Ethics Flashcards
What is bribery?
The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.
What is corruption?
RICS defines as the misuse of public power for private gain.
(or misuse of private power in relation to business practice and performance. )
What is a facilitation payment?
A payment made to a government official with the purpose of speeding up a routine administrative action.
Such payments are customary and legal in some countries, but in many jurisdictions they are criminalised.
What is money laundering?
Concealing the source of the proceeds of criminal activity to disguise their illegal origin.
This may take place through hiding, transferring and or recycling illicit money through one or more transactions, or converting criminal proceeds into seemingly legitimate property.
What is a price fixing monopoly- cartel?
A group of formally independent producers of goods or services whose goal it is to increase their collective profits by pushing the price of a product as high as possible, generally leading to profits for all sellers.
What are red flags?
Common characteristics that either individually or in combination might indicate potential misuse of the real estate sector for money laundering or terrorist financing purposes.
What is terrorism?
The use or threat of violence to pursue ideological objectives committed by governments, non-state actors or undercover personnel acting on behalf of governments.
Terrorism reaches beyond its immediate target victims and is also directed at targets that represent a larger spectrum of society.
What is terrorist financing?
The solicitation, collection or provisions of funds with the intention to support terrorist acts or organisations.
Example behaviour for acting with integrity?
Then, tell me how you act with integrity?
Members and firms identify actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises, unless they do so in accordance with the current edition of the Conflicts of Interest RICS professional standard.
I am trustworthy in all that I do.
I am open and honest in the way I work.
I respect confidential information.
I do not take advantage.
I don’t allow bias, conflicts of interest to override my decisions.
I do not accept gifts that might suggest an improper obligation.
Think internal morals -
Speaking to greystar, I am trustworthy and open with my client when I received that document. I respected confidential information. I do not take advantage of greystar sending the document and don’t allow accept gifts that would reflect an improper obligation.
What is a conflict of interest?
A conflict of interest arises where there may be an actual, perceived or potential risk that the professional judgement or an RICS regulated firm or member will be compromised when undertaking an assignment.
3 types of conflict of interest?
Confidential information conflict
Own interest conflict
Party conflict
What is a party conflict?
Situation in which the duty of an RICS member or regulated firm acts in the interest of a client in a professional assignment which conflicts with a duty owed to another client in relation to the same or a related professional assignment.
What is an own interest conflict?
A situation in which the duty of a RICS member or regulated firm acts in the interest of a client in a professional assignment which conflicts with the interests of the same RICS member/firm.
What is a confidential information conflict?
A conflict between the duty of a RICS member or regulated firm to provide material information to one client and the duty of that RICS member/firm to another client to keep that same information confidential.
What is an information barrier?
Physical and or electronic separation of individuals within the same firm that prevents confidential information passing between them.
What is informed consent?
Informed consent occurs when a party who might be adversely affected by a conflict of interest acknowledges the existence of that risk but still agrees to instruct a RICS regulated firm or member to proceed with the assignment.
What standards must be met in a PII policy?
- Insurance must be adequate and appropriate.
- must have RICS minimum policy wording.
- the minimum level of indemnity must meet RICS requirements (based upon the table detailing our firms turnover in the proceeding year, as detailed in the ‘RICS Professional indemnity insurance requirements” document from July 2024 (V10)
- Maximum level of uninsured excess based upon the limit of indemnity.
- must be fully retroactive.
- must be underwritten by a listed insurer
- cover for past and present employees
- run off cover. (For a minimum of 6 years).
6 principles of the bribery act?
Proportionality
Top level commitment
Risk assessment
Due diligence
Communication
Monitoring and review
4 main offences under Bribery Act 2010
Bribing another person
Being bribed
Bribing a foreign public official
Failure by a commercial organisation to prevent bribery.
What is modern slavery?
Modern slavery is the illegal exploitation of people for personal or commercial gain.
Covers a wide range of abuse and exploitation.
Modern slavery legislation?
Modern slavery act 2015
Examples of modern slavery?
Forced labour - people forced to work against their will, under the threat of some form of punishment.
Child slavery
Human trafficking - involved transporting or recruiting people for the purpose of exploitation, using violence or threats.
Forced marriage - when someone is married against their will and cannot leave the marriage. Includes child marriages.
Debt bondage - when people borrow money, they cannot repay and are then required to work to pay off the debt.
Negligence
Is a tort.
Professional negligence is a failure to provide services with the standard of skill and care that would be expected from a reasonable body of the professionals peers.
