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Will P > Ethics > Flashcards

Ethics Flashcards

1
Q

What includes key background to the RICS?

A
  • Established in 1868
  • Gained its Royal Charter in 1881
  • Governed by various by-laws and regulations
  • 130,000 global members
  • 4 levels - Trainee/Student -> FRICS
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2
Q

What is the RICS Motto?

A

There is measure in all things

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3
Q

What is the address of the RICS?

A

125 Great George Street, Parliament Square, London

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4
Q

What is Lionheart?

A

Charity set up for RICS members, for RICS members. Provides advice and suppport on matters including:
- Well-being and mental health
- Financial support
- Illness & legal advice

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5
Q

What is Modus and Matrix?

A

Modus - RICS publication (magazine)
Matrix - division for young surveyors - provides events, networking, seminars etc

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6
Q

How much is RICS membership?

A

£354 for first 2 years, £539 afterwards

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7
Q

What are the professional groups?

A
  • Divisions of the RICS providing technical advice and contributing to policy in relevent discipline
  • 17 groups
  • E.g. PM, Valuation, Rural etc
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8
Q

What is the governance structure of the RICS?

A
  • Governing council - 25 members, runs RICS
  • Regulatory Board, Management Board & Various Committees reporting to gov council

17 specialist professional groups

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9
Q

Who makes up the professional team?

A
  • Nick Maclean - Head of Governing Council
  • Richard Collins - CEO
  • Anne Gray - President
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10
Q

What is the role of the Standards and Regulation Board?

A

Responsible for the Strategy, Policy, Operation and admissions into the profession

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11
Q

What is the role of the Governing Council?

A

Responsible for global strategy and ensures obligations under the Royal Charter are met

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12
Q

What is the role of the Audit Committee?

A

Maintain the effectiveness and integrity of RICS functions?

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13
Q

What is the role of the managing board?

A

Directs RICS affairs under delegated authority from the governing council

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14
Q

How would you become a RICS Fellow?

A

Provide assessors:
- Evidence of
- 5+ years at MRICS
- leadership role
- professional and technical achievement
- raising the profile of the RICS
- Portfolio of professional achievement to support application and CPD record

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15
Q

What is the key role of the RICS?

A
  • Promote and enforce the highest professional standards and qualifications in the development and management of property, real estate and the enviro
  • Be accountable to members and the public
  • Involved in policy influence and political engagement
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16
Q

What are the three main roles?

A
  • Maintain highest standards of education and training
  • Protect customers through strict regulations and professional standards
  • Be a leading source of information and expert advice on land property and construction
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17
Q

What were the aims of the Bichard Review?

A
  • Clarify purpose of the RICS
  • Make recommendations on the governing structure
  • Provide proposals on incoming leadership and governing body on future culture and strategy
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18
Q

What are the 5 benefits of being a RICS member?

A
  • Status
  • Recognition
  • Market advantage
  • Knowledge
  • Networking
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19
Q

What are the 3 key benefits for firms regulation?

A
  • Confidence - from clients
  • Professionalism
  • Security
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20
Q

What is the Royal Charter?

A
  • Passed in 1881 by Queen Victoria
  • Established the independent legal identity of the RICS, while defining its constitution and powers to govern its own affairs
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21
Q

Who is the current RICS president?

A

Anne Gray

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22
Q

What are the 5 principles of better regulation?

A

TPACT
- Transparent
- Proportional
- Accountable
- Consistent
- Targeted

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23
Q

What is a bye-law?

A

Regulation made by an organisation (RICS last updated theirs in Feb 2021)

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24
Q

What are the 5 professional and ethical standards?

A
  • Act with integrity
  • Provide a high standard service
  • Act in way that promotes trust in the profession
  • Treat others with respect
  • Take responsibility
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25
Q

What is the latest edition of the Rules of Conduct?

A

RICS Rules of conduct 2021
- Published October 2021, effective feb 2022
Replaced previous Rules of Conduct for Members and Firms, and professional and ethical standards

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26
Q

What did the new rules on conduct replace?

A

Replaced previous Rules of Conduct for Members and Firms, and professional and ethical standards

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27
Q

Why is there a need for the rules of conduct?

