Ethics Flashcards

1
Q

5 Rules of Conduct

ICSRP

A
  1. Members and firms must be honest, act with integrity and comply with their personal obligations to RICS
  2. Maintain their professional competency and ensures that services are provided by competenant individuals
  3. Provide good quality and diligent service
  4. Treat others with respect and encourage diversity and inclusion
  5. 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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2
Q

RICS Rules of Conduct (2021)

A
  • Effective from 2nd February 2022
  • The Rules of Conduct replaced the 5 Global Professional and Ethical Standards
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3
Q

Why new rules of conduct?

A
  • Previous rules had been in place since 2007
  • Majority of RICS members, firms and the public voted in favour of replacing the existing rules
  • Simpler structure into a single document to provide clarity
  • Clear examples
  • Greater focus on diversity and inclusion
  • Tackling global challenges (ESG, technology)
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4
Q

What is the difference between Ethics and Rules of Conduct?

A
  • Ethics are a set of moral values
  • Rules of conduct are a framework that we work to
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5
Q

Why does RICS have rules of conduct?

A
  • To provide a framework to work to and so clients know they are getting a set level of service
  • The Rules of Conduct are a useful professinal guide for members
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6
Q

RICS Ethics Decision Tree

A
  • The Decision Tree provides a framework of questions which members should ask themselves when facing a situation in which they are asked to act in a potentially unethical situation
  • Guides professionals through the decision-making process. Aim is to ensure that any action taken is ethical, transparent and in the best interest of clients and the public. By following the decision tree, professionals can make consistent decisions that align with RICS standards and can be justified and documented if needed
  • RICS Regulation Confidential Hotline offers assistance to members with any ethical issues

Supporting materials are provided on the RICS website

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7
Q

Social Media

A
  • The updated ‘Use of social media: Guidance for RICS members’ (2024), includes guidance which specifically addresses what might be considered unacceptable sexual behaviour, the expectations of RICS Members and how RICS may address complaints
  • The document also says the RICS is likely to investigate concerns about social media posts where they involve discrimination, dishonest, bullying etc.
  • If it is felt a post may damage public confidence or trust in the profession, the RICS may take disciplinary action

RICS provides guidance but any ethical decision - Decision Tree/Hotline

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8
Q

Negligence

A

Where there is a duty of care which is breached leading to damages

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9
Q

Negligence/PII Cover - Merrit V Babb Case Law

A
  • This case dates back to 2001 and highlights the importance of having run-off cover in place
  • A surveyor was sued for negligence by a former client
  • Because the surveying firm was no longer in existence, the individual surveyor was pursued for damages successfully
  • This highlighted the need to ensure that run-off cover is in place for all previous employees
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10
Q

Limitations Act (1980)

A

The current limitation periods for negligence are:
* Contract - 6 years from the date of negligent act/breach of contract
* Tort - 6 years from the date the claimant suffered the loss
* A long stop position of 15 years if the claimant did not know a loss was suffered earlier

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11
Q

Avoidance of Negligence

A

Negligence claims can be avoided or reduced by undertaking the following:
* Understanding the client’s objectives and confirming instruction in writing in ToE
* Ensure you are competent to take instruction
* Undertake the work in accordance with RICS advice, including ‘Professional Standards’ and ‘Practice Information’
* Keep up to date with market knowledge and legislation - record your CPD
* Cap the professional liability excess on your PII policy in ToE

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12
Q

Complaints Handling Procedure must…

A
  • Include a redress mechanism
  • Be issued within Terms of Business
  • Advise PII of a complaint immediately
  • Be investigated within 28 days
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13
Q

Complaints Handling Procedure

RICS Guidance Note on Complaints Handling (2016)

A
  • It is a requirement for RICS firms to have a published CHP
  • ToE should always be issued with reference to CHP
  • Always notify PII insurers if there is a complaint as could lead to a claim for negligence
  • Firms must include an RICS approved Alternate Dispute Resolution mechanism in their CHP
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14
Q

The Procedure for Handling a Complaint

A
  • Stage 1 (In House): details of CHP should be issued whenever the firm receives a complaint. Complaints should be acknowledged in 7 days and investigated in 28 days
  • Stage 2 (ADR - Third Party): if the complaint is unresolved it is referred to a third party e.g, CEDR (Centre for Effective Dispute Resolution)

