Ethics Flashcards
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 associated environmental issues’ (RICS 2015)
What are the 5 RICS Rules of Conduct
- Honest & Integrity - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
2.Competence - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Quality & Diligence - Members and firms must provide good-quality and diligent service.
- Respect - Members and firms must treat others with respect and encourage diversity and inclusion.
- Public Interest - 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.
What does RICS stand for
Royal Institution of Chartered Surveyors
When was RICS founded
1868
When was the Royal Charter awarded to RICS and what is this?
1881
The royal charter requires RICS to “promote the usefulness of the profession for the public advantage in the UK and in other parts of the world.”
What is Blooms KYC initiative
This is Bloom’s Know Your Customer initiative. This involves bi-monthly visits to income producing assets to listen to customers and understand their business.
What does the Bribery Act 2010 seek to achieve?
It aims to reduce bribery in business in UK and abroad
What constitutes a bribe
A bribe can be the giving, offering, promising or receiving of an advantage such as a payment, gift service for an action which is illegal or a breach of trust
What are the 4 offences relating to bribery
- Bribing
- Receiving a bribe
- Bribing a government public official; and
- Failing to prevent bribery
Who polices the BA and what is the maximum penalty?
Serious Fraud Office (SFO)
If this Act is breached, there is a maximum penalty of 10 years imprisonment and /or an unlimited fine for individuals; companies face an unlimited fine.
What are the six key principles which the Bribery Act is based on?
- Proportionality
- Top level commitment
- Risk assessment
- Due diligence
- Communication
- Monitoring and review
What steps can companies take to prove they have taken the steps to prevent bribery?
- Identification of potential risks,
- Staff training,
- Provision of clear policies
- Regular reviews
What are the benefits of being an RICS member?
Status- Your professional credentials provide unrivalled client confidence.
Recognition- Promotion of your professional excellence to governments and markets.
Market advantage - RICS status and standards gives you a competitive advantage.
Knowledge - International practice standards, professional guidance, CPD & knowledge sharing.
5.Network- Access to 137,000 professionals worldwide.
What are the three benefits of regulation for firms?
- Confidence - for clients as regulated firms are monitored by RICS regulation.
- Professionalism - firms will have to provide clear, impartial and expert advice.
- Security - firms have to have a recognised complaints procedure, access to free independent redress and PII cover.
What are the two key pieces of legislation with regard to gifts, bribery and corruption?
Bribery Act 2010
Proceeds of Crime Act 2002
What would be your process when offered an incentive / gift?
Consult the Bribery Act
Check Proportionality
Add to company gifts register
What is money laundering?
Money laundering is when proceeds of criminal activities are disguised or converted and then realised as legitimate assets.
What are the key provisions of the ‘Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Pay Regulations, 2017 (as amended in 2019)?
- A requirement to have a written money laundering and terrorist financing risk assessment.
- Implement systems, policies and controls and procedures to address money laundering and terrorist financing risks and meet the requirements under the regulations
- Adopt appropriate internal controls
Provide staff training.
4 Comply with new customer, enhanced, and simplified due diligence requirements.
5.Comply with the requirements relating to politically exposed persons (PEPs).
- Ensure appropriate record keeping, policies and procedures
- AML checks must be undertaken to confirm the identity of the proposed purchaser of a property and check the purchaser’s source of funds by the vendor’s agent before contracts are exchanged.
- To include additional high-risk factors when assessing the need for enhanced due diligence, and seek additional Information and monitoring in certain cases, e.g. where there are transactions between parties based in high-risk third countries
What is required for money laundering checks on a private individual?
Copy of valid passport or driving licence with photo.
Copy of a bank statement, credit card bill, council tax statement or utility bill to show evidence of address, not more than 3 months old
What is required for money laundering checks on a private limited company?
Certificate of Incorporation
Full name, registered number, registered office, business address, names of all directors and names of all shareholders with 25% or more holding.
Identification of a higher risk client (PEP)
N.B. Report any discrepancies to Companies House
What is required for money laundering checks on a PLC?
London Stock Exchange listing
RICS Global Professional Statement on Conflicts of Interest, 2017 states that…
A member must not advise or represent a client where doing so would involve a conflict of interest or significant risk of a conflict of interest, other than where those who are, or may be affected have provided their informed consent.
Informed consent may only be sought where the RICS member or regulated firm is satisfied that proceeding despite a conflict of interest is in the interests of all of those who are or may be affected is not prohibited by law.
What was the Levitt Review (2021)
The Levitt Review was an independent review which took place in 2021 exposing the lack of clarity, structure and purpose of RICS governance arrangements.
What is the Bichard Review
The Bichard Review followed the Levitt Review in June 2022 making seven key recommendations:
P - Increased focus on the public remit interest of the RICS.
E - Renewed focus on engaging with members, especially younger members.
R - Independent review every 5 years.
S - Maintaining self-regulation through independent regulation.
S - Simplified governance structure.
S - Greater leadership on issues that matter most to society, such as sustainability.
D - Increased focus on diversity.
NB. DCF became the preferred valuation method
How do you ensure that you uphold the reputation of
RICS and adhere to RICS Rules of Conduct when interacting with clients, such as the Bloom tenants?
When working with Bloom tenants, I ensure that I adhere to the RICS Rules of Conduct by providing a high standard of
service and conducting myself ethically. This includes following Bloom’s Know Your Customer (KYC) initiative to maintain transparency and integrity in our interactions.
What is CPD and how many hours are you expected
to complete?
Continued Professional Development.
20 hours (10 of which is to be formal CPD)
What is meant by informal CPD?
Informal CPD is any self-managed learning that is relevant or related to your professional role.
This could include activities
such as private study, on-the-job training, attendance at informal seminars or events where the focus is on knowledge sharing.
What is meant by formal CPD?
Formal CPD can be any form of structured learning that has clear learning objectives and outcomes.
Such as a professional course, structured online training, technical authorship, learning that includes an assessment measure.
What is the complaints handling procedure at your firm?
Acknowledge receipt within 5 working days.
Provide a written response within a further 10 working days.
The complainant should confirm within 10 working days whether they wish to take the matter further
If they do, then within 5 working days of such written notification, the person dealing with the complaint will write to the complainant informing them of what action has been, or will be taken.
If the complainant is still dissatisfied, it can be referred to Centre for Effective Dispute Resolution (CEDR) or the RICS Dispute Resolution Service (DRS)
If still not resolved then it can be referred to the Independent Dispute Resolution Scheme (IDRS) for arbitration
What do you require to set up an RICs registered firm?
- Types of business and staffing details
- Statutory regulated activities - such as financial services
- Nature of clients
Complaints handling procedure details and records - Professional indemnity insurance details
5.Whether the firms holds clients’ money
When should you decline an instruction?
CIT
Lack of information / facts
UK Government
Sanctions list
PI liability cannot be agreed.
You aren’t content for actions to be made public
What are the three types of CofI?
A ‘Party Conflict’ relating to work on the same or related instruction for two different parties.
An ‘Own Interest Conflict’ relating to a personal interest.
A ‘Confidential Information Conflict’ relating to work between two parties that is confidential.
Firms must include an RICS approved A… D… R…
mechanism in their complaints handling procedure.
Alternative Dispute Resolution
What is Bloom’s PII Cap
5 & 2
Under the Limitation Act 1980, the limitation period for negligence on a contract is what?
6 years from the date of the negligent act, breach of contract or omission.
What are the key themes in Bloom’s staff handbook?