A
  • To ensure there is a framework for appropriate behaviour
  • To ensure consistency and clarity
  • To ensure members serve the needs of their client, while also acting in a way that serves the public interest
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28
Q

What were the key changes made to the Rules of Conduct in 2022?

A
  • Simpler structure
  • Use of specific examples
  • Greater focus on respect, diversity and inclusion
  • Recognition of progressions in new technologies
  • Look to address global challenges
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29
Q

What is rule 1 of the Code of Conduct

A

Members and firms must act with integrity, ensuring that they comply with their own personal obligations, while complying with their obligations to the RICS

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30
Q

Give three examples of rule 1

A
  • Not taking advantage of others
  • Ensuring that others are not mislead by their own personal judgement
  • Handling clients money - keeping this safe and having sufficient accounting processes in place
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31
Q

When have I acted in accordance with rule 1

A
  • Conflict of interest check for a new instruction
  • Tenant overpaid in relation in Workman professional fees for a Licence to Assign. I informed the client and tenant of this and arranged a refund of the excess
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32
Q

What is rule 2?

A

Members and firms must maintain their professional competence and ensure that services are provided by competent individuals with necessary experience

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33
Q

Provide examples of behaviour in relation to rule 2

A
  • Members and firms must only undertake work that they have the skills, knowledge and resources to carry out competently
  • Members and firms supervise employees undertaking work for them and ensure that have necessary skills, knowledge and resources to carry out work competently
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34
Q

When have I acted in accordance with Rule 2?

A
  • Maylands Avenue Application to alter - instructed building surveyors to review, given my level of competence
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35
Q

What is rule 3

A

Members and firms must provide high quality, diligent service

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36
Q

What are 3 examples of behaviours for Rule 3?

A
  • Understand clients needs and objectives before accepting professional work
  • Communicate with clients and others in a way they understand
  • Understand the risks and benefits of using relevant technology
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37
Q

When have I acted in accordance with Rule 3?

A
  • By ensuring I have been responsive to clients throughout my career
  • Unit 10 Olympus Close Licence to Assign -
    + Processed without delay
    + Through due diligence, I ensured my clients aims and objectives were achieved
    through agreeing a Rent Deposit and AGA
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38
Q

What is Rule 4?

A

Members and firms must treat others with respect and ensure that they encourage diversity and inclusion

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39
Q

Give three examples of Rule 4?

A
  • Respect the right of others and treat them with respect and curtesy
  • Do not bully, victimise or harass
  • Members and firms work collaboratively with others
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40
Q

What is Rule 5?

A

Members and firms act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession

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41
Q

Give two examples of behaviour in relation to rule 5?

A
  • Respond to complaints openly, promptly and professionally
  • Members and firms do not dissuade complaints from approaching ADR, RICS or other regulatory boards
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42
Q

Can you provide a time when you promoted trust in the profession?

A
  • Putting a stop to illegal parking at Yardley Business Park
  • Returning overpaid fees
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43
Q

What are the mandatory professional obligations?

A

Contained within the appendix of the rules of conduct- additional requirements for firms and members

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44
Q

What are the mandatory professional obligations for members?

A
  • Cooperate with the RICS
  • Comply with CPD requirements
  • Provide information to the Standards and Regulations Board in a reasonable timeframe when requested
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45
Q

What are the Mandatory Professional obligations for firms?

A
  • Cooperate with the RICS
  • Publish a complaints handling procedure approved by the RICS and maintain a complaints log
  • Ensure all previous and current professional work is covered by professional indemnity insurance cover that meets RICS approved standards
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46
Q

What is the Ethics decision tree?

A
  • Provides a framework for questions members should ask themselves when faced with a potential unethical scenario
  • Considers legality of actions and consistency with the Rules of conduct
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47
Q

What supporting info does the RICS provide to support the rules?

A
  • Ethics decision tree
  • RICS regulations confidential hotline
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48
Q

How is a disciplinary procedure triggered?

A
  • Complaint made to the RICS
  • Allegation made by a client or third party
  • Information obtained by or provided to the RICS
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49
Q

What are the three levels of disciplinary action?