RICS will only become involved if members fail to respond

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15
Q

Independent redress scheme

A

Consumer scheme designed to handle small issues that would be too disproportionally expensive to take to court

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16
Q

Sole practitioner

A

Can nominate a surveyor in another firm to act as their complaints handling officer

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17
Q

Disciplinary Procedures

A
  • In place to protect the public, uphold the public confidence in the profession and uphold standards
  • Undertaken by the Standards and Regulation Board
  • Can be triggered by someone complaining to the RICS, an allegation by a client or information received by the RICS
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18
Q

3 levels of disciplinary action

A
  1. Action by the Head of Regulation - can serve a fixed penalty or make a Regulatory Compliance Order (not completing enough CPD for example)
  2. Disciplinary panel - more serious breaches of conduct (can result in fines or expulsion or Regulatory Compliance Order) / Regulatory Tribunal
  3. Appeal panel
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19
Q

Conflicts of Interest

A

Arises when impartiality/independence is threated due to the existence of a conflict

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20
Q

Conflict Avoidance

A

Avoidance is when you don’t accept the instruction

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21
Q

Conflict Management

A

Management is when you put measures in place to manage the conflict e.g. information barrier

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22
Q

RICS Conflicts of Interest Professional Standard 2017

A
  • Effective from 1st January 2018
  • Members must not advise or represent a client where doing so would involve a conflict of interest
  • There are 3 types of conflicts of interest: Party Conflict, Own Interest Conflict, and Confidential Information Conflict
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23
Q

Party Conflict

A

Relating to work on the same or related instruction for two different parties

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24
Q

Own Interest Conflict

A

Relating to a peronal interest (family, member, friends etc.)

Section 21 of Estates Agency Act 1979

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25
Q

Confidential Information Conflict

A

Relating to work between two parties that is confidential

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26
Q

Informed Consent

A

Written consent explaining the position, being entirely transparent and ensuring the part affected understand what they are doing

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27
Q

Example of Conflicts of Interest Management

The potential conflict of interest was tenant’s interest and landlord’s interest

A
  • Tenant’s interest - negotiate more favourable terms, such as a lower rent or flexible conditions; or
  • Landlord’s interest - my firm has a pre-existing relationship with the landlord, aiming to secure the best terms
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28
Q

Steps to manage the conflict

A
  1. Recognise the potential conflict
  2. Inform both tenant and landlord about the conflict
  3. Proposal - the use of setting up an information barrier, with no sharing of sensitive information between teams
  4. Request written consent from both tenant and landlord
  5. After consent, set up the information barriers
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29
Q

Information Barriers

A
  • Must be physically separated, preferably in different buildings or on different floors
  • All info should be securely stored
  • Keeping a clear audit trail
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30
Q

Dealing with a Conflict of Interest

A

Step 1: Conflict avoidance
Step 2: Written advice
Step 3: Conflict management

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31
Q

Step 1: Conflict of Avoidance

A
  • When you learn about a potential conflict, first decide if the conflict is too significant to manage
  • Decide whether you can manage the conflict transparently or if you should decline the work with one of the clients to avoid the conflict altogether
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32
Q

Step 2: Written Advice

A
  • If you decide you can manage the conflict, write to both Clients as soon as possible
  • Explain the conflict, how it might affect your work and how you plan to deal with it e.g. setting up an information barrier
  • Make sure both clients understand the situation clearly
  • Ask both clients to confirm to writing that they understand the conflict and agree to your proposed solution
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33
Q

Step 3: Conflict Management

A
  • Once both clients agree in writing, put your conflict management plan into place
  • E.g. set up an information barrier
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34
Q

Professional Indemnity Insurance

A
  • Mandatory for surveyors in all disciplines as set out in RICS Professional Indemnity Insurance Requirements July 2024
  • The purpose is to protect clients, surveyors and third parties against negligence claims when the duty of care is breached
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35
Q

What are the benefits of PII?

A
  • Individual: is protected from financial losses
  • Individual: the firm does not have to meet the claim from their own assets and resources
  • Client: they are able to recover their financial losses
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36
Q

What are the requirements for PII?

