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Apc > Ethics > Flashcards

Ethics Flashcards

1
Q

What is the role of RICS?

A

To advance the highest technical and ethical standards in the built environment

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2
Q

What are the key functions of RICS?

A

To maintain the highest standards of education and training
To be the leading source of information and advice on the built environment

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3
Q

What is a Royal Charter?

A

Granted by the sovereign, enables self governance and requires the promotion of the profession for the public good

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4
Q

What do you understand by the term self regulation?

A

Regulation without intervention from external bodies

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5
Q

What are the principles of better regulation?

A

P - Proportionality
A - Accountability
C - Consistency
T - Targeting
T - Transparency

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6
Q

What is a byelaw?

A

The enabling principles underpinning the rules and regulations
Eg definitions, membership, designations, conduct

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7
Q

What disciplinary procedures can RICS impose?

A

Fine/Caution, Regulatory Tribunal, Disciplinary Panel

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8
Q

What do you understand by the term professional practise?

A

Practising in line with the rules and regulations of your professional body

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9
Q

What is the difference between ethics and regulations?

A

Ethics is a value based system, regulations are pre set rules that we work to

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10
Q

What are the ethical principles that the rules of conduct are based on?

A

Honesty, integrity, competence, service, respect, responsibility

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11
Q

How do professional integrity and professional ethics differ?

A

Could say ethics can refer to rules and regulations whereas integrity can be understood as your individual actions

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12
Q

Why were the RICS Rules of Conduct updated?

A

To simplify and to address challenges relating to diversity and inclusion

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13
Q

What are the 5 rules?

A
  1. Be honest, act with integrity and comply with professional obligations.
  2. To maintain professional competence.
  3. To provide good quality and diligent service
  4. To treat others with respect and encourage diversity and inclusion
  5. To act in the public interest, take responsibility for actions, act to prevent harm and encourage trust in the profession
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14
Q

What is an example of when you have acted with honesty and integrity?

A

When compiling Terms of Engagement, I am honest about my fees.
Avoid conflicts of interest

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15
Q

What is an example of maintaining your professional competence?

A

I attend internal and external CPD to maintain my professional competence.
Do not act beyond competance

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16
Q

What is an example of good quality, diligent service?

A

When I assisted in the development appraisal for the proposed development in Cross Gates, I comprehensively checked existing records and the information put forward by the agent to ensure that I provided the most accurate opinion of value.
Use TOE to meet needs of client specifically

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17
Q

Give me an example of how you have treated others with respect and promoted diversity and inclusion?

A

When speaking with unrepresented ratepayers for local taxation purposes, I explain the cca process and valuation principles in a way which they can understand so that they can gain a better understanding of the process/ what is happening.
Do not discriminate

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18
Q

Give an example of when you have taken responsibility

A

When handling an inheritance tax case in Chesterfield, I made sure that the client received regular updates.

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19
Q

What are the professional obligations of members to RICS?

A
  1. To meet CPD requirements
  2. To co operate with RICS
  3. To give information to the standards and regulation body as requested
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20
Q

What are the professional requirements for firms to RICS?

A
  1. To publish CHP
  2. To have sufficient PII
  3. To make arrangements if there is a sole principle
  4. Co operate with RICS
  5. Display RICS designation on business literature
  6. Provide information to Standards and Regulation Board if requested
  7. Notify RICS of any matters that they are required to under the rules for the registration of firms
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21
Q

Tell me abut the RICS guidance on conflicts of interest

A

RICS Professionak Statement ‘Conflicts of Interest’ 2017
Not to act where there is a conflict of interest, unless all parties have provided their informed consent. Plus info on types of conflict.

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22
Q

What is ‘Double Dipping’ (dual agency) and why is it bad?

A

Acting for both parties in the same transaction, buyer and seller. Bad as not giving best service to either, could be better represented by someone impartial.

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23
Q

What money laundering regulations/legislation are you aware of?

A

Money Laundering Regulations 2017
Sanctions and Anti Money Laundering Act 2018

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24
Q

What are red flags for money Laundering?

A

Evasive secretive clients
Using an intermediary
From a high risk country
Large cash payments
Increasingly complicated steps and structures
Unusual transaction features

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25
Q

What bribery legislation are you aware of?

A

Bribery Act 2010

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26
Q

What is a bribe?

A

An incentive given to induce an individual or company to act inproperly

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27
Q

What are the penalties for accepting a bribe?

