Ethics

Question 1

SBHG Window replacement programmeHow did you act with integrity?

Answer 1

The client suggested completing planning applications to properties before the finalised list of the programme was complete. This presented a significant fee opporuntity for our organisation, and would favour my performance internally. However, I knew that a priority of my client was to maximise the budget for works. By advising them to refrain from compelting the planning applicaitons prematurely, I was honest and acted with intergrity to provide my client with the highest level of service.

Question 2

SBHG Window replacement programmeWhy did you recommend postponning the planning applications?

Answer 2

The final property list had not been determined. If I had completed the planning applications to all the properties on the draught list presented at the time it would have resulted in planning applications being completed to properties that were not on the finalised programme. This would reducced available spend for the programme, which was a priority for my client.

Question 3

SBHG Window replacement progammeWhich rules of conduct did you apply?

Answer 3

I applied all of the rules of conduct throughout the project, but in this scenario in particular :Rule 1: Act with integrity, to not be improperly influenced by the potential of a higher fee.Rule 3: Provide good quality and diligent service, to recognise that the clients priority would be works completed not planning applications to properties outside of the final programme.

Question 4

What is the RICS motto?

Answer 4

The motto is ‘Est Modus in Rebus’ which in latin translates to, ‘ There is measure in all things”

Question 5

What is the Mission Statement of RICS?

Answer 5

To qualify and equip their members to offer the highest standards of professional serviceTo promote and enforce standardsTo lead solutions to the major challenges facing the built environemnt through professional expertise.

Question 6

When was RICS founded?

Answer 6

It was founded in 1868.

Question 7

When did RICS receive its royal charter?

Answer 7

In 1881

Question 8

How is RICS Structured?

Answer 8

The RICS was founded in 1868 with the Royal Charter being granted by the Privy Council in 1881It is self regulateed and internally monitored meaning that it is not regulated by the government or external parties.Bye Laws Determine how RICS is regulatedThe governing councilagree the strategy for RICSThe regulatory board, audit committee and management board are beanth the governing council and execute strategy set out by them.

Question 9

What are the RICS 5 principles of better regulation?

Answer 9

ProportionailtyAccountability ConsistencyTargetingTransparency

Question 10

What is the difference beteween RICS ethics and rules?

Answer 10

Ethics are a set of moral valuesRules of conduct a frameowrk that we work to.

Question 11

What is rule 1 of the new rules of conduct?

Answer 11

Members and firms must be honest, act with integrity and comply with their professional obligations, including those to RICS.

Question 12

What is rule 2 of the new rules of conduct?

Answer 12

Members and firms must maintain their professional competence and ensur that services are provided by competetnt individuals who have the necessary expertise.

Question 13

What is rule 3 of the new rules of conduct?

Answer 13

Members and firms must provide good-quality and dilligent service.

Question 14

What is rule 4 of the new rules of conduct?

Answer 14

Members and firms must treat others with respect and encourage diversity and inclusion.

Question 15

What is rule 5 of the new rules of conduct?

Answer 15

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

Question 16

Why did the preiovus Rules of Conduct Change?

Answer 16

Following reasearch and consultation with firms and members, the majority voted in favour of replacing.To provide greater clarity for RICS members and firms.I also undesrtand there is now a greater focus on cleare example behaviours, understanding evolving technology and talking climate change.

Question 17

Talk us through your understanding of the rules of conduct changes?

Answer 17

Replace the following documents:Rules of conduct for membersRules of conduct for firmsGlobal Professional and Ethical Standards Appendix A of the Rules of conduct contains the professional obligations for members and firms

Question 18

What are the professional obligations of members?

Answer 18

1. Members must comply with CPD requirements, 20 hours of CPD each calendar year, 10 hours formal2. Members must cooperate with RICS3. Members must promoptly provide all infromation reasonably requested by the Standards and Regulation board, or those exercising delegated authority on its behalf.

Question 19

What are the professional obligations of firms?

Answer 19

1. Firms must publish CHP, including alternative disputre resolution provider approved by RICS, and maintain complaints log.2. Firms must ensure that all previous and current professional work is covered by adequate and appropraite professional indemnity cover that meets the standards approved by RICS.3. Firms with a sole prinpal must make arrangements for work to continue in their incapcitation, locum agreement4. Firms must cooperate with RICS.5. FIrms must promptly provide all infroamtion reasonably requested by the Standards and regulation board, or those exercising its behalf.6. Firms must display business logo on literature, in compliance with designation standards.7. FIrms must report to RICS, any matter that they are to report under the RUles for the Registration of firms.

Question 20

What is the RICS ethics decision tree?

Answer 20

It is process to check if a decision or service you are providing is in line with RICS ethical standards.

Question 21

What are the steps in the RICS ethics decision tree?

Answer 21

1) Do you have sufficient facts on issue.2) Is it legal?3) Is it inline with RICS Rules of conduct?4) Have you consulted with the appropriate people?5) Do you have clear reasoning in reaching your decision?6) Is your decision informed?7) Would you be content for your actions to be made public, in the newspaper or on the internet?

Question 22

Why does RICS have Rules of Conduct?