A
  • The policy cover must be made on an “each and every” claim-made basis
  • The policy should include cover for past/present employees and directors
  • The policy should be retroactive - PII covers claims that are made during the period of insurance regardless of when the negligent act occured
  • Underwritten by an RICS approved insurer
  • PII cover is needed for pro-bono work
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37
Q

Measures to avoid PII claims

A
  • Keep detailed records
  • Use Terms of Engagement
  • Use RICS guidelines
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38
Q

The Limitation Periods for PII

A
  • 6 years when executed under hand
  • 12 years when executed as a deed
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39
Q

RICS Assigned Risk Pool

A

For members who can’t arrange cover

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40
Q

RICS Practice Information - Risk, Liability and Insurance (2023)

A
  • Recommends the use of liability caps to manage risks associated with professional work
  • Make it clear that advice can only be relied upon by the client named in their terms of engagement
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41
Q

Minimum Levels of Indemnity

Based on turnover of the firm

A
  • If a firm’s turnover is £100k or less the minimum level of indemnity is £250k
  • If a firm’s turnover is £100k to £200k minimum level of indemnity is £500k
  • If a firm’s turnover is £200k+ minimum level of indemnity is £1m
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42
Q

Maximum Uninsured Excess of PII

A
  • For companies with a turnover in excess of £10m, there is no max limit
  • For companies with a turnover of up to £10m, the max uninsured excess is ‘the greater of 2.5% of the sum insured or £10,000’
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43
Q

Gifts and Bribery

A
  • The key legislation is the Bribery Act (2010)
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44
Q

Bribery Act (2010)

A
  • Aims to reduce bribery in business in the UK
  • A bribe can be: giving, offering, promising or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust
  • Bribery Act is policed by the Serious Fraud Office
  • Max penalty of: 10 years imprisonment/unlimited fine for individuals; unlimited fines for companies
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45
Q

The Bribery Act (2010) - 6 main principles

A
  1. Proportionality
  2. Top level commitment
  3. Risk assessment
  4. Due diligence
  5. Communication
  6. Monitoring and review
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46
Q

The Bribery Act (2010) - 4 main offences

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign public official
  4. Failing to prevent bribery
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47
Q

Hospitality (Meals + Events) v Bribery (Money + Gifts)

A
  • Certain forms of lavish corporate entertainment can be classified as bribery
  • Government guidance states that hospitality is not prohibited by the Act. Offering a client reasonable and proportionate hospitality will not constitute an offence, such as tickets to a major sporting event or taking clients for meals, as long as this is accurately recorded in a gift/hospitality register
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48
Q

Hospitality

A
  • Gestures like meals, invitations to events or social interactions
  • Purpose is to build relationships or networking opportunities
  • As long as it’s reasonable, proportionate and transparent
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49
Q

Bribery

A
  • Offering, giving, or receiving something of value, like money or gifts, to influence a decision
  • The purpose here is the intent to corruptly influence the recipient to act in favour of the giver
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50
Q

JLL Gift Registry Policy

A
  • Have regard to gift proportionality
  • Can never accept cash, no matter the amount, corporate hospitality for public or government officials, or political donations
  • Must report the giving or receiving of any corporate hospitality involving gifts worth over £50 or entertainment worth over £200
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51
Q

If asked about acceptance of cash, gift or hospitality consider …

A
  • Bribery Act 2010
  • RICS Professional Standard
  • JLL procedures
  • Professional objectivity, openess and transparency
  • Proportionality
  • Tax implications
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52
Q

RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing (2019)

A
  • This sets out the mandatory global requirements for RICS members and firms in relation to bribery, corruption, money laundering and terroist financing
  • It is divided into 3 parts
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53
Q

3 Parts of the RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing (2019)

A
  1. Mandatory requirements for RICS Firms
  2. Guidance supporting good practice
  3. Supplementary guidance
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54
Q

1) Mandatory Requirements for RICS Firms

A

Bribery & Corruption
* Not offer or accept any bribe
* Have procedures in place to comply with the law
* Report suspicion
* Act with due diligence
* Retain records

Money Laundering & Terroist Financing
* Not facilitate in Money Laundering or Terrorist Financing
* Have systems in place to comply with the laws
* Report suspicion
* Evaluate the risks presented to the firm
* Use third-party reliance for check
* Understand client and purpose of instruction
* Verify the client with ID checks
* Retain records