A
  • Head of Regulation
  • Regulations Tribunal
  • Appeals Panel
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50
Q

What is a breach of conduct?

A

When a member of firm fails to comply with the Rules of Conduct or brings the profession into disrepute

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51
Q

What is the RICS disciplinary procedure?

A
  • Receipt of complaint
  • Investigation by the RICS
  • Serving of penalty - e.g. Fixed Notice, Regulatory Compliance Order
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52
Q

What disciplinary procedures can the RICS impose?

A
  • Serve a fixed penalty notice
  • Make a regulatory compliance order
  • CPD sanction
  • Refer matter to Disciplinary Panel - consider expulsion
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53
Q

What is a fixed penalty?

A

Usually a fine for a minor breach

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54
Q

What is a regulatory compliance order?

A
  • Penalty served for smaller scale breached
  • Provides restrictions on a member from particular actions for a certain time period, along with usually a £2k fine
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55
Q

What is a CPD sanction?

A

Obligation for a minimum requirement for CPD

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56
Q

What disciplinary/regulatory sanctions can the RICS impose?

A
  • Caution
  • Reprimand
  • Fine
  • Conditions
  • Expulsion
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57
Q

What actions are taken by the regulations tribunal?

A

Procedure for more serious breaches, impose penalties when referred to by the Head of Regulation

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58
Q

What penalties are available to the regulatory tribunal?

A
  • Regulatory Compliance Order
  • Unlimited fine per breach
  • Impose conditions on future RICS registration
  • Expulsion
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59
Q

When is the appeals panel used?

A

Consider an appeal made by a member or firm following disciplinary procedure

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60
Q

When did the RICS last update the disciplinary panel rules?

A

RICS disciplinary, registration and appeal panel rules (October 2019)

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61
Q

What are the levels of action within Disciplinary Panel rules?

A
  • Investigation of receipt of info
  • Decision to realistic prospect
  • If realistic prospect - disciplinary procedure
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62
Q

What is professional practice?

A

Conduct and work of someone in a particular practice

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63
Q

Where are the outcomes of disciplinary proceedings published?

A

Modus and the RICS website

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64
Q

What is integrity to me?

A

Being honest and doing the right thing

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65
Q

How do I ensure that I provide a high standard of service

A

Ensure advice I give is accurate, clear and concise and in a way clients can understand

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66
Q

How do you act in a way promoting trust in the profession?

A

By following the rules of conduct in my professional and personal life

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67
Q

What does taking responsibility mean?

A

Being accountable for my actions and having the courage to take the stand

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68
Q

What does treating people with respect mean?

A

Being polite, courteous and valuing peoples opinions. Treating others how you would like to be treated

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69
Q

What publication does the RICS publish in relation to social media?

A

The Use of Social Media: Guidance for RICS Members (2016)
- Standards of communication should also be upheld on social media

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70
Q

When are the RICS likely to investigate a social media post?

A

When is discriminatory, abusive etc

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71
Q

What are the RICS Core materials made up of?

A
  • International Standards
  • Professional Statements
  • Practice Statements
  • Guidance Notes
  • Codes of Practice
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72
Q

What are the international standards?

A

International high level principle based mandatory standards developed in collaboration with several bodies
- E.g. RICS Valuation Global Standards (2022)

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73
Q

What are examples of professional statements and practice statements?

A
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74
Q

What are examples of guidance notes?

A
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75
Q

What are the key requirements of fee negotiations?

A
  • There must be no price fixing, aggressive fee cutting or collusion
  • Fees should be market based and agreed on an ad-hoc basis
  • Competition encouraged, but fee cutting avoided
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76
Q

How may you vary your level of service?

A
  • When negotiating initial fee proposal
  • Should however be able to provide the same level of service
77
Q

What is the purpose of the Terms of Engagement?

A

State in writing the clients agreement and fee proposal basis, payment of expenses and services to be provided. Copy of complaints handling procedure also to be provided

78
Q

What are steps to follow when taking on work

A
  • Conflict of interests check
  • Agree terms of engagement
  • Ensure I am competent to undertake the task
79
Q

When may it be appropriate to turn down an instruction?