A

Unlimited fine, 10 years in prison

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28
Q

What are the penalties for being involved in money Laundering?

A

Up to 14 years in prison, unlimited fine

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29
Q

What constitutes an offence under the Bribery Act 2010?

A
  1. Giving a bribe (section 1)
  2. Receiving a bribe (section 2)
  3. Bribing a foreign official (section 6)
  4. Failure of an organisation to prevent bribery (section 7)
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30
Q

What constitutes an offence under the current money Laundering regulations?

A

“Tipping off”

31
Q

How long should you keep anti money Laundering records for?

A

5 years

32
Q

Explain the implications of the Sanctions and Anti Money Laundering Act 2018

A

Established the UK Sanctions list showing who is subject to sanctions

33
Q

What is the maximum cash sum that can be accepted, under the money Laundering regulations 2017?

A

€10,000

34
Q

Is the property sector in the UK at high risk of money laundering?

A

Yes, due to the large amounts and low transparency

35
Q

What are the principles of the bribery act 2010?

A
  1. Proportionate procedures eg VOA conduct and gifts policy
  2. Top Level commitment eg Paul Kilner is the senior responsible owner
  3. Risk assessment eg low to medium at VOA
  4. Due diligence eg policies, staff awareness
  5. Communication Inc training eg mandatory training
  6. Monitoring and review eg reviewed quarterly
36
Q

What is the sanctions list and why should you be aware of it?

A

To help identify who is involved in illicit activity, can check to see if clients are on the sanctions list. Cannot receive or make payment to those on the list or deal with their economic resources. Enables sanctions risk assessment.

37
Q

What is the Ethics Tree and process?

A

An RICS tool to help people make ethical decisions
-do you have sufficient facts?
- is it legal?
- is it in line with the RICS Rules of Conduct?
- have you consulted the appropriate people?
-do you have clear reasoning?
- is your decision informed?
- would you be happy for your actions to be made public in a newspaper etc?

38
Q

What are the rules around the RICS logo and designation by firms?

A

Used by regulated firms and members only
Logo is a registered trademark and must not be altered, details on size and spacing in guidelines for the use of logo and designation

39
Q

Tell me about restrictions in the use of designation “chartered surveyors” by firms?

A

Can only be used by RICS regulated firms

40
Q

What must be included in the Terms of Engagement relating to firms regulations?

A

Standard text explaining what being regulated by RICS means for clients

41
Q

When is RICS registration mandatory for firms?

A

When the firm provides surveying services to public and operates in regulated area a and at least 50% of the firms principles are RICS members

42
Q

What must a firm have to register with RICS?

A

At least 25% of principles be RICS qualified members
Must designate a Responsible Principal

43
Q

What RICS guidance related to handling client money, when was it last updated?

A

RICS Professional Standard ‘ Client Money Handling’ 1st edition October 2022, reissued as professional standard October 2022 (was professional standard October 2019), reflected new Rules of Conduct.

44
Q

What are some of the key principles of the RICS Professional Standard ‘ Client Money Handling ‘?

A

Must ensure client money is clearly linked to who it belongs to, in a separate account with client in name of the account.
Must be protected at all times, is misappropriated inform RICS, police and insurers
Must be 3 way client account reconciliations, reviewed and signed off.
Must not let client account get overdrawn
Firm principals only to execute payments made to and from the account.
RICS accountants regularly carry out regulatory visits to firms that hold client money

45
Q

What is the difference between client money and office money?

A

Client Money is held on behalf of the client, Office Money belongs to the RICS regulated firm or its principals

46
Q

What might client money include?

A

Deposits or warranties

47
Q

Explain your understanding of the RICS scheme rules relating to client money protection?

A

UK only, two schemes.
1. RICS Client Money Protection Scheme for Surveying Services
2. RICS Client Money Protection Scheme for Property Agents which meets specific needs for property agents in connection with letting agency work and property management

Updated April 2019 to introduce the second scheme for property agents. Must register with the appropriate scheme.

48
Q

What are the current compensation limits under the schemes?

A

£50,000 limit per claim, cap of £10,300,000 for Surveying Services Client Money Protection, cap of £20,300,000 for Property Agent Client Money Protection

For direct loss of client money only

49
Q

What is the annual regulatory review fee?

A

All regulated firms who hold client’s money pay a regulatory review fee on an annual basis. The income generated covers the operational costs of the client money regulatory review visit programme.
The fee is set based on the number of directors/ principals in each firm, including both RICS and non member individuals.