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55
Q

2) Guidance Supporting Good Practice

A
  • Have a written policy for the procedures
  • Publish a code of behaviour for staff
  • Encourage transparency - through staff training, maintaining detailed records, and regular compliance checks
  • Set up a gifts register
  • Keep up to date with legislation
56
Q

3) Supplementary Guidance

A

Establish a ‘risk-based approach’: consider the following when assessing risks to your business:
* Who you act for
* What you are doing
* Why you are being asked to do something

When dealing with PEPs, they are at higher risk as they hold positions of influence, and enhanced due dilgence is required

57
Q

Money Laundering

A
  • Money laundering is when proceeds of criminal activities are disguised or converted and then realised as legitimate assets
  • The Terrorist Financing and Transfer of Funds Regulations (2017) (amended in 2023) covers estate agency work inside and outside the UK by a firm
58
Q

Key provisions of the Terroist and Transfer of Funds Regulations (2017)

A
  1. Have a written money laundering and terroist financing risk assessment
  2. Provide staff training
  3. Comply with new customers, enhanced and simplified due diligence requirements
  4. Comply with the requirements relating to PEP’s
  5. AML due diligence checks
  6. Ensure appropriate record keeping
59
Q

Firms must have policies to identify and scrutinise transactions which are…

A
  • Complex or unsually large
  • Contain unusual patterns of transactions
  • Without apparent economic or legal purpose
60
Q

How do you carry out Anti-Money Laundering Checks?

A
  • At the outset of a transaction, I upload details of the client onto Salesforce
  • This triggers the necessary AML processes, which are undertaken by my firm’s compliance department
  • They conduct online searches and use publicly available info and an online portal to which clients can submit their info and relevant identify documentation
  • Here, they check clients’ IDs, check where money is coming from by speaking with banks, check statements and identifying beneficial owners
61
Q

Levels of Due Diligence for Money Laundering Checks

A
  1. Customer Due Diligence (CDD)
  2. Enhanced Due Diligence (EDD)
62
Q

Customer Due Diligence

A
  • Identify and verify the client based on a reliable form of identification (passport, drivers’ licence)
  • Identify beneficial owners of the client and/or Persons of Significant Control - Companies House
  • Obtain information on any funding arrangements and nature of business
63
Q

Enhanced Due Diligence

A
  • Additional procedures required for transactions or business involving a person in a ‘high-risk third country’ or a ‘politically exposed person’ (PEP)
  • Generally more detailed investigations into the purpose of the transaction and increased monitoring
64
Q

Politically Exposed Person (PEP)

A

Someone who presents a higher risk of involvement with bribery or money laundering/corruption

65
Q

Evidence Required for Money Laundering Checks for CDD

For a Public Limited Company

A

The evidence required is London Stock Exchange listing

66
Q

Evidence Required for Money Laundering Checks for CDD

For a Private Limited Company

A

The evidence required would include: certificate of incorporation, full name, registered number, registered office, business address, names of all directors and names of all shareholders (with 25%+ holding), identification of a higher risk client

67
Q

Evidence Required for Money Laundering Checks for CDD

For a Private Individual

A

The evidence required would include: copy of passport/driving licence and copy of bank statement to show evidenec of address (no more than 3 months old)

68
Q

Evidence Required for Money Laundering Checks for CDD

For a Publicly Accountable Body

A

The evidence required is Government ownership/control

69
Q

If asked about Anti Money Laundering consider…

A
  • Money Laundering, Terroist Financing and Transfer of Funds Regulations 2017
  • RICS Professional Standards, but law comes first
  • Government guidance for estate agents
  • Due diligence procedures
  • Professional objectivity, openness and transparency
  • ‘Red Flags’
70
Q

Other requirements of the Money Laundering, Terroist Financing and Transfer of Fund Regulations (2017)

A
  • 10,000 euro limit for the acceptance of cash
  • Firm must maintain detailed records for a minimum of 5 years
  • Any suspicious activity should be reported by the Money Laundering Reporting Officer to the National Crime Agency
71
Q

AML Penalties - failure to comply with regulations

A
  • Up to 14 years in prison/unlimited fine for assisting with money laundering
  • Up to 5 years in prison/unlimited fine for tipping someone off that they are under investigation
72
Q

Red Flags associated with Money Laundering

A
  • Inability or unwillingness to provide identity documents
  • Changes to parties involved in transactions
  • Unexpected urgency or unusual behaviour
  • Payment of fees in unusual currencies
73
Q

