Ethics Flashcards
What was the purpose of the Levitt Review?
Public exposure of the lack of clarity, structure and purpose of the RICS and Levitt called for a full independent review.
What was the purpose of the Bichard review?
To clarify the purpose of the RICS
Recommendations on its governing structure
Proposals for incoming leadership and governing body.
What recommendations did Bichard make?
36 recommendations in 7 areas published in June 2022.
1. Increased focus on the public interest
2. Maintaining self regulation
3. Increased focus on D&I
4. Greater support for regional boards
5. Undertaking an independent review of RICS governance every 5 years.
6. A new simplified, clear accountably governance structure
7. Showing greater leadership on societal issues.
What is the role of the RICS
- To maintain the highest standards of education and training
- To protect consumers through strict regulation of professional standards
- To be the leading source of information and independent advice on land, property, construction and environmental matters.
What is your company’s gift policy?
All gifts over £50 must be recorded on my firms gift register.
All proposed gifts for clients over £50 must also be listed on the gift register.
Hospitality over £125 must be approved by your HOD and recorded
Client entertainment over £2,000 must be signed off by your financial representative.
Who would you report suspicious of money laundering to?
The national crime agency
What would you do if you suspected money laundering?
I would raise my suspicions to my firms AML officer who would then record it on an SAR and report it to the national crime agency.
Which firms must be regulated by the RICS
Firms with more than 50% of the principals are members of the RICS and are providing services to the public.
What is the purpose of the rules of conduct?
They are a set of rules that govern the profession so clients know they are getting a specific level of service.
What are the rules or conduct 2022
- Be honest, act with integrity and comply with your personal obligations and obligations to the RICS
- Maintain professional competence and ensure services are provided by competent individuals with the correct experience.
- Provide a good quality diligent service
- Treat others with respect and encourage diversity and inclusion
- Act in the interest of the public, take responsibility for your actions and act in a way that prevents harm to others and maintains public confidence in the profession.
What did you include within your TOB when working on property with development potential in Bassett?
Clients Name, property name, scope of works, name of surveyor, complaints handling procedure, fee, my firms responsible principal.
Why did you ensure you received signed terms of business?
To ensure my client agreed with my terms if I was to commenced the instruction. This is also required for compliance before marketing a property.
Name the 6 principals of the Bribery Act 2010.
- Proportionality
- Top-Level commitment
- Risk assessment
- Due-diligence
- Communication
- Monitor and review
What are the four offences of the Bribery Act 2010
- Bribery
- Receiving a bribe
- Bribing a foreign public official
- Failing to prevent a bribe
Why do you want to be a chartered surveyor
To maintain and promote usefulness of the profession for the public advantage.
What are the 4 levels of membership
FRICS
MRICS
Associate
Student/ trainee
How do you become a FRICS
- 5 years service
- Be in a leadership role
- Academic qualifications/ promoting the professional
- Professional or technical achievement
What are the benefits of becoming a member?
- Status
- Recognition
- Market Advantage
- Knowledge
- Network
What are the requirements to register an RICS firm?
- Type of business and staffing details
- Name of responsible principal
- Statutory regulated activities - such as financial services
- Nature of clients
- Complaints handling procedure details and records
- PII
- Whether the firm holds clients
What is the ethics design tree?
A range of supporting information provided on the RICS website to support the tulles including the rics ethics decision free
What is the hierarchy within the rics
Royal charter
Bi laws
Regulations
What would you include in your Terms of Business?
- Client
- The asset
- Identification and status of the surveyor
- Scope of works
- Reference to complaints handling procedure
- My firms responsible principal
- My fee
- Professional indemnity insurance
Which firms need to be regulated by the rics?
Firms with more than 50% principals are rics members
What is a principal?
A person on in a senior position who works autonomously.
What would you say to someone joining the profession?
There are 5 main benefits of becoming a chartered surveyor:
1. Status
2. Recognition
3. Market advantage
4. Knowledge
5. Network
What is a bribe?
The offer or promise given or received to an again advantage which is illegal, unethical or a breach of trust.
What needs to be included in an annual rics return?
Clients money held
PII levels
Complaints handling procedure
Nature or clients
Staffing detail
Business activity
What are the 6 principles of Bribary?
Proportionality
Top level commitment
Risk assessment
Due diligence
Communication
Monitor and review
What are the four offences of bribery?
Bribing
Reviving a bribe
Brining a public official
Failing to prevent bribery
Who police’s bribery?
Serious fraud office
What are the penalties for bribery?
Maximum of 10 years in prison and/or an unlimited fine
What is the main regulation that covers money laundering?
Money laundering, terroirs financing and transfer of fund regulation 2017
What are the key provisions in the money laundering regulations?
Written risk assessment
Implement systems, policies and controls
Adopt appropriate internal controls
Staff training
New customers DD
Pep DD
Record keeping
Counter party AML checks
Assessing factors for enhanced DD
What is the limit on accepting cash payments?
€10,000
How long should AML data be held for?
5 years
When do AML checks need to be renewed?
