Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Autumn 2024 > Ethics - Level 1 > Flashcards

Ethics - Level 1 Flashcards

1
Q

When was RICS founded?

A

1868

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

When did RICS get its Royal Charter?

A

1881

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What do RICS Regulations and Bye-laws do?

A

Set out the governance of the Institution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How many members are in the RICS?

A

Over 140,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the purpose of the Bribery Act 2010?

A

Aims to prevent bribery in the UK and abroad

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the different levels of membership?

A
  1. FRICS
  2. MRICS
  3. Associate Member of RICS
  4. Student/Trainee Member
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How do you become a Fellow?

A
  • 5+ years of experience at MRICS
  • A leadership role
  • Professional/technical achievement
  • Academic achievement
  • Raising the profile of the RICS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Who is the RICS CEO?

A

Justin Young

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Who is the RICS President?

A

Tina Pailet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the role of RICS?

A
  1. To maintain the highest standards of education and training
  2. To protect consumers through strict regulation of professional standards
  3. To be the leading source of information and independent advice on land, property, construction etc.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Who is the RICS accountable to?

A

Both members and public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What was the reason for the Bichard review?

A
  • To clarify the purpose of RICS, including its responsibility to act for the public advantage
  • Make recommendations on its governing structure to deliver that purpose
  • Provide proposals for the incoming leadership for the future of the institution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are some of the recommendations from the Bichard review?

A
  • Increased focus on D&I across the profession
  • A new simplified, clear accountable governance structure
  • Showing greater leadership on issues that matter most to society (ESG, Sustainability etc)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the benefits of becoming a member?

A
  • Recognition and status of professional excellence by being a member of a globally respected organisation
  • Market advantage as membership is a hallmark of high standards which gives client confidence
  • Knowledge and network - high standards, professional guidance and network of 137,000 members
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the benefits of regulation of firms by the RICS?

A

CPS
1. Confidence - for clients as regulated firms are monitored by RICS
2. Professionalism - firms will have to provide clear, impartial and expert advice
3. Security - firms have to have a recognised CHP, access to free independent redress and PII cover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Why do you want to become an RICS member?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the rules of the regulation of firms?

A
  • If 50% of Principals at a UK firm are RICS members then it has to be regulated
  • If at least 25% are RICS members then it can apply to be regulated
  • Principals are sole practitioners/directors/partners or board members or anyone able to act autonomously without supervision at a firm
  • Each firm must nominate a Responsible Principal
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a Responsible Principal?

A

Someone in the firm who is obliged to ensure all reasonable steps are taken to ensure compliance with regulations and RICS requirements and to report to RICS as required.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What rules came into play in regards to the use of the RICS logo?

A
  • Can’t use ‘Chartered Surveyors’ in trading name
  • only RICS members and firms can use the logo
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What information is needed for registration?

A
  1. Type of business and staffing details
  2. Name of the Responsible Principal
  3. Statutory regulated activities
  4. Nature of clients
  5. CHP details and records
  6. PII details
  7. Whether the firm holds clients’ money
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are some current changes facing the RICS

A
  • D&I
  • Property and evolving technology
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the differences between Code of Conducts and ethical standards?

A
  • Ethical standards - governs decision making
  • Code of conduct - governs actions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What do ethics mean to you?

A

It’s at the heart of being an RICS professional. Underpins how we approach situations and brings positive benefit to our client.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Why have the RICS updated their rules of conduct?

A

To provide clear, standard framework and to approach new risks and opportunities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What has now been added?

A

Rule 3 - behaviour added for firms to understand the risks and benefits of relevant technology
Rule 4 - to encourage D&I

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is Rule of Conduct 1?

A

Members and firms must be honest, act with integrity and comply with their personal obligations, including obligations to RICS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is Rule of Conduct 2?

A

Members must maintain their professional competency and ensure services are delivered by competent individuals who have the necessary expertise.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is Rule of Conduct 3?

A

Members and firms must provide good-quality and diligent service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is Rule of Conduct 4?

A

Members and firms must treat others with respect and encourage diversity and inclusion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is Rule of Conduct 5?

A

.Member 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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What are the mandatory obligations for members?

