Ethics Flashcards
5 Rules of Conduct
ICSRP
- Members and firms must be honest, act with integrity and comply with their personal obligations to RICS
- Maintain their professional competency and ensures that services are provided by competenant individuals
- Provide good quality and diligent service
- Treat others with respect and encourage diversity and inclusion
- Act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
RICS Rules of Conduct (2021)
- Effective from 2nd February 2022
- The Rules of Conduct replaced the 5 Global Professional and Ethical Standards
Why new rules of conduct?
- 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)
What is the difference between Ethics and Rules of Conduct?
- Ethics are a set of moral values
- Rules of conduct are a framework that we work to
Why does RICS have rules of conduct?
- 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
RICS Ethics Decision Tree
- 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
Social Media
- 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
Negligence
Where there is a duty of care which is breached leading to damages
Negligence/PII Cover - Merrit V Babb Case Law
- 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
Limitations Act (1980)
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
Avoidance of Negligence
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
Complaints Handling Procedure must…
- Include a redress mechanism
- Be issued within Terms of Business
- Advise PII of a complaint immediately
- Be investigated within 28 days
Complaints Handling Procedure
RICS Guidance Note on Complaints Handling (2016)
- 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
The Procedure for Handling a Complaint
- 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
Independent redress scheme
Consumer scheme designed to handle small issues that would be too disproportionally expensive to take to court
Sole practitioner
Can nominate a surveyor in another firm to act as their complaints handling officer
Disciplinary Procedures
- 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
3 levels of disciplinary action
- Action by the Head of Regulation - can serve a fixed penalty or make a Regulatory Compliance Order (not completing enough CPD for example)
- Disciplinary panel - more serious breaches of conduct (can result in fines or expulsion or Regulatory Compliance Order) / Regulatory Tribunal
- Appeal panel
Conflicts of Interest
Arises when impartiality/independence is threated due to the existence of a conflict
Conflict Avoidance
Avoidance is when you don’t accept the instruction
Conflict Management
Management is when you put measures in place to manage the conflict e.g. information barrier
RICS Conflicts of Interest Professional Standard 2017
- 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
Party Conflict
Relating to work on the same or related instruction for two different parties
Own Interest Conflict
Relating to a peronal interest (family, member, friends etc.)
Section 21 of Estates Agency Act 1979
Confidential Information Conflict
Relating to work between two parties that is confidential
Informed Consent
Written consent explaining the position, being entirely transparent and ensuring the part affected understand what they are doing
Example of Conflicts of Interest Management
The potential conflict of interest was tenant’s interest and landlord’s interest
- 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
Steps to manage the conflict
- Recognise the potential conflict
- Inform both tenant and landlord about the conflict
- Proposal - the use of setting up an information barrier, with no sharing of sensitive information between teams
- Request written consent from both tenant and landlord
- After consent, set up the information barriers
Information Barriers
- Must be physically separated, preferably in different buildings or on different floors
- All info should be securely stored
- Keeping a clear audit trail
Dealing with a Conflict of Interest
Step 1: Conflict avoidance
Step 2: Written advice
Step 3: Conflict management
Step 1: Conflict of Avoidance
- 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
Step 2: Written Advice
- 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
Step 3: Conflict Management
- Once both clients agree in writing, put your conflict management plan into place
- E.g. set up an information barrier
Professional Indemnity Insurance
- 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
What are the benefits of PII?
- 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
What are the requirements for PII?
- 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
Measures to avoid PII claims
- Keep detailed records
- Use Terms of Engagement
- Use RICS guidelines
The Limitation Periods for PII
- 6 years when executed under hand
- 12 years when executed as a deed
RICS Assigned Risk Pool
For members who can’t arrange cover
RICS Practice Information - Risk, Liability and Insurance (2023)
- 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
Minimum Levels of Indemnity
Based on turnover of the firm
- 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
Maximum Uninsured Excess of PII
- 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’
Gifts and Bribery
- The key legislation is the Bribery Act (2010)
Bribery Act (2010)
- 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
The Bribery Act (2010) - 6 main principles
- Proportionality
- Top level commitment
- Risk assessment
- Due diligence
- Communication
- Monitoring and review
The Bribery Act (2010) - 4 main offences
- Bribing
- Receiving a bribe
- Bribing a foreign public official
- Failing to prevent bribery
Hospitality (Meals + Events) v Bribery (Money + Gifts)
- 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
Hospitality
- 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
Bribery
- 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
JLL Gift Registry Policy
- 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
If asked about acceptance of cash, gift or hospitality consider …
- Bribery Act 2010
- RICS Professional Standard
- JLL procedures
- Professional objectivity, openess and transparency
- Proportionality
- Tax implications
RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing (2019)
- 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
3 Parts of the RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing (2019)
- Mandatory requirements for RICS Firms
- Guidance supporting good practice
- Supplementary guidance
1) Mandatory Requirements for RICS Firms
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
2) Guidance Supporting Good Practice
- 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
3) Supplementary Guidance
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
Money Laundering
- 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
Key provisions of the Terroist and Transfer of Funds Regulations (2017)
- Have a written money laundering and terroist financing risk assessment
- Provide staff training
- Comply with new customers, enhanced and simplified due diligence requirements
- Comply with the requirements relating to PEP’s
- AML due diligence checks
- Ensure appropriate record keeping
Firms must have policies to identify and scrutinise transactions which are…
- Complex or unsually large
- Contain unusual patterns of transactions
- Without apparent economic or legal purpose
How do you carry out Anti-Money Laundering Checks?
