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APC ASSESSMENT > Ethics And Rules Of Conduct (Level 3) > Flashcards

Ethics And Rules Of Conduct (Level 3) Flashcards

1
Q

What were the aims of the Bichard Review?

A

Independant review in 2021 into purpose and strategy of RICS.

Comissioned after Levit Review, aimed to create new sense of purpose for RICS

Focus on Diversity and Inclusion

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2
Q

What can you tell me about the Bichard Review?

A

Why Bichard review happened: members complaining about mismanagement of RICS

More D&I: the fact that no careers fair at school actively promote the profession.
In fact, I am involved in my day to day about this. I represent APAM and its property department at careers fair.

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3
Q

What is the difference between Professional Standards and Practice Information

A

Professional standards - requirements and expectations - including mandatory statements

Practice Information - supporting guidance

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4
Q

How many members of the RICS are there?

A

130,000 members globally

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5
Q

When was RICS founded?

A

1868

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6
Q

Who is the RICS president?

A

Tina Paillet FRICS

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7
Q

Who is the RICS CEO?

A

Richard Collins (Interim since 2021)

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8
Q

When did the RICS royal charter?

A

1881 granted by privy council

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9
Q

What is the RICS Mission Statement?

A
  • Qualify and equip professionals
  • Promote enforce standards
  • Lead solutions to major challenges
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10
Q

What are the 4 levels of membership?

A

Trainee
AssocRICS
MRICS
FRICS

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11
Q

What is the governing structure of the RICS?

A

The RICS is self-regulated (not regulated by government)

Royal Charter / Privy Council
Governing Council
Standards and Regulations Board
17 Porfessional Grouos

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12
Q

What is the RICS Motto?

A

There is measure in all things

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13
Q

What is Lionheart?

A

Charity set up for RICS members, for RICS members. Provides advice and suppport on matters including:
- Well-being and mental health
- Financial support
- Illness & legal advice

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14
Q

What is Modus and Matrix?

A

Modus - RICS publication (magazine)
Matrix - division for young surveyors - provides events, networking, seminars etc

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15
Q

What is the governance structure of the RICS?

A

Governing council - 25 members, runs RICS
Regulatory Board, Management Board & Various Committees reporting to gov council
17 specialist professional groups

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16
Q

Who makes up the professional team?

A

CEO - Richard Collins
President -Tina Paillet

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17
Q

What is the role of the Standards and Regulation Board?

A

Responsible for the Strategy, Policy, Operation and admissions into the profession

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18
Q

What is the role of the Governing Council?

A

Responsible for global strategy and ensures obligations under the Royal Charter are met

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19
Q

What is the role of the Audit Committee?

A

Maintain the effectiveness and integrity of RICS functions?

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20
Q

What is the role of the managing board?

A

Directs RICS affairs under delegated authority from the governing council

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21
Q

How would you become a RICS Fellow?

A

Provide assessors:
- Evidence of
- 5+ years at MRICS
- leadership role
- professional and technical achievement
- raising the profile of the RICS
- Portfolio of professional achievement to support application and CPD record

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22
Q

What is the key role of the RICS?

A

Promote and enforce the highest professional standards and qualifications in the development and management of property, real estate and the enviro
Be accountable to members and the public
Involved in policy influence and political engagement

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23
Q

What are the three main roles?

A

Maintain highest standards of education and training
Protect customers through strict regulations and professional standards
Be a leading source of information and expert advice on land property and construction

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24
Q

What are the 5 benefits of being a RICS member?

A

Status
Recognition
Market advantage
Knowledge
Networking

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25
Q

What are the 3 key benefits for firms regulation?

A

Confidence - from clients
Professionalism
Security

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26
Q

What are the 5 principles of better regulation?

A
  • Transparent
  • Proportional
  • Accountable
  • Consistent
  • Targeted
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27
Q

What is a bye-law?

A

Determine how RICS is regulated
Set out in Royal Charter
There are 10 Bye-Laws

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28
Q

what are the 5 principles of better regulation?

A

Proportionality
Accountability
Targeting
Transparency
Consistency

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29
Q

Setting up in practice - what are the professional obligations of firms?