A
  • Comply with CPD requirements: 20 hours, 10+ hours must be formal
  • Cooperate with the RICS
  • Promptly provide info requested by the standards and regulation board
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What are the mandatory obligations for firms

A
  • Publish a CHP which includes a ADR provider approved by the RICS, and maintain a complaints log
  • All work to be covered by PII
  • Cooperate with the RICS
  • Promptly provide info requested by the standards and regulation board
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is the ethics decision tree?

A

An ethical decision-making framework.
Sets out questions to ask yourself when deciding how to deal with an ethical situation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What are some of the examples of questions on the ethics decision tree?

A
  • Is it legal?
  • If it was publicised on the media, would you be happy?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What other resources could you seek help from in decision marking for ethical situations?

A

RICS confidential hotline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Could you give me an example of a professional statement or guidance note that is relevant in your work and explain why?

A
  • RICS Conflicts of Interest Professional Statement 2017 – because RICS members and firms must act to identify and prevent conflicts of interest unless they have informed consent by parties involved to proceed
  • RICS Countering bribery, corruption, and terrorist financing Professional Statement 2019
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What would you do if a client asks you to amend the value of a property?

A

Speak to client regarding concerns. Review my report and search for new evidence to support a change in value. Cannot change value unless evidence supports this.

Contravenes with Rule of Conduct – should not be improperly influenced by a client or provide misleading info. Opinion needs to be honest.

Contravenes with Red Book – must base value on verifiable information or reasonable assumptions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What would you do if you saw an inappropriate social media post from your colleague?

A
  1. Refer to the RICS – Use of Social Media guidance for RICS members 2021 to establish whether it is inappropriate
  2. If the post breaches the Rules of Conduct and undermines public confidence in the profession, report this to the RICS
  3. Also report to my employer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

How long after you enrol on the APC should you qualify as MRICS?

A

6 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

How do you start a practice?

A
  • Inform RICS (Complete firm details form)
  • Send RICS your PII certificate
  • Send RICS your CHP and appoint complaints handling officer
  • Set up client money handling procedures
  • Appoint Responsible Principal to contact RICS
    o Register for regulation by Regulatory Board
    o Log CPD
    o Train staff
    o Get a logo kit from RICS
    o Ensure Annual Return is completed each year
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What is the statutory compliance required for starting a practice?

A
  • Register with HMRC and company’s house
  • Appoint Money Laundering Officer
  • Disability discrimination compliance (Equality Act 2010)
  • Bribery Act- 2010 compliance
  • Ensure insurance compliance for employer and public liability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Does a RICS firm just need to comply with statutory regulations?

A

No, it also needs to comply with the RICS regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What do you do if you close a practice?

A

Inform RICS
Inform clients
Return any client money held
Inform PI insurer and get run off period
Retain a copy of all files for at least 6 years  RICS recommends 15 max

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What happens if you break the Rules of Conduct?

A

THREE disciplinary levels
1) Action by Head of Regulation
2) Disciplinary Panel
3) Appeal panel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Why can a disciplinary procedure be triggered?

A

Allegation by a client or third party

Information received or established by the RICS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What can the Head of Regulation do?

A

Can initiate FOUR actions after initial investigation:
1) Serve a fixed penalty notice (relates only for breaches in the supply of info to the RICS)
2) Issue a Regulatory Compliance Order (low level breach –timeframe for breach of activities)
3) CPD sanctions
4) Refer you to the Disciplinary panel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Who are the Disciplinary Panel?

A

50% are lay members

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

What penalties are available for the Disciplinary Panel?

A

FIVE OPTIONS
* Issue a Compliance Order
* Unlimited fine per breach (must be proportionate to offence)
* Impose conditions for continued membership
* Expulsion for members or remove firm
* Require outcome to be published (e.g. Modus)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Who are the appeal panel and what can they do?

A
  • 50% MRICS 50% laymen
  • Hear new evidence and adjust penalty
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

What are the CPD requirements?

A
  • 20 hours per annum (of which 10 must be formal)
  • Every 3 years to do at least an hour on ethics
  • Record all CPD online
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

What is formal CPD?

