Ethics/ Conflcit Avoidance/ Diversity And Inclusion Flashcards
What are the 5 Rules of conduct?
The 5 Rules of conduct came into effect on 2nd February 2022. H.C.Q.D.P
Rule 1- Members/firms must be honest act with integrity and comply with rei personal obligations to RICS
Rule 2- Members/Firms must maintain professional competency and ensure services provided by competent individuals.
Rule 3- Members/Firms must provide good quality service.
Rule 4- Members/Firms treat others with respect/ encouraging diversity and inclusion.
Rule 5- Members/Firms must act in public interest/act to prevent harm/ Maintain public confidence in profession.
Honesty, Competency, Quality service, Diversity,PUBLIC interest
When was RICS founded?
1868, RICS has a Royal Charter, initially granted by Privy council in 1881.
What does RICS stand for and what is its role?
RICS stands for the Royal Institution of Chartered Surveyors. RICS aims to promote and enforce the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure. Def. From 2020. The 3 main roles of the RICS are: H.R.I
1. Maintain the highest standards of education and training.
2. To protect consumers through strict regulation of professional standards.
3. To be the leading source in information and independent advice on land, property, construction.
How many members at RICS?
134,000 qualified. There are 4 levels of membership: FMAT
1.FRICS
2.MRICS
3.assocRICS
4.Trainee/Student
What does the RICS Decision Tree Framework include?
This is a framework of 3 questions members ask themselves when facing a situation which they may be asked to act in an unethical manor. P.P.I
1. Do I have enough information?
2.You need to pier review whether the decision is correct. Ask a colleague.
3. Press Test. Would press/social media make a story out of my decision?
To become fellow. Fellowship assessor must consider if there’s evidence of 4 Fellowship characteristics. What are these?
5 or more years at MRICS, a leadership role, professional/technical achievement, academic achievement,, raising profile of RICS.
A portfolio of professional achievement required for application. Must include CPD
How many governing council members are there?
25 members
Who is the Current President?
Clement Lau FRICS and the president elect is Ann Gray FRICS
Who is the current interim Chair of governing council?
Nick Maclean FRICS
Who is the current interim CEO?
Richard Collins
What is the uk structure of RICS?
4 National Associations, 10 Regional Boards, Local Associations
What the Bichard Review?
Following the Alison Levitt QC Review in 2021, RICS commissioned Lord Bichard to undertake the review to clarify the purpose of the RICS including responsibility to act for the public advantage. Bichard reported in June 2022, 7 recommendations: dps.sing.
1.Renewed and increased focus on public interest.
2. Self regulation
3.Diversity and Inclusion
4.Support regional boards, increased member engagement and focus on younger members.
5. Independent review every 5 years.
6. New simplified, clearer, accountable governance structure.
7. Greater leadership on climate change and sustainability.
What does the bribery act 2010 consist of and how are your firms gift and hospitality polic in line with it?
The Bribery Act 2010 aims to reduce bribery in business in the UK and abroad. There are 6 principles:
1.Proportionality
2.Top Level commitment
3. Risk Assessment
4. Due Diligence
5. Communication
6. Monitoring and review
There are 4 offences:
1. Bribing
2. Receiving a Bribe.
3.Bribing a foreign public official.
4. Failing to prevent bribery.
Reasonable and proportionate hospitality will not constitute an offence as long as recorded in gift register.
Penalties include:
If act breached max. Penalty of 10 years imprisonment and unlimited fines. This is policies by the serious fraud office.
What is your anti bribery policy?
ZERO Tolerance.
No cash is to be accepted.
Gifts with value of more than £50 to be declined.
Hospitality with a cost per head of more tan £100 must be approved by my FD
Require approval to spend more than £50 per gift per person and meals of £100 per head.
All gifts must be logged in gift register
HANGZR.
Can you describe RICS Governance structure?
The RICS is currently governed under the terms of its royal charter by various internal councils, boards and associations.
Governing council has 25 members and runs RICS.
Regulatory board, Management Board and various committees report to the governing council.
What are the 5 benefits of being an RICS member?
Status- credentials provide client confidence.
Recognition- promotion of excellence to governments and markets.
Market Advantage- RICS Status gives competitive advantage.
Knowledge- International practice standards, CPD.
Network- Access to 125,000 professionals worldwide (2015)
SKRMN
The RICS states 3 benefits of regulation for firms. What are these?