- Identity of client by obtaining their address and confirming their address by using 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
Levels of Due Diligence for Money Laundering Checks
- Customer Due Diligence (CDD)
- Enhanced Due Diligence (EDD)
Customer Due Diligence
- 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
Enhanced Due Diligence
- 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
Politically Exposed Person (PEP)
Someone who presents a higher risk of involvement with bribery or money laundering/corruption
Evidence Required for Money Laundering Checks for CDD
For a Public Limited Company
The evidence required is London Stock Exchange listing
Evidence Required for Money Laundering Checks for CDD
For a Private Limited Company
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
Evidence Required for Money Laundering Checks for CDD
For a Private Individual
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)
Evidence Required for Money Laundering Checks for CDD
For a Publicly Accountable Body
The evidence required is Government ownership/control
If asked about Anti Money Laundering consider…
- 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’
Other requirements of the Money Laundering, Terroist Financing and Transfer of Fund Regulations (2017)
- 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
AML Penalties - failure to comply with regulations
- 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
Red Flags associated with Money Laundering
- Inability or unwillingness to provide identity documents
- Changes to parties involved in transactions
- Unexpected urgency or unusual behaviour
- Payment of fees in unusual currencies
Sanctions and Anti-Money Laundering Act (2018)
- 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
RICS Anti-money laundering sanctions update (2022)
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’
Proceeds of Crime Act 2002
Provides powers for enforcement authorities to recover money/assets in criminal proceedings
Economic Crime Act 2022
Measures for overseas entities owning property in the UK, allowing easier prosecution and powers on Unexplained Wealth Orders (UWO)
Terms of Engagement
- 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
Decline an insutrction if:
- 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
Fee Negotiations
- 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)
How are fees calculated?
Should consider the amount of time and resources required and that you have the appropriate expertise
What is included in a fee proposal?
- Terms and Conditions
- Scope of services
- Exclusions
- Assumptions
Handling Client Money - RICS Professional Standard: Client Moeny Handling (2019)
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.
Process Regulated Firms do when Handling Client’s Money
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
What are the different types of client money accounts?
- General accounts that holds money for more than one client
- Discrete accounts that hold a single named client
For a firm to register with the RICS:
- Type of business and staffing details
- Name of Responsible Principal - this person ensures compliance of the firm and its members
- Statutory regulated activities - e.g. financial services
- Nature of clients
- Complaints handling procedure details and records
- Professional Indemnity Insurance details
- 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.
Confidentiality
- 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
How do you keep up to date with topical issues?
- 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
Starting a New Practice - RICS Compliance Procedure
- 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
Starting a new practice - Statutory Compliance Procedure
- 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
Closing a Practice
- 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
Insurances you need when Starting a New Practice
- PII
- Employer’s Liability
- Public Liability
- Building insurance for an office premise
Annual Returns Required by RICS regulated firms
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
Professinal Obligations of RICS Regulated Firms
- 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
RICS members must:
- Comply with CPD requirements set by RICS
- Cooperate with rICS
- Provide all information reasonably requested by the Standards and Regulations Board
Continuining Professional Development requirements:
- Members must undertake a min of 20 hours CPD in a year
- 10 hours of this must be Formal CPD
- All members must maintain a relevant and current understanding of the RICS Rules of Conduct during a rolling 3-year period
- All members must record their CPD activity using the RICS CPD Management System available online
Formal CPD
- Includes all forms of structured learning that has clear learning objectives and outcomes
- Examples include structured online training
Informal CPD
- Includes any self-managed learning that is relevant or related to your professional role
- Includes private study, on the job training and informal seminars
What are the conditions of informed consent?
Consent is in their best interest and not prohibited by law
Regulatory Compliance Order
- 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
JLL Complaints Policy
Acknowledged 7 days
Investigated 15 days
Background to the RICS
- 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
4 levels of membership
- RICS Fellow - FRICS
- Chartered Member - MRICS
- Associate Member - AssocRICS
- RICS Student
Current Governance Structure
- RICS is currently governed by various internal councils and boards
- There are 17 specialist professional groups covering property, land and construction
Who is the current president of the RICS?
Nicholas Maclean has been appointed as the Acting President and Acting Chair of Governing Council.
Who is the current CEO of RICS?
