Ethics Flashcards
1
Q
What are the 5 ethical standards
A
Act with integrity- being straightforward/ trustworthy and acting in the public’s interest
Act in a way that promotes trust in the profession- Understanding how your actions affects others and the profession, doing what you say
Treat others with respect- Treating people fairly, being considerate and never discriminate
Take responsibility- Act with skill and diligence
Always provide a high standard of service- Act within your scope of competence, be transparent about fees, communicate in way that allows your client to make an informed decision.
2
Q
What are the main roles of the RICS
A
Protect the interests of consumers and businesses through strict regulation of the profession
Maintain the highest standards of education and training in the surveying profession
Be the leading source of information and independent advice on land, property, construction and associated environmental issues.
Act in the public’s interest
3
Q
What are the benefits of Joining the RICS
A
Status Recognition Market Advantage Knowledge Network
4
Q
- What are the rules for firms
A
Professional Behavior Competence Service Training and CPD Complaints handing Client Money Indemnity Use of designation Advertising Arrangements in the event of incapacity or death Solvency Information to RICS Co-operate with RICS
5
Q
- What are the rules for members
A
Ethical behavior Competence Service CPD Solvency Information to RICS Cooperation with RICS
6
Q
- What is a conflicts in interest
A
A conflict of interest arises in a situation where there may be an actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment. The most common conflicts that arise include the following:
- A ‘party conflict’ – a situation in which the duty to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.
- An ‘own interest conflict’ – a situation in which the duty to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/firm.
- A ‘confidential information conflict’ – a conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.
7
Q
- How will you deal with a conflict in interest:
A
Informed consent
Reject the instruction
Information barrier
8
Q
- What the required amount of CPD required by a RICS member ?
A
10 hour formal
10 hour informal
9
Q
- What are the percentage split on CPD
A
50% formal
50% informal
10
Q
- How do you deal with Anti money laundry ?
A
Ask customer for proof of address and up to date ID
Carry out due diligence on the customer
If an issue is spotted then report this to the Anti money laundry reporting officer to log a suspicious activity report
11
Q
- What law relates to anti money laundry ?
A
Anti-Money Laundry regulations 2017
12
Q
- What are the penalties of the MLR
A
Up to 14 years in prison or an unlimited fine for assisting with money laundering
Up to 5 years prison sentence and unlimited fine for tipping off a person
13
Q
- What do you need to set up an RICS firm
A
Fill our registration form
Appoint responsible person and complaints handling officer
Indemnity insurance
Approval of Complaints handling procedure
Client money
Arrangements in the event of incapacity or death
Training plan
14
Q
- Who is the president of RICS ?
A
Timothy Neale (2020)
15
Q
- What are the five principles of better regulation
A
Proportionality Accountability Consistency Targeting Transparency
16
Q
- What year was the RICS started
A
1868
17
Q
- Who is the chief executive of RICS
A
Sean Thompkins
18
Q
- In your example why did you accept the Champaign and not the money ?
A
I declined the cash offer as it was right thing to do both ethically and professionally. Having read my company’s gift handling procedures, I was aware that no amounts of cash were allowed to be accepted and that gifts, that are of a proportionate amount to the work carried out, can be accepted by the company but not by the individual. This is why the gift of champagne was entered into the company raffle.
19
Q
- What is an acceptable gift ?
A
In my company a gift up to £250 (No cash) a year is acceptable and only if it is for hospitality or entertainment. Certain types of gifts require prior approval from management.
20
Q
- Why didn’t you advise your friend ?
A
Didn’t have professional indemnity insurance
Referred friend to the find a surveyor service
21
Q
- Why didn’t you accept the flight to France ?