A
  • Not competent
  • Lack of information
  • Client wont sign Terms of Engagement
  • Client is on the UK Gov sanctions list
  • Conflict of interest
  • Advice is for a friend or a pro-bono basis and PII wont cover such work
80
Q

What is a conflict of interest?

A

When something arises when a member of firms impartiality or independence is threatened due to the existence of a conflict between 2 parties:
- Personal conflict
- Financial interest
- Commercial relationship
- Acting on two sides of a transaction

81
Q

What is conflict avoidance?

A

Turning down an instruction due to a conflict

82
Q

What is conflict management?

A

When an instruction is accepted and steps are taken to manage the conflict e.g. through an information barrier

83
Q

What is the main RICS publication in relation to conflicts of interest?

A

RICS Global Professional Statement on Conflicts of Interest (2017)

84
Q

What are the key aspects of the Professional Statement On conflicts of interest?

A
  • Effective 01/01/2018
  • Members must not advise a client where doing so involves a conflict of interest or risk of it, other than when those affected provide informed consent
  • Informed consent must only be sought when all parties agree that proceeding is in the interest of all parties
85
Q

What are the other aspects of the PS statement on Conflicts of Interest ?

A
  • All conflicts must be managed in accordance with the PS
  • Every RICS firm must have in place effective systems and controls appropriate to the size of the business to ensure compliance
  • All firms must keep a record showing compliance with the statement
86
Q

What are the three types of conflict?

A
  • Party - relating to work on same or related instruction for two different parties
  • Own interest conflict - personal conflict
  • Confidential information conflict - relating to work between 2 parties which is confidential
87
Q

What are the key aspects of informed consent?

A
  • Only given in writing if the person explaining the position is transparent and those affected are in receipt of all relevant information
  • Surveyors should only seek informed consent if satisfied that all parties are served by doing so
88
Q

What process should be followed if a conflict arises?

A
  • Conflict avoidance - instruction turned down if there is irreversible impact on impartiality or independence
  • Writing to both parties - if work accepted, key info should be set out in writing:
    - Disclosure of the full details
    - Be clear and obtain informed consent
  • Conflict management - once written consent, set up info barrier in accordance with provisions agreed on
89
Q

What is an information or ethical barrier?

A
  • Physical or virtual barrier preventing individuals in a firm from sharing information between them e.g. password protected files, working in separate offices etc
90
Q

What is double dipping?

A

Working on two sides of a transaction

91
Q

What is Workman’s policy for conflicts of interest?

A
  • All new instructions require a conflict of interest check before accepting
  • Anyone who encounters conflict must declare to partner in charge and advisory board
    - Immediate disclose to all parties
    - Withdraw from situation until resolved /considered
    - Monitor conflict and update database
92
Q

What is a conflict of interest check I have carried out?

A
  • New property - checked TRAMPS (our PM system) to see if there was any record
  • There was not, so it was acceptable to assume to prior involvement
  • Confirmed to client that the instruction could be accepted
93
Q

How would I proceed if Workman has a previous involvement with a property?

A

1) If property on TRAMPS, i would inform partner in charge to establish extent of the involvement
2) Decide whether accepting work would be a conflict. If yes, refer matter to advisory board through Conflict of Interest database
3) Board decide whether how to proceed - decline or proceed with informed consent
4) If agreed, instruct IT to restrict access and create suitable information barrier

94
Q

What is the key publication for complaints handling

A

RICS Guidance Note on Complaints Handling (2016)
- Firms must create Complaints Handling Procedure approved by the RICS

95
Q

What does the guidance note require for CHP?

A
  • Must be fit for purpose
  • Must be available to clients on request
  • Must be regularly reviewed and updated
  • Agreed with PI broker
  • Must have a 3rd Party redress scheme
  • Have complaints handling log
  • Complaints must be reviewed by senior member or complaints handler
96
Q

What is Workman’s complaint handling procedure?

A

1) Complaint recieved and passed to senior staff member/ company secretary?
2) Complaint acknowledged in 7 days
3) Complaint responded to in 28 days of acknowledgement and outcome provided in writing
4) If complainant not happy with outcome, ADR followed - 3rd party redress
5) All complaints recorded in complaints log

97
Q

What is a complaint?