A

Structured learning that has clear objectives and outcomes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

What is informal CPD?

A

Self-managed learning that is relevant to your role.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

What is PII?

A

Insurance that protects clients, surveyors and third parties against negligence claims when a duty of care is breached and claim for damages arises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Why does you need Professional Indemnity Insurance?

A
  • Protects clients from financial loss
  • Protects the firm from financial loss
  • Protects employees from having to pay damages in claim
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

What are the PII requirements? How does it work?

A
  • Must be an RICS approved provider
  • Firms must ensure adequate and appropriate level exists for each instruction considering potential liabilities that may exist
  • Minimum levels set by a firms annual turnover in the previous year
    o Under £100,000 - £250,000
    o £100,001 to £200,000 - £500,000
    o Over £200,001 - £1,000,000
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

What are the levels of PII excess?

A

If your firm’s turnover in the preceding year is:

  • £10m or less = 2.5% of the sum insured or £10k
  • Over £10m = no limit set
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

What is your firms PI policy?

A

£5m aggregate
Anything over that needs sign off at increasingly senior levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

When do you need PII?

A
  • All work, including pro-bono.
  • Whenever you have a duty of care or are providing advice
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Are you allowed to provide pro-bono (unpaid) advice to charities or friends?

A

If covered by PII and ToE have been agreed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Why would you hold client money?

A

Rent, deposits, service charge, retentions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

What RICS doc governs client money handling?

A

RICS Client Money Handling 2019 Professional Statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

What are the key areas of RICS Client Money Handling legislation?

A
  • How to hold client money
  • Providing information to clients
  • Receipts of client money
  • Payments from the account
  • Accounting records and controls
  • Compliance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

What Client Money Protection services does the RICS offer?

A
  • RICS Clients’ money protection scheme
  • Last resort if firm is unable to pay
63
Q

What is a client account?

A

An account in the name of an RICS firm, subsidiary company or 3rd party service provider holding client money.

64
Q

What is a discrete client account?

A

A client account where the client is not named. Must have an identifier.

65
Q

What are the rules for holding client money?

A
  • Client accounts kept separately and clearly identifiable
  • The word ‘client’ is on the bank account
  • Accounts must be kept in credit
  • 2 signatories must be agreed
  • Publish a written procedure for handling client money
  • Ensure sufficient funds are available before making payments from account
  • Obtain client’s permission for direct debits / standing orders
66
Q

What steps do you take for handling clients’ money?

A
  • Have separate bank account with client name on
  • Put money in there promptly
  • Do not use money for any other purposes
  • Provide access on demand to client
  • Ensure records are kept
  • 2 director signatories to approve a transfer
67
Q

What is a bribe?

A

The giving, offering or receiving an advantage such as a payment, gift or service for an action which is illegal or a breach of trust.

68
Q

What does the Bribery Act 2010 cover?

A

Based on six principles:
1. Proportionality - proportionate to
2. Top level commitment
3. Risk assessment
4. Due diligence
5. Communication
6. Monitoring and review

69
Q

What are the four offences of a bribe?

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign public official
  4. Failing to prevent a bribe
70
Q

Would you ever accept a gift from a client?

A

I would consider the following:
- Timing of the gift
- Is it reasonable and proportionate?

71
Q

What are the risks from accepting a gift from a client?

A
  • It could be used as a bribe
  • It could be an attempt to improperly influence your decision
72
Q

What is your company’s policy on gifts/bribery?

A
  • Must be reasonable and proportionate
  • Gifts over £200 and entertainment over £1000 per head must be reported to legal and compliance
73
Q

What would you do if a client sent a gift for an ongoing project?

A

Politely decline.

74
Q

Who is responsible for bribery?

A
  • Firms are responsible for its employees
  • Firms need to show they took all reasonable measures to prevent it (training, identification of risks, clear policies and regular reviews)
75
Q

Who would be held accountable for a corrupt act?

A

Companies are responsible unless they prove adequate procedures in place to combat bribery (training, identification of risks, clear policies and regular reviews)

76
Q

What are the penalties under the Bribery Act? Who policies it?