A
The gift could have be misconstrued as an advantage which had the potential to induce ones in its official capacity
22
Q
- Name me a professional standard
A
RICS Valuation- Global Standards (2020)
23
Q
- Name me two guidance notes
A
Surveying safely 2018
Valuation of Development properties 2019
24
Q
- Name me two professional statements
A
Conflicts of interest 1st edition 2017
RICS Property Measurement, 2nd Edition 2018
25
25. How many faculties are there in the RICS
17 professional groups
26
26. Please explain the amount of indemnity for the different turnovers
Up to 100k- 250k
£100,001- £200k – 500k
200k+ - £1m
27
27. What are the three levels of disciplinary action
Action by Head of regulations
Disciplinary panel
Appeal Panel
28
28. What actions can the head of regulations impose:
Serve a fixed penalty notice
Make a regulatory compliance order
CPD sanctions
Refer the matter to the disciplinary panel for consideration
29
29. What penalties can the disciplinary panel impose ?
Issue a compliance order
Impose an unlimited fine proportionate to the offence
Impose conditions upon future continued RICS registration
Expulsion from membership or remove firm
Require publication on website and modus
30
30. What actions can the disciplinary panel take ?
* caution
* reprimand
* undertakings as to future conduct
* fines (in accordance with Supplement 2 to the Sanctions Policy: Fines, Costs and Administration Fees)
* conditions on the Member’s continued membership of RICS
* conditions on the Firm’s registration for regulation
* expulsion of the Member from RICS
* removal of the Firm’s registration for regulation.
31
31. What are the levels of members
Fellow of RICS
Member of RICS
Associate Member of RICS
Student Member
32
32. How do you become a Fellow of the RICS
Here are three core principles at the heart of being an RICS Fellow:
• acting to further RICS and the profession
• acting for the benefit of a third party to reflect RICS’ public interest mandate
• promoting RICS objectives and the profession.
33
33. What is informed consent
Consent given willingly by a party who may be affected by a Conflict of Interest, that party having demonstrated to the RICS member working independently or within a non-regulated firm or regulated firm or member
34
34. Why do you want to become a member of RICS ?
* Recognition
* Uphold professional standards
* Better employment prospects
* Be part of the global network
35
35. What due diligence on a publicly listed company ?
Check London Stock Exchange Listing
36
36. What does being chartered mean ?
Chartered professional is a person who has gained a specific level of skill or competence in a particular field of work, which has been recognised by the award of a formal credential by a relevant professional organization.
37
37. How do you treat other with respect ?
I treat everyone with courtesy, politeness and understand/ consider cultural sensitivities
38
38. How do you act with integrity
I am straightforward in all that I do
39
39. How do you take responsibility
I am always accountable for my actions
40
40. How do you provide a high standards of service ?
I give my clients the best possible advice
41
41. How do you promote trust in the profession?
Acting responsibly in my professional and personal life.
42
42. What is the purpose for the rules of conduct for members/firms?
The Rules provide a strong foundation for RICS, its professionals, and the firms it regulates, helping to protect the public and uphold the reputation of the profession.
The Rules of Conduct demonstrate to clients, consumers and the public the high professional standards that RICS professionals and firms work to. Being able to show that you are a qualified RICS professional or that your firm is regulated by RICS provides independent external confidence.
The Rules of Conduct for Members are mandatory for all RICS professionals, students and trainees regardless of their geographic location and sector of practice.
Rules of Conduct for Firms are mandatory for all RICS regulated firms.
43
43. What is money laundering?
Is the process of making illegally-gained proceeds (i.e., "dirty money") appear legal
44
44. What is an anti-money laundering check?
is an identity assessment to ensure all purchasers etc are who they claim to be, and are not investing on behalf of somebody else.
45
45. If you suspected a client of money laundering, what would you do?
Notify the Money laundry Monitoring officer within my organisation
46
46. What are the money laundering offences?
Accepting
Offering
Failing to report
47
47. Who polices money laundering regulations?
HMRC
48
48. What legislation governs the receiving of gifts/hospitality in exchange for services?
Bribery Act 2010
49
49. What are the key principles of the Bribery Act?
Proportionality - The action taken should be proportionate to the risk and the size of the organisation.
Top level commitment - Those in senior positions are best placed to ensure the organisation conducts business without bribery.
Risk Assessment - Many organisations will have little or no risk of bribery but a risk assessment will show the nature or extent of exposure to bribery.
Due Diligence - This is about having a risk based approach to business relationships - with those you deal with or who provide services for you.
Communication - Employers will need to communicate their policies and procedures to staff and others who perform services, additional training may help raise awareness, and this would be proportionate to the size and type of organisation.
Monitoring and Review - Risks to your organisation may change, over time you may want to carry out regular reviews and re-assessments.
