Ethics Flashcards
What are the 4 offences of the Bribery Act 2010
- Bribing
- Receiving a bribe
- Bribing a foreign public official
- Failing to prevent bribery
The 6 principles of the Bribery Act 2010
- Proportionality
- Top level commitment
- Risk assessment
- Due diligence
- Communication
- Monitoring and review
What happens if the Bribery Act 2010 is breached
There is a maximum penalty of 10 years and/or an unlimited fine for individuals.
Who is the Bribery Act policed by
The Serious Fraud Office
What is money laundering?
Money Laundering is when procced of criminal activities are disguised or converted and then realised as legitimate assets
When do you conduct conflict of interest checks?
Prior to commencing work on an instruction
What is a conflict?
When personal interests could compromise your judgement
What would you do if there was a potential conflict?
a) manage the conflict
b) avoid the conflict
Can you act on behalf of a friend?
a. Valuer should judge if the relationship will affect their judgement
b. An existing relationship should be recorded as a 3rd party can make an assessment
c) ToE should be agreed and signed before commencing work
How do you manage conflicts?
a. Three steps to consider when a conflict arises:
1. Conflict avoidance – is conflict unavoidable? If so, do not accept the instruction
2. Written advice to both parties – If you want to accept the instruction, the following must be set out in writing:
i. Disclose nature of conflict, and how your firm will deal with this
ii. Be as clear as possible
iii. Request written confirmation of clients’ informed consent
3. Conflict management – After receiving informed consent, setup information barrier with provisions agreed by both clients
What is an information barrier?
Procedures put in place to ensure a firm can manage a potential conflict. This could be ensuring a clean desk, physical separation of surveyors, password protected files, separate support staff
What is informed consent?
Consent to carry on with an instruction that involves a conflict of interest. Can only be given in writing by the party if it is entirely transparent about any material factors. Party must understand what they are doing. Surveyors should only seek informed consent if satisfied that all parties are best served by doing so
What are the types of conflict?
a. Party conflict – when you work on the same instruction for two clients
b. Own interest conflict – relating to a personal interest
c. Confidential information conflict – relating to work between two parties that is confidential
When would you decline an instruction?
a. If there is a conflict of interest
b. not competent
Would you accept a gift from a client?
a. Register the gift with my firm
b. If below £200 then accept, if above decline
c. If it’s hospitality, register with firm and accept if below £1000, reject if over £1000
c. depending on my engagement with the Client (e.g. if I am currently negotiating a fee)
What is your firm’s gift giving policy?
a. Public sector – gifts over £15 and entertainment over £30 require pre-authorisation
b. Private sector – Gifts over £60 and entertainment over £120 must be reported
c. Private sector – Gifts and entertainment over £500 require pre-authorisation
d. Cash and cash equivalents are not to be accepted, including retail vouchers
What is your firm’s gift receiving policy?
a. Register the gift with my firm
b. If below £200 then accept, if above decline
c. If it’s hospitality, register with firm and accept if below £1000, reject if over £1000
Can a client pay for their service in cash?
a. Up to 10,000 euros
b. But JLL do not accept cash
How do you conduct a conflict of interest check?
a. Enter property details and client details onto client management system
b. This flags all previous jobs with client
c. If there is a conflict, speak with legal and compliance to determine whether its okay to proceed
d. For smaller firms – send company wide emaila. Enter property details and client details onto client management system
b. This flags all previous jobs with client
c. If there is a conflict, speak with legal and compliance to determine whether its okay to proceed
d. For smaller firms – send company wide email
What are the steps to take when a conflict is identified?
i. Disclose nature of conflict, and how your firm will deal with this
ii. Be as clear as possible
iii. Request written confirmation of clients’ informed consent
How do you register a firm with the RICS?
RICS Compliance (some but not all):
* Inform RICS of your new practice
* Appoint responsible principal responsible for all RICS communication
* Register with RICS for regulation of the firm
* Set up CHP procedure
Statutory Compliance (some but not all):
* Disclose business name
* Equality Act 2010 Compliance
* Bribery Act 2010 compliance
* Health and Safety compliance
What is the RICS guide for money laundering?
RICS Money Laundering (Terrorist Financing and Transfer of Funds Regulation, 2017) amended 2023
When have you adhered to each of the rules of conduct?
Rule 1 - Open and transparent with client about fees
Rule 2 - commercial element outside of scope of competance
Rule 3 - Work adheres to requirements set out in TOE and adhere to timescales
Rule 4 - when attending meetings, treat everyone equally, respect others, respect time
Rule 5 - marketing suite, answered questions, pointed in right direction of viewings
