Ethics

Question 1

What does a new firm need?

Answer 1

Insurance
CHP
Money handing procedure
Anti Bribery policy

Question 2

Lochum cover

Answer 2

Sole trader requires it if sick

Question 3

% of members needing to be chartered?

Answer 3

25% when going for it
50% to be regulated

Question 4

What does conflict of interest require

Answer 4

Informed consent

Question 5

Types of conflict?

Answer 5

Own
Party
Confidential information

Question 6

Subrogation

Answer 6

Substitution of one person in the place of another in relation to a claim
E.g. insurer steps into shoes of insured to make claim against a third party who has obligation to be insured.

Question 7

Merrit v Babb?

Answer 7

Case law on run off cover.
Mr Babb liable for valuation he did 7 years earlier

Question 8

What is cost prediction?

Answer 8

Sets out minimum requirements for firms when reporting costs to client.

Question 9

What things does cost prediction set out?

Answer 9

1. State the change in cost from previous report and set out why (reconcile)
2. Provide the basis, assumptions and exclusions.

Question 10

What is the royal charter?

Answer 10

Document signed by the king to allow the organization to govern its own affairs

Question 11

Bribery principles

Answer 11

Top down commitment
Risk assessment
Due diligence
Proportionality

Question 12

Run off pool insurance

Answer 12

If you can’t get run off cover the Rics will provide you with an insurer from their pool