50
Q

What is PII?

A

Professional Indemnity Insurance

51
Q

Can you tell me about the RICS requirements in relation to PII?

A

Minimum level of indemnity based on the firm’s turnover the previous year or estimated for a new firm.

£100k or less = £250k
£100k to £200k = £500k
£200k plus = £1m

52
Q

What is a PII aggregation clause?

A

Allows a number of claims to be treated as a single claim

53
Q

What does ‘claims made’ mean in terms of PII?

A

The policy covers claims that are made when the policy is in place irrespective of when the services were provided.

54
Q

In a negligence case, what would help to show you acted in due process?

A

Well documented audit trail, showing that you had the expertise and had followed RICS guidelines.

55
Q

If you were providing services outside of your area, what might you do to your PII cover?

A

Increase it, as the risks have increased.

56
Q

What is run off cover?

A

Insurance for claims made against a firm after it has stopped doing business

57
Q

What are the RICS requirements for run off cover?

A

Adequate and appropriate run off cover, minimum of 6 years from the cessation of the practise with a limit of £1m in all for consumer claims.

58
Q

What changes did RICS recently make to the minimum approved PII wording?

A

April 2021 - allowed more chartered surveying firms to obtain improved fire safety cover in their PII as there had been a blanket fire safety exclusion due to concerns following high profile fire safety failures (Grenfell).

59
Q

What are the requirements for fire safety and cyber cover?

A

From May 2021, changes to minimum terms agreed.

Reintroducing fire safety cover as a minimum, although only for buildings 4 storeys and under.

Minimum terms now reflect requirement to clarify the cyber cover that a PII policy includes.

60
Q

How long can a PII claim arise after work is undertaken?

A

6 years

61
Q

What is the assigned risks pool?

A

It is open to all firms that are unable to obtain PII which meets the minimum requirements of the RICS

62
Q

Explain your understanding of RICS Professional Standard ‘Risk, Liability, and Insurance’ 1st edition 2021

A

Provides guidance on mitigating or avoiding risks. Outlines the law and the courts approach to professionals liabilities.

63
Q

What is a liability cap?

A

Limits the amount of damages that can be claimed by a client in the event of a loss, even in the event of a negligent act.

Helps to manage risk around the provision of Surveying Services.

Must be written into TOE

64
Q

What is the difference between a liability cap and a PII limit?

A

Liability cap is a contractual agreement with the client and the firm, PII limit is the maximum that an insurer will pay for a claim. Best Practise to agree liability below PII limit.

65
Q

How would you set out third party reliance in TOE?

A

Make clear that their advice may only be relied upon by the named client

66
Q

What are the three key terms that should be considered from a risk perspective in the context of every instruction that you take?

A

Consider who you act for, what you are doing and why you are being asked to do something

67
Q

What is an annual return?

A

A RICS regulated firm must submit an annual return once a year including details of turnover

68
Q

What is Valuer Registration?

A

Quality Assurance mechanism monitoring RICS members who carry out Red Book valuations. Initial fee to register, annual fee thereafter.

69
Q

How much is RICS membership?

A

£354 for member for first 2 years, £539 for a member otherwise.

70
Q

Who is a ‘responsible principle’?

A

A responsible principle will have primary responsibility for ensuring RICS Professional, technical and ethical standards are applied and upheld by an appropriate assurance framework within a regulated firm

Upholding RICS standards at a regulated firm

71
Q

How would you close down a regulated firm?

A

Make an application for deregisteration. Head of regulation may refuse to deregister a firm if they are subject to am investigation, have breached the rules of conduct, owe fees.

72
Q

Tell me what you understand about complaint handling procedures?

A

RICS regulated firms are required to operate a complaints handling procedure and maintain a complaints log. The complaints handling procedure must includ3 an alternative dispute resolution mechanism that is approved by the Regulatory Board.

73
Q

Is there any RICS guidance on complaint handling?

A

Yes, Professional Standard ‘ Complaints Handling’ 1st edition July 2016

74
Q

When and how can RICS be involved in a complaint?

A

A client can complain to RICS about the service or professionalism of a member or firm.

RICS will NOT determine whether a professionals opinion is correct, offer a second opinion, resolve issues subject to court proceedings .

RICS investigate matters if it is in the public interest rather than to punish. Process takes 6 months and there is generally no right of appeal.

Apc (17 decks)

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