A

An expression of dissatisfaction from someone whom you owe a duty of care

98
Q

Who should be notified on a complaint?

A

PII Insurer
- May be a claim made
- They need to advise if policy premium needs updating

99
Q

What are the requirements for Stage 1 (In House) complaints handling?

A
  • Details of CHP must be issued
  • Clear, transparent procedure
  • Complaint made and responded to in writing
    Details of complaints handling officer issued
  • Acknowledged in 7 days and investigated in 28 days
100
Q

What is stage 2 complaints handling?

A

ADR - Third Party Resolution
- Independent redress scheme chosen by the firm
- E.g. CEDR - Centre for Effective Dispute Resolution
- Free in the UK

101
Q

When will the RICS become involved in a complaint?

A
  • Member fails to respond or prevents party gaining access to redress mechanism
  • If RICS receive several complaints from a member/firm
102
Q

How can a sole practitioner appoint a complaints handler?

A

Nominate a surveyor in another firm

103
Q

What are the RICS requirements on CPD?

A
  • Must undertake 20 hours per year, 10 of which must be formal CPD
  • Maintain understanding of Rules of Conduct and undertake ethics test every three years
  • Record CPD on RICS CPD management system on website
104
Q

What is formal CPD?

A

Structured training with clear outcomes and objectives - e.g. seminar, training course

105
Q

What is informal CPD?

A

Self based learning relevant to a specific role

106
Q

How can you decide if CPD is formal or informal?

A

RICS CPD decision tree

107
Q

When may a claim for damages arise?

A

When duty of care exists to client or third party and this is breached

108
Q

What is set out in the Limitations Act (1980)?

A

Limitation on period for negligence:
- Contract - 6 years from negligence Act
- Tort - 6 years from date claimant suffered loss

109
Q

What actions would you take to reduce the risk of negligence?

A
  • Understand clients aims and objectives in T of E
  • Ensure you are competent to take on instruction
  • Undertake work in accordance with RICS Standards and Guidance Notes
110
Q

What is Professional Indemnity Insurance?

A

Insurance to cover the cost of legal action made against a policy holder in respect to financial loss incurred due to negligence, error or omission in professional advice given

111
Q

What is the purpose of Professional Indemnity Insurance?

A

Protect clients, surveyors and 3rd parties against negligence claims where there is a duty of care breached and claim for damages arises

112
Q

What are the minimum indemnity limits for firms

A
  • Turnover less than £100,000 —> Min £250,000 cover per claim
  • Turnover £100,001 - £200,000 —> Min £500,000 cover per claim
  • Turnover £200,001 + —> Min £1million cover per claim
113
Q

What is excess and why do policies have it?

A

Amount of uninsured money associated with a claim - to prevent fraudulent claims

114
Q

What are indemnity excess limits for PII?

A
  • £10m or less turnover - Min uninsured excess = greater of 2.5% sum insured or £10,000
  • Over £10m turnover - no set limit
115
Q

What are the key aspects of Professional Indemnity Insurance?

A
  • Works on a claims made basis - claim limit on a claim by claim basis
  • Fully retroactive
116
Q

What does the term fully retroactive mean?

A

Insurance in place at time of claim responsible for the claim, not insurance in place at time of negligence - policies cover past work

117
Q

What is run-off cover?

A

Cover in place to ensure work is covered once a firm ceases trading
- Required for 6 years
- If unable to get run-off cover, can apply for cover from RICS run off pool

118
Q

What are the key requirements for Professional Indemnity Insurance?

A
  • Each and every claim or aggregate cover plus round the clock reinstatement
  • Written on full civil liability basis with min level of indemnity
  • Comply with max level of uninsured excess
  • Fully retroactive
  • Underwritten by RICS listed insurer
  • Cover all past and present employees work
119
Q

What support is available from the RICS on PII?

A
  • RICS Assigned Risk Pool - run off cover
  • RICS low earners scheme - for retired part time workers
  • Members support service - members facing claim for work carried out for employer now in admin
120
Q

What RICS Guidance Relates to Handling Clients Money?

A

RICS Professional Statement of Client Money Handling, 1st Edition, October 2019

121
Q

What do the rules of conduct state on handling clients money?