A
  • Serious Fraud Office
  • Individuals: Max 10 years in prison and/or unlimited time
  • Companies face an unlimited fine
77
Q

What is your firm’s anti bribery policy?

A
  • Must comply with the Bribery Act 2010
  • Facilitation payments are prohibited
  • Do not contribute to political parties
  • Do not offer employment in exchange for improper business advantage
  • Carefully select 3rd parties
  • Use good judgement when giving and receiving gifts
  • Encourage charity donations but seek manager approval first
78
Q

What is the key money laundering statutory legislation?

A

Money Laundering, Terrorist Financing and Transfers of Funds Regulations 2017, amended 2020

79
Q

What is the update to ML Regulations in 2020?

A
  • Amended in January 2020
  • Letting Agents to register with HMRC if they let individual properties for more than 10,000 Euros PCM
  • CDD checks on landlord and tenant’s on any new letting or reletting
80
Q

What are the key provisions of the ML Regulations 2017?

A
  • Wirtten ML risk assesment
  • Appropriate training for ML
  • Written AML checks
  • Have appropriate policies/controls in place to address ML and terrorist financing risks
  • Carry out CDD and EDD
  • Keep written records
  • Others: no cash over 10,000 Euros, Have a money laundering officer, AML checks before exchange of contracts
81
Q

What is money laundering?

A

Converting the proceeds of criminal activity into legitimate assets

82
Q

What would you do if a client tried to pay in cash?

A

JLL’s policy is to not accept cash under any circumstances

83
Q

What do the RICS provide to assist with AML?

A

Red Flag document

84
Q

What are the red flags of money laundering?

A
  • Parties reside in high risk countries
  • Large cash payments
  • Client lacks knowledge and has little interest in the transaction
  • Client is secretive or evasive about who they are
  • Overpaying for an asset
  • Urgency to complete a deal
85
Q

What are the penalties under the ML regulations 2017? Who polices it?

A
  • National Crime Agency
  • Assisting in ML: Max 14 years and/or unlimited fine
  • Tipping off/not reporting: Max 5 years / unlimited fine
86
Q

What is enhanced due diligence (EDD)?

A
  • Further investigations carried out if a client or their family member is a PEP or from high risk third country
  • More info on background, purpose and increased monitoring
87
Q

What is customer due diligence (CDD)?

A
  • Identify the client and verify their identity based on a reliable independent source (e.g. passport, driving licence)
  • Make reasonable endeavors to identify the beneficial owners of the client
  • For a company, its name, company number and address of the registered office is required
  • The names of the directors are required unless the company is listed on a regulated market (such as London Stock Exchange)
  • Obtaining info on the purpose and intended nature of the business relationship and proposed funding arrangement as appropriate
88
Q

What is a PEP?

A

Politically exposed person – someone who is more at risk of bribery and corruption due to their public function

89
Q

What is the RICS guidance for money laundering?

A

RICS Countering bribery, corruption, money laundering and terrorist financing (2019) professional Statement

90
Q

What can firms do to reduce the risk of bribery and money laundering? / What does the PS cover?

A
  • Have a written policy in place
  • Publish code of behaviour for staff
  • Encourage transparency
  • Set up a gifts register
  • Staff training
  • Keep up to date with legislation
91
Q

What do you know about the Proceeds of Crime Act 2002?

A

Outlines a set of criminal offences intended to combat money laundering (AML offences)

92
Q

What are THREE main areas of offence?

A
  • Concealing criminal property
  • Arrangements in relation to criminal property
  • Acquisition use and possession of criminal property
93
Q

What is negligence?

A
  • Breach of a duty of care where a loss arises.
  • You have a duty to care to clients and third parties to use “reasonable care and skill”
94
Q

How can you avoid negligence?

A
  • Ensure you are competent
  • Have signed terms of engagement in place
  • Make file notes
  • Inspections = Take photos on site
  • Undertake work in accordance with RICS guidance
95
Q

What is the test for damages?

A

Loss suffered must have been reasonably foreseeable at the time of breach by the surveyor and claimant.

96
Q

Who is responsible for breach of duty?

A

Member’s firm unless LLP or LLC.