A
  1. CHP that includes alternative dispute resolution provider approved by RICS, and maintain a complaints log.
  2. Previous/current work coverd by ppropriate professional indemnity cover that meets the standards approved by RICS.
  3. Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, or absence from or inability to work.
  4. Firms must cooperate with RICS.
  5. Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
  6. Firms must display a designation to denote that they are regulated by RICS.
  7. Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
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30
Q

Setting up in practice - what are the procedures for setting up in practice?

A

1.Contact the RICS for guidance and obtain a company start-up pack.

  1. Inform the RICS and register for regulation.
  2. Appoint a contact officer for all RICS communication.
  3. Prepare a complaints-handling procedure.
  4. Obtain professional indemnity insurance cover.
  5. Abide by the Rules of Conduct for Firms.
  6. Use the designation ‘Regulated by RICS’ on all practice material.
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31
Q

Setting up in practice - what information do registered firms need to send RICS annually?

A

It is called an annual return and is carried out online.
Failure to do so leads to a fixed penalty.

It includes:
Type of business and staffing.
Nature of clients.
Training provision.
PI insurance details.
Whether the firm holds clients’ money.

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32
Q

Setting up in practice - What does complaints handling procedure (CHP) include?

A
  • The RICS provides a model form.
  • The process must include a redress mechanism.
  • Details of the policy should be issued to the client with the Terms of Business.
  • It must be clear, quick, transparent, and impartial, and free of charge when the firm reaches this stage.
  • Names and contact details of the nominated investigating person must be stated.
  • The complaint must be investigated within 28 days.
  • All complaints, their progress, and outcomes must be recorded.
  • We must note the need to advise in insurance cover if compensation is awarded.
  • The process must have two stages as a minimum:

Stage 1: Where there needs to be an internal review by a senior member of the firm or the complaints-handling officer.

Stage 2: If the issue is not resolved, the complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute toward costs at this stage.

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33
Q

Setting up in practice - How do you handle clients money?

A

Preserve the security of clients’ money which does not belong wholly to the company.

RICS-regulated firms must operate a client account that:
- Sets clear segregation of duties for employees.

  • A principal oversees the client money accounting functions.
  • Principals cannot override controls.
  • Competent and knowledgeable staff are to process clients’ money with cover provided for long-term absence.
  • Accounting systems and data must be secure.
  • Client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name.
  • There must be access to funds.
  • We must agree the terms and abide by the client on bank details.
  • The account must not be overdrawn.
  • We must maintain client ledgers and provide a running balance.
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34
Q

What are the Rules of Conduct Changes?

A

The New Rules of Conduct took effect in Feb 2022, overhauled previous version

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35
Q

What are the 5 Rules of Conduct (Rules of Conduct 2021)

A
  1. Honesty and integrity
  2. Competence
  3. Good quality and diligent services
  4. Treat others with respect, encourage diversity and inclusion
  5. Members must act in public interest
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36
Q

Why did the previous rules of conduct change?

A

Been in place since 2007

provide greater clarity

clearer focus on example behaviours

New rules:
Rules of conduct for members
Rules of conduct for firms
Global professional and ethical standards
Appendix X: professional obligations of members and firm

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37
Q

Give an example of Rule 1 (Honest, integrity)

A

Must not mislead others
Identify Conflicts of Interest

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38
Q

When have I acted in accordance with rule 1

A

Conflict of interest check for a new instruction

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39
Q

Give an example of Rule 2 (Competence)

A

Only undertake work competent to do
Maintain CPD

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40
Q

When have I acted in accordance with Rule 2?

A

Reject instruction not competent for
Maintain CPD regularly

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41
Q

Give an example of Rule 3 (Service)

A

Good quality / dilligent services
Sustainability
Data Management

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42
Q

What are 3 examples of behaviours for Rule 3?

A

Managing data
Understand client requirements before undertaking instrucitons

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43
Q

Give an example of Rule 4 (Others, Respect)

A

No discrimination
No bullying
Inclusive culture

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44
Q

Give three examples of Rule 4?

A

Respect the right of others and treat them with respect and curtesy
Do not bully, victimise or harass
Members and firms work collaboratively with others

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45
Q

Give an example behaviour for Rule 5 (Public Interest)

A

Public statements do not undermine the profession
Whistleblowing - reporting concerns

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46
Q

Give two examples of behaviour in relation to rule 5?

