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RICS APC - EVIE > Ethics > Flashcards

Ethics Flashcards

1
Q

Why do you want to be a Chartered Surveyor

A

“For international status and for giving my clients the upmost confidence in my work.
I also want the opportunity to share my knowledge and learn from the growing network of RICS members.”

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2
Q

What does the RICS stand for ?

A

Royal Institution of Chartered Surveyors

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3
Q

What is the RICS Motto

A

Est Modus in Rebus

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4
Q

What is the RICS Mission Statement ?

A

“Our mission is to be recognised in key worldwide markets as the leading body that sets and enforces standards.
Offers access to the most sought after professional status in land, property and construction.”

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5
Q

What are the 4 levels of membership?

A

FRICS, MRICS, AssocRICS, Trainee/Student

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6
Q

When was the RICS founded?

A

1868

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7
Q

When was the RICS granted by its Royal Charter and by who?

A

1881 by the Privy Council

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8
Q

How many members are there in the RICS?

A

140,000

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9
Q

What do you need to become FRICS acredited

A

“1. 5 or more years at MRICS
2. Leadership role
3. A professional/technical achievement
4. An academic achievement that raises the profile of the RICS
5. CPD to support your knowledge”

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10
Q

How is the RICS Governed?

A

By the terms of its royal charter and by various internal boards and councils.

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11
Q

What is the Governance Structure ?

A

“1. Privy Council
2. Governing Council
3. Standard and Regulations Board
4. RICS board management
5. Audit, Risk, Assurance and finance committee
6. Nominations and reumeration committee
7. World regional boards and market advisory panel”

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12
Q

What is the purpose of the Governing Council?

A

It runs the RICS providing management and strategic direction.

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13
Q

How many members are there on the Governing Council ?

A

20

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14
Q

Can you provide information on the structure of the Governing Council

A

“Chaired by the RICS President - Tina Paillet
RICS President Elect - Justin Sullivan
RICS Senior Vice President - Nicholas Maclean
They sit above 6 professional group seats (Building Surveying, Building Control, Commercial Property, Valuation, Land & Natural Resources and Residential Property).
They sit across 13 geographical locations.”

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15
Q

Who is the CEO of the RICS?

A

Justin Young

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16
Q

How many specialist professional groups within the RICS

A

17 - covering Property, Land and Construction

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17
Q

What are Ethics ?

A

A set of moral principals guiding an individuals behaviours.

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18
Q

Why are Ethics Important ?

A

They are importants because they anchor appropriate behaviour and ensure consistency and clarity in the market. They allow us to provide the best possible service to the client.

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19
Q

What are the 3 main roles of the RICS ?

A

“1. To provide the highest standards of education and training.
2. To protect consumers through strict regulation of standards and regulations.
3. To be a leading source of information and independent advice on Land, Property, Construction and Environmental Issues.”

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20
Q

Who is the RICS accountable to ?

A

Both members and the public

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21
Q

What did the Levitt Review call for?

A

An independent review of the ‘purpose, govenance and strategy of the RICS’

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22
Q

What were the findings of the Levitt Review?

A

“Internal govenance failings within the RICS
Lack of clarity, purpose and structure of the RICS govenance arrangements”

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23
Q

When was the Levitt review ?

A

2021

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24
Q

Who did the RCIS appoint to conduct a further review following the Levitt review?

A

Lord Michael Bichard

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25
Q

What was Lord Bichard Commissioned to review ?

A

“1. Clarify the purpose of the RICS
2. Provide recommendations on its governing structure to deliver that purpose.
3. To provide recommendations for incomming leadership and governing bodies on the culture and strategy of the institution.”

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26
Q

Who did Bichard Consult ?

A

Members and external stakeholders

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27
Q

What are the 7 recommendations made by Bichard?

A

“1. Renewed and improved focus on public interest of the RICS
2. Maintaining self regulation
3. Increased focus on diversity and inclusion
4.Focussing on regional support and renewing focus on younger members
5. Undertaking a review of the RICS every 5 years
6. A new simplified governance structure
7. Showing greater leadership on issues such as climate change and sustainability. “

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28
Q

What are the 5 key themes of the Bichard review ?

