Ethics Flashcards
What are the five rules of conduct?
Honesty
Professional competency
Good quality and diligent service
Respect and encourage diversity
Act in the public interest
Can LSH handle clients’ money?
Yes – but no cash policy
What transactions do anti-money laundering checks apply to?
Any freehold transaction and all leasehold transactions equivalent to €10,000 (£8,500) pcm. It applies to lease renewals but not rent reviews.
Can you give me an example of a conflict?
Conducting a loan security valuation of a property in which a member of your family owns/an agent acting for both the seller and buyer at the same time/a valuer from a firm being asked to value a building in which another member of the firm is acting on to sell.
If there had been a conflict, what would you have done?
Informed the client and politely turned down the instruction. If I deemed it in the best interests of both parties and it was legal, I could have sought written consent from both parties. If they were both happy, I could have continued and created an information barrier.
If a gift is worth more than the company threshold, what would you have done?
I would need to fill in a gift disclosure form within 28 days which would then be forwarded to the Finance Director and added to the gift register. If the value is deemed not proportionate to what would be expected from that business relationship, then it should immediately be reported to the finance director and refused.
Can you give me an example of when you have used the Ethics Decision Tree?
When a long-standing client contacted me saying they had been approached by a prospective tenant that had no representation and suggested due their lack of expertise, I would be able to get desirable terms. I consulted the decision tree and determined I had all the facts and it was legal. However, it would go against the rules of conduct (rule 1 and rule 5). I consulted with line manager to get second opinion and therefore had clear reasoning to make decision I could not do it as RICS guidance in the code for leasing business premises requires me to suggest they get representation.
What would you do if someone came in and tried to pay you with £5,000 in cash?
LSH has a no cash policy. Although there is nothing illegal about it as money laundering checks are only required above £10,000, I would ask them to go to the bank and then pay through bank accounts. At last resort, it could be accepted.
Tell me some money-laundering prevention?
Terrorist Financing and Transfer of Funds regs 2017 amended 2023. key provisions:
Written money laundering and terrorsit financing risk assessment,
Implement systems, policies, controls and procedures to address money laundering and terrorist financing risk
Adopt appropriate internal control,
Provide staff training,
Comply with new customers, enhanced and simplified DD requirement,
Comply with requirements relating to politically exposed persons (PEPs),
Ensure appropriate record keeping,
AML check undertaken,
Include additional high risk factors when assessing need to enhanced DD.
What are the potential re-structruing of the RICS Red Book Global Standards effective 31/01/2025?
Simplification and streamlining- simpligy language and streamline content
Enhanced guidance- improved guidance on emerging issues in property vals
Updated methodologies- updated methodologies and approaches to reflect changes in tech, market conditions and stakeholder expectation
Expanded scope- cover broadder range of property types and valuation
Stakeholder engagement-gather feedback and ensure the standards remain relevant
Tell me the steps you would undertake if there was a COI?
“I would consider transparency and openess and these three steps:
Conflict avoidance- managed and maintaining transarency and openness, decide whether you want to accept or decline the inspection from client A or B
Written advice to both parties- in writing: disclose nature of conflict, clear as possible, request written confirmation from both clients of their informed consent
Conflict management- once recived written consent set up info barrier in accordance with both parties.
In regards to a COI who has a connected interest?
Property, client, applicant
In regards to the Development Opportunity, Gatwick you provided a fee quote on “based on your experience”. What do you mean?
I provided a fee quote based on my experience on my previous experience in carrying out similar work. I was completely transparent.
What is Official Sensitive?
Information is of a particularly sensitive nature. Used in limited circumstances where there is a clear and justifiable requirement to reinforce the ‘need to know’
In regards to the valuation, Braintree who is the applicant and who is the client?
The applicant was the freehold owner of the property and the client was the Bank. My responsibility was to the Bank and as such I made sure to keep all information confidential and I informed the Bank of the client’s intentions