A

Respond to complaints openly, promptly and professionally
Members and firms do not dissuade complaints from approaching ADR, RICS or other regulatory boards

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47
Q

Can you provide a time when you promoted trust in the profession?

A

Putting a stop to illegal parking
Returning overpaid fees

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48
Q

What did the new rules on conduct replace?

A

Replaced previous Rules of Conduct for Members and Firms, and professional and ethical standards

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49
Q

Why is there a need for the rules of conduct?

A

To ensure there is a framework for appropriate behaviour
To ensure consistency and clarity
To ensure members serve the needs of their client, while also acting in a way that serves the public interest

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50
Q

What were the key changes made to the Rules of Conduct in 2022?

A

Simpler structure
Use of specific examples
Greater focus on respect, diversity and inclusion
Recognition of progressions in new technologies
Look to address global challenges

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51
Q

Why did the RICS move to the new rules of conduct?

A

3 global issues
- better data management
- sustainability
- diversity and inclusion

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52
Q

What is included within the Rules of Conduct Appendices?

A

Appendix A =
3 professional obligations for members
7 for firms

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53
Q

What are the professional obligations for members?

A
  1. Comply with CPD
  2. Cooperate with RICS
  3. Provide all info requested by the Standards and Regulation Board
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54
Q

What are the professional obligations for firms?

A

7 in total

  1. Publish Complaint Handling Procedure and maintain complaints log
  2. Cooperate with RICS
  3. Ensure work covered by appropriate PII cover
  4. Display RICS logo
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55
Q

What supporting info does the RICS provide to support the rules?

A

Ethics decision tree
RICS regulations confidential hotline

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56
Q

How is a disciplinary procedure triggered?

A

Head of Regulation
Regulations Tribunal
Appeals Panel

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57
Q

What is a breach of conduct?

A

When a member of firm fails to comply with the Rules of Conduct or brings the profession into disrepute

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58
Q

What is the RICS disciplinary procedure?

A

Receipt of complaint
Investigation by the RICS
Serving of penalty - e.g. Fixed Notice, Regulatory Compliance Order

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59
Q

What disciplinary procedures can the RICS impose?

A

Serve a fixed penalty notice
Make a regulatory compliance order
CPD sanction
Refer matter to Disciplinary Panel - consider expulsion

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60
Q

What is a fixed penalty?

A

Usually a fine for a minor breach

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61
Q

What is a regulatory compliance order?

A

Penalty served for smaller scale breached
Provides restrictions on a member from particular actions for a certain time period, along with usually a £2k fine

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62
Q

What is a CPD sanction?

A

Obligation for a minimum requirement for CPD

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63
Q

What disciplinary/regulatory sanctions can the RICS impose?

A

Caution
Reprimand
Fine
Conditions
Expulsion

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64
Q

What actions are taken by the regulations tribunal?

A

Procedure for more serious breaches, impose penalties when referred to by the Head of Regulation

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65
Q

What penalties are available to the regulatory tribunal?

A

Regulatory Compliance Order
Unlimited fine per breach
Impose conditions on future RICS registration
Expulsion

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66
Q

When is the appeals panel used?

A

Consider an appeal made by a member or firm following disciplinary procedure

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67
Q

When did the RICS last update the disciplinary panel rules?

A

RICS disciplinary, registration and appeal panel rules (October 2019)

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68
Q

What are the levels of action within Disciplinary Panel rules?

A

Investigation of receipt of info
Decision to realistic prospect
If realistic prospect - disciplinary procedure

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69
Q

Where are the outcomes of disciplinary proceedings published?

A

Modus and the RICS website

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70
Q

What publication does the RICS publish in relation to social media?

A

Guidance Note ‘Use of Social Media’ 2021

Same standards as Rules of Conduct. Reminds members these do not change when using social media.

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71
Q

When are the RICS likely to investigate a social media post?

A

When is discriminatory, abusive etc

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72
Q

What are the RICS Core materials made up of?

A

International Standards
Professional Statements
Practice Statements
Guidance Notes
Codes of Practice

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73
Q

What are the international standards?

A

International high level principle based mandatory standards developed in collaboration with several bodies
- E.g. RICS Valuation Global Standards (2022)

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74
Q

What are the key requirements of fee negotiations?