A

Governance, strategy, people, culture, values, member service.

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29
Q

When did Bichard report his findings and how many recommendations where there?

A

June 2022 and there were 7 findings.

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30
Q

Have the RICS adopted all Bichards recommendation?

A

Yes

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31
Q

How will the Bichard review be adopted ?

A

“1. A quick phased approach - to adopt clear responsibilitites for govenance by key individuals
2. Recruiting a new management board
3. Hold elections for RICS committees and groups.”

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32
Q

What are the five benefits of being a member of the RICS ?

A

“1. Status - unrivelled client confidence
2. Recognition - promotion of professional excellence to global markets.
3. Market advantage - status and standards can provide a competitive advantage.
4. Knowledge
5. Network - access to 140,000 professionals worldwide.”

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33
Q

What information is required by the RICS for Firm regulation ? (RICS Financial return)

A

“1. Type of business and staffing details
2. Name of the responsible principal
3. Nature of Business
4. Statutory Activities (finance).
5. Complaints handling procedure
6. Personal Indemnity Insurance
7. Weather the client holds money “

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34
Q

Why would your firm want to be regulated ?

A

“Confidence - for clients, firms are monitored by the RICS.
Professionalism - clear, impartial and expert advice to clients.
Security - recognised compaints handling procedure, access to free redress and PII cover.”

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34
Q

Why must new firms providing surveying services to the public register to the RICS?

A

To ensure there is a recognised quality benchmark

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35
Q

If a firm has 50% principals that are RICS members and provides surveying services, do they need to be regulated?

A

Yes

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36
Q

If a firm has 25% principals that are RICS memebers and provides surveying services, do they need to be regulated ?

A

They can be.

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37
Q

Who can be a principal according to the RICS?

A

Anyone with autonomy within the company, a sole practicitioner, director or partners

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38
Q

What is a responsible principal?

A

“Someone who is responsible for taking steps to ensure compliance with the RICS and to report to the RICS when required.
Every firm must nominate one.”

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39
Q

Who can use the RICS logo?

A

Members and firms (New rules came into effect 20th April 2020).

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40
Q

Who will hear disputes concerning firm registration?

A

RICS Standards and Regulations Boards

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41
Q

When were the new rules of conduct published?

A

Oct-21

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41
Q

When did the new rules of conduct come into effect?

A

Feb-22

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42
Q

What was the rationale for developing the new rules ?

A

“1.Simpler structure
2. Clear examples
3. Focus on diversity and inclusion
4. Understanding evolving technologies
5. Greater focus on tacking global challenges such as climate change”

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43
Q

Who do the new rules apply to ?

A

Members and firms

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44
Q

What are the five ethical principals?

A

“1.Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS.
2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
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, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.”

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45
Q

How many case studies accompany these rules ?

A

12

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46
Q

What do the new rules of conduct provide?

A

Clearer structure with clear examples for each rules.

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47
Q

What must regulated firms follow under the ROC app A (7 things)?

A

“1. Publish a complaints handing procedure - including ADR and a complaints log.
2. Ensure current and previous work is covered by PII.
3. If sole practitioner, make arrangements in the event of death or inability to work.
4. Cooperate with the RICS
5. Promptly provide all information requested by the standards boards and regulations.
6. Display literature in accordance with RICS policy.
7. Report any matter that they are required to report under the rules for registration for firms.”

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48
Q

What does appendix a to the rules of conduct set out?

A

Sets out mandatory professional obligations for members and firms.

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49
Q

What is the purpose of the RICS decision tree ?

A

“Provides a framework of questions to guide decisions when surveyors are faced with situations that asks them to act unethically.
It encourages members to consider the legality of their actions.
Ensures clear reasoning behind their actions.”

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50
Q

What must regulated members follow under the ROC App A (3 things).

A

“1. Comply with CPD requirements set out by the RICS
2. Cooperate with the RICS
3. Promptly provide all information requested by the standards boards of regualtions. “

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51
Q

How can disciplinery action be triggered ?

A

By someone complaining to the RICS, an allegation by a client or third party or through information received by the RICS.

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52
Q

What is the regulation that sets out the disciplinery process?

