ETHICS

Question 1

What is the role of RICS?

Answer 1

To set and enforce standards for professional practice in surveying and property management, providing accreditation and guidance to ensure quality and ethical practice in the industry.

Question 2

What is a Royal Charter?

Answer 2

A Royal Charter is a formal document granted by the monarch that establishes and governs an organisation, conferring legal status and authority to operate.

Question 3

Who is the current RICS president?

Answer 3

Tina Paillet FRICS

Question 4

Can you tell me what you understand by the principles of better regulation?

Answer 4

The principles of better regulation involve ensuring that regulations are clear, effective, and proportionate, aiming to reduce unnecessary burdens on businesses and individuals while achieving their intended goals efficiently and fairly.

Question 5

What is a Bye-Law?

Answer 5

a rule made by a company or society to control the actions of its members.

Question 6

Give an example of one of the RICS Bye-Laws

Answer 6

A) Membership and Registration - Sets out the membership categories eg. MRICS / FRICS

Question 7

What money laundering regulations or legislation are you aware of?

Answer 7

Countering bribery and
corruption, money laundering
and terrorist financing
1st edition, February 2019

Question 8

What bribery legislation are you aware of?

Answer 8

The main bribery legislation in the UK is the Bribery Act 2010, which makes it an offense to offer, give, receive, or request bribes, and includes provisions for corporate liability for failing to prevent bribery.

Question 8

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

Answer 8

Based on a firm’s turnover:

£100,000 or less: £250,000
£100,001 to £200,000: £500,000
£200,001 and above: £1,000,000

Additionally, the maximum level of uninsured excess varies by indemnity limit:

Uninsured excess - you have to pay a sum rather than the insurer.

Up to £500,000: The greater of 2.5% of the sum insured or £10,000.
Over £500,000: 2.5% of the sum insured

Question 9

In a negligence claim, what would help to show that you acted with consideration and due process?

Answer 9

Following professional standards
Keeping detailed records
Conducting risk assessments
Communicating clearly with clients
Maintaining professional training

Question 10

If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?

Answer 10

Check if your PII cover includes the new services.

Update your PII policy if necessary
Inform your insurer about the additional services

Question 10

What is run off cover?

Answer 10

Run-off cover is insurance that extends protection after a firm has ceased trading, covering claims for incidents that occurred during the period the firm was active

Question 11

What RICS requirements are there relating to run off cover?

Answer 11

RICS requires firms to maintain run-off cover for at least six years after ceasing trading to cover potential claims arising from past work.

Question 12

What is the Assigned Risks Pool (ARP)?

Answer 12

The Assigned Risks Pool (ARP) is a safety net for firms that cannot obtain Professional Indemnity Insurance (PII) through the usual market, providing mandatory cover for those firms.

Question 13

Explain your understanding of the RICS Professional Standard Risk, Liability and Insurance (1st Edition).

Answer 13

guidelines for managing risk and liability in professional practice, including requirements for professional indemnity insurance, risk assessment, and maintaining proper insurance coverage to protect against claims.

Question 14

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

Answer 14

Scope of Work: Clearly define the services and deliverables.

Liability: Understand and agree on liability limits and responsibilities.

Fees and Payment Terms: Specify the cost, payment schedule, and any additional charges.

Question 15

Tell me what you understand about Complaints Handling Procedures (CHP)

Answer 15

RICS Professional Stanadard - Complaints Handling 2016

Detailed steps for filing.

7 days to acknowledge, 28 to respond.

Methods for resolving disputes and providing remedies if needed.

Question 16

What is double dipping (dual agency)?
Why is double dipping (dual agency) an unacceptable practice?

Answer 16

Double dipping (dual agency) occurs when an agent represents both the buyer and the seller in a real estate transaction.

Question 17

When must a firm register for regulation?

Answer 17

50% of its members are chartered - must be regulated

You must have 25% to apply

Question 18

What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?

Answer 18

The RICS logo may only be used by a Member or a Registered Firm, unless otherwise authorised by RICS.

Question 19

What is a locum and who might need one?

Answer 19

A locum is a temporary professional who fills in for a regular employee, typically when the regular person is absent. Sole traders may need this.