A

There must be no price fixing, aggressive fee cutting or collusion
Fees should be market based and agreed on an ad-hoc basis
Competition encouraged, but fee cutting avoided

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75
Q

How may you vary your level of service?

A

When negotiating initial fee proposal
Should however be able to provide the same level of service

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76
Q

What is the purpose of the Terms of Engagement?

A

State in writing the clients agreement and fee proposal basis, payment of expenses and services to be provided. Copy of complaints handling procedure also to be provided

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77
Q

What are steps to follow when taking on work

A

Conflict of interests check
Agree terms of engagement
Ensure I am competent to undertake the task

78
Q

When may it be appropriate to turn down an instruction?

A

Not competent
Lack of information
Client wont sign Terms of Engagement
Client is on the UK Gov sanctions list
Conflict of interest
Advice is for a friend or a pro-bono basis and PII wont cover such work

79
Q

What is a conflict of interest?

A

When something arises when a member of firms impartiality or independence is threatened due to the existence of a conflict between 2 parties:
- Personal conflict
- Financial interest
- Commercial relationship
- Acting on two sides of a transaction

80
Q

What is conflict avoidance?

A

Turning down an instruction due to a conflict

81
Q

What is conflict management?

A

When an instruction is accepted and steps are taken to manage the conflict e.g. through an information barrier

82
Q

What is the main RICS publication in relation to conflicts of interest?

A

RICS Global Professional Statement on Conflicts of Interest (2017)

83
Q

What are the key aspects of the Professional Statement On conflicts of interest?

A

Members must not advise a client where doing so involves a conflict of interest or risk of it, other than when those affected provide informed consent
Informed consent must only be sought when all parties agree that proceeding is in the interest of all parties

84
Q

What are the other aspects of the PS statement on Conflicts of Interest ?

A

All conflicts must be managed in accordance with the PS
Every RICS firm must have in place effective systems and controls appropriate to the size of the business to ensure compliance
All firms must keep a record showing compliance with the statement

85
Q

What are the three types of conflict?

A

Party - relating to work on same or related instruction for two different parties
Own interest conflict - personal conflict
Confidential information conflict - relating to work between 2 parties which is confidential

86
Q

What are the key aspects of informed consent?

A

Only given in writing if the person explaining the position is transparent and those affected are in receipt of all relevant information
Surveyors should only seek informed consent if satisfied that all parties are served by doing so

87
Q

What process should be followed if a conflict arises?

A

Conflict avoidance - instruction turned down if there is irreversible impact on impartiality or independence
Writing to both parties - if work accepted, key info should be set out in writing:
- Disclosure of the full details
- Be clear and obtain informed consent
Conflict management - once written consent, set up info barrier in accordance with provisions agreed on

88
Q

What is an information or ethical barrier?

A

Physical or virtual barrier preventing individuals in a firm from sharing information between them e.g. password protected files, working in separate offices etc

89
Q

What is double dipping?

A

Working on two sides of a transaction

90
Q

What is APAM’s policy for conflicts of interest?

A

All new instructions require a conflict of interest check before accepting
Anyone who encounters conflict must declare to partner in charge and advisory board
- Immediate disclose to all parties
- Withdraw from situation until resolved /considered
- Monitor conflict and update database

91
Q

What is a conflict of interest check I have carried out?

A

?

92
Q

How would I proceed if APAM has a previous involvement with a property?

A

1) If property on database, i would inform partner in charge to establish extent of the involvement
2) Decide whether accepting work would be a conflict. If yes, refer matter to advisory board through Conflict of Interest database
3) Board decide whether how to proceed - decline or proceed with informed consent
4) If agreed, instruct IT to restrict access and create suitable information barrier

93
Q

What is the key publication for complaints handling

A

RICS Guidance Note on Complaints Handling (2016)
- Firms must create Complaints Handling Procedure approved by the RICS

94
Q

What does the guidance note require for CHP?

A

Must be fit for purpose
Must be available to clients on request
Must be regularly reviewed and updated
Agreed with PI broker
Must have a 3rd Party redress scheme
Have complaints handling log
Complaints must be reviewed by senior member or complaints handler

95
Q

What is APAM’s complaint handling procedure?

A

1) Complaint recieved and passed to senior staff member/ company secretary?
2) Complaint acknowledged in 7 days
3) Complaint responded to in 28 days of acknowledgement and outcome provided in writing
4) If complainant not happy with outcome, ADR followed - 3rd party redress
5) All complaints recorded in complaints log

96
Q

What is a complaint?

