- High Standards of education/training.
- Protect consumers
- Leading source.
What are the benefits of RICS registration?
Confidence - for clients as a regulated firm are monitored by the RICS.
Professionalism - Firm will have to provide clear impartial expert advice
Security - Firms have to have a recognised complaints handling procedure and PII.
Regulation provides a gold standard.
Does a firm need to be RICS registered?
If a firm is providing services to public register for regulation to ensure there is a benchmark.
Must have RICS registered members.
Must make an annual return.
- If more than 50% of principles are RICS registered it has to be
- If more than 25% of principles it can be elected to be.
Full details on RICS website