A

RICS Regulatory Tribunal Rules 2022

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53
Q

Are you aware of any disciplinery hearings?

A

“Peter Heath (Disciplinery Panel 24 August 2023).
Failed to comply with RICS CPD requirements
Sanction: Reprimand and fine.
“

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54
Q

What are the 3 levels of disciplinery action?

A

“1. Action by the Head of Regulation
2. Disciplinery panel
3. Appeal panel”

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55
Q

What 4 actions can the head of regulation initiate upon completion of their investigations?

A

“1.Serve a fixed price penalty
2. Make a regulatory compliance order
3. Refer the matter to a single member of the Regulatory tribunal for consideration.
4.Refer the matter to the disciplinery panel.”

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56
Q

What issues might a compliance order cover/ resolve?

A

Non-compliance with the rules of conduct or CPD requirements.

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57
Q

What penalties are available for the Regulatory Tribunal Disciplinery panel?

A

“1.Issue a regulatory compliance order.
2. Fine
3. Reprimand
4.Impose conditions upon future continued RICS registration
5. Expulsion from membership or removal of firm.
6. Impose an unlimited fine per offense.
7. Publication of the results of the hearing.”

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58
Q

What can the Appeal panel do ?

A

Vary a penalty

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59
Q

What is the first step in any disciplinery action ?

A

Investigation by the Head of Regulation of the RICS

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60
Q

What is a regulatory compliance order ?

A

A written document which states the terms upon which a member or firm must take or desist from taking certain actions in a specified time period.

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61
Q

What are fixed penalties ?

A

May consist of a fine or caution and are used for breaches in the rules of conduct in relation to information provided to the RICS.

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62
Q

Why do the RICS regulate the surveying industry ?

A

“1.Proctect the public
2. Uphold public confidence in the profession
3. Uphold professional standards”

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63
Q

What regulation is there for social media ?

A

Use of social media: Guidance for members 2021

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64
Q

What is the RICS likely to investigate concerns about social media posts?

A

If they involve: Dishonesty, discrimination, bullying, harrassment, victimisation or ignoring advice etc.

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65
Q

What is highlighted in the Use of Social Media: Guidance for members 2021?

A

It highlights the importance of social media for members networks and reminds members of the high quality standards of professional behaviour expected of RICS members.

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66
Q

When are the RICS unlikely to investigate social media posts?

A

“When posts relate to a firmed policy or performance.
When respectful language has been used.
When posts are removed when requested. “

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67
Q

What are the two categories of RICS core material?

A

Professional Standards and Practice information.

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68
Q

What are the statuses of various RICS Documents?

A

“1. International Standards - Mandatory
2. Professional Standards - Mandatory
3. Practice Statements - Mandatory
4. Guidance Notes - Voluntary
5. Practice Information - Voluntary
6. Codes of Practice - Mandatory or recommended good practice.”

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69
Q

What is practice information?

A

Information used to surrport the practice, knowledge and performance of RICS members.

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70
Q

Who is the standards and regulations board chaired by?

A

Nigel Clarke

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71
Q

What does the RICS professional standard and practice information replace?

A

It replaces all core information (International standards, codes of practice, professional statements and guidence notes)

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72
Q

Why did the RICS introduce these documents

A

Bichard Review ?

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73
Q

Give an example of a current professional statement that has become a professional standard ?

A

“Conflicts of Interest 2017 (professional statement)
Conflicts of Interest 2023 (professional standard)”

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74
Q

What do you do if you consider your directors advice to be incorrect?

A

“Consider:
The implications of the advice
Is it legal
Discuss with managers and collegues
Refer to the Ethics Decision Tree”

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75
Q

How does your behaviour differ professionally and personally?

A

My approach does not change.

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76
Q

What is a three step process for Terms of Engagement ?

A

“1. Check if you are professionally competent
2. Check there are not conflict of interest
3. Confirm ToE in writing before you start work on the instruction.”

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77
Q

Why does a firm have Terms of Engagement ?

A

Creates a contract with the client and a clear definition of what is expected and on what terms.

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78
Q

What should be included within the Terms of Engagement?

A

“1. Proposed fee
2. Payment of expenses
3 Copy of the CHP to be available upon request.”

