Ethics Flashcards
What is required to set up an RICS Registered Firm as a sole practitioner?
- Responsible Principal
- Locum Agreement
- Adequate PII
- Complaints Handling Procedure
- Handling Clients Money
- RICS Logo
- CPD Requirement
What is the RICS Motto?
There is measure in all things. (modus est rebus).
What are the PII turnover limits?
<£100,000 turnover = £250,000 cover
<£100,001-200,000 = £500,000 cover
<£200,001 = £1M cover
What is the role of the RICS?
- Training and Education
- Regulations
- Leading Industry Source
What are the 5 Rules of Conduct 2021?
- Act with integrity.
- Competence.
- Good-quality and diligent service.
- Treat others with respect.
- Public interest and take responsibility.
What is your firms Complaints Handling Procedure?
Full response within 20 working day.
Inform my line manager who manages the initial complaint and response.
It can be escalated for an independent internal review on a more senior level within the department.
It can then go for a review by an independent team in MOD Head Office.
If still unhappy, you can contact the Parliamentary and Health Service Ombudsman via MP.
RICS Complaints Handling (2016):
- Must have a redress system I.e. the Property Ombudsman.
- Complaints Handling Officer.
- Complaints Handling Log.
- Sole traders can’t deal with complaints themselves.
Time limits:
- Acknowledge in 7 days.
- Respond within 28 days.
How often is the ethics module required to be completed as part of CPD?
3 Years
What are the CPD requirements?
20 hours minimum. At least 10 must be formal. All must be recorded by 31st Jan. Ethics must be undertaken every 3 years.
What is a Locum Agreement?
Ensures cover for long term illness, death, long term holidays, or unseen or unavoidable events.
What is the Ethics Decision Tree?
Framework of questions for when presented with an ethical dilemma. Considered the legality of an action. Clear reasoning for decision making. Ultimate test of whether content for decision to be made public.
What is conflict avoidance?
Not accepting an instruction.
What is conflict management?
Accepting an instruction but with mitigation. For example, information barriers. Information barriers can consist of a) restricting access to electronic documents; and/or b) separating personnel so that they are located on separate floors of the same office or in separate locations completely.
What is Informed Consent?
Should only be exercised when both parties are transparent and should only be sought when in best interest of each party.
What are the three types of conflict?
- Party Conflict = where duty to one client conflicts with duty owed to another client.
- Own Interest Conflict = when duty of a member acting for a client conflicts with that same members personal interests.
- Confidential Information Conflict = when the obligation to release information to one party results in the breach of keeping information confidential for another party.
Who is the current RICS President?
Tina Paillet
What is your firms gift policy?
DIO Gift Policy follows the Civil Service Code that all gifts should not be accepted as a Civil Servant as we act in the interest of the public. Line manager should be informed. All gifts must be recorded on the gift register whether accepted or not.
What is important when handling Client Money?
- Kept separate and clearly identifiable with ‘Client Account’ in the title.
- Client must have immediate access on demand.
- Accurate records with running balance.
- Annual audit by a certified accountant.
What is a Bribe?
Giving, offering, promising, or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust.
What are the four offences under the Bribery Act 2010?
- Bribing.
- Receiving a bribe.
- Bribing a foreign official.
- Failing to prevent bribery.
What do you understand by the term self-regulation?
An organisation that is responsible for regulating itself without intervention from external bodies.
What are the disciplinary procedures that can be imposed by RICS?
Imposed by the Standards and Regulation Board.
Decisions are made in the public interest.
- Fixed Penalty Notices i.e., caution or fixed fine.
- Regulatory Compliance Order i.e., impose conditions or undertakings.
- Expel a member/firm.
What is Professional Indemnity Insurance?
Insurance that covers financial loss, personal injury and property damage resulting from your negligent act, error or omission in the course of your work.
What should you do if you recieve a PII Claim?
Notify the RICS and your insurers as soon as possible.
What is an information barrier?
Method of conflict management. They must be robust, ensure no information is passed between parties, physical separation, securely stored data, and clear audit trail kept.
What time period does PII cover?
Policy should cover any claim regardless of when it was made.
What Anti-Money Laundering provisions should be in place?
- Written money laundering and terrorist financing risk assessment.
- Implement systems, policies and controls, proportionate to type of work the firm does including adopting appropriate internal controls and staff training.
- Appropriate record keeping of suspicious activity, kept confidential.
- AML checks to confirm the identity of purchaser and source of funds/beneficiary.
- Appoint a senior person to be responsible for AML.
What is the limit of income before estate agents must register with HMRC, and why?
Letting individual properties over €10,000 per month.
HMRC are the supervisor for AML activity in the property sector.
What is involved in Customer Due Diligence checks?
- Identity client and verify I.e passport or driving licence.
- Identify beneficial owners of client.
- Property / company details registered office.
- Purpose / intention of business relationship.