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Ethics Flashcards

1
Q

When was the RICS founded

A

1868

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2
Q

Why do you want to become a chartered surveyor

A

As it would provide me increased credibility in the eyes of my client and peers. It would help me further my professional competency and provide me with access to a network of professional membersWhe.

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3
Q

When did the RICS get it’s Royal Charter

A

1881

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4
Q

How do you become a fellow of RICS

A

You must submit evidence of achievement of four fellowship characteristics, which are:

(1) 5 years or more as a MRICS

(2) A leadership role in the industry
(3) Professional Technical Achievement
(4) Academic Achievement
(5) Raising the profile of the RICS
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5
Q

Who is the current president of the RICS

A

Tina Pailett

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6
Q

Who is the current CEO of RICS

A

Justin Young

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7
Q

What is the governing structure of RICS

A

Governing Council is in charge

Three boards report to it

1) Regulatory Board
2) Audit Committee
3) The Management Board

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8
Q

What are the 4 membership levels

A

Trainee Member

AssocRICS

MRICS

FRICS

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9
Q

What are the 5 Global Professional and Ethical Standards (2015)

A

STIRR

(1) Always provide a high standard of Service,
(2) to act in a way that promotes Trust in the profession,
(3) Act with Integrity
(4) to treat others with Respect,
(5) take Responsibility.

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10
Q

When were the RICS bye laws last updated

A

Effective Feb 2020

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11
Q

Give me an example of a bye law

A

Designations - I.e. who can use initials etc

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12
Q

Who is the RICS president elect

A

Justin Sullivan

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13
Q

What is the role of the RICS according to the professional and ethical standards

A

1) High Standards of education and training
2) Protect Consumers through regulation
3) Leading source of information

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14
Q

What are the 5 principles of the RICS Regulation for Members and Firms (2007)

A

1) Transparency
2) Proportionality
3) Accountability
4) Consistency
5) Targeting

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15
Q

What are the benefits of being an RICS regulated Firm

A

1) Confidence
2) Professionalism
3) Security

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16
Q

When are firms required to register for RICS registration

A
  • Provide surveying services to public
  • Over 50% of principles are RICS members
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17
Q

What information does the RICS require from a firm for registration

A

1) Type of business and staffing details
2) Statutory regulated activities
3) Nature of clients
4) CHP
5) PII
6) Client’s Money handling

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18
Q

If a breach were to be reported to the disciplinary hearing, what penalties can be imposed on the breaching party

A
  • Consent order
  • Unlimited (but proportional) fine
  • Conditions for continued membership
  • Expulsion
  • Publications of results of hearing in modus magazine
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19
Q

What levels of RICS Regulation are there

A
  1. International Standards (Mandatory) – E.G. IVS
  2. Professional Statements (Mandatory) – E.G. Conflicts of Interest – UK Commercial Property Market Investment Agency, (2017)
  3. Practice Statements (Mandatory) – E.G. Very Few of these (Home Buyer Report (2016) for example)
  4. Guidance Notes (Voluntary) – Surveying Safely (2018)
  5. Codes of Practice (Mandatory or Recommended Practice)
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20
Q

What is to be included in TOE when starting work on an instruction

A
  • Written agreement with client on fee due
  • Confirmation in writing firms CHP will be available on request
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21
Q

What 3 things should you do prior to undertaking an instruction

A

1) Check for Conflict of Interest
2) Ensure competence
3) Confirm TOE

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22
Q

What has the RICS published on Conflict of Interest

A

RICS Professional Statement on Conflicts of Interest (2017)

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23
Q

What types of conflict of interest are there

A

Own interest
Party
Confidential information

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24
Q

How would you manage a conflict via informed consent

A

Receive written confirmation from all parties that you can proceed with the instruction despite the identified conflict/

Put information barriers in place, keeping all information secure and parties physically separate

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25
Q

How long should you retain clients files before destroying them

A

6 years

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26
Q

How many hour of CPD should a member do p/a

A

20 hours p/a (10 formal)

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27
Q

What RICS guidance/statement relates to Money Laundering

A

RICS Professional Statement – Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)

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28
Q

What is the penalty from Bribery

A

Up to 10 years in prison

Unlimited fine

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29
Q

What are the penalties under Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) 2017?

