Ethics

Question 1

What is general role of the RICS?

Answer 1

1- maintain high standards of training
2- Protect customers though its professional standards
3- Leading source of information

Question 2

What is the RICS: Rules of Conduct? and its principles?

Answer 2

One clear document for members to follow that supersedes the previous ‘Ethical Standards (2015)’.

The rules are:
(1) Be Honest
(2) Professional competence
(3) Diligent service
(4) Encourage diversity and respect
(5) Take responsibility + act in public interest

Question 3

Explain an Ethical Decision Tree?

Answer 3

A set of steps to assist when making ethical decisions.

Steps:
(1) Do you have the facts on the issue?
(2) Is it legal?
(3) Is it in line with Rules of Conduct?
(4) Have you consulted the appropriate people before decision?
(5) Is their clear reasoning for you decision?
(6) Would you be happy if your actions were made public?

Question 4

What is needed to set up your own practice?

Answer 4

1. Inform RICS
2. Appoint a contact officier
3. Register with RICS for regulation
4. Arrange to hold professional indemnity insurance
5. Set up client account for handling money
6. Set up compliants handling procedure
7. Set up staff training + CPD

Question 5

What is needed to close down a firm?

Answer 5

1. Inform RICS
2. Inform clients and return monies held to their accounts
3. Inform insurers and include Prof. Indemnity Insurance run off cover for minimum 6 years
4. Keep client files for a minimum of 6 years

Question 6

Tell me more about RICS?

Answer 6

• Founded in 1868 and received Royal Charter in 1881
• Types of memberships include MRICS, FRICS, AssocRICS, Trainee
• The current president is Justin Sullivan and CEO is Justin Young
• Firms regulated by RICS get 3 key benefits:
  (i) Confidence
  (ii) Security
  (iii) Professionalism
• Registered firms have to send an “annual return” each year about the business (inc. PI insurance, clients, complaints, etc)

Question 7

Why do AML checks and how?

Answer 7

Critical procedure before any new instruction to establish that there is no illegal activity (money laundering) going on.

1 - Identify clients + verify with passport or drivers license
2 - Can use companies name, address & number
3 - if not a listed company then names of directors are required
4 - obtain information on clients business purpose & funding

Question 8

What is a bribe? What is the penalty for breaching the ‘Bribery Act (2010)’?

Answer 8

Giving/receiving an advantage such as payment, gift, or service for an action illegal or breach of trust

If ‘BA2010’ is breached then up to 10yrs imprisonment and unlimited fine.

Question 9

What’s included in normal terms of business?

Answer 9

(1) Client engagement
(2) Definitions
(3) Fees
(4) Client obligations
(5) Measurement
(6) Confidentiality
(7) Data protection
(8) Reliance
(9) Service Quality
(10) Conflicts of Interest
(11) Insurance
(12) Complaints handling procedures
(13) Termination