Ethics Flashcards
Where would you find the Code of Ethics?
RICS website
What is the limit on the CBRE gift register?
Anything over £100 gets recorded
Difference between a Practice Statement, Information Paper and Guidance Note?
PS = mandatory
IP = provides information / research, not mandatory
GN = best practice guidance
Example of Professional Statement you have used?
UK Commercial Real Estate Agency, 2016
Property Measurement, 2018
Example of Guidance Note?
Surveying Safely, Health and Safety Principles for Property Professionals, 2nd Edition, 2018
New Rules of conduct?
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
How would you set up your own business?
Insurance, register with RICS, complaints handling procedure, client money handling.
What will your involvement with RICS be post qualification?
Ongoing CPD, registered valuer, APC doctor, matrics events
Why do you want to be a member?
Globally recognized organisation, status and recognition, access to network and knowledge.
What are the warning signs of money laundering?
Can’t establish proof of funds, something doesn’t add up, won’t comply with AML checks.
Aside from PII, what are some other type of insurance you may need to take out?
Building insurance, car insurance, contents insurance, business interruption insurance, fire insurance
Can you tell me about the Bichard Review?
Independent review by Lord Bichard, aiming to clarify the purpose of RICS, including its responsibility to the public.
What are the requirements for RICS regulation?
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.
When could you be handling client money?
deposit, service charge, rent, retention (withholding payment)
How would you close a firm?
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)
What is Professional Indemnity Insurance?
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
What is CBRE’s Money Laundering Policy/procedure?
- 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’
What are the key provision of the Countering, Bribery, Corruption, Money Laundering and Terrorist Financing Professional Statement?
Provide staff training
Have appropriate internal controls
Why were the new Rules of Conduct introduced?
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.
How does CBRE deal with a complaint?
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.
How is technology playing a part in real estate these days, 2 examples?
Matterport and Teams/Zoom.
When was the RICS founded?
1868
What are the offences of the Bribery Act 2010?
Receiving a bribe
Giving a bribe
Bribing a foreign official
Failing to prevent a bribe
Offences of the Proceeds of Crime Act 2000?
Tipping off
Assisting criminal to invest funds
Failing to report suspicion
Two issues currently affecting RICS?
Lack of diversity within the profession
Lack of trust within the RICS