A

Firms must keep client money safe and have appropriate accounting controls

122
Q

When may a firm handle clients money?

A
  • Rent and service charge collection
  • Rent deposits
  • Retention
123
Q

What are the key areas of good practice contained in the RICS professional statement for handling clients money?

A
  • Handling clients money
  • Providing information to clients
  • Receipts of client money
  • Accounting records and controls
  • Payments from client accounts
  • Compliance
124
Q

What does the RICS client money help sheet say?

A
  • Security of client money must be protected with robust controls
  • Pay a regulatory fee to cover audits by RICS accountants
125
Q

What must be done before client account set up?

A
  • Agreed in writing by signatories on both sides
  • Draw down schedule agreed
126
Q

What are requirements when client accounts are in use?

A
  • Should be sperate and clearly identifiable with ‘client’ name in title
  • Deposits into account should be made within 3 days of receipt
  • Money should be available to client on demand
  • Interest payable unless stated otherwise
  • Should be reconciled regularly
127
Q

What is required after an account has been used?

A
  • Records kept for 6 years years after last entry on statement
  • All money should be returned. If cant be, every effort must be made to do so. If not done after 6 years, donate to registered charity
128
Q

What is the RICS client money protection scheme?

A

Used for claims from RICS clients as a last resort when RICS reg firm is unable to repay client money
- Limit of £10.3m for surveying and £50k per claim

129
Q

Wat are the key requirements for Handling Client Money according to client protection?

A
  • Money must be held in authorised bank
  • Account must be independent / easily identifiable
  • Client must be provided with details
  • Confirm in writing that moneys will not be combined/transferred
  • Keep records
130
Q

What are penalties for not having protection in place?

A
  • Up to £30k fine
  • £5k for not showing certificate
131
Q

What is an instance where I have handled client money?

A
  • Quarterly rent and service charge payments
  • Paid into distinguishable client account with client name in details
    Once received, payments transferred to account of client choce
  • Client kept updated throughout process - provide high standard service
132
Q

When are firms required to register for RICS registration?

A
  • Provide surveying service to public
  • Operate in UK
  • Over 50% principles are RICS members
133
Q

When are firms eligible for RICS registration?

A
  • Provide surveying service to public
  • Over 25% principles are RICS members
134
Q

What is a locum?

A
  • Person to stand in for sole practitioner in event of incapacity or death
  • Usually another surveyor, or trusted individual e.g. Lawyer/ accountant
  • Must be covered by PII
135
Q

What is included in RICS compliance for starting a new firm?

A
  • Inform the RICS of new practice - Firm Detail Form
  • Appoint individual responsible for comms with he RICS and register for regulation
  • Set up PII, Procedure for handling client money, complaints handling procedure etc
  • Ensure CPD logged and set up staff training plan
  • Ensure completion of online RICS annual return at end of the year
136
Q

Who is a responsible person?

A

Person responsible for ensuring RICS professional technical and ethical standards are applied, upheld and supported

137
Q

What is an annual return?

A

Registration form completed by all RICS firms each year, providing RICS all information on your firm

138
Q

What is included in statutory compliance for starting a new firm?

A
  • Declare Business name
  • Register with HMRC for VAT registration
  • Ensure compliance with employment law - working hours, living wage etc
    Ensure insurance compliance - public/employer liability
  • Compliance with Equalities Act (2010)
  • Compliance with H&S at Work Act (1974)
  • Disability Discrimination Compliance
139
Q

What is RICS requirements regarding compliance for closing down a practice?

A
  • Inform RICS, clients and arrange handover
  • Return client money
  • Inform insurers and arrange run off cover for 6 years
  • Keep client records and files for 6 years
140
Q

What is key legislation for Gifts Bribery and Corruption?

A
  • Bribery Act (2010)
  • Proceeds of Crime Act (2002)
    + RICS Professional Statement: Countering Bribery & Corruption, money laundering and terrorist financing (2019)
141
Q

What is a bribe?

A

Giving, accepting, promising or receiving an advantage such as a payment, gift or service in return for an action which is illegal or a breach of trust

142
Q

What is the aim of the Bribery Act (2010)?