A

Assisting in money laundering
- Up to 14 years in prison
- Unlimited fine

Tipping off in money laundering
- Up to 5 years in prison
- Unlimited fine

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30
Q

What is the limit on money acceptance under Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) 2017?

A

10,000 Euros innit

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31
Q

What is a PEP

A

Politically exposed person

At higher risk of being involved in bribery or corruption due to their position

Require enhanced due dillegence

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32
Q

What is your companies policy on bribery

A

Have a gift register with guidelines

  • Never give/receive cash/vouchers
  • Gifts up to £50
  • £125 per head for client meals
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33
Q

What are the 6 Key Principles of the Bribery Act

A

1) Proportionality
2) Top Level Commitment
3) Risk Assessment
4) Due Diligence
5) Communication
6) Monitoring & Review

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34
Q

What are the four offences under the bribery act (2010)

A
  • Bribing
  • Receiving a bribe
  • Bribing a foreign public official
  • Failing to prevent bribery
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35
Q

What are the requirements for a client account

A
  • Must have client money in name
  • Funds must be readily available for the client on request
  • All interest paid to client
  • Only client monies held, if mixed monies other monies to be
    released immediately
  • Funds deposited within 3 days of receipt
  • Draw down schedule must be agreed
36
Q

What client money protection scheme is Workman registered with?

A

RICS Client Money Protection Scheme for Surveying Services

37
Q

What RICS documentation relates to client money handling

A

RICS Professional Statement on Client Money Handling 2019

38
Q

What happens if you have surplus money in client account

A

If after 6 years no one has been claimed, and EVERY EFFORT has been made to identify the claimant it can be donated to registered client

If not go to Lionheart

Charity to provide indemnity if claimant comes forward at later date

39
Q

Summarise Limitations Act 1980

A

Governs how long claims can be made against surveyor for breach

Contract = 6 years

S14A = Can be 15 years if claimant only had “knowledge” to bring claim within last 3 years

40
Q

What is the RICS requirement for run off cover once firms closes

A

At least £1 million of aggregate cover for at least six years

41
Q

How might you avoid claims of negligence made against you?

A
  • Have clear understanding on clients requirements
  • Clearly outline requirements in scope of works and TOE
  • Ensure competency
42
Q

What levels of PII are required

A
  • £0 -> £100k = At least £250k per claim
  • £100k -> £200k = At least £500k per claim
  • +£200k = At least £1 million per claim
43
Q

What is the legal margin of error in property valuation

A

K/S Lincoln et al vs CB Richard Ellis (2010)

  • 5% for single resi properties
  • 10 % for single commercial properties
  • 15% for complex holdings
44
Q

What are the Three Objectives of Client Money Handling (2019)?

A

(1) Keep Client’s Money Safe
(2) Client accounts are used appropriately
(3) RICS – regulated firms have appropriate procedures in place to ensure best practice.

45
Q

What are the 8 Mandatory Requirements of Client Money Handling (2019)

A

(1) Confirm that client’s money is to be held in a client account (including bank account details), that the firm has exclusive control over.

(2) Ensure client money account contains no other funds, and funds withdrawn in error are replaced.

(3) Not to hold office money in the account, unless it is in receipt of mixed monies

(4) All client money accounts include the word “client” in the name.

(5) Ensure money held in a client account is immediately available even at the sacrifice of interest.

(6) Only withdraw out of a high interest (penalty-bearing account) with written consent from the client.

(7) Confirm account operating conditions with bank (No set-off for other firm accounts, no mixing of funds)

(8) Ensure that when a client requests it, money is held in an account that the firm and client have access to. (Has to be an account established by the client, not the firm).

