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APC Valuation > Ethics Level 1 > Flashcards

Ethics Level 1 Flashcards

1
Q

What are the 5 rules of conduct?

A

Rule 1 - Must be honest, act with integrity and comply with their professional obligations, including obligations to RICS

Rule 2 - Must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.

Rule 3 - Must provide good-quality and diligent service

Rule 4 - Must treat others with respect and encourage diversity and inclusion

Rule 5 - Must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession

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2
Q

What are the professional obligations for members?

A
  1. Comply with the CPD requirements by RICS
  2. Must cooperate with RICS
  3. Promptly provide all information reasonably requested by the standards and regulation board, or those exercising delegated authority on its behalf
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3
Q

What are the professional obligations for firms?

A
  1. Publish a complaints handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log
  2. Ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets standards approved by RICS.
  3. Firms with a sole principal must take appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
  4. Must cooperate with RICS
  5. Promptly provide all information reasonably requested by the standards and regulatory board
  6. Must display on their business literature, in accordance with RICS published policy on designations, a designation to denote they are regulated by RICS.
  7. Must report to RICS any matter that they are required to report under the Rules for the registration of firms.
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4
Q

What are the RICS requirements for APC candidates in terms of CPD?

A

APC candidates must complete 48 hours of CPD per year.

There must be a minimum of 50% formal CPD hours.

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5
Q

What are the minimum requirements for CPD for qualified members?

A

20 hours CPD per year

A minimum of 50% must be formal CPD

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6
Q

What are the key principles of the Bribery Act 2010?

A
  1. Proportionality
  2. Top-level commitment
  3. Risk assessment
  4. Due diligence
  5. Communication
  6. Monitoring and review
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7
Q

What are the four offences under the Bribery Act 2010?

A
  1. Bribing a person
  2. Being bribed / accepting a bribe
  3. Bribing a foreign public official
  4. Failing to prevent bribery
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8
Q

What does RICS countering bribery and corruption, money laundering and terrorist financing say about bribery?

A

Declare certain items to their employers including but not limited to gifts, hospitality, entertainment and expenses, customer travel, charitable donations and sponsorships.

Attend relevant training

Be familiar and act in accordance with employers policy

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9
Q

What does RICS countering bribery and corruption, money laundering and terrorist financing say about money laundering?

A

Keep a breast of current training offered by employer

Comply with their employers policy and process relating to money laundering

Keep reports of money laundering and terrorist financing activity confidential if in a senior management role.

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10
Q

What is the definition of a bribe?

A

The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.

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11
Q

What is customer due diligence?

A

Taking the appropriate steps to ascertain who the customer or client is.

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12
Q

Can you name some red flags in terms of bribery and money laundering?

A
  • Not willing to sign the terms of engagement
  • Wanting to pay in cash only or substantial amount (10,000 euros)
  • Not willing to have background checks or provide identification
  • Willing to pay over the market value for services
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13
Q

When was the RICS founded? When did it receive royal charter?

A

Founded 1868

Royal Charter 1881

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14
Q

Who is the president and who is the CEO?

A

President - Tina Paillet

CEO - Justin Young

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15
Q

What are the advantages of being an RICS member?

A

Status
Recognition
Knowledge
Network
Market advantage

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16
Q

5 Principles of RICS regulation?

A

Proportionality
Accountability
Consistency
Targeting
Transparency

17
Q

Do you know what the Ethics decision tree is?

A

Yes, a series of questions to go through when you are asked to act in a certain manner.
Consider:
Legalities
consistency with RICS
Consultation with senior colleagues
Have clear reasoning
Would you want the decision to be made public?

18
Q

What 3 steps do you need to undertake before accepting an instruction?

A
  1. Check if I’m competent to undertake the work.
  2. Ensure there are no conflicts of interest
  3. Confirm terms of engagement in writing
19
Q

How should a fee basis be calculated?

A

Fee must be market based on ad-hoc basis with the client.

20
Q

Why would you decline an instruction?

A
  • Not competent
  • Client won’t sign the terms of engagement
  • You suspect fraud, money laundering etc
  • Illegal or unethical
  • Conflict of interest
  • Insufficient facts
  • PII cap not agreed
  • PII cover not in place
21
Q

Why do you need professional indemnity insurance?

A

To cover yourself/company if a claim is made.
Protect your company
Protect the client

22
Q

How long should PII cover run for after the closure of a business?