Answer 22

To provide a framework that we can all work to and so the client knows he is getting a set level of service.As well as being an important tool for the Institution, the Rules of Conduct are also a useful professional guide for individual institution members

Question 23

Your brother-in-law is a chartered surveyor. You find out that he is working outside the RICS Rules of Conduct. What do you do?

Answer 23

I verify the facts and confront him reminding him of his duties as a member of the RICS.I inform the RICS specifying my relationship to the person and any corrective action which I believe my brother-in-law is committed to put in place.

Question 24

In the case of a breach of a rule of conduct what is the procedure?

Answer 24

Not every shortcoming will necessarily give rise to proceedings.A formal investigation by the Head of Regulation of the RICS is the first step in the process.The RICS can request information and/or visit and inspect to investigate compliance.Members must cooperate fully with all enquiries.

Question 25

How can a disciplinary proceeding be triggered?

Answer 25

Someone complaining to the RICS.An allegation by a client or third party.Information received or established by the RICS.

Question 26

What three actions can be imposed after the end of the investigation stage?

Answer 26

Fixed penalty.Consent order.Disciplinary panel.

Question 27

What are fixed penalties?

Answer 27

A fine by the RICS

Question 28

What are consent orders?

Answer 28

It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS rules. It can require the member to take certain corrective actions, or restrain them from taking certain actions for a specified period of time and may require them to pay a fine or costs

Question 29

When is a disciplinary panel applicable?

Answer 29

They are used for more serious breaches of conduct.The panel will usually be held in public.The burden of proof is on the RICS.A balance of probabilities approach will be adopted.

Question 30

What sort of breaches would expulsion be suitable for?

Answer 30

Gross, persistent or willful failure to comply with an RICS rule of conduct.Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a client’s money.

Question 31

What procedures must you follow if you are starting up a new practice?

Answer 31

Contact the RICS for guidance and obtain a company start up pack.Inform the RICS and register for regulation.Appoint a contact officer for all RICS communication.Prepare a complaints handling procedure.Obtain Professional indemnity insurance cover.Abide by the Rules of Conduct for Firms.Use the designation ‘Regulated by RICS’ on all practice material.

Question 32

Would you advertise your new company in the press?

Answer 32

Yes as long as it is in a trustful and responsible manner in line with the Rules of Conduct for Firms.

Question 33

What insurances would you need if you were starting up your own firm?

Answer 33

Professional Indemnity Insurance.Employer’s Liability.Public Liability.Building’s insurance of an office premises

Question 34

What sort of information do registered firms have to send to the RICS annually?

Answer 34

It is called annual return and carried out on-line.Failure to do so leads to a fixed penalty.It includes:-o Type of business and staffing.o Nature of clients.o Training provision.o Complaints handling procedures details and records.o PI insurance details.o Whether the firm holds clients’ money

Question 35

What processes do regulated firms need to put in place when handling Clients’ Money?

Answer 35

Preserve the security of clients’ money which does not belong wholly to the company.RICS regulated firms that operate a client account must:-Set clear segregation of duties for employees.A Principal oversees the client money accounting functions.Principles cannot override controls.Competent and knowledgeable staff are to process clients’ money with cover provided for longterm absence.Accounting systems and data must be secure.Client money must be kept separate and clearly identifiable with the word ‘client’ included inthe bank account name.Clients must always have access to funds.We must agree the terms and advise the client on bank details.The account must not be overdrawn.We must maintain client ledgers and provide a running balance.

Question 36

What are the different types of client money accounts?

Answer 36

General accounts hold money for more than one client.Discrete accounts reference a single named client.

Question 37

What is meant by the term Negligence?

Answer 37

A duty of care is owed to all clients and 3rd parties using reasonable skill and care.If it is breached due to Negligence a claim may arise resulting in damages being paid or a Professional Indemnity Insurance claim.Negligence is a failure to provide the duty of care that is owed to the client.

Question 38

Tell us about the Merrit V Babb case law?

Answer 38

This case dates back to 2001 and highlights the importance of having run-off cover in place.A surveyor was sued for negligence by a former client.Because the surveying firm was no longer in existence therefore the individual surveyor was pursued for damages successfully.This caused a big shock in the industry and highlighted the need to ensure that run-off cover is in place for all previous employees

Question 39

What limitation periods are associated with underhand and deed forms of contract?

Answer 39

6 years when executed under hand.12 years when executed as a deed.

Question 40

Tell us about the Merrit V Babb case law?

Answer 40

This case dates back to 2001 and highlights the importance of having run-off cover in place.A surveyor was sued for negligence by a former client.Because the surveying firm was no longer in existence therefore the individual surveyor was pursued for damages successfully.This caused a big shock in the industry and highlighted the need to ensure that run-off cover is in placefor all previous employees.

Question 41

What limitation periods are associated with underhand and deed forms of contract?

Answer 41

6 years when exectued underhand12 years when executed as a deed

Question 42

What must a complaints handling procedure include?

Answer 42

The RICS provides a model form.The process must include a redress mechanism.Details of the policy should be issued to the client with the Terms of Business.It must be clear, quick, transparent and impartial and free of charge within the first stage.Names and contact details of the nominated investigating person must be stated.The complaint must be investigated within 28 days.All complaints, their progress and outcomes must be recorded.We must note the need to advise PI insurers of a complaint immediately.The process must have two stages as a minimum:-Stage 1 is where there needs to be consideration of the complaint by a senior member of the firm or the complaints handling officer.Stage 2 if the issue is not resolved, the complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costsat this stage

Question 43

What is an independent redress scheme?

Answer 43

It is a consumer scheme designed to handle small issues that would be disproportionally expensive to take to court.If the scheme judges in favour of the complainant, it is binding.If it judges in favour of the firm, the complainant can escalate the matter to court.RICS firms must specify which redress scheme they want to use, it could be an ombudsman, arbitration or sometimes adjudication.If the complaint relates to a large amount of money or if the complainant wishes so, he can take the matter to court

Question 44

What do you do if you receive a letter of complaint?

Answer 44

I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing additional information as required.I would also highlight the importance of informing our Professional Indemnity insurance providers immediately

Question 45

What is the ‘Clients’ Money Protection Scheme’?

Answer 45

This is a money protection scheme operated by the RICS.It contains provision for any member of the public to be reimbursed their direct loss of funds when using an RICS regulated firm.This is provided through an RICS insurance policy.

Question 46

What is the purpose of the joint names on a client account?

Answer 46

For the purpose of dual authorisation.

Question 47

What are the continuous professional development (CPD) requirements?

Answer 47

Members must undertake and record appropriate lifelong learning.On request by the RICS they must provide evidence that they have carried out the CPD to maintain and improve their levels of professional competence.

Question 48

How many hours must you do?

Answer 48

A minimum of 20 hours CPD must be achieved per calendar year, of which a minimum 10 hours must be formal.Members must undertake learning on the standards expected around RICS Ethics on a rolling 3-year period.All CPD’s must be recorded via the RICS on-line management system.

Question 49

What sorts of activities are included as CPD?

Answer 49

It must have a clear learning objective relevant to my role to count as CPD.Formal CPD can be classed as web based training with structured assessments, formal seminars,providing training to others where research and preparation is required.Informal CPD is classed as private reading, internal CPD’s and on the job shadowing

Question 50

How do you differentiate between the different categories of CPD?

Answer 50

Use of the CPD decision tree, structured programme that is either assessed by others or involves interaction i.e. classroom means formal. If not programme, assessment or interaction then informal

Question 51

what types of articles do you read?

Answer 51

My employer’s research & development team send us weekly digests of the relevant press and I request copies of articles of interest.I also read the RICS journals (Modus, Construction Journal, RICS regional magazine).I also keep up to date via the RICS website, Building Magazine, Estates Gazette and BCIS updates.

Question 52

What recent article have you read from the RICS?

Answer 52

Three experts on the best ways to retrofit housing, with details that wall insulatino should not be first measure and doors and windows houdl be first call.Shortage of scaffolding, high material prices are causing for shortage of scafolding in the industry.

Question 53

How do you keep up to date with topical issues?

Answer 53

I am on the mailing list for several CPD providers.My employer’s research & development team send us weekly digests of the relevant press and I request copies of articles of interest.I also exchange industry articles and relevant information with colleagues.I follow updates on the RICS website and Construction JournalsI undertake regular web research on key topics relevant to my field of surveying.

Question 54

What is your CPD strategy?

Answer 54

I meet with my manager twice a year to review my career development plan and objectives.I build my CPD strategy around these objectives, current topics and personal interests.Most recently I have been talking with my manager about undergoing a retrofit assessor course.

Question 55

What does PII stand for?

Answer 55

Professional Indemnity Insurance.

Question 56

What is the purpose of Professional Indemnity Insurance?

Answer 56

To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, errors or omissions

Question 57

What benefits does PII provide for the professional?

Answer 57

The professional is protected from financial losses.The firm does not have to meet the claim from their own assets and resources.

Question 58

What benefits does PII provide for the client?

Answer 58

They are able to recover their financial losses.

Question 59

On what basis is PII underwritten in the UK?

Answer 59

On a claims made basis.

Question 60

What does a claims made bais means for PII?

Answer 60

The insurance policy that is in place at the time the breach is discovered is responsible for providing the indemnity, not the insurance policy in place when the breach was made.

Question 61

What are the requirements regarding Professional Indemnity Insurance set by the RICS?

Answer 61

The policy cover must be made on an ‘each and every’ claim basis.The RICS sets out the minimum levels of indemnity.The RICS sets out the maximum levels of uninsured excess.Run off cover must be in place for at least 6 years.The policy should include cover for past and present employees, directors and partners.

Question 62

What are the minimum levels of indemnity?

Answer 62

Turnove/ limit of indemnity£100,000 or less / £250,000£100,001 to £200,000 / £500,000£200,001 and above / £1,000,000

Question 63

What are the maximum levels of unisured excess?

Answer 63

Limit of indemnity/ max uninsured excess£10,000,001 or less: 2.5% of the sum insured, or £10,000 whichever is greater£10,000,001 and above : no limit

Question 64

What measures should be taken to try and avoid PI claims?