46
Q

How would you carry out a conflict of interest check

A

Use internal software search for any instructions using following keywords:

  • Address
  • Client name
  • Tenant name
  • Name of borrower
47
Q

When starting a new business, what would you do relating to VAT

A

Inform HMRC for VAT registration

  • Current turnover threshold is £90k
48
Q

What are the key elements of the RICS Professional Statement on Countering Bribery, Corruption and Terrorist Financing (2019)

A
  • Not to offer or accept anything that could constitute a bribe.
  • Having procedures in place to comply with the law.
  • Report suspicion to the relevant authority.
  • Perform periodic written evaluations of the risks the firm faces.
  • Retain records to show the firm has met the requirements of
    the Professional Statement.
49
Q

What are the statutory requirements when setting up a firm

A
  • A. Declare Business name
  • Register with HMRC for VAT registration
  • Ensure compliance with employment law
    - working hours
    -Living wage etc
    . Ensure insurance compliance - public/employer liability
  • Compliance with Equalities Act (2010)
  • Compliance with H&S at Work Act (1974)
  • Disability Discrimination Compliance
50
Q

What are the five rules of conduct (2021)

A

1) Members and firms must be honest and act with integrity
2) Members and firms must maintain their professional
competence
3) Members and firms must provide good-quality and diligent
service
4) Members and firms must treat others with respect and
encourage diversity and inclusion
5) Members and firms must act in the public interest

51
Q

What is the purpose of the new rules of conduct

A
  • Simpler structure with clear examples
  • Focus on D&I
  • Understanding of importance of technology and risks and
    benefits
52
Q

Examples of rule 1

A
  • Not to take advantage of others
  • To prevent others from being misled
  • To keep client money safe and have appropriate accounting controls
53
Q

Examples of rule 2

A
  • Only to take on work you are competent for
  • Supervise employees undertaking work and ensure they have
    the necessary skills
54
Q

Examples of rule 3

A
  • Understand needs and objectives of client
  • Communicate with client in clear ways they can understand
55
Q

Examples of rule 4

A
  • Respect the right of others
  • Do not bully, victimise or harass
  • Work cooperatively with others
56
Q

Examples of rule 5

A
  • Respond to complaints made against them promptly openly
    and professionally
  • Do not dissuade complaints from approaching an ADR or other
    regulatory board
57
Q

What is your Understanding of the Bichard Review

A

Conducted June 2022

36 recommendations in 7 key areas

Use examples

Renewed focus in public interest
Increased focus on D&I
Undertaking independent review of RICS every 5 years

1) Renewed interest in public interest
2) Maintained self regulation through greater independence for
regulatory functions
3) Increased focus on D&I
4) Enabling & empowering members through better support
5) Understanding an independent review of the RICS
governance every 5 years
6) New simplified, clear and accountable governance structure
7) Show greater leadership on issues which matters to society,

58
Q

What are the RICS Rules for the Registration of Firms (2022)

I.e. when do firms have to register, or when are they eligible to register

A

Required to register if
- The firm provides surveying services to the public and at
least 50% of the firms principles are RICS members
Eligible to register if
- The firm provides surveying services to the public and at
least 25% of the firms principles are RICS members

59
Q

What information is required by RICS for registration

A
  • Type of business and staff detail
  • Statutory related activities e.g. financial services
  • Nature of clients
  • Complaints handling procedure and records
  • Professional indemnity insurance and details
  • Whether the firm holds clients money
60
Q

Mandatory obligations for firms

A
  • Publish CHP
  • Ensure all work is covered by PII
  • Sole principal to make arrangements for work to continue in
    case of incapacitation
  • Cooperate RICS
  • Provide information requested by standards and information
    board
  • Report to RICS
61
Q

What are considerations from Ethics decision tree

A
  • Do you have sufficient facts on the issue
  • Is it legal
  • Is it in line with the RICS Rules of Conduct
  • Have you consulted with appropriate people to make an
    informed decision
  • Do you have clear reasoning in reaching your decision
  • Would you be content for your actions to be made public
62
Q