50
50. Who polices the Bribery Act?
Serious Fraud Office
51
51. What are the penalties of breaching the Bribery Act?
Up to 10 years in prison and an unlimited fine.
52
52. Did you physically register the gift and hospitality yourself?
Yes, all gifts received must be entered into the gifts register
53
53. Why wouldn’t you have been able to advise your friend?
Not qualified, and even if you were your advice wouldn’t be covered by PII so you wouldn’t be able to advise
54
54. Could you have directed your friend to a building surveyor in your business or elsewhere?
As I do not work for a surveying firm, directed my friend towards a local surveyor
55
55. Why did the trip to France go against RICS Rules of Conduct?
It did not promote integrity if this was accepted and did not promote trust in the profession
56
56. A client offers tickets for Twickenham, what would be your response ?
Depends on whether it is furthering a working relationship or it is being offered in a time whether tendering in being undertaken. My default position would be to decline if I felt it compromises my ability to make an informed decision without compulsion.
57
57. What is your general view on providing gifts and hospitality
Nothing wrong providing it is within the agreed limits as per my company’s AML policy and that all gifts received are inputted into my company’s gift register.
58
58. How do you have regards for the rules for members
Ethical behavior- I avoid conflicts of interest and act responsibly inside and outside of work.
Competence- I carry out my work with due skill and care and in line with technical standards.
Service- I provide a good professional service to my internal clients and assist where necessary.
CPD- I have carried out the required amount CPD
Solvency- I keep my professional and personal finances appropriately managed.
59
59. How have you managed a conflicts of interest ?
I noticed a conflict by a consultant and asked that they provide a letter confirming how they will deal with that conflict and provide an information barrier.
60
60. What is the fine for the late submission of CPD
First time a Fixed Penalty caution
Second time- £150
Third breach- Disciplinary panel
61
61. What legislation would you have to have regard for when setting up your own company ?
Companies Act 2006
62
62. What are the international ethics standards
```
Accountability
Confidentiality
Conflict of interest
Financial responsibility
Integrity
Lawfulness
Reflection
Standard of service
Transparency
Trust
```
63
When was the new Professional indemnity insurance requirements effective
1st May 2020
64
What is the level on uninsured excess ?
Up to 500k- The greater of 2.5% of sum insured or £10K
Over £500k- 2.5% of the sum insured
65
What is retroactive insurance
This means that the policy covers claims that are first made against the insured during the period of insurance regardless of when the negligent act occurred. If the retroactive date of the policy is stated as ‘none’ then the policy is fully retroactive and all former work carried out by the firm will be covered
66
Do you need to cover past and current employees
Yes
67
How long do you need to have run off cover
The requirement is for a limit of £1,000,000 in all for a period of six years from the expiry date of the policy in force at the time of cessation. RICS’ minimum policy wording will automatically provide this coverage.
68
If you cant get run off cover, what options do you have
Run off pool
69
What is new on the Professional indemnity insurance requirements
Fire safety exclusions
70
What much registered RICS firm display ?
Regulated by RICS
71
Can members use the RICS Logo
Yes, on personal website, business cards and email signatures.
72
What is the benefits of being regulated by RICS
It shows that your firm:
Practises to globally recognised standards.
Behaves ethically and acts with integrity and honesty.
Has the required skills and competencies to do the job.
Manages conflicts of interests transparently.
Safeguards the security of client money.
Manages its finances appropriately.
Provides adequate and appropriate indemnity for your work.
Handles complaints and disputes fairly.
73
What do you need to register a firm for regulation ?
```
Name of firm
Nature of firm's work
Office details
Principals details
Contact officer
Professional indemnity insurance
Complaints handling procedure
A Firm that is registered or registering with RICS must at all times have a Responsible Principal.
Use of designations once approved
```
74
When was the rules for registration of firms effective ?
1st April 2020
75
When was the rules for registration of members and firms effective ?
2nd March 2020
76
When do firms need to register for regulation ?
A Firm is required to register for regulation by RICS if:
a the Firm provides surveying services to the public;
b the Firm is operating in Regulated Area A;
c at least 50% of the Firm’s Principals are RICS Members
A Firm is eligible to register for regulation by RICS if:
a the Firm provides surveying services to the public; and
b at least 25% of the Firm’s Principals are RICS Member
77
Where is the regulated A area ?
