Ethics Flashcards by Nico Haritou

Can you explain your use of the ethics decision tree

Supports the new rules of conduct
Connects the ethical, professional and more requirements for RICS members, providing a decision-making framework to deal with testing ethical dilemmas

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What does the ethics decision tree actually do?

Helps support decisions on when to act and what you can do to ensure you’re are approaching ethical dilemmas appropriately
Has several check stages to go through to ensure you have considered all factors in your decision making

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What is the role of RICS?

Support highest standards of ethics in the industry
Maintain highest standards of education and training in the industry
Promote public confidence in the profession through strict regulation
Be a leading source of information and advice

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What are the key functions of RICS?

Consumer protection
Quality assurance
Set standards
Accredit professionals
Influence policy

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Can you tell me what you understand by the principles of better regulation?

TPACT
Transparency
Proportional
Accountable
Consistent
Targeted

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What is a bye-law?

Regulation made by a local authority or corporation

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Give an example of one of the RICS bye-laws?

2 Membership and Registration
3 Designations
4 Contributions to funds
5 Conduct

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Explain to me the new RICS Rules of Conduct - what do they replace?

RICS Rules of Conduct 2022 replaces RICS rules for members and firms

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What are the core professional obligations of firms and members to RICS?

Cooperate with RICS
Comply with CPD requirements
Publish complaints handling procedure including ADR
Designation of what is means to be regulated by RICS included within ToE

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When did RICS last update their discplinary panel rules?

RICS Disciplinary, Registration and Appeal Panel Rules, 2019

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What does ‘claims made’ mean in terms of PII?

Insurer will only cover you for claims that are brought against you during the term of your policy

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What RICS requirements are there relating to run off cover?

Minimum limit of £1,000,000 for period of 6 years from expiry date of policy

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How long can a PII claim arise after the work is undertaken

6 years – Limitations Act 1990

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What is the Assigned Risks Pool (ARP)?

For firms who are unable to obtain PII in the insurance market – provides emergency cover for a period of up to 2 years so that firms can continue to practice

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Who might need to access the ARP?

Firms who are unable to obtain PII in the insurance market

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What RICS guidance is there on PII?

Professional Indemnity Insurance Requirements, 2022, Regulation note

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Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance

RICS, Risk, Liability and Insurance, 2021 guidance note

Assists members and Clients in understanding the main risks and liabilities associated with surveying
- Liability caps
- Third party reliance
- Terms and conditions
- PII

Explain when you might agree a liability cap

Contractual agreement that a Client can only claim damages up to the amount agreed

Ensure there is a fair allocation of risk and reward between members and their clients - regulate risk

How would you set out third party reliance in Terms of Engagement?

Firms make clear in their ToE that their advice may only be relied upon by the named Client – this gives control over future requests for third party reliance

What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?

Scope of the work
Basis on which the fee will be calculated
Liability cap

What is double dipping (dual agency)?

Conflict of interest – representing both seller and buyer

Why is double dipping (dual agency) an unacceptable practice?

Cannot act in the best interest of both Clients
Conflicts of interest

How would you close down a regulated firm?

Agree closure date
Inform staff and take necessary steps to end employment
Inform Client and recommend another firm
Deal with / return Client money
Notify PII insurers and arrange run-off cover
Keep files for minimum 6 years
Inform RICS

What are the current RICS rules for registration of firms?

RICS Rules for registration of firms, 2022, Regulation note

What is a phoenix firm?

When a firm closes in a disorderly way and then re-registers as a new trading entity

Who is a Responsible Principal?

Someone who has primary responsibility for ensuring that RICS professional, technical and ethical standards are applied, upheld and supported

Explain the key themes from the RICS Futures 2020 Report

About change and how we respond to change - Building roads from plastic - Extracting utility form big data - Adopting drone technology - Protecting cities form Climate change

Explain your understanding of the RICS Levitt review

RICS audit in 2021 No evidence of misconduct – wholly avoidable problem - moral of story is to be transparent if problems are uncovered.

What is whistleblowing?

A person who reveals information about activity within a private or public organization that is deemed illegal, immoral, unsafe or fraudulent RICS have new whistleblowing procedure

Explain what the Pandora Papers are and the ethical issues raised within them.

2021 leak of nearly 12 million documents incriminating politicians in tax avoidance and corruption Important to ensure RICS members are not facilitating or involved in criminal activities

What are the key values of the interim Governing Council statement relating to ethics, behaviour and culture?

Integrity Transparency Inclusion Collaboration Advocacy Passion

Explain what you understand by the RICS Bichard Review

Commissioned following the 2021 Levitt review to investigate the purpose, governance and structure of RICS

Explain some of the recommendations of the Bichard Review

36 recommendations published Public interest panel should be established to advise the governing council A commercial committee should be established to have oversight of RICS commercial activities

How will these Bichard recommendations be implemented by RICS?

5 new working groups established to take them forward

What is modern slavery and how would identify red flags of it?

Modern Slavery Act 2015 - Evidence of workplace being used for accommodation - Workers look distrustful, uneasy, or malnourished - Signs of psychological trauma - Untreated injuries

Explain the implications of the Sanctions and Anti-Money Laundering Act 2018

Allows UK to impose economic and other sanctions, and money laundering and terrorist financing regulations once it left the EU

What is the Sanctions List and why should you be aware of it?

Countries, regimes, and individuals who are subject to sanctions in response to illegal activity

Why was the Register of Overseas Entities introduced?

Register of Overseas Entities under the Economic Crime (transparency and enforcement) Act 2022 Strengthen UKs fight against economic crime

Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022

Requires anonymous foreign owners of UK property to reveal their identities

When was the money laundering and terrorist financing legislation updated?

The Money Laundering and Terrorist Financing (amendment) regulations 2022 Updated to expand information on transfers involving cryptoassets and cryptocurrency