97
Q

What is a liability cap?

A

A contractual agreement that a client can only claim damages up to the amount agreed.

98
Q

Please can you give an example of a breach?

A
  • Breach of the rules of conduct – dishonest about fees
  • Failing to comply with professional obligations e.g. failing to carry out required hours of CPD
99
Q

How long do you need to keep records for?

A

Limitation Act 1980 - period for bringing a claim against a member for breach is 6 years from the date the service was provided with a long stop date of 15 years.

100
Q

What does the RICS say about fees?

A
  • Should avoid price fixing
  • Should avoid undercutting other firms
  • Fees should be market based
  • Fees can be negotiated
101
Q

Tell me about the RICS Bichard Review?

A
  • Bichard reported in June 2022
  • RICS commissioned a review into the purpose of the RICS
  • 7 recommendations were made and all were adopted:
    o Increased focus on D&I
    o Independent review of RICS governance every 5 years
    o New simplified, clear, accountable governance structure
    o Greater leadership on sustainability and climate change
    o RICS President (Clement Lau) to also chair governing council
102
Q

When would you decline an instruction?

A
  • Not competent
  • Client won’t do AML checks
  • Client won’t sign ToE
  • Conflicts of Interest
  • Client is on UK Sanctions list
  • Can’t agree PII liability cap
  • The advice if for a friend/pro bono basis and PII won’t cover personal work
103
Q

What must you do before taking on an instruction?

A
  • Check personal competence
  • No conflicts of interest or personal interest
  • Confirm ToE in writing with written approval before work is started on the instruction
104
Q

What checks do you undertake when you have a new client?

A

Conflict checks - Prevents JLL being sued, not receiving fees and having to re-do work.

KYC checks – considers the potential risks to JLL in engaging with a client.

AML checks – ID & POA

105
Q

How do you undertake a KYC check?

A
  • Credit checks / review of the client’s financial accounts (companies house)
  • Understand who owns or controls the client (leadership and ownership)
  • Be clear why the client has chosen JLL
  • Review if the client is represented by other well-know / reputable advisors
  • Online search for negative press
106
Q

Why do you need a terms of engagement?

A

Defines the scope of work that has been agreed, outlines the fees and avoids negligence claims.

107
Q

What are terms of engagement?

A

Written confirmation of the conditions that have been agreed with the client.

108
Q

What is in your terms of engagement?

A
  • Proposed fee basis
  • Payment of expenses and how it is calculated
  • Copy of the complaint’s procedure is available on request
109
Q

What is in your terms of business?

A
  • Client’s obligations
  • Firm’s obligations
  • Confidentiality
  • Termination
  • Liability
  • Data protection
110
Q

What is a conflict of interest?

A
  • When a member or firm’s impartiality and independence is threatened
  • Due to conflict between two competing interests
111
Q

What is the governing RICS legislations for Conflict of Interest?

A

RICS Conflicts of Interest (2017) professional statement

112
Q

How do you carry out a conflict check?

A

Using my firm’s internal database. Without this I would:

  • Email colleagues detailing the parties and property
  • Check files for previous or current involvement with parties
  • Keep a register where employees could declare personal interests and check this
113
Q

What are the types of conflicts?

A
  • Own Interest conflict
  • Party Conflict
  • Confidential Information conflict
114
Q

What are examples of conflicts of interest?

A
  • Acting for competing bidders
  • Acting for a lender and advising borrower
  • Acting for seller and buyer in same transaction
  • Promoting business or services owned by family member
115
Q

What is informed consent?

A

Consent given willingly by a party who may be affected by a conflict of interest. Must be in writing.

116
Q

What do you do if there is a conflict/potential conflict?

A
  • Establish the facts, can you proceed? If not then, conflict avoidance
  • Inform both parties
    o Disclose nature of the conflict
    o Parties to make own decision
    o Request written informed consent
  • Conflict management  put the measures in place
117
Q

How would you manage a conflict of interest?

A
  • Must take reasonable steps to put robust measures in place to stop information passing between the two parties:
    o Different surveyors, physically separated with different support teams – ideally different offices, buildings or floors
    o Different files with no access, all securely kept
    o Clear audit trail and overseen by firms’ compliance officer
118
Q

What element of the Red Book refers to a conflict of interest?

