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LUCY APC > Ethics > Flashcards

Ethics Flashcards

1
Q

Why do you want to be a member of the RICS?

A

Status, Recognition, Market Advantage, Knowledge and Network.
For me: You have global status and worldwide recognition and it allows me access to a network of competent professionals

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2
Q

What are the RICS Rules of Conduct?

A

1) Act with honesty and integrity

2) Maintain professional competence

3) Provide good quality diligent service

4) Encourage diversity and inclusion and to treat others with respect

5) Act in the public interest and take responsibility for your actions, maintain public confidence in the profession.

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3
Q

What are the mandatory obligations for members?

A

Cooperate with RICS
Comply with CPD
Provide information when requested

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4
Q

What are the mandatory obligations for firms?

A

Provide the RICS logo on all marketing materials

Provide a complaints handling procedure

Provide appropriate PII cover

Sole practioneer arrangements

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5
Q

What are the 6 principles of the Bribery Act 2010?

A

Proportionality

Risk Assessment

Top Level commitment

Due Diligence

Communication

Monitoring and reviewing

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6
Q

Can you give the definition of a Conflict of Interest?

A

An existing relationship that can hinder your ability to provide impartial advice

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7
Q

Can you give the definition of money laundering?

A

Proceeds of criminal activity which are disguised as legitimate assets

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8
Q

How would you carry out a money laundering check?

A

I would ask them for photographic ID, and also check their proof of funds.

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9
Q

How would you agree a fee?

A

I would ensure that it was in line with the market and be transparent and honest when agreeing

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10
Q

When is it appropriate to decline an instruction?

A

When a conflict cannot be managed or controlled

If you are not competent

If they are on the government sanctions list

If you cannot agree the appropriate PII (professional indemnity insurance) cover

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11
Q

What is the role of the RICS?

A

To promote and enforce the highest professional qualifications and standards in property

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12
Q

What are the 3 main roles of the RICS?

A

Maintain standards of education and training

Protect consumers through regulation of professional standards

Be a leading source of information and independent advice

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13
Q

What are the 3 conflicts which can arise?

A

Party Conflict

Personal Conflict

Confidential Information Conflict

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14
Q

What is the three step process to take when a conflict arises?

A

Conflict avoidance

Written advice

Conflict management

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15
Q

What is conflict avoidance?

A

When the conflict is irresolvable because my impartiality is compromised and should therefore be avoided

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16
Q

What is written advice?

A

When you assume that you wish to proceed with the instruction, you write out:
the disclosure of the conflict and any relevant facts, and also the proposal on how you’re going to manage it

Be clear that the own parties can make their own decision

Request written confirmation of their INFORMED CONSENT that I can proceed in accordance with the provisions of the proposed procedure

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17
Q

What is conflict management?

A

Use of information or ethical barriers to prevent information passing between parties

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18
Q

What are Cluttons policy on receiving a gift?

A

If a gift is under £50 we are allowed to accept it as long as we log it in our gift policy register

We do not accept cash, money vouchers, tickets or invitations to events where the donor is not going to be present

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19
Q

What are the four offences in the Bribery Act 2010?

A

receiving, giving, failing to prevent a bribe and bribing a foreign public official

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20
Q

What are the penalties in the Bribery Act 2010?

A

Max penalty of 10 years in prison and or an unlimited fine

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21
Q

What would you do if you were in a pub and a friend asked you to give them a quick estimated value of their property?

A

I would remain polite and explain that I cannot provide any work or give them any advice until our Terms of Engagements have been signed. (if they ask why: because they could claim for negligence and my companies PII cover would not cover anything if ToE are not signed)

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22
Q

What are the RICS bye laws on confidentiality?

A

States that confidentiality must be maintained for all client affairs, which includes historic information and information provided by a client prior to an instruction.

All files must be held for a minimum of 6 years before they can be destroyed securely

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23
Q

What are the RICS bye laws on confidentiality?

A

States that confidentiality must be maintained for all client affairs, which includes historic information and information provided by a client prior to an instruction.

All files must be held for a minimum of 6 years before they can be destroyed securely

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24
Q

Why were you breaching professional competence when someone asked you to carry out a valuation in Cornwall?

A

Because I am not a registered valuer

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25
Q

Tell me, how would you go about setting up your own practice?