A

Reduce bribary in business in the UK and abroad

143
Q

What are the 6 principles of the Bribery Act (2010)?

A

1) Proportionality
2) Top Level Commitment
3) Risk Assessment
4) Due Diligence
5) Communication
6) Monitoring & Review

144
Q

What are the 4 bribery offences?

A

1) Accepting a bribe
2) Receiving a bribe
3) Bribing a public official
4) Failing to prevent a bribe

145
Q

How may a company defend themselves if an employee commits a bribe?

A

Demonstrate that they had adequate policies/procedures in place to prevent bribery

146
Q

Who does the Bribery Act apply to?

A
  • UK citizens, residents and companies established under UK law
  • Companies doing business in the UK
  • Firms whose staff are committing bribery
147
Q

What are the penalties under the Bribery Act (2010)?

A

Individuals - 10 years prison / unlimited fine
Firms - unlimited fine, ban on public procurement, criminal/civil charges

148
Q

How do I ensure I comply with Bribery legislation?

A
  • Comply with internal policy
  • Never accept cash or equivalent
  • Registering gifts / hospitality on e-register to ensure transparency
149
Q

What is Workman’s e-register?

A
  • System to log gifts received in accordance with RICS guidance
  • ## Provide info on goods - when received, who by, value etc
150
Q

What is key legislation regarding money laundering?

A
  • Proceeds of Crime Act (2002)
  • Money Laundering, Terrorist Financing and Transfer of Funds Regulations (2017)
  • RICS Professional Statement: Countering Bribary & Corruption, Money Laundering and Terroist Financing (2019)
151
Q

What is money laundering?

A

When proceeds of criminal activity are disguised or converted and then realised as legitimate assets

152
Q

What are key provisions of the Bribery/Money Laundering regulations?

A
  • Have money laundering/terrorist financing risk assessment
  • Implement systems, policies and controls
  • Provide staff training
  • Ensure appropriate record keeping, policies and procedures
  • Comply with new customer due diligence requirements
153
Q

What are requirements for firms in money laundering regs?

A
  • Must register with HMRC annually
  • 10,000 euro limit for acceptance of cash
  • On going client relationship must be monitored
  • Senior staff must take responsibility for compliance
154
Q

What due diligence should be undertaken to prevent money laundering?

A

1) Customer:
- Identify client and their identity - name company number etc
- Obtain info on purpose and nature of business relationship
2) Enhance:
- Additional info for business involving someone from high risk country or politically
exposed person
- Additional evidence and monitoring

155
Q

What is a politically exposed person?

A

Someone with a prominent public function - higher risk of corruption

156
Q

What are penalties for failing to comply with money laundering regs?

A
  • Assisting with money laundering - 14 years prison / unlimited fine
  • Tipping someone off whose under investigation - 5 years prison / unlimited fine
157
Q

How is money laundering reported?

A

Submitting a Suspicious Activity Report to National Crime Agency

158
Q

What are the key red flags associated with potential money laundering?

A
  • Unwillingness to provide identity documents
  • Changes to parties involved in transactions
  • Unusual transaction features - e.g. unexpected urgency
  • Payment in unusual currencies
159
Q

What are the key offences under the proceeds of crime act (2002)?

A
  • Concealing criminal property
  • Acquisition, use possession of criminal property
  • Arrangements - knowing/suspecting that it facilitiates criminal property
160
Q

What does the RICS Professional Statement - Countering Bribery, Corruption, Money Laundering and terrorist financing (2019) do?

A

Sets mandatory requirements for RICS members and regulated firms in relation to subject areas
Divided into 3 parts:
1) Mandatory Requirements
2) Guidance setting out good practice
3) Supplementary Guidance for Parts 1 & 2

161
Q

What does part 1 of the Professional Statement on bribery, ml and tf cover?

A

Mandatory Requirements:
- Bribery
- Not to offer/accept anything that could be considered a bribe
- Have procedures that comply with law
- Report suspicions to relevant authorities
Money Laundering / Terrorist Financing:
- Not be complicit in or facilitate either
- Have systems in place to comply with law
- Verify clients be relevant ID checks

162
Q

What is key guidance for the Bribery/Money Laundering Professional Statement?