Confidence- for clients
Professionalism- firms need give impartial professional advice.
Security- Firms have to have a recognised complaints procedure, free independent redress and PII Cover
Who is the president elect?
Ann Gray FRICS
Who is the interim chair of governing council?
Nick Maclean FRICS
Who is the Interim Chief Executive Officer (CEO)?
Richard Collins
What is the UK Structure of RICS?
4 national associations
10 regional boards
Local associations
If a firm has no RICS members can it register for regulation?
No
What type of firm an register for RICS regulation?
Corporate body
LLP
Partnership
Sole practitioner practice
What are the RICS rules for regulations of firms?
The RICS Rules for the regulation of firms came in 2019 and has been effective from April 2020. These state that
1. If 50% of principals in UK firm- needs regulated. If 25% can be regulated.
2.principals= sole practitioners, directors, partners, board members.
3. Each firm nominate responsible principal to make sure comply with regulation.
What are the areas of information required for RICS regulation in an annual return?
There are 6 areas of information:
1. Type of business and staffing details.
2. Statutory regulated activities-such as for financial services.
3. Nature of clients.
4. Complaints handling procedures details and records.
5. Professional Indemnity Insurance details
6. Whether firm holds clients money.
TSNCPW- The Snake Never Could Party Well
Who holds your company gift register?
Financial Director
What does self regulated mean?
The RICS self regulates, which means that it operates within its own regulatory framework opposed to government regulations
What are the 3 levels of disciplinary action?
- Action by head of regulation.
- Disciplinary Panel.
- Appeal Panel
What is your firms anti-money laundering policy?
-Have an appointed Money Laundering Reporting Officer who reports any suspicious activity to the National Crime Agency using Suspicious Activity Report (SAR).
-Carry out CDD (or EDD)
-Provide staff training
-Comply with requirements relating to foreign public officials.
-Ensure that anti-money laundering checks are carried out to confirm the identity of proposed purchasers
-Ensure appropriate record keeping.
What penalties can a disciplinary panel issue?
-Compliance order
-Unlimited fine
-Conditions upon future registration.
-Expulsion
-Publication of results
What is. Regulatory compliance order?
-Used for low level breaches
-Written document stating what member must do for special period
Who is bribery policed by
SFO- Serious fraud office
What are the CPD Requirements?
-20 hours a year.
- 10 hours must be informal
- Members must maintain an understanding of RICS Professional and ethical standards within a 3 year rolling period
-CPD must be recorded using RICS online management system
When would a fixed penalty be issued
Only when information is relayed to the RICS
What are the different types of due diligence checks
Customer checks
Enhanced checks
What is a CPD Sanction?
Sanction placing obligation on member to follow CPD requirements
When would you be required to carry out enhanced due diligence checks?
When dealing with a politically exposed person, their family member or. Business associate.
At what point should your PII insurer be made aware of a complaint?
As soon as possible, as this could lead to a claim for negligence
When can a conflict of interest arise?
A conflict of interest can arise when a member or a firm’s independence and impartiality is threatened.
- Financial interest.
- A personal Interest.
- Commercial Relationships.
- Acting on both sides of transaction.
What’s difference between conflict avoidance and conflict management?
Conflict avoidance is when you do not accept the instruction.
Conflict management is when accepted and steps put in place to manage the conflict such as info/ ethical barrier with written agreement of all parties.
What is the professional statement relating to conflicts of interest?
The statement is the RICS Global Professional statement on conflicts of interest 2017. Came into effect 2018.
States- a member must nt advise or represent a client where doing o would involve a conflict of interest. Informed consent only when RICS MEMBER /FIRM IS SATISFIED.
What is a bye law?
A Regulation made by Local authority of corporation
How would you arrange PII for a new business?
Based on a new prediction of revenue and adjust in due course accordingly.
How can you avoid negligence?
-Clearly understand clients objectives.
-Ensure competency.
- undertake work in accordance with RICS standards and Guidance Notes.
- Cap professional Liability in excess in your Terms of Engagement
How would you close a practice?
Inform RICS
Inform your clients an arrange for them to be handed over to new firm
Return client money
Inform insurer and arrange run off cover for minimum 6 years
Hold client info for min. 6 years.
What is professional Indemnity Insurance?