What are the three levels of Disciplinary Procedure

A

1) Action by head of regulation
2) Disciplinary panel
3) Appeal panel

63
Q

What are the requirements for PII

A
  • Written on full civil liability basis with min level of indemnity
  • Comply with max level of uninsured excess
  • Full retroactive
  • Underwritten by RICS listed insurer
  • Cover all past and present employees work
64
Q

What is the max level of uninsured excess required for PII

A
  • Turnover of £10m or less
    • Greater of 2.5% of sum insured or £10k
  • Over £10m turnover
    • No set limit
65
Q

Name some money protection schemes

A
  • Client money protect
  • Money Shield
  • Property Mark
66
Q

What information is required in an annual return

A
  • Firm details
    • Address
    • VAT reg
    • Services provided
  • Designation details
  • Offices
  • Principles details
67
Q

What are the offences under the proceeds of crime act (2002)

A
  • Concealing Criminal Property
  • Arrangement
    • entering into arrangement which person knows involves
      criminal property
  • Acquisition use or possession of criminal property
68
Q

What support do RICS offer for PII

A
  • RICS Assigned risk pool (run off
    cover)
  • Members support service
    • For members facing claim
      for work where employer is
      in admin
  • RICS Low Earners Scheme
    • For retired part time workers
69
Q

What steps would you take in due diligence for a customer

A
  • verify identity (passport etc)
  • Identify owners of companies (check companies house)
  • For a company, name, company
    no, registered address is
    required.
70
Q

What are the three sections of RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing (2019)

A
  • Mandatory requirements
  • Guidance
  • Supplementary guidance
71
Q

What is the max level of PII excess

A

If Turnover is £10 million or less = Greater of £10k or 2.5% of sum insured

If Turnover is + £10 million = No set limit

72
Q

When was the Money Laundering, Terrorist Financing & Transfer of Funds Regulations (2017) last updated

A

January 2024, to reflect changes in higher risk countries

73
Q

What action can the head of regulation impose

A
  1. Fixed penalty notice
  2. Regulatory Compliance Order
  3. CPD Sanctions
  4. Refer to disciplinary panel
74
Q

What action can the disciplinary panel impose

A

1) Regulatory Compliance Order
2) Unlimited fine per breach
3) Conditions for future membership
4) Expulsion
5) Publication of results on modus and/or local newspaper

75
Q

Who is the third party redress scheme used by Workman for complaints

A

CEDR - Centre for Effective Dispute Resolution

76
Q

Name some key provisions to the AML Act

A
  • Have a written AML RA
  • Provide training and have controls in place
  • Comply with due diligence requirements
  • Keep records
  • Limit of 10k euros cash acceptance
  • Have a nominated senior member of staff to ensure compliance
77
Q

What is the punishment if a firm is found guilty of bribery

A

Unlimited fine

78
Q

Define money laundering

A

Disguising or converting proceeds of criminal to be realised as legitimate assets

79
Q

What is the role of the standards and regulation board

A

Responsible for strategy, policy & admissions in the profession

80
Q

What are the claim limits for the RICS client money protection scheme

A
  • £50k per claim
  • £10.3 million p/a
81
Q

What information is required in an annual return

A
  • Firm details
    - VAT reg
    - Services provides
  • Designation details
  • Offices
  • Principles details
  • RICS member employees
82
Q

What are the five advantages of being an RICS member

A
  • Status
  • Recognition
  • Market advantage
  • Knowledge
  • Networking
83
Q

When did the RICS last update their disciplinary panel rules

A

October 2019

84
Q

Why is CPD important

A

Helps remove gaps in knowledge and keeps me up to date within industry changes

85
Q

Who is a responsible person

A

A person who is responsible for ensuring the RICS standards are upheld

86
Q

What is a confidential information conflict

A

Conflict of duty of an RICS member to BOTH

  • Provide material information to one client
  • Keep same information confidential to another
    client
87
Q
A

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