Ethics

Question 1

Where would you find the Code of Ethics?

Answer 1

RICS website

Question 2

What is the limit on the CBRE gift register?

Answer 2

Anything over £100 gets recorded

Question 3

Difference between a Practice Statement, Information Paper and Guidance Note?

Answer 3

PS = mandatory
IP = provides information / research, not mandatory
GN = best practice guidance

Question 4

Example of Professional Statement you have used?

Answer 4

UK Commercial Real Estate Agency, 2016

Property Measurement, 2018

Question 5

Example of Guidance Note?

Answer 5

Surveying Safely, Health and Safety Principles for Property Professionals, 2nd Edition, 2018

Question 6

New Rules of conduct?

Answer 6

1) Act with integrity,
2) Maintain professional competence
3) Good quality and diligent service
4) Treat others with respect, encourage D&I
5) Act in public interest

Question 7

How would you set up your own business?

Answer 7

Insurance, register with RICS, complaints handling procedure, client money handling.

Question 8

What will your involvement with RICS be post qualification?

Answer 8

Ongoing CPD, registered valuer, APC doctor, matrics events

Question 9

Why do you want to be a member?

Answer 9

Globally recognized organisation, status and recognition, access to network and knowledge.

Question 10

What are the warning signs of money laundering?

Answer 10

Can’t establish proof of funds, something doesn’t add up, won’t comply with AML checks.

Question 11

Aside from PII, what are some other type of insurance you may need to take out?

Answer 11

Building insurance, car insurance, contents insurance, business interruption insurance, fire insurance

Question 12

Can you tell me about the Bichard Review?

Answer 12

Independent review by Lord Bichard, aiming to clarify the purpose of RICS, including its responsibility to the public.

Question 13

What are the requirements for RICS regulation?

Answer 13

If 50% of principles in a UK company are RICS members, then the firm has to be regulated.
If 25% then it can at least apply to be regulated.

Question 14

When could you be handling client money?

Answer 14

deposit, service charge, rent, retention (withholding payment)

Question 15

How would you close a firm?

Answer 15

Inform RICS
Inform clients, agree handover arrangements
Return any monies held
Inform insurers and procure PII run off cover (min 6 years)
Retain client files (min 6 years)

Question 16

What is Professional Indemnity Insurance?

Answer 16

Mandatory insurance that protects clients, surveyors and third parties against negligence where a duty of care is breaches
All members must ensure they have adequate and appropriate insurance in place for each instruction

Question 17

What is CBRE’s Money Laundering Policy/procedure?

Answer 17

• Requirement to undertake a check on all parties in a buying or selling transaction
• Requirement to undertake checks on all parties in leasehold transactions where the annual rent exceeds £100,000

Key checks:
- Client due diligence (identity checks)
- Source of Funds Checks (if funds come from another party than the purchaser, must also be checked)
- Source of Wealth (what is known about the client is consistence with their expected income)
- Counterparty checks (other side of the transaction)
- Checks must be undertaken before ‘establishing a business relationship’

Question 18

What are the key provision of the Countering, Bribery, Corruption, Money Laundering and Terrorist Financing Professional Statement?

Answer 18

Provide staff training
Have appropriate internal controls

Question 19

Why were the new Rules of Conduct introduced?

Answer 19

They came into effect in February 2022.
They replaces the rules for members and firms that had been in place since 2007, they provide one clear framework.

Question 20

How does CBRE deal with a complaint?

Answer 20

Acknowledge receipt of the complaint within 7 days, then investigate and respond with in 21 days. If they are not happy with the response they can go to the CEDR.

Question 21

How is technology playing a part in real estate these days, 2 examples?

Answer 21

Matterport and Teams/Zoom.

Question 22

When was the RICS founded?

Answer 22

1868

Question 23

What are the offences of the Bribery Act 2010?

Answer 23

Receiving a bribe
Giving a bribe
Bribing a foreign official
Failing to prevent a bribe

Question 24

Offences of the Proceeds of Crime Act 2000?

Answer 24

Tipping off
Assisting criminal to invest funds
Failing to report suspicion

Question 25

Two issues currently affecting RICS?

Answer 25

Lack of diversity within the profession
Lack of trust within the RICS