A

An expression of dissatisfaction from someone whom you owe a duty of care

97
Q

Who should be notified on a complaint?

A

PII Insurer
- May be a claim made
- They need to advise if policy premium needs updating

98
Q

What are the requirements for Stage 1 (In House) complaints handling?

A

Details of CHP must be issued
Clear, transparent procedure
Complaint made and responded to in writing
Details of complaints handling officer issued
Acknowledged in 7 days and investigated in 28 days

99
Q

What is stage 2 complaints handling?

A

ADR - Third Party Resolution
- Independent redress scheme chosen by the firm

100
Q

When will the RICS become involved in a complaint?

A

Member fails to respond or prevents party gaining access to redress mechanism
If RICS receive several complaints from a member/firm

101
Q

How can a sole practitioner appoint a complaints handler?

A

Nominate a surveyor in another firm

102
Q

What are the RICS requirements on CPD?

A

Must undertake 20 hours per year, 10 of which must be formal CPD
Maintain understanding of Rules of Conduct and undertake ethics test every three years
Record CPD on RICS CPD management system on website

103
Q

What is formal CPD?

A

Structured training with clear outcomes and objectives - e.g. seminar, training course

104
Q

What is informal CPD?

A

Self based learning relevant to a specific role

105
Q

How can you decide if CPD is formal or informal?

A

RICS CPD decision tree

106
Q

When may a claim for damages arise?

A

When duty of care exists to client or third party and this is breached

107
Q

What is set out in the Limitations Act (1980)?

A

Limitation on period for negligence:
- Contract - 6 years from negligence Act
- Tort - 6 years from date claimant suffered loss

108
Q

What actions would you take to reduce the risk of negligence?

A

Understand clients aims and objectives in T of E
Ensure you are competent to take on instruction
Undertake work in accordance with RICS Standards and Guidance Notes

109
Q

What is the Ethics decision tree?

A

Provides a framework for questions members should ask themselves when faced with a potential unethical scenario
Considers legality of actions and consistency with the Rules of conduct

110
Q

How would you set up a regulated firm?

A

Key rules:
- Professional Indemnity Insurance (PII)
- Complaints Handling Procedure (CHP)
- Handover person named

also
- register your firm with the RICS
- put RICS logo on your stationary

111
Q

What is PII?

A

Professional Insurance Indemnity

Insurance to cover the cost of legal action made against a policy holder in respect to financial loss incurred due to negligence, error or omission in professional advice given

112
Q

What changes to PII around Fire Safety have been made recently?

A

During 2019, fire safety insurance cover was removed from PII market following Grenfell Disaster

113
Q

Explain what you know about the RICS Inclusive Employer Quality Mark

A

Scheme designed to improve D&I in workplace

114
Q

What are the new RICS Professional Indemnity Insurance requirements?

A

The requirements for PII were updated in April 2022

Change to maximum uninsured excess of PII

Companies with turnover of >£10m, no maximum limit of uninsured excess

For companies with turnover <£10m, the maximum uninsured excess is greater of £10,000 or 2.5% of the insured sum

115
Q

What is the purpose of Professional Indemnity Insurance?

A

Protect clients, surveyors and 3rd parties against negligence claims where there is a duty of care breached and claim for damages arises

Professional is protected from financial losses

The firm does not have to meet the claim from their own assets

116
Q

On what basis is PII underwritten in UK

A

On claim made basis

Insurance policy in place at time of breach is responsible for providing indemnity

117
Q

What are the requirements for PII set by the RICS?

A
  • the policy cover must be made on an ‘each and every’claim basis
  • the RICS set the minimum levels of indemnity
  • the RICS set the maximum levels of uninsured excess
  • run off cover must be in place for 6 years
  • the policy must include cover for past and present employees, directors, partners
118
Q

What are the minimum indemnity limits for firms

A

Turnover less than £100k —> Min £250k cover per claim
Turnover £100k - £200k —> Min £500k cover per claim
Turnover £200k + —> Min £1m cover per claim

119
Q

What limitation periods are in place in under hand and deed forms of contract?

A

6 years when executed under hand

12 years when executed as deed

120
Q

What is excess and why do policies have it?