A

PS2 – reiterates the guidance note provides examples in a valuation context.

119
Q

Why are Terms of Engagement important?

A

Outlines the scope of work, PII and fees agreed with the client. It is RICS and JLL policy that a valid contract is in place before providing advice

120
Q

What is Section 18 of the Estate Agent’s Act 1979?

A

Terms of Agency must be confirmed in writing

121
Q

How do you do an AML check?

A

Customer Due Diligence – done on all clients buying, selling, letting or renting properties

  • Copy of valid ID (passport, driving license)
  • Copy of POA (bank statement, council tax bill etc)

Note to self – AML and KYC checks are completed on both parties. In a leasing transaction, where the monthly rent exceeds £8,250 the same rule applies (Dual AML).

122
Q

What should you do if you suspect money laundering?

A

Report it to the legal and compliance team who will inform the national crime agency.

123
Q

How do you carry out money laundering checks for CDD on Public Limited Company?

A
  • Review companies house
    Request the following:
  • Company name
  • Registered number and office
  • Business address
  • Names of all directors/shareholders
124
Q

What is a “cooling off” period?

A

14-day period to cancel a contract - Consumer Rights Act 2015

125
Q

What does the RICS say regarding confidentiality?

A
  • Client confidentiality must be maintained at all times
  • Only share client info if statutory duty e.g. police/HMRC
  • Old files should be held for a minimum 6 years before secure disposal
126
Q

What would you do if you received confidential information via email in error?

A
  • Notify the sender.
  • Delete the email.
127
Q

What covers complaints handling?

A

RICS Complaints Handling 2016 Guidance Note

128
Q

What must you do under the RICS Complaints Handling 2016 Guidance Note?

A
  • Firms must have written CHP approved by the RICS (must include an ADR mechanism)
  • Provide CHP to client with Terms of Business
  • Maintain a complaints log
  • Notify PII as soon as possible if complaint could lead to a claim
129
Q

What are the minimum CHP requirements by the RICS?

A
  • STAGE ONE = Internal
    o When complaint received issue CHP
    o Complaint must be made in writing
    o Complaint must be acknowledged within 7 days, investigated within 28 days
  • STAGE TWO = ADR
    o If client is not happy with review, refer to independent redress scheme

Appendix A of the Rules of Conduct states that firms must have a CHP that should:

  • Be fit for purpose
  • Made available to all staff
  • Readily be shared with clients
  • Regularly reviewed at senior level
  • Be agreed with insurance providers (PII)
  • Provide details of access to independent redress schemes
130
Q

How would I deal with a complaint?

A
  1. Refer to my firm’s CHP
  2. Starting point – establish the root cause of the issue. Need to understand the complaint. Listen / read it carefully. Respond within the timeframe set out in the CHP.
  3. All complaints should be recorded immediately
  4. Apologise to the client for needing to complain.
  5. Clearly set out next steps and a timeframe
  6. Establish one point of reference / nominated contact for the complainant
  7. Where a duty of care has been established, supply the complainant with a copy of your firm’s CHP
  8. Evaluate whether to inform your PII
  9. When the complaint is understood, you should decide on a course of action to reach a good outcome
  10. The response letter should refer to the availability of ADR
  11. It is good practice to maintain an audit trail, follow up in writing and keep copies
  12. Following the complaint, it is good practice to review the CHP and reflect of the situation to see if lessons can be learned. Do you need more CPD on the issue? Etc
131
Q

What is JLL’s Complaints Handling Procedure?

A
  1. Complaint is raised with the deal director in the first instance. If the client is not satisfied, then a formal complaint in writing should be made to the engagement director.
  2. The engagement director will attempt to provide a reasoned response within 15 days.
  3. If the client is dissatisfied, the client may raise the complaint with the legal and compliance team.
  4. It will be allocated to a member of the L&C team to investigate and you will receive a response within 8 weeks from original complaint. The response will provide details for: redress offered, appeal process and external review.
  5. If the client remains dissatisfied, they can refer to an external body for adjudication.
132
Q

What would you do if you wanted to start your own firm?