Answer 64

Keep full and detailed records of meetings and conversations.Record recommendations and advice given.Use proper letters of engagement, scope of services and terms of engagement.Don’t advise on a specialism outside your field of experience.Use RICS guidelines.Avoid poor management and excessive workloads

Question 65

If you made a mistake in your cost plan what would your insurance company expect?

Answer 65

For you to notify them and comply with any conditions & procedures set out in the insurance policy

Question 66

How can you limit your liability when agreeing terms of appointment with a client?

Answer 66

Base the appointment on reasonable care and skill rather than fitness for purpose which is more onerous.If the client’s requirements are performance based, this may imply fitness for purpose. It is advisable to request a clause limiting the appointment to reasonable skill and care only.Run off cover must be in place.Execution of the appointment under hand will result in a reduced liability period of 6 years instead of 12.

Question 67

What are the main elements included within a fee proposal?

Answer 67

• Terms and conditions.• Scope of services.• Exclusions.• Assumptions.

Question 68

If you put together a fee proposal, but a couple of months into the job you realise that you have under forecasted your resources, would you go back to the client and ask for more money?

Answer 68

If project requirements such as the services, scope or value of the project has increased then I would go back to client and request a fee increase. If the scope of works had remained the same, this highlights a mistake within our fee bid and the additional work would need to be carried out without reducing the level of service being offered andwithout requesting additional fees from the client.

Question 69

Once you and your client agreed the services that are to be provided verbally what would you do next?

Answer 69

Follow up with a formal letter which includes the terms and conditions, fees and scope of services thatare to be provided.

Question 70

If the client gives you a lump sum fee before going on holiday, what would you do?

Answer 70

I would place the funds in a separately identified client account and agree a drawdown of monies against the services being provided with the client

Question 71

Tell me what you understand about conflicts of interest?

Answer 71

A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.An existing relationship will result in reduced impartiality and Chartered Surveyors have an obligation to make clients aware of this and if necessary, decline work opportunities where a conflict of interest occurs.

Question 72

How could the conflict of interest be managed internally if two separate departments were working for the same client?

Answer 72

I could put in place procedures to ensure exclusivity of staff.This would avoid any cross over of information between the departments.I would also ensure that there are separate communication lines into the client.Separate geographical locations and secure office and data storage would also need to be provided.Staff could also sign up to confidentiality or non-disclosure agreements.I would also need to monitor the potential conflict and keep the client updated on progress.

Question 73

If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?

Answer 73

I would check the clients understanding around the conflict of interest.I would then make the client aware of the potential for reduced impartiality.If they were still insistent on the appointment, I would seek a letter of instruction from the client to continue.Following the appointment I would agree working procedures to manage the conflict of interest with the client and the teams involved.

Question 74

What are the offences under the Birbery Act?

Answer 74

The offences are:-o Making a bribe.o Receiving a bribe.o Bribery of a foreign public official.o Failure of a corporate entity to prevent bribery on its behalf.

Question 75

What does the Birbery Act apply to>

Answer 75

The legislation applies to all UK Entities and includes associated Persons for example sub-consultantsand external advisors.

Question 76

What are the principles of prevention/

Answer 76

There are six principles of prevention companies should put in place:- 1. Proportionate Procedures. 2. Top Level Commitment. 3. Risk Assessments. 4. Due Diligence. 5. Communication. 6. Monitoring & Review.

Question 77

Under the Bribery Act, under what circumstance is a facilitation payment permitted?

Answer 77

The only circumstance in which it is OK to make a facilitation payment is when you are under duress.• For example if there is a real and present risk or danger to “life, limb or liberty”.• If you or your companions are under immediate physical threat.• You should put safety first, make the payment and report the matter immediately.• Or as soon as is practicable to your manager or your ethics compliance contact

Question 78

You are attending a Main Contractor organised business conference where it is announced the you have been randomly selected as the winner of this months prize draw. Its an i-pad air. How would you act in this scenario?

Answer 78

• I would be extremely uncomfortable accepting the prize in this scenario.• The prize is of a significant value and could be interpreted as a bribe.• Furthermore due to working on a project with the Main Contractor at the time of this scenario,accepting the prize would have been highly inappropriate and could be interpreted as having an affecton my business conduct during the project.• I would respectfully decline the prize and suggest that this is made as a charitable donation to a charityof the Main Contractor’s choice.• I am aware that bribes are commonly distributed as random prizes and due to the seriousness of thisincident I would report this to my line manager.

Question 79

You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last minute, would you still attend?

Answer 79

In the first instance I would declare this hospitality on my companies’ gifts and hospitality register.Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out.Since they won’t be present, this will not be a genuine business event.Consequently, I would decline this hospitality at the Project Team’s expense.

Question 80

A contractor invites you to lunch to a restaurant and advises they’ve got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?

Answer 80

• Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process isagainst Company policy and could be an offence under the UK Bribery Act.• If this were the first time, it would be OK just to decline and explain that such an invitation isinappropriate.• However if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannotput in writing, so we should report this infringement.

Question 81

What is you understanding of the CHP at your firm?