A

Amount of uninsured money associated with a claim - to prevent fraudulent claims

121
Q

What are indemnity excess limits for PII?

A

£10m or less turnover - Min uninsured excess = greater of 2.5% sum insured or £10,000
Over £10m turnover - no set limit

122
Q

What are the key aspects of Professional Indemnity Insurance?

A

Works on a claims made basis - claim limit on a claim by claim basis
Fully retroactive

123
Q

What does the term fully retroactive mean?

A

Insurance in place at time of claim responsible for the claim, not insurance in place at time of negligence - policies cover past work

124
Q

What is run-off cover?

A

Cover in place to ensure work is covered once a firm ceases trading
- Required for 6 years
- If unable to get run-off cover, can apply for cover from RICS run off pool

125
Q

What are the key requirements for Professional Indemnity Insurance?

A

Each and every claim or aggregate cover plus round the clock reinstatement
Written on full civil liability basis with min level of indemnity
Comply with max level of uninsured excess
Fully retroactive
Underwritten by RICS listed insurer
Cover all past and present employees work

126
Q

What support is available from the RICS on PII?

A

RICS Assigned Risk Pool - run off cover
RICS low earners scheme - for retired part time workers
Members support service - members facing claim for work carried out for employer now in admin

127
Q

What RICS Guidance Relates to Handling Clients Money?

A

RICS Professional Statement of Client Money Handling, 1st Edition, October 2019

128
Q

What do the rules of conduct state on handling clients money?

A

Firms must keep client money safe and have appropriate accounting controls

129
Q

When may a firm handle clients money?

A

Rent and service charge collection
Rent deposits
Retention

130
Q

What are the key areas of good practice contained in the RICS professional statement for handling clients money?

A

Handling clients money
Providing information to clients
Receipts of client money
Accounting records and controls
Payments from client accounts
Compliance

131
Q

What does the RICS client money help sheet say?

A

Security of client money must be protected with robust controls
Pay a regulatory fee to cover audits by RICS accountants

132
Q

What must be done before client account set up?

A

Agreed in writing by signatories on both sides
Draw down schedule agreed

133
Q

What are requirements when client accounts are in use?

A

Should be sperate and clearly identifiable with ‘client’ name in title
Deposits into account should be made within 3 days of receipt
Money should be available to client on demand
Interest payable unless stated otherwise
Should be reconciled regularly

134
Q

What is required after an account has been used?

A

Records kept for 6 years years after last entry on statement
All money should be returned. If cant be, every effort must be made to do so. If not done after 6 years, donate to registered charity

135
Q

What is the RICS client money protection scheme?

A

Used for claims from RICS clients as a last resort when RICS reg firm is unable to repay client money
- Limit of £10.3m for surveying and £50k per claim

136
Q

What are the key requirements for Handling Client Money according to client protection?

A

Money must be held in authorised bank
Account must be independent / easily identifiable
Client must be provided with details
Confirm in writing that moneys will not be combined/transferred
Keep records

137
Q

What are penalties for not having protection in place?

A

Up to £30k fine
£5k for not showing certificate

138
Q

What is an instance where I have handled client money?

A

Quarterly rent and service charge payments
Paid into distinguishable client account with client name in details
Once received, payments transferred to account of client choce
Client kept updated throughout process - provide high standard service

139
Q

When are firms required to register for RICS registration?

A

Provide surveying service to public
Operate in UK
Over 50% principles are RICS members

140
Q

When are firms eligible for RICS registration?

A

Provide surveying service to public
Over 25% principles are RICS members

141
Q

What is a locum?

A

Person to stand in for sole practitioner in event of incapacity or death
Usually another surveyor, or trusted individual e.g. Lawyer/ accountant
Must be covered by PII

142
Q

What is included in RICS compliance for starting a new firm?

A

Inform the RICS of new practice - Firm Detail Form
Appoint individual responsible for comms with he RICS and register for regulation
Set up PII, Procedure for handling client money, complaints handling procedure etc
Ensure CPD logged and set up staff training plan
Ensure completion of online RICS annual return at end of the year

143
Q

Who is a responsible person?

A

Person responsible for ensuring RICS professional technical and ethical standards are applied, upheld and supported

144
Q

What is an annual return?