Question 20

What RICS guidance relates to handling client money?
When was this last updated?

Answer 20

Client Money Handling Professional Standard 2019.

Question 21

Explain the key themes from the RICS Futures 2020 Report.

Answer 21

Technology: Impact of digital transformation.
Sustainability: Emphasis on environmental responsibility.
Client Expectations: Need for transparency and efficiency.
Skills: Importance of ongoing professional development.

Question 22

Explain the potential implications of the Hart v Large case.

Answer 22

The Hart v Large case highlights the importance of clear and accurate professional advice, emphasising that failure to provide this can lead to significant liability for professionals if their advice causes harm or loss.

Question 23

Explain your understanding of precedent set in Burgess v Lejonvarn

Answer 23

A duty of care can arise even without a formal contract if a professional gives advice or assistance in a way that leads the client to reasonably rely on it, making the professional liable for any resulting loss.

Question 24

Explain your understanding of the RICS Levitt review.

Answer 24

Focused on improving RICS’s regulatory and disciplinary processes by addressing concerns about transparency, fairness, and efficiency in handling complaints and disciplinary actions.

Question 25

Explain some of the recommendations of the Bichard Review

Answer 25

Focus on the public interest remit of RICS, including creating a public interest panel to advise Governing Council

Maintaining self-regulation.

Increased focus on Diversity and Inclusion

Question 26

Tell me about your understanding of your firm’s process for escalating a complaint to Alternative Dispute Resolution (ADR)

Answer 26

Internal Review

Formal Request: If unresolved, the complainant can formally request ADR, which is an independent process outside the firm.

ADR Initiation: The firm and complainant agree on an ADR provider (e.g., mediator or arbitrator) to facilitate resolution.

Resolution: ADR seeks to find a mutually acceptable solution through negotiation or arbitration.

Question 27

Give me an example of when you have acted with integrity?

Answer 27

When faced with a client request to manipulate data for a favorable outcome, I declined and advised them on ethical practices

Question 28

Tell me about when you have provided a high standard of service

Answer 28

I conducted a thorough market analysis for a client, providing detailed and accurate insights that helped them make an informed investment decision. The client praised the comprehensive report and the proactive support throughout the process, which led to a successful and profitable outcome for them.

Question 29

Tell me about how you have promoted trust in the profession

Answer 29

I mentored junior colleagues, emphasising the importance of ethical behaviour and high professional standards, which helped them understand and uphold the values of the profession

Question 30

Explain how you have taken responsibility in your current role.

Answer 30

I ensured clear communication with stakeholders and implemented solutions, resulting in the project’s successful and timely completion.

Question 31

Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.

Answer 31

PII Professional Indemnity Insurance
CHP complaints handling procure
Clients’ money (Have an account in place)

Question 32

How would you identify money laundering, what are the red flags?

Answer 32

Use of cash

Unsual amounts of money

No verifiable email account or website / companies house

Question 33

Give me an example behaviour of each Rule of Conduct

Answer 33

Rule 1 - Must identify Conflicts of Interest

Rule 2 - Must identify that you have the correct knowledge and Skills

Rule 3 - Agree scope of services

Rule 4 - Respect the rights of other and treat them with courtesy

Rule 5 - question practices and decisions that they suspect are not right

Question 34

What are the stages of a disciplinary investigation?

Answer 34

Investigation by the head of regulation, they can then recommend either:

1. Service fixed penalty notice
2. Make a consent order
3. CPD sanctions
4. Refer to Disciplinary Panel (serious)

Disciplinary Panel can then

1. Implement fine
   2.Conditions on membership
2. Membership taken away

Question 35

How is the institution structured?

Answer 35

Following governance issue the structure is as follows:

Question 36

How is the institution structured?

Answer 36

Following governance issue the structure is as follows:

Question 37

What went wrong worth the standards and regulation board? Why did they resign.

Answer 37

Concerns were raised about the governance structure of the SRB and its relationship with the wider RICS organisation.

There were questions about the board’s independence and its ability to effectively oversee the regulation of RICS members.

Question 38

5 principles of better regulation

Answer 38

Question 39

Complaints Handling timings?

Answer 39

7 days for acknowledgement - 28 days response