Ethics Flashcards
example of conflict of interest
valuing a property previously valued for another client; valuing both parties interest in a leasehold transaction, valuing for the lender where advice is also being provided to the borrower
What is written in RICS Rules of conduct? What does it effective on ? When does it published?
“published on Oct 2021, effective on feb 2022; there are 5 rules of conduct
- Members and firms must be honest, act with integrity and comply with their professional obligations (open and transparent with clients about their fees and services; prevent others being misled about their professional opinion)
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise. (only undertake work that they have the knowledge, skills and resources to carry out competently. up to date)
3.Members and firms must provide good-quality and diligent service. (understand clients’ needs and objectives before accepting ; agree with clients the scope of the service to be provide , undertake the work in a timely manner)
- Members and firms must treat others with respect and encourage diversity and inclusion. (treat everyone fairly and do not discriminate; report abusive labour practices to proper and recognised authorities )
- 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. (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.; cooperate with investigations into complaints or concerns, and provide information where it is reasonably requested and they can do so lawfully.)”
what are the professional obligations to RICS mandatory for rics members?
“1. Members must comply with the CPD requirements set by RICS.
2. Members must cooperate with RICS.
3. Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.”
what are the professional obligations to RICS mandatory for rics firms?
“The following obligations are mandatory for RICS-regulated firms.
1. Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
2. Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
3. Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
4. Firms must cooperate with RICS.
5. Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
6. Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
7. Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.”
What are the six principles of Bribery act? When is bribery act published?
“Bribery act published in 2010, came into force July 2011
Proportionate Procedures: Bribery prevention policies should be tailored to the organisation’s specific risks, clear, practical, and effectively enforced. ( firms must tailored their bribery prevention policies)
Top-Level Commitment: Senior management must demonstrate a clear commitment to preventing bribery and promote a culture of zero tolerance.
Risk Assessment: Organisations should regularly assess and document their exposure to bribery risks, adjusting their approach as operations evolve.
Due Diligence: Risk-based due diligence must be applied to individuals acting on behalf of the organisation to mitigate bribery risks.
Communication: Bribery prevention policies should be communicated and understood across the organisation, supported by appropriate training.
Monitoring and Review: Organisations must continuously monitor and review their anti-bribery procedures, making improvements as necessary.
What conflict of interest check you have done before accepting an assignment?
- I get all of the asset details from the clients.
- pass it to the compliance team in my company to check if my firm has any any involvement in the assets
3.if there is a potential conflict for example, disclose it to the clients, and get their consent before accepting the assignment - if there is a conflict, we will not take the job
how do you generate fee quote?
fee scope and discuss with colleagues before providing a fee proposals, we will always open to fee negotiation by the clients
can you give preliminary advice to someone at a bar?
No, they have to go through the procedure from my company
what is the difference of a red book valuation and non red book valuation
red book valuation is for more formal purposes (valuation, loan security, legal), non red book val is for internal purposes
how many hours of CPD you need to log for RICS memers
min of 20 hours
for us candidates
we need to log at least 48 hours a year (50% formal, 50% informal) ( 96 hours in two years)
Under Ethics level 3, which Rules of Conduct you have applied in yourself?
I follow the rules of conduct number 1 being honest as a valuer about the fair value and rules of conduct number 2 maintaining my professional competence by providing the clients proof showing the shifts in the market and relevant comparables.
in your industrial portfolio valuation, when was it? (with decreasing value)
UK - i think it aligns with the market but client think should be higher
if the client told you to push the value up, what should you do?
need to tell the client according to rules of conduct I cannot do so, and I will have to be firm with my opinion of value by providing proof of the market sentiment to the client.
Under which rule, you are not allow to share information of one client to another client?
under the rules of conduct, I mustfollow rules of conduct 5 be responsible for my own action and I am not allowed to disclose anything to anyone unless I was instructed by the client itself to do so