A
  • Publish code of behaviour and provide staff training
  • Set up a gifts register
  • Keep up to date with legislation
163
Q

What is key supplementary guidance in the professional statement for bribery and money laundering?

A
  • Establish a risked based approach - Three Ws
    1) Who you act for
    2) What are you doing
    3) Why are you being asked to do something
  • How to deal with Politically Exposed Person
164
Q

What is modern slavery?

A

Illegal exploitation of others for personal or commercial gain

165
Q

What legislation is there on Modern Slavery?

A

Modern Slavery Act (2015)

166
Q

How do you report modern slavery?

A

Modern slavery helpline / police

167
Q

What is an example of a RICS bye-law?

A

5 - Conduct
* Conduct yourself in a way benefitting to the RICS

168
Q

Challenges facing the RICS?

A
  • Sustainability drives to net zero
  • Landlords applying for EPC exceptions due to high costs
  • Retail sector - staying competitive
169
Q

Why are the RICS interested if you are solvent?

A
  • Shows competence and trust
  • Shows you can handle clients money
170
Q

What is Workman’s purchasing policy?

A
  • Only use workman’s approved contractors
  • Min 3 quotes for works above £5k, 2 between £1.5k and £5k
171
Q

How do you keep client confidentiality?

A

Adhere to the Data Protection Act and GDPR
- Don’t discuss details or disclose sensitive data, anonymise

172
Q

What is a safe contractor list?

A

Accreditation ensuring competanet services in terms of quality and H&S

173
Q

Does the government provide guidance on client money protection?

A

No, but sets out approved schemes that must be joined if letting or managing property and hold client money
- Must hold money in a Financial Conduct Authority authorized bank
- Get certificate confirming membership of scheme you join

174
Q

What are some client money protection schemes?

A
  • Client money protect
  • Money shield
  • PropertyMark
175
Q

Where can you display client money protection scheme certificate?

A

Office or website

176
Q

What is terrorist financing?

A
  • Collection of funds for terrorist purposes
  • Providing financial support to those operating in terrorism
177
Q

What were the changes to PII and why?

A

UK PII Requirements 2022 - Regulation note
- Reflect changes to the excess requirements
+ Excess requirements for larger firms reduced

178
Q

What are examples of RICS bye-laws?

A

2 Membership
3 Designations
4 Contributions to Funds
5 Conduct

179
Q

What are requirements for RICS rules for use of logo and designation by firms?

A
  • Not to alter RICS logo
  • Not to use logo in manner which may bring profession into disrepute
180
Q

What information is provided in Annual Return?

A
  • Firm details - address, VAT reg, services provided
  • Designation details
  • Offices
  • Principles details
  • RICS member employees
  • Contact officers
  • General info
181
Q

What are rules on RICS logo and regulated by RICS designation?

A
  • Only RICS firms can use logo and designation
  • Reg by RICS must be clearly displayed on literature
182
Q

When did logo/designation rules change?

A

Feb 2022 - regulation document

183
Q

What are restrictions on using ‘Chartered Surveyors’ by firms?

A

Restricted to trading name only - not allowed in company name

184
Q

What must be included in Terms of Engagement for firm regulation?

A
  • In prewscribed text and explain to clients what being regulated by RICS means
185
Q

What was included in the RICS Futures Report (2020)?

A

How we are responding to change - sustainable/commercial focus:
- Building roads from plastic
- adopting drone technology
- adapting to climate change

186
Q

What are some of the key principles of countering bribery and corruption, money laundering and terrorist financing?

A

Not offer or accept, directly or indirectly anything that constitutes a bribe
Report suspicious activity that may breach anti-bribery laws
Act with due diligence
Not facilitate or be complicity in money laundering or terrorist financing
have systems and training in place to comply with laws
Report suspicious activity

187
Q

Tell me about an instance when you have been offered a gift or hospitality by a Client

A

I received a bottle of wine at Christmas from a Client for my work throughout COVID-19. I notified the partner in charge and logged the gift on the gift register

188
Q

what are the 6 ethical standards the Rules of Conduct is based on?

A

Honesty
Integrity
competence
Service
Respect
Responsibility

Will P (12 decks)

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