A

Registration form completed by all RICS firms each year, providing RICS all information on your firm

145
Q

What is included in statutory compliance for starting a new firm?

A

Declare Business name
Register with HMRC for VAT registration
Ensure compliance with employment law - working hours, living wage etc
Ensure insurance compliance - public/employer liability
Compliance with Uk Equality Act (2010)
Compliance with H&S at Work Act (1974)
Disability Discrimination Compliance

146
Q

What is RICS requirements regarding compliance for closing down a practice?

A

Inform RICS, clients and arrange handover
Return client money
Inform insurers and arrange run off cover for 6 years
Keep client records and files for 6 years

147
Q

What is key legislation for Gifts Bribery and Corruption?

A

Bribery Act (2010)
Proceeds of Crime Act (2002)
+ RICS Professional Statement: Countering Bribery & Corruption, money laundering and terrorist financing (2019)

148
Q

What is a bribe?

A

Giving, accepting, promising or receiving an advantage such as a payment, gift or service in return for an action which is illegal or a breach of trust

149
Q

What is the aim of the Bribery Act (2010)?

A

Reduce bribary in business in the UK and abroad

150
Q

What are the 6 principles of the Bribery Act (2010)?

A

1) Proportionality
2) Top Level Commitment
3) Risk Assessment
4) Due Diligence
5) Communication
6) Monitoring & Review

151
Q

What are the 4 bribery offences?

A

1) Accepting a bribe
2) Receiving a bribe
3) Bribing a public official
4) Failing to prevent a bribe

152
Q

How may a company defend themselves if an employee commits a bribe?

A

Demonstrate that they had adequate policies/procedures in place to prevent bribery

153
Q

Who does the Bribery Act apply to?

A

UK citizens, residents and companies established under UK law
Companies doing business in the UK
Firms whose staff are committing bribery

154
Q

What are the penalties under the Bribery Act (2010)?

A

Individuals - 10 years prison / unlimited fine
Firms - unlimited fine, ban on public procurement, criminal/civil charges

155
Q

How do I ensure I comply with Bribery legislation?

A

Comply with internal policy
Never accept cash or equivalent
Registering gifts / hospitality on e-register to ensure transparency

156
Q

What is key legislation regarding money laundering?

A

Proceeds of Crime Act (2002)
Money Laundering, Terrorist Financing and Transfer of Funds Regulations (2017)
RICS Professional Statement: Countering Bribary & Corruption, Money Laundering and Terroist Financing (2019)

157
Q

What is money laundering?

A

When proceeds of criminal activity are disguised or converted and then realised as legitimate assets

158
Q

What are key provisions of the Bribery/Money Laundering regulations?

A

Have money laundering/terrorist financing risk assessment
Implement systems, policies and controls
Provide staff training
Ensure appropriate record keeping, policies and procedures
Comply with new customer due diligence requirements

159
Q

What are requirements for firms in money laundering regs?

A

Must register with HMRC annually
10,000 euro limit for acceptance of cash
On going client relationship must be monitored
Senior staff must take responsibility for compliance

160
Q

What due diligence should be undertaken to prevent money laundering?

A

1) Customer:
- Identify client and their identity - name company number etc
- Obtain info on purpose and nature of business relationship
2) Enhance:
- Additional info for business involving someone from high risk country or politically
exposed person
- Additional evidence and monitoring

161
Q

What are penalties for failing to comply with money laundering regs?

A

Assisting with money laundering - 14 years prison / unlimited fine
Tipping someone off whose under investigation - 5 years prison / unlimited fine

162
Q

How is money laundering reported?

A

Submitting a Suspicious Activity Report to National Crime Agency

163
Q

What are the key red flags associated with potential money laundering?

A

Unwillingness to provide identity documents
Changes to parties involved in transactions
Unusual transaction features - e.g. unexpected urgency
Payment in unusual currencies

164
Q

What are the key offences under the proceeds of crime act (2002)?

A

Concealing criminal property
Acquisition, use possession of criminal property
Arrangements - knowing/suspecting that it facilitiates criminal property

165
Q

What does the RICS Professional Statement - Countering Bribery, Corruption, Money Laundering and terrorist financing (2019) do?