Answer 81

• Handled by a senior partner- If complaint is received verbally, it is requested in writing.- Within 7 days of receipt, contact will be provided explaining our understanding of the situation and the investigation/corrective actions to be taken- If complainant is dissastisfied, attempt to solve primarily through negotiation. If not it will be taken to ADR.

Question 82

Who is the president of RICS?

Answer 82

Ann GrayShe became presdent in March 2023Overseeing the transformation programme

Question 83

You set up your own business but you decide to go off on a skiing holiday for 2 weeks, you break your leg and the doctors say you must have complete bed rest and no access to emails or work phone, what do you need in place to cover this situation?

Answer 83

A Locum agreement

Question 84

How many different types of RICS document statuses are there ?

Answer 84

There are a number of document types. This includes (can be found within the first few pages of many RICS documents) :• Rules of conduct for members and firms, updated Feb 2022• International standards - High-level standard developed in collaboration with other relevant bodies• RICS professional statements (PS) - Mandatory requirements for RICS members and regulated firms• RICS guidance note (GN) - A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners• RICS code of practice (CoP) - A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note• RICS jurisdiction guide - This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally

Question 85

What is the status of a RICS professional statement ? who does it apply to ?

Answer 85

MandatoryRICS trainees, members, regulated firms

Question 86

What would you do if you considered your directors advice to be incorrect ?

Answer 86

Consider :• The implications of the advice• Is it legal ?• Discuss with managers, colleagues• Refer to the Ethics decision tree

Question 87

How does your behavior differ professionally and personally ?

Answer 87

My approach and behaviour does not change.

Question 88

What information is required by the RICS for registration and in the annual return?

Answer 88

• Type of business and staffing details• Statutory regulated activities - such as for financial services• Nature of clients• Complaints handling procedure and records• Professional indemnity insurance certificate• Whether the firm hold clients’ money

Question 89

How do you keep up to date with current affairs and topic issues ?

Answer 89

On mailing list, office discussion, CPD email group, magazines and publications etc

Question 90

Why do you want to become chartered ?

Answer 90

• Gold standard in my profession• Offers guidance and support from RICS• Designation will help my career• I am committed to lifelong learning• I want to give back to the up and coming surveyors

Question 91

What is the RICS ethical decision tree?

Answer 91

The RICS decision tree assists me in making informed decisions , confirming my actions are ethical and legal.

Question 92

What does it mean to act ethically as a Chartered Surveyor?

Answer 92

Acting ethically means complying with standards and ensuring that you are acting on behalf of your clients best interests.

Question 93

What are the three benefits of regulation for firms?

Answer 93

CPS:• Confidence - for client as regulated firms are monitored by RICS regulation• Professionalism - firms have to provide clear, impartial and expert advice• Security - firms have to have recognised CHP, access to ADR and PII cover

Question 94

Why does you firm have Terms of Engagement? What should be included in Terms of Engagement?

Answer 94

Creates a contract with the client and clear definition of what is expected and on what terms etc. Sets out the proposed fee basis, payment of expenses and that a copy of the firm’s complaints handling procedure is available upon request.

Question 95

If your client asked you to lower your fees because of their limited funding, what would you do ?

Answer 95

The client would have to pay the required price for the level of service required or reduce the scope of works involved. I could consider if the scope of work could be reduced however on the client request i would not just lower my fees.

Question 96

How do you know you are competent ?

Answer 96

Having the knowledge and skills to undertake an instruction. If you have dealt with that type of property and location and you’ve carried out that task, you are deemed as competent. This can be defined as :• Skills• Knowledge• Attitude• Training• Experience

Question 97

What are the CPD requirements?

Answer 97

• Qualified/MRICS member – 20 hrs per year, min 10 hours formal• Student member – 48 hrs per year (Min 24 formal)

Question 98

What is the difference between formal and informal training ?

Answer 98

Formal has a learning objectives and a defined learning outcome, i could reference the CPD decision tree for further guidance.

Question 99

What is your CPD strategy ?

Answer 99

My CPD plan is dictated by my skills and or knowledge gap considering future requirements and sectors etc. This is review bi annually to confirm i am getting suitable and appropriate CPD to my role.

Question 100

What is a complaints handling procedure?

Answer 100

A procedure to allow and define the procedure for clients to raise a complaints. This may include ADR and relevant timescales for the process.

Question 101

What must a complaints handling procedure include ?

Answer 101

The procedure must include an Alternative dispute mechanism approved by the standard and regulation board. The procedure can be based on the RICS forms. Issued with terms of engagement, nominated person also details investigated within 28 days, record the complaints, advise PI insurers of complaint etc.

Question 102

What options are available if you couldn’t resolve the complaint?

Answer 102

• Property Ombudsman• RICS Dispute Resolution• Escalation etc

Question 103

What is the property ombudsman?

Answer 103

Independent government approved body who provides redress to consumers whose complaints are considered on a case by case basis. They are not regulators and have no authority to take legal action or dictate action.

Question 104

Where would you find the RICS requirements for professional indemnity cover ?