A

I would start by informing the RICS by completing a Firms Detail Form

Appoint a responsible principle

Do the statutory regulated activities

State nature of clients

Arrange complaints handling procedure details and records

Arrange PII cover

Set up clients money handling

State whether the firm holds clients money

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26
Q

If you were to then close the practice down, how would you do this?

A

Inform the RICS

Ensure clients are aware at the earliest opportunity

Return any monies held by clients

Inform insurers and procure PII run off cover for a min of 6 years

Retain a copy of the clients files and records for a min of 6 years

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27
Q

What is a sanction?

A

Fine or restriction on a person or company, applied to legal entities and countries

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28
Q

How does Cluttons handle client money?

A

We hold it in line with the guidance note, and we have pooled accounts which are labelled CLIENT and within those accounts we have discretionary accounts which have the clients NAME as well as my companies name and the word client.

Our accounts are always signed off by 2 authorised members of staff and their money always remains in credit

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29
Q

Who are the client accounts regulated by?

A

By the Financial Conduct Authority - ensures that the accounts are separate and specific from my companies

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30
Q

You have identified a COI, and the client wants to proceed. What do you do?

A

I would inform them that I would not be able to proceed with the instruction until they have given me written informed consent which would be stated in the ToE

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31
Q

What is the definition of unconcious bias?

A

Thoughts and beliefs from previous experiences, that you might not be aware of that could lead to unethical decisions

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32
Q

Why does a firm want to be accredited by the RICS

A

Confidence
Professionalism
Security

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33
Q

What are the regulations for Money Laundering?

A

Money Laundering Terrorist Financing and Transfer of Funds Regulation 2017

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34
Q

What are the RICS requirements for PII cover for regulated firms?

A

Under £100K turnover = £250K no less
£100 - £200K turnover = £500K
anything over £200K = £1m
My firms is confidential but is between £5-£10mil

35
Q

What are your complaints handling procedure?

A

My company always adhere to the Complaints Handling RICS Guidance Note

I would acknowledge the complaint within 72 hours

I would pass the complaint on to my complaints handling officer (if it was a claim for negligence I would let the PII insurers know)

They would then have 7 days to acknowledge the complaint and would need to have it investigated within 28 working days.

If the client wanted to take the complaint further they would go to my companies property redress scheme the Property Ombudsmen. Which would provide alternative dispute resolutions

36
Q

When was the RICS founded?

A

1868 it got its royal charter in 1881

37
Q

What are the 3 disciplinary actions?

A

Action by head of regulation

Disciplinary panel - issue regulatory compliance order, can fine you, expel you from RICS

Appeal panel - can consider whether its fair or they disagree with the disciplinary panel

38
Q

What is the RICS guidance on social media?

A

Use of social media guidance for RICS members 2021.

It reminds members of the high standards of professional behaviours expected from RICS members.

RICS is likely to investigate social media posts about discrimination, dishonesty and abusive behaviour

39
Q

What are the levels of membership?

A

FRICS
MRICS
AssocRICS
Trainee / Student

40
Q

Why do the RICS have regulations and bye laws?

A

To set out the governance of the institution

41
Q

What is the governance structure of the RICS?

A

RICS bound by its royal charter
Managed by the governing council which is 21 members
Chaired by the current president who is Anne Gray
Governing council is responsible for the management and strategic direction of the RICS
There are also various regional boards. I am aware of the current review of the governance structure following the Bichard review

42
Q

What has been a result of the governance elections?

A

RICS has appointed a head of DEI to help implement the Bichard recommendation on encouraging diversity and inclusion

43
Q

What is the RICS Global Governance Structure?

A

There are 17 specialised groups and that the current CEO is Richard Collins and the new president is Anne Gray who took over from Clement Lau

44
Q

What is the RICS UK Structure?

A

4 National Associations
10 Regional Boards
Local Associations

45
Q

Can you accept a gift that’s over £50?

A

Depends, I would measure the proportionality and assess whether it was an acceptable gift. If I was unsure I would consult out compliance officer.

46
Q

Why were the rules of conduct updated?

A

Provide a simple and clear structure and to set example behaviours to each rule of conduct

47
Q

What is bribery?

A

Gift or incentive that impairs professional judgement

48
Q

Benefits of being an RICS regulated firm

A

Confidence
Security
Professionalism

49
Q

Why was the bichard review commissioned?

A

Clarify the purpose of the RICS including its responsibility to act in the public advantage

50
Q

When would a disciplinary be triggered?