A
  • Mandatory 6 years run off cover
  • RICS recommend a minimum of 15 years.
23
Q

If a conflict of interest arises can you act for the client?

A

If you can prove the conflict would not influence you in your instruction and informed consent has been received from all affected.

Also, only when proceeding is in the best interest of all parties.

24
Q

How do you avoid claims of negligence?

A
  • Clear and precise terms of engagement
  • Ensure competent to undertake work
  • Undertake work in accordance with RICS standards and guidance notes
  • Make detailed notes and take photos
  • Keep up to date with market knowledge and legislation
  • Undertake and record CPD
  • Cap the professional liability excess on your PII policy in the TOE
25
Q

What should a complaints handling procedure include?

A
  • Set out in RICS professional standard Complaints handling
  • Complaints handling procedure to be approved by RICS.
  • Notify insurer as soon as possible if there is a complaint
  • CHP should be issued to client in TOE
  • Complaint log must be maintained
  • Firms must include RICS approved alternative dispute resolution mechanism in CHP
  • Sole practitioner must nominate a surveyor/firm to act as complaints handling officer
26
Q

Can you describe the stages of a complaints handling procedure?

A

Stage 1 -
- Dealt with in house
- Procedure must be quick, clear, and impartial
- Complaints handling officer must be contacted first to investigate
- Complaints must be made in writing
- Must be acknowledged within 7 days and investigated in 28 days.

Stage 2 - ADR third party resolution
- Involves a redress scheme that firm has chosen
- Name of relevant scheme must be provided

27
Q

What is the VOA’s complaints handling procedure?

A

Two tier system
Tier 1:
Complaint investigated within the business stream
Tier 2:
Complaints handling team deal with case.

If still dissatisfied complainant can go to the property or government ombudsman.

28
Q

What is the minimum level of Professional indemnity insurance?

A

PII is based on turnover:

£100,000 or less - £250,000 worth of cover.
£100,001 to £200,000 - £500,000 worth of cover.
£200,001+ - £1,000,000 worth of cover.

29
Q

If you cannot obtain cover is anything you can do?

A

Yes, RICS assigned risk pool

This is in place for members who cannot obtain cover.

30
Q

What must you do when handling client money?

A
  • Client accounts must be kept separately and clearly identifiable
  • The word client must be on the account
  • Client can have their money on demand.
  • Payment of interest is agreed with the client.
  • Account must always be in credit and not go overdrawn
  • Need to display money handling procedure online
  • Annual audit and reporting obligations by cettified accountant employed by RICS are met.
31
Q

What do you need to do when setting up a new firm?

A
  • Inform RICS
  • Appoint a communications officer
  • Arrange PII cover
  • Set up complaints handling procedure, to be approved by RICS
  • Register for RICS registered valuer scheme
  • Set up complaints log
  • Appoint complaints handling officer
  • Obtain logo kit from RICS
  • Have a LOCUM in place if you can’t undertake work
  • Ensure CPD logged online
  • Set up training plan
  • Ensure completion of RICS annual return
32
Q

What do you need to do when closing down a practice?

A
  • Inform RICS
  • Inform clients and hand over arrangements to new firm
  • Return client money
  • Inform insurers and arrange run off cover for a minimum of 6 years
  • Retain a copy of client files and records for a minimum of 6 years
33
Q

What are the penalties for breaching the Bribery Act 2010?

A

Maximum penalty of 10 years imprisonment.
Unlimited fine

34
Q

What is money laundering?

A

Where proceeds of crime are disguised or converted and then realised as legitimate assets

35
Q

Customer Due Diligence checks?

A
  • Identify client
  • Make reasonable endeavours to identify beneficial owns of the client
  • Company name, number and registered address
  • Names of directors of companies
  • Obtain information on purpose of business relationship and proposed funding
36
Q

What does RICS guidance say on money laundering and terrorist financing?

A

Regulated firms must:
- Not facilitate or be complicit
- Have systems in place to comply with law
- Report suspicions
- Evaluate risks to firms
- Take appropriate measures to understand client and purpose of instruction
- Verify identity of client through ID checks
- Retain records to show how firm has complied

37
Q

What are the civil service code core values?

A

Integrity
Honesty
Objectivity
Impartiality

These largely align with RICS core values.

APC Valuation (27 decks)

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