PII is insurance that covers clients, surveyors, and third parties in claims of negligence
What are the requirements for PII?
Related to turnover in preceding year
Up to £100k-£250k
Over £200k-£1m
What are the different types of conflict?
- A party conflict- work instruction involving 2 parties.
- On interest conflict- relating to personal interest.
- Confidential Information Conflict- relating to work between 2 parties that is confidential.
Have you experienced a conflict of interest and how would you handle it?
I have come across a time when I approached. Planning consultant that was being used by someone else in the office. I approached the colleague before and asked permission. We decided it was fine as long as the consultant wasn’t over worked. As his project was further down the line I agreed his project should take priority.
The 3 step process in other situations to manage conflict of interest should be:
- Conflict Avoidance-should be avoided f transparency and openness can’t take place throughout.
- Written advice to both parties- a) disclose process of how it will go, use info barrier if needed
B) be clear
C) request rotten confirmation from clients gaining informed consent.
Give an example when you have aced with integrity in your work?
Hen valuing a development opportunity in Exeter, I did so by undertaking sufficient due diligence.
What are the RICS bye laws?
1.-Application and Definitions.
2- Membership and Registration.
3- designations.
4- Contribution of funds.
5- Conduct.
6- Governing council.
7-subordinate boards
8- Procedure for General Meetings.
9- Accounts and Audit.
10- General
Give an example when you have provided a high standard of service
When collecting comparable data for a site in Bristol. I verified my comparable with agents so I knew I had the most accurate information.
Give an example when you have treated others with respect.
When valuing a building in Southampton I notified the operating manager that I would be visiting.
Give an example of a time you have taken responsibility.
When valuing a development opportunity in Exeter I made sure I gave my report to my director within the correct timescale.
When taking on a new client what checks should you take?
Customer Due Diligence (CDD) to identify the client and verify their identity.
If I was dealing with a person from a high risk third country, a PEP or their business associate or family member I would carry out Enhanced due diligence.
At what point can a disciplinary procedure be triggered?
- Complaint to the RICS
- Allegation by a client or third party.
- Information to the RICS
What are the steps of the disciplinary procedure?
They can either:
- Serve Fixed Penalty notice
- Make a Regulatory Compliance Order
- Issue CPD Sanction.
- Refer the matter to pANEL
What Money Laundering Regulations or Legislation are you aware of?
-The Money Laundering, terrorist financial and transfer of funds
-RICS Countering bribery and corruption, money laundering and Terrorist financing 2019
Can you give examples of International mandatory standards at RICS?
THERE ARE 3:
1. RICS Valuation- Global standards 2021
2. International property measurement standards 2019
3. International Construction Methods 2019
Can you name any RICS mandatory professional statements?
There are 10, one of which include:
1. Countering Bribery, Corruption, Money Laundering and terrorist financing 2019.
2. Conflict of interest, global 2017.
3. PROPERTY Measurement 2018
4. Real estate management 2016
What are guidance notes?
Guidance notes are provided by RICS to promote good practice, these are not mandatory.
What are terms of engagement ?
TOE is a written statement USED FOR FEE NEOTIATIONS which includes the clients agreement to the proposed fee basis, payment of expenses and include a copy of the firms complaints handling procedure.
There is a 3 step process to TOE.
1. Check professionally competent.
2.No conflicts of interest.
3.Confirm terms f engagement in writing.
Can you tell me about the RICS Global Professional Statement on Conflicts of interest (2017)?
-sets out mandatory guidance for how RICS members are to manage and avoid conflicts of interest.
- Maintain confidentiality unless permitted by law.
- Must identify and manage conflicts of interest.
-keep records of decisions made.
- keep record of when informed consent been made.
-outline measures to avoid conflicts arising
How would you carry out a conflict of interest check?
-Using Microsoft excel to check our internal database and see if any colleagues have had previous involvement with a development opportunity.
How could you avoid conflict during your work?
-understand what may go wrong.
-manage expectations
-negotiate contractual obligations
-keeping good records with detail
-clear drafting of contract
What are the three types of processes in resolving disputes?
- NEGOTIATION- The problem solving efforts of parties themselves.
- Mediation/ conciliation- A third party intervention which does not bind the parties to a decision but assists them to resolve difficulties.
- Adjudication process- An outcome is determined by a third party, such as litigation and arbitration.