Every 12 months
What are the penalties for AML?
14 years in prison for assisting
5 years for tipping off
What is the RICS motto?
Est Modus en Rebus
When was the rics founded?
1868
When was the royal charter given?
1881
What is a royal charter?
The oldest form of sovereign incorporation commonly given to institutions or charities that work in the public interest.
What are the levels of membership?
FRICS
MRICS
ASSOCRICS
Trainee/ student
How can you become FRICS?
5 years as a member
In a leadership role
A personal or academic achievement
Raising the profile of the RICS
What are the 5 benefits of becoming a member?
Status
Regocnition
Market advantage
Knowledge
Network
Who the president?
Ann Gray
Who is the CEO?
Justin Young
What information is required by the rics for registration?
Type of business/ staffing detail
Name of responsibly principle
Statutory regulated activities
Nature of clients
Complaints handling procedure
PII
Whether you hold clients money
What are the new guidance documents called and what do they replace?
Professional standards
Practice information
Replacing
Professional statements
Guidance notes
How many bi-laws are there?
10
Name a Bi-law
The rules of conduct - 5
When we’re the bi-laws updated
February 2020
What we’re the 2015 ethical standards?
Honesty, integrity, competence, good quality service, respect and responsibilities.
What must rics members do?
Comply with CPD requirements
Cooperate with the rics
Provide information requested by the standards and regulations board
Are the rules of conduct supported by case studies?
Yes there are 12
What is the rics guidance on social media?
Use of social media guidance for rics members
Who is the interim chair for the standards and regulation board?
Nigel Clarke
Who would you report suspicious money laundering to?
National crimes agency
HMRC
Financial conduct authority
What are the disciplinary procedures?
Fixed penalty notice
Regularity compliance order
Regularity tribunal
Disciplinary panel
What firms must be regulated?
Where 50% or more principles are members
What is the purpose of the rules of conduct?
A set of rules that governs the profession so clients know they are getting a good level of service
Why were the rules of conduct updated in 2022?
To help the global profession respond to new risks and opportunities
Why did you ensure you received signed terms of business?
Under the estate agency act 1979 you cannot commence marketing without signed terms. It also voids your PII
What is a principle?
A person in a senior position who works autonomously
What is the rics governance structure?
Governing council
Standards and regulation board
Management board
What is the hierarchy within the rics?
Royal charter
Bi laws
Regulation
What is the rics guidance on bribery?
Countering bribery and corruption, money laundering and terrorist financing 2019
Why have professional standards and practice information been issued?
Following the bishard review, the rics have taken steps to amend their corporate structure
What did the money laundering, terrorist financing and transfer of funds regulation amalgamate?
Proceeds of crime act 2002
Terrorist act 2000
What are the steps for setting up a new rics practice?
Filling in firm details form
Appointing responsible principle
Register with rics
Arrange PII
Set up procedures for handling clients money
RICS valuer registration scheme
Obtain rics approval for complaints handling procedure
Set up complaints log
Appoint complaints handling officer
Use rics logo kit
Plan for succession
Ensure CPD is logged
Ensure Rics annual return is completed
Setting up a firm statutory compliance?
Disclose business name
Compliance with equality act 2010
Financial services compliance
Bribery act complaint
Appoint money laundering officer
Health and safety compliance
Asbestos register
Fire safety compliance
Register data protection
Estate agency compliance
Inform HMRC
Compliance with employment law
Correctly insured
Closing a practice
Inform rics
Inform clients
Return moneys held
Inform insurers
Procure run off clover - minimum 6 years and £1,000,000 PII
Retain copy of clients files for a minimum of 6 years
When acting as an Acquistions agent what must you disclose?
Whether you’re acting exclusively or not.
What is negligence?
Duty of care
What is case law for negligence?
Merit vs Babb
What are Firms requirements?
Cooperate with the RICS
Report to standards and regulation board
Provide information to the RICS annually
Complaints handing procedure
PII
Sole principle - appropriate measures in place for incapacitation
Display business literature
Where would you find members and firms obligations?
In the rules of conduct appendix A
What are the three types of insurance you would need when starting a new practice?
Employers liability
Public liability
Professional indemnity
What are the three benefits of regulated firms?
Public confidence
Professionalism
Security
What are firms obligations in appendix A of Rules of Conduct?
Have a complaints handling procedure in place
Have the correct level of insurance
Display RICS literature
Cooperate with the rics
Comply with the standards and regulations board
Have a successor
Ensure that locum insurance is in place incase of incapacitation
What is biodiversity net gain?
It is contributing to the preservation of nature while developing land
What is bio diversity?
It is altering a specific use to include other natural uses - for example changing a grass field into a while meadow, woodland and keep part of the grassland.
What is the rics guidance for complaints handling?
Complaints handling
What is the guidance for handling clients money?
Clients money handling 2019
What is the guidance set out in Clients Money Handling 2019
Handling clients money
Information to clients
Receipts of client money
Payments from client account
Account records and control
Compliance
What is lion heart?
Lion heart is an independent charity for past, present and future RICS professionals