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79
Q

When would it be appropriate to decline an instruction ?

A

“1. If there is a conflict of interest.
2. If you are not professionally competent
3. If you do not have all the facts
4. If the proposed client will not sign the Terms of Engagement
5. If the Professional Indemnity Insurance Liability Cap cannot be agreed.
6. If the Client is on the UK sanctions list
7. If you would not make your decision public
8. If the advice is to a friend or on a probono basis.”

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80
Q

What should be considered when preparing a fee quotation ?

A

“Scope of services
Terms of Payment
Complaints handling procedure
Property details.”

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81
Q

What must you ensure during fee negotiations?

A

“1. Transparency
2. You are able to provide a high quality service. “

82
Q

What must you ensure during fee negotiations?

A

“1. Transparency
2. You are able to provide a high quality service. “

83
Q

What should fees be based on ?

A

“Market based
agreed on an ad hoc bases.”

84
Q

What is a client brief ?

A

“A recorded document that animates the project. The brief explains the ins and outs of the project and the goals and targets. It may include:
Client objectives
Exclusions and limitations.”

85
Q

How must referral fees be delt with ?

A

“Referral fees must be agreed within the Terms of Engagement
Transparrency must be ensured - the client should be advised if you are in receipt or are offering a referral fee.
Granting or acception of a referral fee must be considered in the context of the bribery act 2010 and the ROC.”

86
Q

Name the types of conflict between 2 parties?

A

Financial conflict, commercial conflict, personal conflict, acting on both sides of a transaction.

86
Q

What is it important to define the scope of works and client objectives at an early stage?

A

To ensure the clients understands my involvement and fees in relation to the works.

87
Q

What is conflict management?

A

When the instruction is accepted but steps are taken to manage the instruction.

87
Q

How do you undertake a conflict of interest check ?

A

We have a database which keeps a record of our existing clients to determin if there is potential for a conflict.

88
Q

What is conflict avoidance ?

A

When you do not accept an instruction because there is a conflict.

89
Q

What is the guidance in respect to conflicts of interest?

A

Conflicts of interest 2023 (professional standard)

90
Q

What are the three types of conflict?

A

“1. Party Conflict
2. Own interest conflict
3. Confidential information interest”

91
Q

When can informed consent be given ?

A

“Can only be given in writing
Can only be given when the person explaining has been transparent about any material factors.”

92
Q

When should survyeors seek informed consent?

A

when there is a conflict of interest and they are satisfied that all parties are best served by doing so

92
Q

What is the three step process for when a conflict arises ?

A

“1. Conflict avoidance
2. Written informed consent
3. Conflict management “

93
Q

Explain conflict avoidance when dealing with a conflict ?

A

“1. Request all the facts
2. Consider if your impartiality is impacted
3. Can it be managed by transparency and openess
4. Decide weather or not you want to accept or deny and instruction.”

94
Q

Explain written advice when dealing with a conflict ?

A

“Set out in writing to both clients:
1. Disclose the nature of the conflict, relavent facts and how the firm intend to deal with the conflict.
2.Be as clear as possible and ensure that all parties are able to make their own decision.
3. Request written consent “

95
Q

Explain ‘Conflict Management’ when dealing with a Conflict?

A

Upon receiving written consent to you declaration of a conflict and management proposals, set up an information barrier according to the proposals agreed between both parties.

96
Q

What is an example of Conflict Management ?

A

Information/ ethical barrier

97
Q

When do personal / own interest arise ?

A

“When acting for a family member, close business associate or someone whom you have a financial personal interest.
You must not let a personal interest interfere with your judgement.
Declare facts in writing before accepting an instruction
Have regard to Section 21 of the Estate Agency Act 1979 for agency work. “

98
Q

What are the 3 requirements for CPD?

A

“A minimum of 20 hours and at least 10 hours must be formal.
All members must maintain a relavant understanding of the rules of conduct.
All members must record CPD using RCIS CDP management systems.”

99
Q

What is formal CPD?

A

“Structured learning
Clear learning objectives and outcomes.”

100
Q

What is informal CPD?

A

Self managed learning related to your professional role

100
Q

What is your CPD strategy ?