United Kingdom
78
What are the key principles of the client money professional statement
Client money is kept safe
Used for appropriate purposes
Controls/ procedures to deal with client money
79
When was the Client money professional statement effective
1st Jan 2020
80
What else should you consider when dealing with Client Money
Keep money separate
Make money immediately available when requested by Client
Use client money for agreed purposes
Obtain written consent before using the funds
81
Who is the president elect of RICS
Kath Fontana FRICS
82
Who is the senior Vice President
Clement Lau
Ann Gray (Winter 2020)
83
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
84
What is Corruption
The misuse of public office or power for private gain, or misuse of private power in relation to business practice and performance
85
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 or other currency through one or more transactions or covering criminal proceeds into seemingly legitimate property
86
What is terrorist financing
The solicitation, collection or provision of funds with the intention that they may be used to support terrorist act or organisations. Funds appropriated directly or indirectly for this purpose constitute terrorist funding
87
What is a professional statement
It sets out the requirements of practice for RICS members and firms that are regulated by RICS
88
What is a guidance note ?
These are documents that provide users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
89
What professional statement deals with Bribery, corruption, money laundering and terrorist financing ?
Countering bribery and corruption, money laundering
and terrorist financing 1st edition, February 2019
Effective September 2019
90
What is the structure of Countering bribery and corruption, money laundering
and terrorist financing 1st edition, February 2019
1. A professional statement setting out mandatory requirements for anti-bribery and corruption and for anti-money laundering and terrorist financing.
2. A guidance note setting out supporting good practice for anti-bribery and corruption and for anti-money laundering and terrorist financing.
3. Supplementary guidance on some of the concepts described in parts 1 and 2.
91
What are the mitigating bribery and corruption ?
1. monitoring the activities of your own organisation
| 2. Being vigilant
92
When confronted with a MLR or bribery issue, who do you notify ?
Nominated officer
93
What is the definition of Tipping off ?
Tipping off broadly means telling or letting a client or some third party know that a report has been made to a local crime agency and/or that there is an investigation ongoing.
94
You mention you use the RICS Ethics Tree, what is it used for and can you give me a few of the questions within it?
It is a tool used when faced with an ethical dilema.
Questions-
Would you be content for your actions to be made public
Is it legal ?
it it in line with the RICS ethical and global standards ?
95
What legal act protects people in the workplace?
(Equality Act 2010)
96
What are the 9 protected chateristics under the Equalty Act 2010
```
age
disability
gender reassignment
marriage and civil partnership
pregnancy and maternity
race
religion or belief
sex
sexual orientation
```
97
What is the definition of an inclusive environment?
An inclusive environment is a safe space in which integration of diverse experiences and perspectives can freely coexist. It’s a place where people feel respected by and connected to each other.
98
What are the RICS doing to promote equality ?
Enhanced global parental leave offering, including full-pay for a minimum of 16-weeks maternity or adoption leave and 10-days paternity leave
Inclusion and diversity training
Global mentorship programme
Global coaching programme
Grassroots programmes, including RICS Be Well and Women at Work
Flexibility practices
Revitalised Management Capability programme
Gender equity and advancement offerings, as highlighted in our annual Gender Pay Gap Report
99
What are the recent changes coming in April 2020 regarding the use of the RICS logo?
2. 1 The RICS logo may only be used by a Member or a Registered Firm, unless otherwise authorised by the RICS.
2. 2 The RICS Registered Firm designation may only be used by an RICS Registered Firm.
Must inlclude regulated by RICS
100
What are the main purposes of holding PII
* The firm is protected from financial loss if it faces a claim that cannot be met from it’s own financial resources
* The firm’s clients are protected from financial loss that a firm cannot meet
* The firm or insured member is protected against the ‘consequences of its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activities’
101
What are the Key changes on the new professional indemnity insurance
* The excess applicable in respect of defence costs has been adjusted to allow insurance providers more flexibility when proposing renewal term.
* Unlimited aggregate round the clock limit of liability, with the aim to provide increased availability of PII insurance to firms.
102
RICS requirements on insurance ?