Justin Young
RICS 3 main roles:
- To maintain the highest standards of education and training
- To protect consumers through strict regulation of professional standards
- To be the leading source of information and independent advice on land, property, construction and associated environmental issues
Bichard Review
- 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
RICS published 5 Future Foundations in Nov 2023 following the Bichard Review
- Vision - a natural & built environment that is sutainable for all
- Mission - inspire members & uphold standards
- Strategic goals - lead & influence on sustainability
- Values - professional, collaborative, and inclusive
- A world class organisation - an efficient, effective, and inspiring professional body
5 benefits of being a RICS member
- Status
- Recognition
- Market advantage
- Knowledge
- Network
Practices that can register to the RICS
- Corporate body
- A partnership
- LLP
- Sole practitioner practice
RICS ‘Rules for the regulation of firms’ 2022 state that:
- 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
Information required by the RICS for Registration
- Type of business and staffing details
- Name of the Responsible Principal
- Statutory regulated activities
- Nature of clients
- Complaints handling procedure details and records
- PII details
- Whether the firm holds clients’ money
Definition of money laundering
Money laundering is when proceeds of criminal activities are disguised or converted and then realised as legitimate assets
Failure to undertake appropriate CPD may result in sanctions such as
A Fixed Penalty and Disciplinary Panel action resulting in expulsion
Appendix A
Mandatory Professional Obligations
Name some of the questions within the ethics decision tree
- Is it legal?
- Is it in line with the rules of conduct?
- Does it have sufficient facts?
What are the methods of ADR?
- Negotiation
- Mediation
- Adjudication
JLL’s Terms of Business
- Services provided
- Complaints Handling Procedure
- Liability
- Data protection
Who is JLL’s Sole Principal?
Simon Peacock
When was the RICS founded?
1868
How many members are there in the RICS?
c. 140,000
How would you set out third party reliance in terms of engagement?
Explicit statement stating that you exclude third party reliance and is confidential
Can you provide incremental advice?
Yes you can but only when you have information barriers in place and you have informed consent
What can trigger a disciplinary procedure?
- Someone complaining
- A client or third party raising an alligation
- Information received by or established by the RICS
What actions could the Head of Regulation make?
- Fixed penalty notice
- Regulatory Compliance Order
- Refer the matter to a singularity tribunal order
- Refer to the disciplinary panel
What is a regulatory compliance order?
What is a RICS Professional Standard?
These are the documents which set requirements for competent and ethical practice
Is a RICS Professional Standard mandatory?
Mandatory requirements are where they use the word ‘must’
What is a RICS Practice Information?
These documents provide advice or practice support to RICS members and firms.
What is employer liability insurance?
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.
What are Unexplained Wealth Orders?
- 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
What would you do if your client was a match on the UK’s sanction list?
Contact the Office of Financial Sanctions Implementation for assistance
Who policies the Bribery Act (2010?
The Serious Fraud Office
Who decides what is a high-risk country?
Financial Actions Task Force
Algeria
What do you do if you suspect anti money laundering?
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
What are the three main areas of offence of the Proceeds of Crime Act 2002?
- Concealing criminal property
- Arrangements: If a person enters into or becomes concerned in an arrangement which they know or suspect facilitates the acquisition of criminal property
- Acquisition use and possession
What is the difference between professional indemnity insurance and liability cap?
Professional indemnity insurance (PI insurance) protects a business against claims from clients for professional negligence or mistakes, while a liability cap is a contractual clause that limits the amount a party can be held liable for in the event of a breach or negligence
How is negligence quantified?
Negligence is quantified by assessing the damages suffered by the claimant as a direct result of the breach of duty, and then quantifying the losses, both financial and non-financial
What is Negligence?
Breach of a duty of care which results in damage
What are the two stages of CHP and what does the RICS offer?
Stage One (In House)
Stage Two (ADR - Third Party Resolution)
The RICS Dispute Resolution Service
Why would a client choose a regulated firm rather than a firm that isn’t regulated?
Clients choose RICS regulated firms over unregulated ones because RICS regulation offers assurance of high ethical and technical standards, potentially mitigating risks and enhancing peace of mind
Difference between Professional Standards and Statements?
RICS is in the process of reviewing its standards portfolio because the Standards and Regulation Board wants to ensure that RICS standards and advice documents are up-to-date and easy to use. All documents fit into two categories: Professional Standards and Practice Information
What is The Property Ombudsman?
JLLs CHP redress
The Property Ombudsman (TPO) is an independent, free dispute resolution service for consumers and property agents
What is an inclusive environment?
An inclusive environment is one that welcomes and values all individuals, regardless of their background, characteristics, or abilities.
What would you see on an EPC?
- Rating
- Address
- Score
- Floor area of the property
- Estimated running costs
How do you know when CPD is formal and not formal?
CPD decision tree
What is a RICS byelaw?
Requirement to follow - so that the RICS can self-regulate themselves
What does the Royal Charter allow you to do?
Means the RICS can self-regulate