A

My CPD plan is dictated by my skills and or knowledge gap considering future requirements and sectors etc.

100
Q

What is a complaints handling procedure ?

A

A procedure to allow and define the procedure for clients to raise a complaint.

101
Q

What is the guidance on complaints handling procedure ?

A

RICS guidence on complaints handling 2016

102
Q

When should a complaint be acknowledged?

A

within 7 days.

103
Q

What options are available if you couldn’t resolve a complaint?

A

“Property Ombudsman
RICS Dispute Resolution
Escalation “

103
Q

What is the property ombudsman?

A

Independent Government Approved body who provides redress to consumers whos complaints are considered on a case by case basis.

104
Q

When should a complaint be investigated in

A

within 28 days.

105
Q

Who is the complaints officer for a sole practitioner ?

A

A nominated surveyor from another firm.

106
Q

Where do the RICS outline confidentiality and what do they state?

A

“RICS Bye-laws
Client confidentiality must be maintained for all client affairs.”

106
Q

Can you rely on someone elses due diligence ?

A

No it is your responsibility to ensure the checks are suitable and suffient.

106
Q

What information is included under confidentiality ?

A

Historic information and information provided by the client prior to instruction.

107
Q

What is AY’s complaints handling procedure ?

A

Acknowledge the claim within 7 days. Inform your insurers ASAP of the claim and that you were addressing it. You must then aim to settle the claim within 21 days of acknowledgement and the whole process must take less than 28 days. If an agreement cannot be made, you should refer it to the third party redress system that we have stipulated.

108
Q

Are third parties allowed to access your client files?

A

You must have approval from the client first unless you are subject to a statutory duty overriding confidentiality rights such as to the police or HMRC.

109
Q

How long are files kept for?

A

6 Years

110
Q

As a survyeor, you receive an email not meant for you - what do you do ?

A

“1. Understand that you cannot use the information for your personal gain.
2. Notify both client and sender of the error.
3. Notify the complaints officer.
4. Dispose of the email securely.”

111
Q

What is the 2 step process a complaint?

A

“1. Inhouse
2. ADR”

112
Q

What is the process for processing a complaint in house?

A

“1. The complaint must be received in writing.
2. Professional Indemnity Insurance must be notified.
3. Details of the complaints handling procedure must be issued to the client.
4. Details of the complaint and timescales for the investigations should be recorded.”

113
Q

What is the process for processing a complaint through an Alternative Dispute Resolution ?

A

If the complainant is not happy with the review, the second stage of the CHP is using an independent redress scheme that has been chosen by the firm.

114
Q

What is included within the CHP guidance?

A

“1. Complaints must be given in writing.
2. Notify proofessional indemnity insurance of the complaint or this could be negligence.
3. Keep a complaints log.
4. Details of the complaints handling procedure must be issued to the client upon terms of engagement.”

115
Q

Is Professional Indemnity Insurance mandatory?

A

Yes

116
Q

Why do you need Professional Indemnity Insurance?

A

Surveyors provides expert advice and therefore they face risks associated with making mistakes or errors in judgement that could cost a business. When business costs arise due to negligence businesses often respond with lawsuits and therefore PII protects both the client and the surveyor.

117
Q

What Is the purpose of PII ?

A

To protect clients, members and third parties against negligence claimes when a duty of care has been breached.

118
Q

What is the regulation for PII?

A

RICS Professional Indemnity Insurance Requirements April 2022.

119
Q

What do PII regulations outline ?

A

“All Members must ensure to have an adequate and appropriate level of insurance for each instruction.
All policies are underwritten by RICS approved insurers. “

120
Q

Is PII required for probono work?

A

Yes

121
Q

How do new businesses estimate the level of PII?

A

Estimate turnover and adjusts in due course.

122
Q

How do you determine PI cover levels?

A

” Under RICS PII Requirements (RICS Regulation doc) – April 2022
Minimum levels of indemnity cover
* Up to £100,000 = £250,000
* £100,001 - £200,000 = £500,000
* £200,001 + = £1,000,000 of cover”

123
Q

How many years after an instruction can be a Professional Indemnity claim can be made?

