Ethics/General RICS Flashcards
1
Q
What are the four levels of RICS membership?
A
- Fellow (FRICS)
- Member (MRICS)
- Associate (asscoRICS)
- Student/Trainee
2
Q
How would you check for Conflicts of Interest?
A
- Send a company wide email
- use online COI checker
3
Q
What does PII cover against?
A
Claims of Negligence
4
Q
When would RICS investigate a members social media post?
A
When the post is;
- Discriminatory
- Dis-honest
- Abusive or threatening
- Causes harm, distress or offence
- Ignores previous warnings about concerns
5
Q
RICS Guidance for Social Media
A
RICS Guidance Note - ‘Use of Social Media; Guidance for members, Version 1.’ Took effect from 30th June 2021
- Reminds members that Rules of conduct do not change whether communication is via social media, face to face or traditional media.
6
Q
What is CPD?
A
Continued professional development
7
Q
Professional obligations of RICS Members
A
- Members must comply with CPD requirements
- Members must cooperate with RICS
- Members must provide information to the Standards regulation board if and when requested
8
Q
Who is the RICS president Elect?
A
Justin Sullivan
9
Q
Rule No. 4
A
Members and Firms must treat others with respect and encourage diversity and inclusion
10
Q
Who is the RICS president?
A
Tina Palliet FRICS
11
Q
Who is the RICS CEO?
A
Justin Young
12
Q
Rules no.2
A
Members and Firms must maintain their professional competence and ensure that services are provided by competent individuals who have necessary experience
13
Q
Rules no.5
A
Members and Firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
14
Q
Rules no.3
A
Members and Firms must provide good quality and diligent service
15
Q
Rule no.1
A
Members and Firms must act with integrity and comply with their professional obligations to the RICS
16
Q
What year was the RICS formed?
A
1868
17
Q
What are the three market sectors covered by RICS?
A
- Land
- Property
- Construction
18
Q
What is the RICS Matrics?
A
A support network dedicated to connecting and supporting young surveyors
19
Q
How does RICS regulate its members?
A
RICS is self regulated, It is done via Rules of Conduct
20
Q
What is the decision tree?
A
Provides step by step practical advise on how to deal with an ethical issue you are not sure on.
21
Q
How do you act with Integrity?
A
- Being trustworthy in all I do
- Being open and transparent
- Respecting confidential information
22
Q
How does your firm handle cash rent payments?
A
- Ensure that they are banked promptly and kept secured between receiving and banking.
- Limit on cash of up to £1,000
23
Q
What type of firm is David James?
A
A private limited company
24
Q
When would your firm decline an instruction?
A
- outside of firms expertise
- Illegal
- Fails AML checks
- Conflict of interest
25
How would you increase brand awareness?
- Competitive fees
- Marketing increase
- Networking events
26
How would you manage a conflict in your firm?
- Ensure data is secure with an information barrier either electronic or physical
27
What is Tribunal?
A specialist court to deal with specialist matters
28
What is informed consent?
- Given in writing
- Transparent about all material factors/party understands what they are doing
- All relevant parties best served
- RICS has a model form
29
What are the four main offences in the Bribery Act 2010?
- Offering a Bribe
- Receiving a bribe
- Bribing a public official
- Failing to report or prevent bribery
30
What are the 6 principles of the Bribery Act 2010?
- Proportionality
- Top level commitment
- Risk Assessment
- Due Diligence
- Communication
- Monitoring and Review
31
What is unconscious Bias?
- Subconscious opinion towards groups of people/individuals due to social stereotypes.
32
How have you dealt with a complaint?
I haven't personally been involved with a situation where a compliant has occurred.
33
What are the benefits of ADR?
Usually:
- Quicker
- Cheaper
- More flexible decisions
34
What is ADR?
Alternative Dispute Resolution
35
What are methods of Adjudication?
- Expert Witness Determination (Independent Witness appointed to make a binding decision)
- Arbitration (Usually a legal issue)
36
What are the three pillars of ADR?
- Negotiation
- Mediation
- Adjudication
37
What are types of mediation?
Facilitative Mediation - Mediator does not provide personal assessments or recommendations
Evaluative Method - Same as above but provides their evaluations on the strengths and weaknesses of the parties positions
38
What is mediation?
A neutral third party assists with positive dialogue, with mutual intention to resolve the matter.
39
What are three types of Conflict of Interest?
Party Conflict - working for the same instruction for both parties
Own interest - Conflict with personal interest
Confidential information - were information is owed to one client but should be kept confidential to another
40
What are three main steps/considerations to take prior to proceeding with work?
- check whether I am professionally competent
- check for conflicts of interests
- obtain signed terms of engagement
41
How is the RICS governed?
Under the rules of the Royal Charter, which requires the RICS to act in the public interest
42
What are the five benefits of being a Member of the RICS?