Sanctions and Anti-Money Laundering Act (2018)

A
  • Following geopolitical activities such as the Ukraine conflict, wider sanctions have been enforced
  • HM Treasury’s Office of Financial Sanctions Implementation provides regular updated guidance against countries, companies and individuals
74
Q

RICS Anti-money laundering sanctions update (2022)

A

Provides a reminder about sanctions and estate agents’ role in enforcing these, including:
* Understand red flags
* Have regards to high-risk countries and political exposed people
* Check clients against the HM Treasury’s ‘consolidated list’

75
Q

Proceeds of Crime Act 2002

A

Provides powers for enforcement authorities to recover money/assets in criminal proceedings

76
Q

Economic Crime Act 2022

A

Measures for overseas entities owning property in the UK, allowing easier prosecution and powers on Unexplained Wealth Orders (UWO)

77
Q

Terms of Engagement

A
  • Sets out scope of instruction and clients agreement to fees, along with the complaints handling procedure and PI cover
  • Must get written approval from the client before you start the instruction
78
Q

Decline an insutrction if:

A
  • You are not competent to undertake work
  • There is any conflicts of interest present
  • A PII liability cap cannot be agreed
  • The advice is for a friend or pro bono basis and your PII will not cover work carried out on a personal basis
  • The client is on the UK sanction list
79
Q

Fee Negotiations

A
  • Should be market-based and agreed on an ad-hoc basis
  • Can revise fees if scope of instruction changes
  • Should avoid fee under-cutting another firm
  • Be transparent with your client; any referral fees should be clearly outlined in TofE
  • Have regard to Bribery Act 2010 and the RICS Rules of Conduct (2021)
80
Q

How are fees calculated?

A

Should consider the amount of time and resources required and that you have the appropriate expertise

81
Q

What is included in a fee proposal?

A
  • Terms and Conditions
  • Scope of services
  • Exclusions
  • Assumptions
82
Q

Handling Client Money - RICS Professional Standard: Client Moeny Handling (2019)

A

When handling client money:
* Client accounts must be kept separate and clearly identifiable
* The word ‘client’ must be marked on the bank account
* Client must have on demand access to their moeny
* Firms handling money must display procedures on their website

RICS also runs a Client’s Money Protection Scheme for claims from clients which provides last resort money protection in instances withere an RICS regulated firm is unable to repay a client’s money. This is provided through an RICS insurance policy.

83
Q

Process Regulated Firms do when Handling Client’s Money

A

RICS firms that operate a client account must:
* Set clear segregation of duties for employees
* A Principal that oversees the client’s money accounting functions
* Accounting systems and data must be secure
* Client money must be kept separate and clearly identified with the word ‘client’ included in the bank account name
* Client must always have access to funds

84
Q

What are the different types of client money accounts?

A
  • General accounts that holds money for more than one client
  • Discrete accounts that hold a single named client
84
Q

For a firm to register with the RICS:

A
  1. Type of business and staffing details
  2. Name of Responsible Principal - this person ensures compliance of the firm and its members
  3. Statutory regulated activities - e.g. financial services
  4. Nature of clients
  5. Complaints handling procedure details and records
  6. Professional Indemnity Insurance details
  7. Whether the firm holds client money

If a firm has more than 50% RICS accredited Principals it must be regulated, and if firms have a minimum of 25% they can apply.

85
Q

Confidentiality

A
  • RICS Byelaws state “client confidentiality must be maintained for all client affairs”. This includes historic information and information provided by a client prior to instruction
  • If third party wants to access your files you must get client approval first - can lead to HMRC investigation
  • Must hold files for a min. of 6 years
86
Q

How do you keep up to date with topical issues?