A

15 years

124
Q

What measures should be taken to avoid PI claims ?

A

“Keep a full and detailed record of meetings and converstations
Record recommendations and given advice
Use proper letters of engagement, scope of services and terms of engagement.
Don’t advise on a specialism outside your expertise.
Use RICS guidelines
Avoid poor management and excessive workloads.”

124
Q

Four key points for PII?

A

“1. Policy should be fully retroactive (Cover all work covered by the past).
2. Certificates are sent to the RICS on an annual basis.
3. Early notification to insurers when a potential claim arises.
4. Adequate run off cover is required for when the firm stops trading.”

125
Q

What if the loss exceeds the cover provided by the PI insurance?

A

The professional/firm is liable for the difference - in assets etc.

126
Q

What is the RICS Assigned Risk Pool?

A

The ARP is open to members who are unable to obtain PII which meets the requirements of the RICS.

127
Q

How long should runoff cover be in place for ?

A

“6 years from cessation of practice (with a limit of £1m).
Should be for a minimum of 6 or 12 years depending on how the contract was executed, however negligence claims can be made up to 15 years after work was undertake so advice should be sought from an insurance broker on whether to maintain for the full 15 years.
“

128
Q

What are the current limitation periods for negligence ?

A

“Contract -6 years from the date of the negligent act, breach or omission.
Section 14a provides an alternative limitation period of 3 years to the dates of knowledge of the damages subject to 15 year longstop.
Tort - 6 years from the date the claimant suffered the loss.”

129
Q

What Act applies to negligence ?

A

Limitations Act 1980

130
Q

What is the difference between contract and tort?

A

“Contract - deals with contract and failure to complete what was agreed.
Tort - deals with the duty of care that the law imposes.”

131
Q

What needs to be established for a negligence claim ?

A

Duty of Care

132
Q

When does a claim for damages arise?

A

When there is a breach in ToE or there has been a negligent act and there has been a loss.

133
Q

Who does a duty of care exist to ?

A

Clients and third parties.

134
Q

What insurance do you need?

A

Professional indemnity, employers liability, public liability, building insurance (if premises is owned)

135
Q

What happens if you’re under-insured?

A

The surveyor will be liable for excess if not fully covered.

136
Q

How can negligence claims be avoided or reduced?

A

“1. Clearly understand the clients objective and confirm these in the terms of engagement.
2. Ensure you are competent to undertake the instruction.
3. Undertake the work with relavent Professional Standard Information.
4. Make detailed notes and photographs
5.Keep up-to-date with market knowledge and legislation.
6. Cap the professional liability excess on you policy in the ToE.
“

137
Q

How do you know you are competent ?

A

“Having the knowledge and skills to undertake instruction. If you have dealt with that type of property and location and you have carried out that task before - you are deemed competent.
This can be defined as:
Skills
Knowledge
Attitude
Training
Experience “

138
Q

Can you advise someone as an individual ?

A

Unless you have the correct insurances in place, you should not be giving any professional advice. I would ask them to contact me during normal working ours as long a there is no conflict and TOE can be defined.

139
Q

If you are faced with a situation that you felt was unethical, how would you proceed?

A

“Using the RICS decision tree.
Do I have significant facts.
Is the matter legal
Is it inline with RICS Professional and Ethical Standards
Have I consulted with approprate people
Do I have clear reasoning in reaching my decision
Would I be content in making my decisions public.”

140
Q

How do you close down a firm?

A

“Inform the RICS
Inform clients and arrange them to be handed over to a new firm
return any client money
Set up professional indemnity run-off cover for a minimum of 6 years.
Retain a copy of client file on record for a minimum of 6 years”

141
Q

How would you limit the risk of working with a client or contractor who may be financially unstable ?

A

“1. Undertake a screening process
2. Do a credit check (Dun & Bradstreet)
3. Company search
4. Internet Search”

142
Q

Importance of complying with money handling requirements is outlined in what ?

A

Rules of conduct 2021

143
Q

What do the rules of conduct say on client money ?

A

Firms keep client money safe and have appropriate accounting controls.

144
Q

What can client money include?

A

Holding deposits, rent, service charge.

145
Q

What is the professional standard on Client money ?

