Ethics L3 - Summary of Experience

Question 1

What is the purposed of the RICS?

Answer 1

The RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure

Question 2

How many byelaws are there? Give me some examples.

Answer 2

10 byelaws.
1. Contribution to funds
2. Governing council responsibilities
3. Accounts and audits
5. Also addresses client information and that “client confidentiality must be maintained”

Question 3

What are the 5 Rules of Conduct?

Answer 3

1. Act with Honesty and Integrity
2. Act with competence and ensure work is done competently
3. Provide good quality and diligent service
4. Act with respect and promote diversity and inclusion
5. Act in the public interest, take responsibility prevent harm and promote trust in the profession

Question 4

What is the main legislation relating to bribery?

Answer 4

The Bribery Act 2010

Question 5

What are the main bases of the Bribery Act 2010?

Answer 5

1. Proportionality
2. Top level commitment
3. Risk Assessments
4. Due diligence
5. Communication
6. Monitoring and review

Question 6

What is the RICS guidance on bribery?

Answer 6

Countering bribery, corruption, money laundering and terrorist financing 2019.

Question 7

What must firms do under the professional standard on countering bribery corruption money laundering and terrorist financing with regard to bribery?

Answer 7

1. Do not offer or recieve anything that may constitute a bribe
2. Have procedures in place to comply with anti bribery laws
3. Report anything to Serious Fraud Office
4. Retain records to show compliance
5. Conduct periodic review of risks

Question 8

What happens if you do not comply with Bribery Act 2010?

Answer 8

10 years in prison and unlimited fine.

Question 9

What is the statutory guidance on AML?

Answer 9

Terrorist Financing and Transfer of Funds Regulations 2017

Question 10

What RICS guidance outlines money laundering obligations?

Answer 10

Countering bribery, corruption, money laundering and terrorist financing 2019.

Question 11

To comply with money laundering regulations, what must RICS firms do?

Answer 11

Have a risk assessment
Have systems policies and controls in place
Provide staff training
Ensure good record keeping
Undertake checks on purchasers and their source of funds
Assess the need for enhanced checks

Question 12

What update to the Countering Bribery, Corruption, Money Laundering and Terrorist Financing professional standard are you aware of?

Answer 12

Sanctions Update in March 2022 following the Ukraine War.

Question 13

What is a take away from the Sanctions Update?

Answer 13

You can subscribe to the HM Treasury’s Sanctions Notices that give you email updates when there is a change to the list.

Question 14

If you acted for a sanctioned individual, can you accept payment from them?

Answer 14

No, it needs to be dealt with by the Office of Financial Sanctions Implementation and you cannot receive a payment without first obtaining an OSFI license. OFSI can authorise a payments.

guidance on this called UK Financial Sanctions: General Guidance August 2022 issued by the Office of Financial sanctions Implementation who is part of HM Treasury.

Question 15

How would you apply to CEDR if a complaint couldn’t be dealt with in house?

Answer 15

1. Claimant would submit an application to CEDR
2. CEDR would review
3. Independent Adjudicator would make a proposed decision and then a final decision
4. Consumer can then accept or reject the final decision
5. If accepted, the RICS firm would then have to comply with the adjudicators decision.

Question 16

In your conflict of interest in Attleborough, what document did you have reference to regarding informed consent?

Answer 16

Professional Standard Conflicts of Interest 2017 effective from 2018

Question 17

Why in you conflict of interest issue at Attleborough did you decide both parties could act?

Answer 17

The RICS guidance states that “you should only seek informed consent if you are satisfied that all relevant clients interests will be best served by you doing the work”. The fact I was the retained surveyor for my client and my client confirmed that they didn’t want any other firm undertaking the work, and the fact that the other party had used the same agent for years and understood the farm and their specific requirements meant that I felt comfortable obtaining consent in this instance.

Question 18

Did the contents of the letter for informed consent change in its contents between your client and the other party?

Answer 18

Yes, the RICS guidance asks us to ensure that the other party knows what they are doing and understands the risks and alternatives or informed consent is not deemed to have been given. You must consider the parties professional standard and degree of sophistication and reflect this in the level of detail given. In this case, my client was a large corporate body who had dealt with conflicts of this nature before, where as the other party hadn’t and didn’t understand that process to the same extent and so more detail was put in their letter.

Question 19

Is consent different from informed consent?

Answer 19

Yes, you must prove you have been given informed consent and not just consent and so it is best to do this in writing in a letter and have them sign than do over the phone for example.

Question 20

What would you have done differently if your client had sent you confidential information in an email regarding your example in Mayfair?

Answer 20

I would have still alerted them, but I would have involved my compliance officer and ensured there was a paper trail. The RICS byelaws state that client confidentiality must be maintained and that you must comply with Rules of Conduct, example behaviour in Rule 1 states that “Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law”

Question 21

Why could you no longer act for the client in Mayfair?

Answer 21

Sanctioned individual.

Question 22

How did you know they were a sanctioned individual in your Mayfair instruction?

Answer 22

Known about it via the updated list from HM Treasury’s Sanctions Notices that give you email updates when there is a change to the list which my compliance team used to monitor clients.

Question 23

What is the document outlining sanctions from the RICS?

Answer 23

Had regard to the Sanctions Update in March 2022 following the Ukraine War.

Question 24

Can you receive money from a sanctioned individual?

Answer 24

Understand that you cannot accept money from a sanctioned individual and that you need to involve the Office of Financial Sanctions Implementation and you cannot receive a payment without first obtaining an OSFI license. OFSI can authorise a payments.

There is further guidance on this called UK Financial Sanctions: General Guidance August 2022 issued by the Office of Financial sanctions Implementation who is part of HM Treasury.

Question 25

For your oil pipeline in Hampshire, what made you decide to reapproach the unrepresented landowner?

Answer 25

The question “would you be happy for the information to be made public”. Didn’t feel that it would be good PR for my client and could be easily twisted.

I also felt that it was putting me in a difficult position and I needed to do what was best for my client. A claim was likely to come through for loss which could have been prevented had they had an agent. Outside of my competence and affected my position acting for my client to ensure the accommodation works were adequate to their specific needs.

Question 26

Can you tell me why you didn’t obtain informed consent in the case of the Knapton water pipeline?

Answer 26

Own interest risks are much greater to manage and it is hard to obtain informed consent as per the RICS PS on Conflicts of Interest. Didn’t feel that I would be able to act in the best interest of my client, and although I would act in accordance with the rules of conduct, ultimately I would be biased which was not in the best interest of my client. Would put myself and my family in an awkward position.

Question 27

What barriers did you have to put up for the Knapton conflict?

Answer 27

Understand that I had to ensure that it worked in practice, not just that it should have worked in theory. Therefore, I asked that it wasn’t dealt with in the same office.
I also asked to be taken out of the folder and access take away, to ensure that I had physical separation and no ability to access the folder.
firm should be sure it will work; not merely that they have taken ‘reasonable steps’