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APC Questions > Ethics > Flashcards

Ethics Flashcards

1
Q

6 key principles of the Bribery Act 2010?

A

Proportionality
Top level commitment
Risk Assessment
Communication
Due diligence
Monitoring and review

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2
Q

4 offences under Bribery Act 2010

A

Bribing
Receiving a bribe
Bribing a foreign public official
Failing to prevent bribery

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3
Q

Who would you report bribery to?

A

Serious Fraud Office

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4
Q

What is a bribe?

A

Giving, offering, promising or receiving

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5
Q

Discuss background to the RICS

A

Founded in 1868
Royal Charter 1881

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6
Q

What are the 4 memberships?

A

FRICS
MRICS
AssocRICS
Trainee/Student

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7
Q

Talk me through the current governance structure

A

Governing council has 25 members
17 specialist professional groups
President - Clement Lau
President-Elect - Ann Gray

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8
Q

What is The Levitt Review (2021)?

A

Exposure of lack of clarity, structure and purpose of RICS governance arrangements. Levitt called independent review “purpose, governance and strategy”

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9
Q

What is the Bichard Review?

A

Lord Michael Bichard - published clarity and purpose of his review

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10
Q

Role of the RICS?

A
  1. Maintain highest standards of education and training
  2. Protect consumers through strict regulation of professional standards
  3. To be leading source of information and independent advice on land, property, construction and associated environmental issues
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11
Q

What are the 5 benefits of being an RICS member? Also asked - why do you want to be an RICS surveyor?

A
  1. Status
  2. Recognition
  3. Market advantage
  4. Knowledge
  5. Network
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12
Q

What are the 3 benefits of regulation for firms?

A

CPS
1. Confidence
2. Professionalism
3. Security

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13
Q

What are the 6 areas of information required in an annual return?

A
  1. Type of business and staffing details.
  2. Statutory regulated activities - such as for financial services
  3. Nature of clients
  4. Complaints handling procedure details and records
  5. PII details
  6. Whether firm hold clients’ money
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14
Q

RICS Rules of Conduct 2021

A
  1. Honesty, integrity and comply with professional obligations including RICS
  2. Maintain professional competence and ensure that services are provided by competent individuals with necessary expertise
  3. Good quality and diligent service
  4. Treat others with respect and encourage diversity and inclusion
  5. Act in public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession

Effective 2nd February 2022

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15
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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16
Q

What are the 4 actions upon completion that the Head of Regulation can initiate?

A
  1. Serve a Fixed Penalty Notice
  2. Make a Regulatory Compliance Order
  3. CPD Sanctions
  4. Refer the matter to the Disciplinary Panel for consideration under the discipline rules
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17
Q

What powers do the Regulatory Tribunal have?

A
  1. Issue a Compliance Order
  2. Unlimited fine or breach
  3. Impose conditions upon future RICS registration
  4. Expulsion from membership or remove firm
  5. Publication of results
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18
Q

Identify the different RICS Core material

A

International standards (M)
Professional statements (M)
Practice statements (M)
Guidance notes (V)
Codes of Practice (M / Good practice)

19
Q

Three steps to follow for Terms of Engagement

A
  1. Check professional COMPETENT
  2. No conflicts of INTEREST or personal interests
  3. ToE in writing and written approval BEFORE start work on the instruction
20
Q

What are the principles of better regulation published by International Ethics Standards Coalition in December 2016?

A

Accountability
Confidentiality
Conflict of Interest
Financial Responsibility
Integrity
Lawfulness
Reflection
Standard of Service
Transparency
Trust

21
Q

Types of conflict and how would you manage them?

A

Own Interest - relating to personal interest
Party - work on same or related instruction for two different parties
Confidential Information - work between two parties that is confidential
Clients written consent recieved - information barrier created

22
Q

RICS inclusion and diversity strategy?

A

The future of the profession depends on the ability to create an inclusive empowered profession to attract the best people whatever their gender, sexual orientation or race. RICS is committed to raising awareness and promoting diversity and equality for the profession.

23
Q

Biggest challenge RICS faces?

A

Sustainability

24
Q

Name some RICS International Standards (Mandatory) examples

A

RICS Valuation - Global Standards, 2021 (effective 31 Jan 2022)
International Property Measurement Standards (IPMS) 2014, 2016, 18 + 19
International Construction Measurement Standards 2019

25
Q

Professional Statements (Mandatory) examples

A
  1. Countering Bribery, Corruption, Money Laundering & Terrorist Financing, 2019
  2. Conflicts of Interest, Global, 2017
  3. Conflicts of Interest - UK Commercial Property Market Investment Agenyc, 2017
  4. UK Commercial Real Estate Agency, 2016
  5. UK Residential Real Etsate Agency, 2017
  6. Real Estate Management, 206
  7. Property Measurement, 2018
  8. Code for Leasing Business Premises, 2020
  9. Service Charges in Commercial Property, 2018
  10. RICS Home Survey Standards, 2019 (effective December 2020)
26
Q

Practice statements (mandatory) examples

A

Surveyors Acting as Expert Witnesses, 2014
Surveyors Acting as Advocates (Scotland) 2008

27
Q

Guidance notes (Voluntary) examples

A
  1. Sustainability and ESG in Commercial Property Valuation and Strategic Advice, 2021
  2. Risk, Liability & Insurance, 2021
  3. Asbestos: Legal Requirements and Best Practice for Property Professionals and Clients, 2021
  4. Valuation of Residential Leasehold Premises, 2021
  5. Valuation of Properties in Multi-storey, Multi-occupancy Residential Buildings with Cladding, 2021
  6. Assessing Viability in Planning under the NPPF 2019 (for England) 2021
  7. Comparable Evidence in Real Estate Valuation 2019
  8. Valuation of Individual New-Build Homes, 2019
  9. Valuation of Development Property, 2019
  10. Surveying Safely, 2018
  11. Reinstatement Cost Assessment of Buildings, 2018
28
Q

Codes of Practice (Mandatory or recommended good practice)

A
  1. Code of Measuring Practice, 2015
  2. Rating Consultancy Code of Practice, 2017
  3. Service Charge Residential Management Code, 2016
29
Q

What specific compliance is required for agency work within Terms of Engagement?

A

Under Section 18 Estate Agents Act 1979 and money laundering checks (Money Laundering Regulations, 2017) required for agency work
Consumer Rights Act 2015 allows a cooling off period of 14 days from the date of the agreement

30
Q

For what reasons may it be appropriate to decline an instruction?

A
  1. You are not competent to undertake the work - outside limitations
  2. You do not have sufficient facts on the issue
  3. Proposed client will not sign ToE and/or complete AML checks
  4. Conflict of interest or personal interest
  5. Professional Indemnity Insurance liability cap cannot be agreed.
  6. Advice for friend or on pro bono basis (free for charity) PII will not cover work on a personal basis
  7. Potential client included in the UK Government’s sanctions list
  8. Would you be content for your actions to be made public?
31
Q

What is conflict avoidance?

A

When you do not accept the instruction

32
Q

What is conflict management?

A

Instruction is accepted, and steps agreed and put in place to manage the conflict, such as INFORMATION BARRIER with the written agreement of all parties

33
Q

Talk me through RICS Global Professional Statement on Conflicts of Interest, 2017

A

Mandatory statement came into effect on 1st January 2018
Member not advise or represent a client where doing so would involve conflict of interest, UNLESS all those involved or may be affected have provided their INFORMED CONSENT

34
Q

What is informed consent?

A

Given in writing by the party if the party explaining is entirely transparent about any material factors - parties affected understand
Surveyors seek informed consent if satisfied all relevant parties are best served by doing so

35
Q

How to handle a conflict of interest - what is the 3 step process?

A

CONFLICT AVOIDANCE - upon receipt decide if you’re compromised or whether it can be managed. Decide to accept or decline
WRITTEN ADVICE TO BOTH PARTIES - set out in writing 3 points
1. Disclose nature of conflict, proposal for firm to deal with it (information barrier)
2. Be as clear as you can - parties make own decision
3. Request written confirmation from both clients of their informed consent
CONFLICT MANAGEMENT - once you have received consent to your declaration - information barrier set up

36
Q

What is the Professional Statement for UK Commercial property?

A

RICS Professional Statement: Conflicts of interest - UK commercial property market investment agency, 2017
Effective 1st January 2018

37
Q

What are the different conflicts of interest relating to UK commercial investment agency?

A

DUAL AGENCY - contractual agency relationship with seller and buyer - must NOT be undertaken in any circumstances
MULTIPLE INTRODUCTIONS - agent has competing contractural relationships simultaneously with several buyers for commercial real estate
INCREMENTAL ADVICE - agent approached by another party to provide advice
PERSONAL / OWN INTEREST CONFLICT - S21 Estate Agents Act 1979

38
Q

What are the two stages of handling a complaint?

A

Stage One (In House) - CHP details provided, dealt with within timescales - complaints handling officer. Acknowledged within 7 days and investigated within 28 days
Stage Two (ADR - Third Party Resolution) - independent redress scheme

39
Q

What are the Coniuing Professional Development (CPD) requirements?

A

Minimum 20 hours CPD per annum, at least 10 hours must be formal CPD. Members must maintain a relevant and current understanding of RICS Rules of Conduct during a rolling 3-year period.
Record CPD activity using RICS CPD Management System available online on RICS website

40
Q

What are the Professional Indemnity Insurance minimum levels?

A

Based on firms turnover:
£100,000 or less = £250,000
£100,001 - £200,000 = £500,000
£200,001 or above = £1,000,000

Level of uninsured excess - Liability of 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

41
Q

What is the current limitation periods for negligence under Limitation Act 1980?

A

Current limitation periods for negligence are:
Contract - 6 years from date of negligent act. Section 14A provides alternative limitation period of 3 years from date of knowledge
Tort - 6 years from date claimant suffered the loss

42
Q

What are the 6 main areas of good practice as set out in RICS 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
43
Q

What are the RICS compliance for starting new practice?

A
  • Inform RICS through Firm Detail Form
  • Appoint Responsible Principal for RICS communication
  • Register with RICS for regulation by Regulatory Board
  • Arrange Professional Indemnity Insurance and send RICS details
  • Clients Money Handling including a Protection Scheme
  • Register RICS Valuer Registration Scheme
  • Complaints Handling Procedure
  • Appoint Complaints Handling Officer
  • Use logo kit from RICS for all practice material
  • Plan for succession / future running of business if sole practitioner
  • Ensure CPD logged
  • Completion of online RICS Annual Return at end of each year
44
Q

RICS compliance when closing a practice

A
  • Inform RICS of your retirement / closure
  • Ensure clients informed and hand over arrangements
  • Return any monies held by clients
  • Run-off cover for a minimum of 6 years
  • Retain a copy of client files and records for a minimum of 6 years

APC Questions (4 decks)

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