A

RICS professional standard ‘client money handling 2019’

146
Q

What 6 areas (client money) of good practice are set out in this document?

A

“1. Holding Client Money
2. Providing information to clients
3. Receipt of client money
4 Payment from client accounts
5. Accounting record and control
6. Compliance”

147
Q

What is the client protection scheme used for ?

A

It provides last resort protection in instances where an RICS regulated firm is unable to repay a client money.

148
Q

What procedures do surveyors need to be aware of when dealing with client money ?

A

“Client accounts must be kept separately and clearly identified
The word ‘client’ is on the bank account and check book
Client must be able to have their monies on demand
Payment of Interest is agreed with a client and accounts must be kept in order.
Accurate records must be kept with a running balance.”

149
Q

What are the 2 types of money protection scheme?

A

“1. Client money protection for surveying services
2. Client money for Residential Agents”

150
Q

What do you need to be an RICS assessor?

A

3 years post qualified MRICS and a days training course.

151
Q

What is a locum?

A

A locum is another professional who is appointed to stand in for another surveyor in the event of illness or death.

152
Q

What do you understand about the term ‘self regulation’?

A

The ability to control and monitor oneself.

153
Q

Give an example of a bye-law?

A

Conduct themselves in a manner benefitting the RICS.

154
Q

Give evidence of where recommendations from the Bichard review have been actioned?

A

“1. New governing council elections took place in April 2023 to better reflect Geographical Location.
2. RICS has recruited a new chair of diversity and inclusion.”

155
Q

What is the key legislation in regards to gifts and bribery ?

A

Bribery Act 2010

156
Q

What do hospitality events seek to do ?

A

Promote and improve the image of a firm

157
Q

What are the 4 offenses of the Bribery Act 2010?

A

“1. Bribing
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent bribery”

157
Q

What is the main aim of the Bribery Act 2010?

A

To reduce bribery in business in the UK and abroad.

158
Q

What is a bribe ?

A

Giving, offering, promising or receiving of an advantage in return for a service or action which is illegal or a breach of trust.

159
Q

What are the 6 principals of the Bribery Act 2010?

A

“1. Proportionality
2. Top level commitment
3. Risk assessment
4. Due Diligence
5. Communication
6. Monitoring and review”

160
Q

Who polices the Bribery Act 2010?

A

Serious fraud office

161
Q

Are companies responsible for their employees corrupt acts ?

A

Yes - unless they can prove that they have adequate procedures to combat Bribery.

161
Q

What is the maximum penalty for breaching the bribery act 2010

A

10 years imprisonment or an unlimited fine.

162
Q

Is hospitality prohibited under the Bribery Act 2010?

A

No - as long as it is accurately recorded on the gifts register.

163
Q

What is the government legislation of money laudering ?

A

Money Laundering and Terrorist Financing and Transfer of Funds Regulation 2017.

163
Q

What steps can a company take to prevent bribery?

A

“1. Identification of potential risks
2. Staff training
3. Provision of clear policies
4. Regular reviews.”

164
Q

What is money laundering ?

A

When the proceeds of criminal activity are disguised or converted and then realised as legitimate assets.

165
Q

What does money laundering and terrorist financing and transfer of funds regulations 2017 cover?

A

Estate agency work and relavant business work and then realised as legitimate assets.

166
Q

What are the provisions within the ML and TF Regulations?

A

“1. To carry out ML risk assessments.
2. Impliment policies and controls to address ML and TF.
3. Adopt appropriate internal controls.
4. Provide Staff Training
5. AML checks - identifying purchasers source of funds
7. Additional high risk factors assessing the need for enhanced due diligence.”

167
Q

Why do PEPs present a higher risk ?

A

The nature of their position and the influcence they hold.

167
Q

What do you do for enhanced due diligence checks?

A

“1. Requires additional evidence and monitoring including
- detailed examination of their background and the purpose of the transaction.
- googling individuals to see if they come up in any negative media.
- check sanctions list
- find their source of wealth “

168
Q

Other (Money Laundering) requirements of the regulations include ?