A

Sets mandatory requirements for RICS members and regulated firms in relation to subject areas
Divided into 3 parts:
1) Mandatory Requirements
2) Guidance setting out good practice
3) Supplementary Guidance for Parts 1 & 2

166
Q

What does part 1 of the Professional Statement on bribery, ml and tf cover?

A

Mandatory Requirements:
- Bribery
- Not to offer/accept anything that could be considered a bribe
- Have procedures that comply with law
- Report suspicions to relevant authorities
Money Laundering / Terrorist Financing:
- Not be complicit in or facilitate either
- Have systems in place to comply with law
- Verify clients be relevant ID checks

167
Q

What is key guidance for the Bribery/Money Laundering Professional Statement?

A

Publish code of behaviour and provide staff training
Set up a gifts register
Keep up to date with legislation

168
Q

What is key supplementary guidance in the professional statement for bribery and money laundering?

A

Establish a risked based approach - Three Ws
1) Who you act for
2) What are you doing
3) Why are you being asked to do something
How to deal with Politically Exposed Person

169
Q

What is modern slavery?

A

Illegal exploitation of others for personal or commercial gain

170
Q

What legislation is there on Modern Slavery?

A

Modern Slavery Act (2015)

171
Q

How do you report modern slavery?

A

Modern slavery helpline / police

172
Q

What is an example of a RICS bye-law?

A

5 - Conduct
* Conduct yourself in a way benefitting to the RICS

173
Q

Challenges facing the RICS?

A

Sustainability drives to net zero
Landlords applying for EPC exceptions due to high costs
Retail sector - staying competitive

174
Q

Why are the RICS interested if you are solvent?

A

Shows competence and trust
Shows you can handle clients money

175
Q

What is APAM’s purchasing policy?

A

Only use APAM’s approved safe contractors
Min 3 quotes for works above £5k, 2 between £1.5k and £5k

176
Q

How do you keep client confidentiality?

A

Adhere to the Data Protection Act and GDPR
- Don’t discuss details or disclose sensitive data, anonymise

177
Q

What is a safe contractor list?

A

Accreditation ensuring competanet services in terms of quality and H&S

178
Q

Does the government provide guidance on client money protection?

A

No, but sets out approved schemes that must be joined if letting or managing property and hold client money
- Must hold money in a Financial Conduct Authority authorized bank
- Get certificate confirming membership of scheme you join

179
Q

What are some client money protection schemes?

A

Client money protect
Money shield
PropertyMark

180
Q

Where can you display client money protection scheme certificate?

A

Office or website

181
Q

What is terrorist financing?

A

Collection of funds for terrorist purposes
Providing financial support to those operating in terrorism

182
Q

What were the changes to PII and why?

A

UK PII Requirements 2022 - Regulation note
- Reflect changes to the excess requirements
+ Excess requirements for larger firms reduced

183
Q

What are examples of RICS bye-laws?

A

2 Membership
3 Designations
4 Contributions to Funds
5 Conduct

184
Q

What are requirements for RICS rules for use of logo and designation by firms?

A

Not to alter RICS logo
Not to use logo in manner which may bring profession into disrepute

185
Q

What information is provided in Annual Return?

A

Firm details - address, VAT reg, services provided
Designation details
Offices
Principles details
RICS member employees
Contact officers
General info

186
Q

What are rules on RICS logo and regulated by RICS designation?

A

Only RICS firms can use logo and designation
Reg by RICS must be clearly displayed on literature

187
Q

What are restrictions on using ‘Chartered Surveyors’ by firms?

A

Restricted to trading name only - not allowed in company name

188
Q

What was included in the RICS Futures Report (2020)?

A

How we are responding to change - sustainable/commercial focus:
- Building roads from plastic
- adopting drone technology
- adapting to climate change

189
Q

What are some of the key principles of countering bribery and corruption, money laundering and terrorist financing?

A

Not offer or accept, directly or indirectly anything that constitutes a bribe
Report suspicious activity that may breach anti-bribery laws
Act with due diligence
Not facilitate or be complicity in money laundering or terrorist financing
have systems and training in place to comply with laws
Report suspicious activity

190
Q

what are the 6 ethical standards the Rules of Conduct is based on?

A

Honesty
Integrity
competence
Service
Respect
Responsibility

191
Q

What is the Misrepresentation Act 1967

A

?

192
Q
A

APC ASSESSMENT (18 decks)

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