STATUS - credentials provide client confidence
RECOGNITION - Promotion of excellence to governments and markets
MARKET ADVANTAGE - Competetive advantage
KNOWLEDGE - Practice standards, guidance and CPD
NETWORK - Access to over 125,000 professionals
43
Why were the codes of conduct updated in 2022?
So that they were clearer and simpler for all to refer to
44
What are two main types of RICS Material?
Professional Standards - Mandatory Material that must be followed by any RICS member and firm
Practise information - Are supplementary to professional standards and promote best practise but not mandatory.
45
What is the difference between TOE and TOB?
Terms of Engagement is generally used for Valuations
Terms of business is used for other instructions
46
What are the steps if a complaint is not resolved?
Alternative Dispute Resolutions can be pursued using a mechanism approved by the RICS standards and Regulation Board (Version 10, effective Feb 2022).
47
what checks should a surveyor undertake before accepting client instructions?
- AML checks
- Due Diligence checks
- Companies house checks (if applicable)
- Conflict of interest checks
48
What are two types of CPD?
Informal and Formal
49
What is Formal CPD?
Includes al forms of structured learning that has clear learning objectives and outcomes. E.g. Online learning, courses, seminars
50
What is informal CPD?
Includes any self managed learning that is relevant or related to your professional role
51
When must CPD be completed by each year and how many hours?
Completed by 31st December and recorded by 31st Jan each year.
Must complete 20 hours each year.
52
What does the royal charter state?
The aim of the RICS is to maintain and promote usefulness of the profession for the public advantage in the UK and any other part of the world.
53
What is the RICS?
Professional body of surveyors which regulates activities and aims to promote the highest ethical and professional standards in the industry.
54
Purpose/objectives of the RICS
To protect the public and its members
55
How often are members required to complete RICS ethics training?
Every three Years
56
What are five RICS ethical and professional standards?
- Act with integrity
- Always provide a high level of service
- Act in a way that promotes trust
- Treat others with respect
- Take responsibility
57
Where will you find mandatory requirements in relation to Anti Bribery, corruption and money laundering?
RICS Professional Standard - Countering Bribery and Corruption, Money Laundering and Terrorist Financing (1st Edition 2019.)
58
What is Money Laundering as per the RICS Professional Standard 2019?
Concealing the source of the proceeds of criminal activity to disguise their illegal origin.
59
What is Corruption?
The misue of public office or power for private gain or abuse of private power concerning business practise and preformance.
60
what is bribery?
The offer, promise, giving, demanding or acceptance of an advantage such as inducement for an action that is illegal, unethical or a breach of trust
61
what is a facilitation payment?
A payment made to a government official to speed up a routine administrative action.
62
What are the two types of Bribery?
Active Bribery - Offering or promising a bribe
Passive bribery - Accepting or agreeing to receive a bribe
63
What is Customer Due Diligence?
Checks to ensure that a client is who they say they are.
64
When do Due diligence checks need to be undertaken?
When a new business relationship is established or when the circumstances of an existing client change for over $15,000
65
what do client due dilligence checks involve?
- Checks on clients name, date of birth, photograph and residential address
- Obtaining information on clients through companies house
66
How long must CDD checks be kept on file for?
5 Years from the end of the business relationship
67
what are examples of enhanced due dilligence checks
- Further identity checks
- Credit checks
- Identifying the source of funds
68
When is enhanced due diligence required?
When a transaction is seen as high risk.
69
What is the RICS professional statement on conflicts?
RICS Conflict of interest global 1st Edition.
- Effective from March 2018
70
What does RICS guidance note Complaints Handling 1st Edition define effective CHP as?
- Fit for purpose, reflecting size of business
- Available and understood by all staff
- Readily shared with complainants
- Regularly reviewed at senior level
- Agreed with PII Providers
- Include scope for independent redress
71
What is Lionheart?
A charity by RICS to help RICS professionals and their families
72
What is Legislation surrounding Anti Money Laundeeering?
- Proceeds of Crime Act 2002
- Money Laundering, Terrorist Financing and Transfer of Funds Regulations, 2019,
73
Why is the RICS a Royal Charter?
To deifne the objectives of the professional body
74
What is the current base rate at the Bank of England
4.75%
75
What is a Mediator?
A professional who facilities alternative resolution services for legal disputes
76
When does unallocated funds in a client account go to charity?
After 3 years and all avenues of investigation have been exhausted.
77
What is an Arbitraor?
An independent body or person appointed to settle a dispute
78
What is an Independent Expert?
A neutral third party who will issue a final and binding decision on the dispute
79
What are the six principles of the Bribery Act 2010?
- Proportionate procedures
- Top level Commitment
- Risk assessment
- Due diligence
- communication
- monitoring and review
80
What is ethics?
Acting in a way to promote moral principles
81
What are the principles for better regulation?
PACTT
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
82
What are the 3 levels of PII Cover?
£100,000 turnover or less - £250,000 minimum cover
£100,000 to £200,000 - £500,000
£200,000 and above - £1,000,000
83
RICS Complaints Handling policy on storing complaints
It is important to keep copies of relevant electronic correspondence either by reliance on robust back-up systems or by keeping hard copies in the file.
84
When did the bribery act 2010 come in to force?
April 2011
85
What is your current firms gift policy?
- Gifts over £25 must be lodged on the gifts register
86
Rural president in RICS
Gordon Johnston MRICS (Land and Natural Resources)
87
What are the objectives of the RICS?
to work in the public interest to advance knowledge, uphold standards, and inspire current and future professionals.
88
What is the RICS business plan?
- Incorporates the Levitt review recommendations such as being more open and transparent with members and public about operation
- Includes reduced reliance on outside funding
- Corporate objectives include maintaining and increasing demand for RICS qualifications and ensure that it remains relevant for future generations.
89
When did Tina Palliet become president?
January 2024
90
What did the RICS become a royal charter?
26th August 1881.
91
What is the structure of the RICS?
- Privvy Council
- Governing Council (governing body)
- RICS Board (delivers business plan and oversight of operations
- The Standards and Regulations Board
92
When did the new rules of conduct come into force for members?
2nd February 2022 (2/2/22)
93
What is the purpose of the RICS Rules of conduct ?
To govern the relationship between RICS and its members
94
Rule no.1 example behaviour
- Open and transparent with clients about fees and services
95
Rule no.2 example
- Only undertake work that they have the knowledge, skills and resources to carry out competently
96
Rule no.3 example
- Understand clients needs and objectives before accepting any professional work.
97
Rules no.4 example
- Respect the rights of others and treat others with courtesy
98
rule no.5 example
members and firms respond to complaints made against them promptly, openly and professionally.
99
What are members obligations to the RICS?
- Must comply with CPD requirements
- Must cooperate with RICS
- Must promptly provide information requestion by Standards and Regulations Board
100
What are firms obligations to the RICS?
- Complaints Handling Procedure
- Appropriate PII cover
- Sole traders must make arrangements in case of death or incapcity
- Must cooperate with the RICS
-Must promptly provide information requestion by Standards and Regulations Board
- Must display on their business literature RICS
- Must report any matter that they are required to under the rules of registrations for firms.
101
What are the rules of registrations for firms?
- Contact the RICS for guidance and obtain company start up pack
- Inform RICS and register for regulation
- Appoint contact officer for RICS communication
- Abide by Rules of Conducts for firms
- Use 'Regulated by RICS' on all material
- Prepare a CHP
- Obtain PII
102
What insurances are required for setting up a firm>?
- PII
- Employers liability
- Public Liability
- Building insurance (offices)
103
What annual returns are required by RICS regulated firms?
- Type of business and staffing
- Nature of clients
- Training provisions
- CHP details and records
- PI Insurance details
- If the firm holds clients money
104
How would you manage a conflict of interest within your firm?
Information barrier either physical and electronic.
105
What are the four offences of the bribery act 2010?
- Bribing another person
- Requesting, agreeing to receive or accepting a bribe from another person
- Bribing a foreign official
- Failure by commercial organisations to prevent bribery
106
What is a conflict of interest?
- Anything that impedes or might impede the ability of an individual or firm to act impartially and in the best interest of a client.
107
Please explain your understanding of the Birchard Review
- The Birchard Review was an independent review commissioned by the RICS Governing Board in December 2021 into the Purpose, Governance and strategy of the RICS. It was commissioned following the Levitt review and aimed to create a new sense of purpose and direction of the RICS.
The review advised on 36 recommendations that are currently being implemented which include:
- Commercial activity will now be separated from other activities within the RICS
- RICS Matrics should give younger members a stronger voice through an improved governance structure
- A diversity and inclusion panel will be set up to provide advice to the RICS board and standards and regulation board
- Improvement of technology within the RICS
- A public interest panel will be set up to advise the governing council.
108
What is the RICS Levitt Report?
- The Levitt report was commissioned by the RICS following a treasury management audit in 2018
- Prior to the audit, the RICS has to extend its overdraft facility by circa £3 million due to inaccurate cashflow forecasting
- Levitt report was commissioned as an independent review on the financial control
- The conclusion of the Levitt report illued to an internal power struggle due to its two-board structure made up of a Management Board and Executive board.
109
What is the difference between an RICS guidance note and professional standard?
Professional Statement - Mandatory requirement for RICS members and firms
Guidance Note - Provides recommendations or approach for accepted good practice
110
When did the new RICS Red book take effect?
31st January 2025