A

“1. A limit of 10000 euros for the acceptance of cash
2. The ongoing business relationship should be monitored
3. Detailed record keeping of procedures
4. A nominated Money Laundering Reporting Officers must report suspicious activity to the national crime agency.
5. A firm must maintain records for a minimum of 5 years.”

169
Q

What are the penalties for not complying with the Money Laundering Regualtions ?

A

“Maximum of 14 years in prison/unlimited fine for money laundering
Maximum 5 years in prison/unlimited fine for tipping someone off or failing to reports suspicious activity.”

170
Q

What money laundering checks are requied for a publically accountable body?

A

Government Ownership /Control

171
Q

What checks are required for a private limited company?

A

“Certificate of Incorporation
Full name, registered number, registered office, name of all directors.
Identification of a high risk client.”

172
Q

What money laundering checks are required for a private individual?

A

“Copy of a valid passport/driving licence
Copy of bank statement, credit card bill to show address (not more than 3 months old).”

173
Q

What is constantly evolving in regards to money laundering ?

A

Law, Procedure and Guidance.

174
Q

What money laundering directive has the UK appointed?

A

6th EU Anti-money laundering directive

175
Q

If asked about the accpetance of cash, gifts you should consider?

A

“1. Bribery Act 2010.
2. RICS professional standard - Countering bribery and corruption, money-laundering and terrorist financing.
3. AY’s anti-bribery and corruption policy
4. Professional objectivity, openness and transparency
5. Proportionality
6. Tax implications
7. Sanctions
8. Employment contract detail.”

176
Q

What is the RICS professional standard on Bribery, Corruption, Money Laundering and Terrorist Financing.

A

Countering Bribery and Corruption, Money Laundering and Terrorist Financing February 2019.

177
Q

If asked about AML what should you consider?

A

“1. Money Laundering and Terrorist Financing and Transfer of Funds 2017.
2. RICS professional standard - countering bribery, money laundering and terrorist financing (February 2019)
3. Government Guidance for Estate Agents.
4. Due Diligence Procedures
5. Professional objectivity, openness and transparency.
6. Red Flags”

178
Q

What are the red flags of money laundering?

A

“Where the money is coming from
If there’s large sums of cash but not at a regular flow
Client buys own materials and asks for a deduction.”

179
Q

What is facilitation payment ?

A

Payment to facilitate or move a process along - this is considered as a bribe.

180
Q

What are the 3 types of due diligence ?

A

“Simplified Due Diligence - Where you determine the business relationship is low risk.
Enhanced Due Diligence - for high risk customers and transaction with a greater threat to the financial sector.
New Customer Due Diligence - doing the checks to ensure youe client is who they say they are.”

181
Q

When will you accept a payment facilitation ?

A

Never unless authoriastion from head office.

182
Q

What year did Money Laundering Regulations come into force in the UK?

A

1994

183
Q

Give me some examples of how your firm might comply with Money Laundering Regulations ?

A

We report cash payments over £10K, carry out risk assessments to make sure that we take nescessary procedures when working with client from high risk countries and sectors.

183
Q

Can you name the Money Laundering Red Flags?

A

“Cash only buyers
Unusual sale price (too high or too low)
Payments from multiple difference sources
Funds provided by unknown third parties.”

184
Q

If you were given a gift what would you do ?

A

Log it within the gift log. I may decline the gift taking into account the timing and proportionality and my firms gift handling policy.

185
Q

If you were offered a bottle if wine at christmas?

A

Consider the proportion and circumstances of the gift, including the timings. In some cases this maybe include being aware of cultural differences.

186
Q

When would accecpting or providing hospitality be acceptable ?

A

Once all works have been completed on a project and the final account has been agreed/paid and there is no conflicts of interest.

187
Q

What is the difference between a bribe and a gift ?

A

A gift is a small gesture, a bribe is under the impression that some gain will result.

188
Q

What does the proceeds of crime act 2022 provide ?

A

“Powers for enforcement authorities to recover money which is deemed to be proceeds of crime.
Creates a series of criminal offences intended to combat money laundering.”

189
Q

What are the main areas (Proceeds of crime act 2002) under the act?

A

“Concealing Criminial Property
Arrangements
Acquisition use and possession.”

RICS APC - EVIE (20 decks)

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