A
  • I am on the mailing list for several CPD providers
  • I follow updates of the RICS social media accounts
  • I get emailed from CoStar News
87
Q

Starting a New Practice - RICS Compliance Procedure

A
  • Contact RICS for guidance and obtain a company start up pack
  • Inform the RICS of new practice and register for regulation
  • Appoint a Responsible Principal for all RICS communication
  • Prepare a complaints handling procedure
  • Arrange PII cover and send details to RICS
  • Set up a procedure for clients money handling, including a protection scheme
  • Appoint Complaints Handling Officer
  • Abide by the Rules fo Conducts for firms
88
Q

Starting a new practice - Statutory Compliance Procedure

A
  • Disclose business name
  • Disability discrimination compliance (Equality Act 2010)
  • Financial Services compliance
  • Bribery Act (2010) compliance
  • Appoint a Money Laundering Officer
  • Health and Safety compliance
  • Inform HMRC for VAT and Tax Registration (VAT threshold is £90k pa turnover)
  • Fire Safety Compliance
  • Asbestos register
  • Data protection compliance
  • Ensure compliance with current employment law i.e. National Living Wage, Gender Pay Gap reporting etc.
  • Ensure insurance compliance for employer and public liability
89
Q

Closing a Practice

A
  • Inform the RICS and deregister
  • Inform clients at the earliest opportunity
  • Return any monies held by clients to their own accounts
  • Inform insurers and procure PII run-off cover for min 6 years
  • Hold records and files for a min 6 years
90
Q

Insurances you need when Starting a New Practice

A
  • PII
  • Employer’s Liability
  • Public Liability
  • Building insurance for an office premise
91
Q

Annual Returns Required by RICS regulated firms

A

Firms must submit a mandatory annual return to the RICS, wich includes:
* Type of business and staffing
* Nature of clients
* Training provision
* Complaints handling procedure details and records
* PI insurance details
* Whether the firm holds clients’ money

This is to be carried out online and failure to do so leads to a fixed penalty

92
Q

Professinal Obligations of RICS Regulated Firms

A
  • Firms must publish a complaints handling procedure, which includes an alternative dispute resolution provider
  • Firms must ensure work is covered by PII
  • Firms must cooperate with RICS and report to RICS
93
Q

RICS members must:

A
  1. Comply with CPD requirements set by RICS
  2. Cooperate with rICS
  3. Provide all information reasonably requested by the Standards and Regulations Board
94
Q

Continuining Professional Development requirements:

A
  1. Members must undertake a min of 20 hours CPD in a year
  2. 10 hours of this must be Formal CPD
  3. All members must maintain a relevant and current understanding of the RICS Rules of Conduct during a rolling 3-year period
  4. All members must record their CPD activity using the RICS CPD Management System available online
95
Q

Formal CPD

A
  • Includes all forms of structured learning that has clear learning objectives and outcomes
  • Examples include structured online training
96
Q

Informal CPD

A
  • Includes any self-managed learning that is relevant or related to your professional role
  • Includes private study, on the job training and informal seminars
97
Q

What are the conditions of informed consent?

A

Consent is in their best interest and not prohibited by law

98
Q

Regulatory Compliance Order

A
  • For low level breaches of the Rules, such as for some minor breaches which could be easily corrected
  • Written document which states the terms upon which the member or firm must take or desist from taking actions in a specified time period and an agreement to pay a fine
  • RCO may cover issues such as non-compliance with RICS Rules
99
Q

JLL Complaints Policy

A

Acknowledged 7 days
Investigated 15 days

100
Q

Background to the RICS

A
  • RICS was founded in 1868
  • RICS has a Royal Charter, initially granted by Privvy Council in 1881
  • RICS Regulation and Bye-laws set out the governance of the Institution
101
Q

4 levels of membership

A
  1. RICS Fellow - FRICS
  2. Chartered Member - MRICS
  3. Associate Member - AssocRICS
  4. RICS Student
102
Q

Current Governance Structure

A
  • RICS is currently governed by various internal councils and boards
  • There are 17 specialist professional groups covering property, land and construction
103
Q

Who is the current president of the RICS?

A

Nicholas Maclean has been appointed as the Acting President and Acting Chair of Governing Council.

104
Q

Who is the current CEO of RICS?