Answer 104

• Professional indemnity insurance requirements • Regulation Document • Version 9 with effect from 1 April 2022

Question 105

In relation to professional indemnity insurance, what is the minimum limit of indemnity for turnover under £100,000(in the preceding year )?

Answer 105

• £250,000. This is dependent on predicted turnover based on the previous year’s turnover• The RICS defines 3 levels of cover: o up to £100,000 = £250,000o £100,001 - £200,000 = £500,000o £200,001 + = £1,000,000 of cover

Question 106

How many years after an instruction has been completed can a Professional Indemnity claim be made ?

Answer 106

15 years (Limitations Act)

Question 107

What type of cover would you need to cover a claim brought after a firm or member ceases to trade ?

Answer 107

Run off cover

Question 108

Why do you need PII insurance?

Answer 108

Consultants provide expert advice and therefore face risks associated with making mistakes or errors in judgement that could cost a business in profits. When profits are lost due to any negligence or perceived negligence businesses often respond with lawsuits. It also protects the client, surveyor and firm.

Question 109

Who does PII protect ?

Answer 109

Clients from financial loss, the firms form loss resulting in being able to continue trading and the surveyor.

Question 110

Explain the term ‘claims made Basis’

Answer 110

A ‘claims made’ basis covers claims that are made and reported during the policy period only and not once the policy period is over.

Question 111

In the RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing February 2019 - RICS Members and Firms must do what in relation to bribery and corruption ?

Answer 111

In relation to bribery and corruption RICS-regulated firms must: • not offer or accept, directly or indirectly, anything that could constitute a bribe • have plans in place to comply with applicable laws governing bribery and corruption, and ensure that these are followed • report any activity they are aware of that breaches anti-bribery and corruption laws to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager • act with due diligence to perform periodic written evaluations of the risks that face the firm and that may lead to the facilitation of bribery or corruption; in determining Countering bribery, corruption, money laundering and terrorist financing 6 RICS professional statement Effective from 1 September 2019 the appropriate level of due diligence, the firm may consider the type of business activities they engage in and the environment in which they operate • retain information detailing how the firm has met the requirements of this professional statement.In relation to bribery and corruption RICS members must: • not offer or accept, directly or indirectly, anything that could constitute a bribe • ensure that they have adequate knowledge of bribery and corruption to be able to comply with the requirements of this professional statement • report any activity they are aware of that breaches applicable anti-bribery and corruption laws to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager.

Question 112

Can you name any Money Laundering Red Flags?

Answer 112

• Cash-only buyers • An unusual sale price (too low or too high)• Payments from multiple/different source to counterparty • Funds provided by unknown third parties

Question 113

What is money laundering?

Answer 113

Concealing the source of proceeds of criminal activity to disguise their illegal origin. This may take place through hiding, transferring and or recycling illicit money or other currency through one or more transactions, or converting criminal proceeds into seeming legitimate property.

Question 114

Client comes into your office with 10k cash to pay builder, what can you do?

Answer 114

I would politely decline as under RICS guidance, one should not facilitate or complicit any money laundering acts. Should I be concerned if there is money laundering then this should be reported to local legislation. Under the Money Laundering Act 2007 (updated 2017), under HMRC guidance, which advise that necessary due-diligence should be completed to ensure the money is clean. HMRC advise that these checks should be done if these transactions are occasional and of a value of €10k and you are not registered high value dealers. A high value dealer is a firm who has registered with the HMRC as they receive regular high value payments of €10k or more in cash for goods. Companies such as jewellers or car dealers. Such due-diligence checks include; checking who they say they are, financial statements, where the money came from.

Question 115

Can you please expand on your knowledge of Merret Vs Babb ?

Answer 115

• Considered if a professional employee was vulnerable to claims brought directly against them for advice given on behalf of their employers. • Essentially, an individual provided valuation advice and was negligent. The firm the person worked for did not have adequate run off insurance, the company shut down and the client made a claim which was passed to the employee that gave the advice.

Question 116

Can you please expand on your knowledge of Hart V Large ?

Answer 116

The Claimants brought claims in negligence against the architects instructed by the previous owners, the Claimants’ conveyancing solicitors and Mr Large. The claims against both the architect and the solicitors settled prior to trial.Against Mr Large, the Claimants alleged that he was negligent in: (1) failing to recommend a full building survey, rather than HomeBuyer report; (2) failing to draw attention to the issues of water ingress / damp in the HomeBuyer report; and (3) failing to recommend that the Claimants obtain a professional consultant’s certificate.The key take-aways from this case:• Being clear on the report about the scope of inspection including limitations, caveats and actions available to the client;• Recommending justifiable further investigation;• Taking all reasonable steps to ensure clients understand the differences between the levels of service, including the extent and limitations of each option

Question 117

What is the RICS motto ?

Answer 117

Est modus in rebes - there is measure in all things

Question 118

What act covers discrimination ?

Answer 118

The Equality Act 2010, which came into force 1st October 2010

Question 119

What are the 9 protected characteristics of the Equality Act 2010 ?

Answer 119

• Race & Ethnicity• Disability• Religion or belief• Age• Sexual orientation• Gender• Gender reassignment• Pregnancy & maternity• Marriage & civil partnership

Question 120

Where are you protected under the Equality Act ?