* Any one claim or aggregate plus unlimited round the clock reinstatement basis;
* RICS’ minimum policy wording or more comprehensive wording. As a minimum, you should ensure that your policy wording is written on a full civil liability basis; and
* the minimum level of indemnity based on the firm’s turnover in the previous year (or estimated for a new firm).
RICS has removed the prescribed fire safety exclusions wording from the minimum policy terms and has temporarily inserted the ability for insurers to apply their own fire safety exclusions
103
What is the EWS form ?
EWS1 was devised as a means of trying to provide mortgage lenders in particular with the comfort necessary to lend knowing that the external wall system has been deemed by a competent professional not to present a fire risk
104
What is the The 5th anti-money laundering directive
Action Plan to tackle the use of the financial system for the funding of criminal activities, terrorist financing and the large‑scale obfuscation of funds.
105
what the president is most passionate about and what he wants to achieve in his time as presidents
Timothy is passionate about the performance of the built environment, talent and organisational development, and leverages his experience of driving this agenda across a broad range of public and private enterprises
106
Give 1 of the ethical values and an example of when you have demonstrated it?
Act in a way that promotes trust in the profession.
I act responsibly inside and outside of work
107
What guidance notes are you aware of ?
Surveying Safely 2nd edition 2018
Financial viability in planning 2012
Development Management 2012
Valuation of land for affordable housing, 2nd edition
Conflict avoidance and dispute resolution in construction
Complaints handling, 1st edition (July 2016)
108
What professional statements are you aware of ?
Conflicts of Interest, 1st edition
Property measurement standards 2nd edition
Real estate agency and brokerage, 3rd edition 2016
Countering bribery and corruption, money laundering
and terrorist financing, 1st edition, February 2019
UK commercial real estate agency
Comparable evidence in real estate valuation 2019
Valuation of land for affordable housing 2016
Valuation of development property 2019
109
What is the correct name for the Red Book ?
RICS Valuation – Global Standards
110
What are the time limits for professional negligence claims ?
Under the Limitation Act 1980 these are:
The applicable limitation period in most professional negligence cases is six years from the date of the negligence.
However, this may be extended where the negligence only becomes apparent at a later stage. In those cases the relevant limitation period is three years from the date of knowledge of the facts which might give rise to a claim.
There is a long stop date of fifteen years within which claims must be brought.
111
What is the purpose of professional indemnity insurance ?
To protect the client, business and third party against your errors or negligence
112
Tell me about how RICS expects insurance claims to be dealt with ?
If a person turns over less than 100k and their PI insurance is 250k, the insurance must cover each client on a per claim basis of up to 250k which is per claim and per year.
113
What are the requirements of setting up a business as a RICS regulated firm ?
```
Complaints handling procedure
Client money
Professional indemnity insurance
Inform the RICS
Arrangements in the event of incapacity or death
```
114
What is included as part of a companies annual return ?
```
Type of business
Statutory regulated activities
Nature of clients
CHP details and records
Professional indemnity insurance details
Whether the firm holds client money
```
115
What do you need to do to close down a practice ?
```
Inform the RICS
Keep clients informed
Return client monies within your firm
Inform insurers (Run off cover for 6 years)
Retain files for 6 years minimum
```
116
What is double dipping ?
Double dipping, double running or dual agency is the practice of acting for multiple parties, usually when undertaking investment work in the property industry, often for both buyer and seller or multiple buyers
117
What are the three types conflict ?
1. Party
2. Own
3. Confidentiality
118
What are the changes on the rules for firms and members ?
Now made by the Regulations and standards board not just the regulation board as previous
119
What is the role of a contact officer ?
Main point of contact and the person authorised by the firm to submit the firms annual return ?
120
What is the role of a principal officer ?
Regulated firms must nominate an individual to be the responsible principal within the firm. The responsible principal will provide oversight and accountability for ensuring a regulated firm meets its responsibilities.
121
What are the stages of money laundering ?
Placement
Layering
Integration
122
Tell me about what you know about behaving ethically ?
The five global ethical standards embodies what behaving ethically is:
In my view it means:
Acting honestly, Fairness, Truthfulness
123
What is the RICS motto ?
Est Modus in Rebus (there is measure in all things)