A

Justin Young

105
Q

RICS 3 main roles:

A
  1. To maintain the highest standards of education and training
  2. To protect consumers through strict regulation of professional standards
  3. To be the leading source of information and independent advice on land, property, construction and associated environmental issues
106
Q

Bichard Review

A
  • Following the Independent Review of internal governance failings within RICS in 2021, the RICS commissioned Lord Bichard to undertake a further review
  • The RICS agreed to adopt all the Bichard recommendationa in 2022
  • The aim is to deliver a member-led public interest focussed RICS with 5 key themes of governance, strategy, people, culture and values and members
107
Q

RICS published 5 Future Foundations in Nov 2023 following the Bichard Review

A
  1. Vision - a natural & built environment that is sutainable for all
  2. Mission - inspire members & uphold standards
  3. Strategic goals - lead & influence on sustainability
  4. Values - professional, collaborative, and inclusive
  5. A world class organisation - an efficient, effective, and inspiring professional body
108
Q

5 benefits of being a RICS member

A
  1. Status
  2. Recognition
  3. Market advantage
  4. Knowledge
  5. Network
109
Q

Practices that can register to the RICS

A
  • Corporate body
  • A partnership
  • LLP
  • Sole practitioner practice
110
Q

RICS ‘Rules for the regulation of firms’ 2022 state that:

A
  • If 50% of Principals of a UK firm are RICS members than it has to be regulated, if 25% then can apply to be regulated
  • Principals are sole practitioners, directors, partners or board members
  • Each firm must name a ‘Responsible Practitioner’
  • Complete an annual return on the RICS professional portal
111
Q

Information required by the RICS for Registration

A
  1. Type of business and staffing details
  2. Name of the Responsible Principal
  3. Statutory regulated activities
  4. Nature of clients
  5. Complaints handling procedure details and records
  6. PII details
  7. Whether the firm holds clients’ money
112
Q

Definition of money laundering

A

Money laundering is when proceeds of criminal activities are disguised or converted and then realised as legitimate assets

113
Q

Failure to undertake appropriate CPD may result in sanctions such as

A

A Fixed Penalty and Disciplinary Panel action resulting in expulsion

114
Q

Appendix A

A

Mandatory Professional Obligations

115
Q

Name some of the questions within the ethics decision tree

A
  • Is it legal?
  • Is it in line with the rules of conduct?
  • Does it have sufficient facts?
116
Q

What are the methods of ADR?

A
  • Negotiation
  • Mediation
  • Adjudication
117
Q

JLL’s Terms of Business

A
  • Services provided
  • Complaints Handling Procedure
  • Liability
  • Data protection
118
Q

Who is JLL’s Sole Principal?

A

Simon Peacock

119
Q

When was the RICS founded?

120
Q

How many members are there in the RICS?

A

c. 140,000

121
Q

How would you set out third party reliance in terms of engagement?

A

Explicit statement stating that you exclude third party reliance and is confidential

122
Q

Can you provide incremental advice?

A

Yes you can but only when you have information barriers in place and you have informed consent

123
Q

What can trigger a disciplinary procedure?

A
  • Someone complaining
  • A client or third party raising an alligation
  • Information received by or established by the RICS
124
Q

What actions could the Head of Regulation make?

A
  • Fixed penalty notice
  • Regulatory Compliance Order
  • Refer the matter to a singularity tribunal order
  • Refer to the disciplinary panel
125
Q

What is a regulatory compliance order?

126
Q

What is a RICS Professional Standard?

127
Q

Is a RICS Professional Standard mandatory?

128
Q

What is a RICS Practice Information?

129
Q

What is employer liability insurance?

A

Employer liability insurance protects businesses from financial loss due to employee claims for injuries or illnesses arising from work-related activities, covering compensation and legal costs.

130
Q

What are Unexplained Wealth Orders?

A
  • Unexplained Wealth Orders (UWOs) are court orders, introduced in 2017, that require individuals or organizations to explain how they obtained assets, particularly those with a value exceeding £50,000, when there are reasonable grounds to suspect the assets are disproportionate to their known legitimate income
131
Q

What would you do if your client was a match on the UK’s sanction list?

A

Contact the Office of Financial Sanctions Implementation for assistance

132
Q

Who policies the Bribery Act (2010?

A

The Serious Fraud Office

133
Q

Who decides what is a high-risk country?

A

Financial Actions Task Force

Algeria

134
Q

What do you do if you suspect anti money laundering?

A

I would report any suspicious activity to my firms Money Laundering Reporting Officer and then they can issue this to the National Crime Agency who will decide on what next steps to take

135
Q

What are the three main areas of offence of the Proceeds of Crime Act 2002?

A
  1. Concealing criminal property
  2. Arrangements: If a person enters into or becomes concerned in an arrangement which they know or suspect facilitates the acquisition of criminal property
  3. Acquisition use and possession