A
  • Plan for Succession - someone takes over your work if you’re a sole practitioner and you die.
133
Q

How do you avoid a conflict?

A
  • Get client’s aims and objectives
  • Good record keeping
  • Manage client expectations
134
Q

What is dual agency?

A
  • When you act on behalf of both the buyer and the seller
135
Q

Speak to me about the RICS Regulatory Decision Making 2022

A
136
Q

What are the Rules of Conduct supported by?

A

Ethics decision tree

137
Q

What are the CPD requirements

A
  • 20 hours - 10 formal
  • Must be logged on RICS CPD Management System
  • must have understanding of current Rules of Conduct
138
Q

What’s required in a firms registration in an annual return?

A
  • Complains handling procedure and how many complaints received and how they were resolved
  • PII cover
  • Type of business
  • Nature of clients
  • Whether the firm is handling clients money
139
Q

When would you decline an instruction?

A
  • Not competent
  • Client not signed TOE
  • ## Not enough PII cover
140
Q

What is ethics?

A

Moral compass

141
Q

What is the difference between a bribe and a gift?

A
  • Depends on timing - if it’s at the start of an instruction/tendering process
  • Depends on proportionality of the gift
142
Q

What is PII?

A

Professional indemnity insurance

143
Q

What are the RICS requirements for PII?

A

The nature and extent of the insurance must be adequate and appropriate having particular
regard to:
* an ‘each and every’ claim basis or aggregate plus unlimited round the clock reinstatement
basis
* RICS’ minimum policy wording or more comprehensive wording. As a minimum, you should
ensure that your policy wording is written on a full civil liability basis and
* the minimum level of indemnity based on the firm’s turnover in the previous year (or
estimated for a new firm)

144
Q

What is the leading case law for PII cover and what did it

A

Merrett v Babb

145
Q

What is the RICS run off pool?

A

Firms that are unable to obtain run-off from their incumbent insurer or on the open market will be able to apply for coverage from RICS’ Run-off Pool.

146
Q

What is money laundering?

A

Money laundering is the illegal process of making large amounts of money generated by criminal activity appear to have come from a legitimate source.

147
Q

How would you know if one of the assessors on this panel was a terrorist?

A

In a professional context, I would rely on established due diligence procedures such as background checks and compliance with anti-money laundering regulations, to identify potential risks.

As I continue to adhere to the RICS codes of conduct, I would report to any appropriate channels within the RICS, while allowing authorities to handle such investigations.

148
Q

What would you do if your client asked you to do something that breaches RICS standards?

A

I would explain to the client that I cannot proceed with any action that breaches RICS standards, as I am bound by the RICS Code of Conduct. If necessary, I would withdraw from the project to maintain professional integrity.

149
Q

How would you handle a situation where you see a colleague acting unethically?

A

I would raise my concerns directly with the colleague in a professional manner, and if the issue persisted, I would report the behavior to a senior manager or follow the company’s whistleblowing policy. report to the RICS - breaking codes of conduct

150
Q

What if your employer asked you to change a valuation to secure a deal?

A

I would refuse, as doing so would breach RICS ethical guidelines. I would maintain my professional independence and ensure that all valuations are accurate and objective.

151
Q

If a client offers you a gift after a successful project, what would you do?

A

I would politely decline any gifts that could create a conflict of interest or be perceived as compromising my impartiality, in line with RICS ethical standards.

152
Q

How would you manage a conflict of interest between two clients?

A

I would disclose the conflict to both parties and seek their consent to proceed. If this isn’t possible, I would withdraw from one or both engagements to maintain impartiality.

153
Q

What would you do if you found out your company was involved in money laundering?

A

I would immediately report the issue to the relevant authorities and follow the necessary anti-money laundering procedures, as required by law and RICS regulations.

154
Q

How would you deal with pressure from a client to meet a deadline that would compromise the quality of your work?

A

I would communicate the risks of rushing and explain that delivering work to the required professional standard is a priority, ensuring that the client understands the importance of quality over speed.

Autumn 2024 (27 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions