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APC > Ethics Key Points > Flashcards

Ethics Key Points Flashcards

1
Q

What are the PII thresholds?

A

Turnover less than £100,000 = £250,000
Turnover between £100,001 - £200,000 = £500,000
Turnover more than £200,001 = £1,000,000

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2
Q

What are the three levels of disciplinary action?

A
  1. Action by Head of Regulation
  2. Disciplinary Panel
  3. Tribunal
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3
Q

What four actions can the Head of Regulation initiate?

A
  1. Fixed Penalty Notice
  2. Regulatory Compliance Order
  3. CPD sanctions
  4. Referral to Disciplinary Panel
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4
Q

What penalties are available to the Disciplinary panel?

A
  1. Issue a Compliance Order
  2. Impose unlimited (but proportionate) fine
  3. Impose conditions on future RICS registration
  4. Expulsion from membership
  5. Require publication of the results of the hearing
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5
Q

What are the Principles of RICS Regulation for Members and Firms?

A

Provide a framework which members and firms can decide how they can meet the requirements of the Rules of Conduct.

  1. Proportionality
  2. Accountability
  3. Consistency
  4. Transparency
  5. Targeting
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6
Q

What are the Global Professional and Ethical Standards 2015?

A 
Provide an excellent Service
Promote Trust in the profession
Act with Integrity
Treat others with respect
Take responsibility
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7
Q

What is the Professional and Ethical Standards Decision Tree?

A

This is a flow-chart that provides a framework of questions members should ask themselves when facing a situation in which they are asked to act in a potentially unethical manner or situation.

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8
Q

What are 3 benefits of RICS regulation for firms?

A

Confidence (for clients)
Professionalism
Security (PII cover, Complaints Handling)

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9
Q

What are 5 benefits of RICS membership?

A 
Status
Market Advantage
Recognition
Knowledge 
Network
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10
Q

What % rules around RICS regulation for firms?

A
  • If 50% of Principles are RICS members they must be regulated by RICS
  • If 25% of Principals are RICS members they can elect to be regulated by RICS
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11
Q

What are principals in RICS regulation rules?

A 
Sole practitioners
Directors
Partners
Board members
Anyone with equivalent status to the above
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12
Q

What’s a Responsible Principal?

A

Each firm must nominate one person who is obliged to ensure all reasonable steps are taken and systems in place to ensure compliance with regulatory and RICS requirements.

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13
Q

What are the 6 pieces of information required for RICS regulation as an annual return?

A
  1. Type of business and staffing details
  2. Statutory regulated activities (e.g. financial services)
  3. Nature of clients
  4. Complaints Handling Procedure details and records
  5. Professional Indemnity Insurance details
  6. Whether the firm holds client’s money
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14
Q

What are the 3 levels of disciplinary action?

A
  1. Action by Head of Regulation
  2. Regulatory Tribunal
  3. Appeal Panel
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15
Q

What are some reasons it might be appropriate to decline an instruction?

A
  1. You are not competent
  2. You do not have sufficient facts
  3. The client will not sign TOE or AML checks
  4. Conflict of Interest
  5. PII cap cannot be agreed
  6. Advice is pro bono and your PII does not cover this
  7. Client is in UK government sanctions list
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16
Q

What are 3 steps you must follow when agreeing ToE?

A
  1. Check Competence
  2. Check Conflicts of Interest
  3. Confirm TOE and get written approval before you start work
17
Q

What is the RICS document on Conflicts of Interest?

A

RICS Global Professional Statement on Conflicts of Interest 2017

18
Q

What are the three types of conflicts of interest as defined in RICS Global Professional Statement on Conflicts of Interest 2017?

A
  1. Party Conflict - work on same instruction for 2 parties
  2. Own Interest Conflict - relating to personal interest
  3. Confidential Information Conflict - work which is confidential
19
Q

What is the three step process you must follow when handling a Conflict of interest?

A
  1. Conflict Avoidance - can you take the instruction without causing a conflict of interest
  2. Written Advice to both parties
    • Disclose nature of conflict, circumstances and
      other relevant facts
    • State how you intend to avoid the conflict (ie.
      informaiton barrier)
    • Be as clear as you can so both parties can make
      decision
    • Request written confirmation from both parteis of
      their informed consent
  3. Conflict Management - set up information barrier
20
Q

What are two things to consider when handling a conflict of interest.

A

Transparency and Openness

21
Q

What is the key message in RICS Global Professional Statement on Conflicts of Interest 2017?

A

A member must not advise or represent a client where doing so would involve a conflict of interest or a significant risk of a conflict of interest other than when those involved have provided their informed consent.

22
Q

When don’t you need your clients approval when dealing with confidential information?

A

For statutory reasons e.g. HMRC or the Police

23
Q

How long should old files be held before being disposed of?

A

6 years

24
Q

What is the RICS Guidance on Complaint Handling?

A

RICS Guidance Note on Complaints Handling 2016

25
Q

Does a written complaint handling procedure need to be approved by RICS?

A

Yes!

26
Q

What should you remember about Complaints Handling Procedure?

A
  • Written CHP must be approved by RICS
  • Notify PII insurers when there is a complaint
  • Details of CHP should be issued to client at same
    time as TOB
  • A complaints log must be maintained
  • Firms must include an ADR in their CHP
27
Q

What are the standard minimum procedures for the handling of a complaint?

A

Stage One - In House

Stage Two - ADR/ Third Party

28
Q

What are the maximum levels of uninsured excess required by RICS?

A

Liability up to £250,000 = greater of 2.5% of the sum insured or £10,000

Liability over £500,000 = 2.5% of the sum insured

29
Q

What are the rules on PII run-off cover?

A

For Consumer Claims
- A minimum of £1m of aggeregate cover over a
minimum of 6 years

For Commercial Claims:
- More lengthy cover up to 15 yrs after work was taken

30
Q

What note sets out areas of good practice regarding Clients Money? What are the areas of good practice?

A

RICS Professional Statement ‘Client Money Handling’ 2019

  1. Holding Client Money
  2. Providing information to clients
  3. Receipts of client money
  4. Payment from client accounts
  5. Accounting records and controls
  6. Compliance
31
Q

What are some key rules on Clients money?

A
  • Client accounts must be kept seperately and identifiable
  • The word client is on the bank account and cheque book
  • Client should have monies on demand
  • Bank reconciliations performed at least monthly
  • Accurate records kept with running balance
  • Annual audit obligations
  • Signatories must be agreed with authorised staff and 2 signatures required
  • Need to have procedures on website
32
Q

What scheme does RICS run to protect client’s money?

A

Clients’ Money Protection Scheme

Last resort protection in instances where a RICS Regulated firm is unable to repay a client’s money

33
Q

What schemes do RICS have to help members/firms with PII?

A

RICS Run-off Pool - firms unable to claim run-off cover
RICS Assigned Risk Pool - at cost for members who cant arrange cover
RICS Low Earners Scheme - for retired/part time members
Members Support Service for members facing claims carried out by an employer now in administration

34
Q

What does the Rules of Conduct require in respect of Clients Money?

A

A firm shall preserve the security of client’s money entrusted to its care in the course of its practice or business.

APC (17 decks)

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