Answer 120

Within and outside of work

Question 121

When did the bribery act 2010 come into force ?

Answer 121

01-Jul-11

Question 122

What is the name of the RICS guidance on bribery and money laundering and when is it effective from ?

Answer 122

Professional Statement (Mandatory) - Countering bribery and corruption, money laundering ad terrorist financing, 1st edition, February 2019

Question 123

What is the bribery act ?

Answer 123

The bribery Act 2010 details the 4 offences as : • giving a bribe • receiving a bribe• bribery an official• no procedure in place

Question 124

What is corruption

Answer 124

The misuse of public office or power for private gain, or misuse of private power in relation to business practice and performance

Question 125

What is a PEP ?

Answer 125

Politically exposed person

Question 126

What is required to register a firm with the RICS ?

Answer 126

Offer professional services in surveying disciplines to professional, corporate, institutional and other clients who rely on such services. Have at least 25% principals (a senior manager, partner or owner), who are qualified RICS professionals (MRICS, FRICS, AssocRICS). Agree to observe and comply with RICS Rules for members and firms, including working to RICS standards.

Question 127

What is the obligation of a RICS regulated firm ?

Answer 127

Avoid conflicts of interest, ensure competence, procedures for CPD, complaints handling procedure, suitable indemnity insurance, use of suitable designation, cooperate with RICS.

Question 128

What is a contact officer ?

Answer 128

The designated person to liaise between company and the RICS. In my company this is ????

Question 129

What steps would you need to take to set up a proactive regulated by the RICS ?

Answer 129

• Inform RICS• Appoint a contact officer• Register with RICS for Regulation• Arrange suitable insurance (PI, PII, specific item insurance etc)• Set up client business account for client money• Complaints handling procedure• CPD training

Question 130

What is required to register a firm to RICS?

Answer 130

‘A Firm is required to register for regulation by RICS if: a. the Firm provides surveying services to the public. the Firm is operating in Regulated Area A (UK);c. at least 50% of the Firm’s Principals are RICS Members. ‘New requirement from April 2020 that 25% of principals must be RICS-qualified members.FRICS,MRICS< AsRICS

Question 131

Which firms CAN volunteer to be regulated by the RICS?

Answer 131

If 25% of the principles are members, then it is voluntary to become regulated.

Question 132

Who can you use the RICS logo ?

Answer 132

RICS Regulated firms and members.

Question 133

How do you undertake a conflict of interest check

Answer 133

We have a system that checks appointments based on information such as address, name and partied involved, in addition to verbal conversations between the surveyors.

Question 134

What is the difference between conflict avoidance and management ?

Answer 134

• Conflict avoidance is a person’s method of reacting to conflict, which attempts to avoid directly confronting the issue at hand• Conflict management is the process of limiting the negative aspects of conflict while increasing the positive aspects of conflict. The aim of conflict management is to enhance learning and group outcomes, including effectiveness or performance in an organizational setting

Question 135

What are the RICS Bye-Laws?

Answer 135

1. Application and definition2. Membership and Registration3. Designations4. Contributions to funds5. Conduct6. Governing Council, officers and staff7. Subordinate Boards, committees and groups8. Procedure for general meetings9. Accounts and audit10. General

Question 136

What are the penalty’s for non compliance with the RICS

Answer 136

• Fixed Penalties• Regulatory Compliance Orders • Regulatory Sanctions, which may be imposed by a Disciplinary or Appeal Panel (the ‘Panels’) or a Single Member of the Regulatory Tribunal

Question 137

What is an escrow account?

Answer 137

It is a separate holding account controlled by an independent third party that releases the payment subject to agreement from both parties consenting.

Question 138

Can you pick one of the 5 principles of better regulation and explain your understanding of it ?

Answer 138

Proportional - this is the measures implanted are suitable to the size of the business and the nature of its employees.

Question 139

Can you give me some example behaviours from Rule 1 (RICS Rules of Conduct) ?

Answer 139

• 1.1 Members and firms do not mislead others by their actions or omissions, or by being complicit in the actions or omissions of others.• 1.2 Members and firms do not allow themselves to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments) or by their own selfinterest. • 1.3 Members and firms identify actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises, unless they do so in accordance with the current edition of Conflicts of interest, RICS professional statement. • 1.4 Firms have effective processes to identify actual and potential conflicts of interest, to enable appropriate decisions to be made on whether to accept work, and to keep records of decisions made about actual and potential conflicts of interest. • 1.5 Members and firms providing advice and opinion in a professional context do so honestly and objectively based on relevant and reliable evidence, and firms have processes to ensure that directors, partners and employees do so. • 1.6 Members and firms are open and transparent with clients about their fees and services. • 1.7 Members and firms act to prevent others being misled about their professional opinion. • 1.8 Members and firms do not take unfair advantage of others. • 1.9 Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law. • 1.10 Firms keep client money safe and have appropriate accounting controls. • 1.11 Members do not misuse client money and comply with controls intended to keep it safe. • 1.12 Members and firms do not facilitate any financial crime including money laundering, tax evasion, bribery or corruption. Firms have effective processes to prevent directors, partners or employees from doing so.

Question 140

Can you give me some example behaviours from Rule 2 (RICS Rules of Conduct) ?

Answer 140

• 2.1 Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently• 2.2 Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently. • 2.3 Members and firms check that subcontractors have the necessary knowledge, skills and resources to do their tasks competently.• 2.4 Members and firms reflect on the work they have undertaken and its impacts, and consider how they might apply what they have learned to their future work. • 2.5 Members maintain and develop their knowledge and skills throughout their careers. They identify development needs, plan and undertake continuing professional development (CPD) activities to address them and are able to demonstrate they have done so. Firms encourage and support directors, partners and employees to maintain and develop their knowledge and skills, and check that they are complying with CPD requirements set by RICS. • 2.6 Members and firms stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards. Firms ensure that their directors, partners and employees do so.

Question 141

Can you give me some example behaviours from Rule 3 (RICS Rules of Conduct) ?

Answer 141

• 3.1 Members and firms understand clients’ needs and objectives before accepting any professional work. • 3.2 Members and firms agree with clients the scope of the service to be provided and its limitations, and timescales for the work. • 3.3 Firms inform clients that they are regulated by RICS and that they may need to disclose records to RICS where required for regulatory purposes. • 3.4 Members and firms inform clients promptly and seek their agreement if it is proposed that any of the terms of engagement or estimated fees or costs be changed. • 3.5 Members and firms undertake their work in a timely manner; with due care, skill and diligence, and in accordance with RICS technical standards. • 3.6 Members and firms communicate to clients the material information on which their professional advice and opinion is based. • 3.7 Members and firms communicate with clients and others clearly and in a way they can understand. • 3.8 Members and firms ensure that any referral or introduction they make for a client is in the best interests of the client and inform clients about any financial or other benefits to the member or their firm from a referral or introduction. • 3.9 Members and firms keep proper records of their work and decisions in enough detail to allow them to answer questions from clients and to allow their work to be audited for quality assurance or regulatory purposes. • 3.10 Members and firms, when advising clients about projects, encourage solutions that are sustainable in that they minimise harm and deliver balanced economic, social and environmental benefits. • 3.11 Members and firms understand the risks and benefits of using relevant technology. • 3.12 Members and firms check that all data used is accurate and up to date, is kept securely, and that they have proper legal rights to use it and, where required, share it. • 3.13 Firms have effective quality assurance processes for their work.

Question 142

Can you give me some example behaviours from Rule 4 (RICS Rules of Conduct) ?

Answer 142

• 4.1 Members and firms respect the rights of others and treat others with courtesy. • 4.2 Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds, including age, disability, gender reassignment, marriage or civil partnership, pregnancy or maternity, race, religion or belief, sex or sexual orientation. • 4.3 Members and firms do not bully, victimise or harass anyone. • 4.4 Firms check that supply chains do not involve modern slavery or other abuses of the workforce. • 4.5 Members and firms report abusive labour practices to proper and recognised authorities if they become aware of, or suspect, them. • 4.6 Members and firms work cooperatively with others.• 4.7 Members and firms develop an inclusive culture in their workplaces, support equal access and opportunity for all, and identify and address unconscious bias.

Question 143

Can you give me some example behaviours from Rule 5 (RICS Rules of Conduct) ?

Answer 143

• 5.1 Members and firms question practices and decisions that they suspect are not right, and raise concerns with colleagues, senior management, clients, RICS or any other appropriate person, body or organisation where they believe in good faith that it is necessary to do so. Firms provide processes to allow and support individuals within the firm to raise concerns with senior management. • 5.2 Members and firms support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns. • 5.3 Members and firms ensure that public statements made by the firm, or in which members are (or could be) identified as members of the profession, do not undermine public confidence in the profession. • 5.4 Members and firms respond to complaints made against them promptly, openly and professionally.• 5.5 Members and firms do not dissuade complainants from approaching an alternative dispute resolution provider, RICS or any other regulatory body. • 5.6 Members and firms cooperate with investigations into complaints or concerns, and provide information where it is reasonably requested and they can do so lawfully. • 5.7 Members consider the effect that any health conditions may have on their competence or ability to undertake professional work, and inform management or clients where they require reasonable adjustments or are unable to continue to undertake work competently. • 5.8 Members and firms manage their professional finances responsibly.• 5.9 Members and firms take appropriate action when they consider that the rules have been breached, and report suspected significant breaches of the Rules of Conduct by themselves or others to RICS.

Question 144

What is the Client Money Protection Scheme ?

Answer 144

CMP schemes protect client money (such as rent and deposit monies) which is received by agents. Their schemes make sure landlords and tenants are compensated if an agent cannot repay their money, for example if an agent goes into administration. Membership of a CMP scheme is a legal requirement from 1st April 2019.

Question 145

What is your organisations CHP?

Answer 145

• It is dealth with by a senior partner
• If comlpaint is verbal, a written summary is requested
• Within 14 days of receipt an outcome of investigation will be issued
• If disasstiside it is issued to second sp
• 14 more days for conclusion of investigation
• If dissatisfied, referrred to property obudsman