A

By someone complaining to the RICS
Allegation by a client or third party
Information received or established by the RICS
Eg Not doing your CPD

51
Q

What are the RICS core materials?

A

International standards
Professional Statements
Guidance notes
Code of practice

52
Q

Can you give me an example of a professional statement that you have used n practice?

A

Conflict of Interest Checks 2017

53
Q

What is the guidance note on complaints handling?

A

RICS Guidance Note on Complaints Handling 2016

54
Q

What is your companies complaints handling procedure?

A

Stage 1: Business unit head (3 days and 10 days)

Stage 2: Separate review by Managing partner (10 days)

Stage 3: Independent redress scheme – Consumers The Property Ombudsman / Businesses Arbitration

55
Q

CPD requirements once chartered?

A

20 hours, 10 must be formal. eg structured learning like eg seminar
Every 3 years must have cpd relating to the rules of conduct

56
Q

What can cause a negligence claim?

A

Breach of duty of care which can lead to a claim of loss or damages

57
Q

How do you prevent a negligence claim?

A

Understanding clients objectives
Ensuring I am competent to undertake work
Undertake work in accordance with relevant standards and guidance notes
Make detailed file notes and take photographs

58
Q

What are UK government sanctions and how can they impact the role of the surveyor?

A
59
Q

What’s currently happening within the RICS and how may it affect you?

A
60
Q

Why is ethics important?

A
61
Q

What is a Bye Law?

A

Rule made by a company or society to control its actions of its members

62
Q

What information is required for a firm to be regulated by the RICS?

A

Complaints handling procedures
Handling Clients Money
PII cover
Type of business and staffing deets
Name of the responsible principle

63
Q

When can a firm regulate with the RICS?

A

If 50% of their principles are MRCIS.
Can choose to if 25% are members of the RICS

64
Q

Give me an example when you have used the RICS Rules of Conduct?

A

Competence - someone wanted me to do a valuation in Cornwall and I am not a registered valuer.
Market appraisal - Mooregreen House

65
Q

What is the minimum level of run off cover?

A

£1million and has to be for 6 years

66
Q

What is run off cover?

A

Cover for negligence once you have ceased trading

67
Q

What if you cant afford run off cover?

A

Apply to the RICS assigned risk pool

68
Q

What is negligance?

A

A loss caused due to a breach of duty of care and can be done for

69
Q

What is wrong doing?

A

Can’t be done for unless you are in the margin of error

70
Q

What are the levels of due diligence?

A

Customer and enhanced

71
Q

What’s the process of CDD?

A

Verify the identity of individuals by requesting 2 forms of evidence one being photographic one being a bank statement
Send to compliance officer to check and further verify.
If you want to source someone’s wealth you need to do EDD

72
Q

Who do you report suspicious activity to?

A

I would report to our MLRO (Money Laundering Regulation Officer) then they then report it to the national crime agency.
Must keep a record of AML checks for a minimum of 5 years

73
Q

What can be put in place for managing a conflict?

A

Physical and technological barriers. Physical = being on separate floors, technological = password protected files

74
Q

Why is it important for the RICS members to remain solvent?

A

So they don’t become susceptible to bribery and taking clients money

75
Q

What are ethics?

A

Moral principles that govern someone’s behaviours

76
Q

What is a bribe?

A

A gift of incentive that may affect someone’s professional judgement

77
Q

What’s an example of unethical behaviour?

A

Being susceptible to bribery
Money laundering
Proceeding with an instruction where there is a conflicts of interest
Acting outside of your competence
Providing dishonest info

78
Q

If you refuse a gift but the party insists you take it what do you do?

A

Still refuse

79
Q

What are the areas of good practice when handling clients money?

A

Always ensure the name client is written on the account
Ensure accounts are separate
Ensure it is never overdrawn
Ensure annual audits take place
Ensure client can access as and when they require it

80
Q

What are the anti money laundering checks and penalties?

A

5 years for tipping off
14 years and unlimited fine for assisting

81
Q

What is a bye law?

A

Rules set by a company or society to govern its members

82
Q

What are the AML for a property?

A

Look at the owner and request their cdd or edd
If it was a business i would check…

83
Q

Can you work for free?

A

Yes, as long as there are signed terms of engagement in place, and this type of work us called pro bono

LUCY APC (21 decks)

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