Ethics Level 1 Flashcards

1
Q

Why do you want to become a member of RICS?

A

I would like to become a member of an independent global professional body where I can access the most up-to-date knowledge to provide clients confidence

Would also like to grow + expand professional network

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2
Q

What are the 5 benefits of being an RICS member? (MARKSN)

A

Market advantage

Recognition

Knowledge

Status

Network

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3
Q

What are the benefits of being a RICS Regulated Firm? (CCADSN)

A

Credibility

Competitive advantage

Professional development

Professional support

Professional network

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4
Q

What is the RICS?

A

Independent global professional body for Chartered Surveyors

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5
Q

When was the RICS founded?

A

1868

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6
Q

Where are the RICS International Headquarters located?

A

12 Great George Street, Parliament Square, London

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7
Q

How is the RICS structured?

A

Governed by Governing Council – manage strategy + runs RICS

RICS Board report to Governing Council – responsible for delivery of business plan + oversight of operations, excluding standards + regulation

Executive board – board supports Governing Council + is involved in day-to-day management + operational oversight of RICS

Global Members Committee, Audit, Risk Assurance + Finance Committee, Knowledge + Practice Committee + Nominations + Remuneration Committee all report to RICS Board

World Regional Boards report to Global Members Committee

Professional Group Panels report to Knowledge + Practice Committee (consists of 18 professional groups covering range of specialisms)

Standards + Regulation Board – exclusively responsible for regulatory functions. Includes setting + upholding professional standards, regulatory policy + overseeing Regulatory Tribunal

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8
Q

What is the Governing Council?

A

Sets global strategy + ensures RICS fulfils Royal Charter obligations

Oversees direction/performance of RICS + standards/regulations

Includes President, President Elect, Senior Vice President, etc.

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9
Q

Who are the RICS Board?

A

Delegated by Governing Council

Oversees delivery of business plan + operational management (excluding standards + regulation)

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10
Q

Who are the Standards + Regulation Board?

A

Exclusively responsible for regulatory functions, including setting standards, governance, policy + operational oversight in public interest

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11
Q

Tell me about the World Regional Boards

A

RICS is divided into 5 world regions, each with own board responsible for strategy + business plans

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12
Q

Tell me about the Professional Group Panels

A

These panels report to RICS Board + assist in advancing profession by developing + maintaining technical standards

Six groups – building surveying/building control, commercial property, construction, land + natural resources, residential property + valuation

Professional Group Panels were formed following recommendations in Bichard RICS Review

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13
Q

Tell me about the Executive Team

A

Comprises CEO + Executive Directors

Team manages day-to-day operations + implements decisions made by Governing Council, RICS Board + Standards + Regulation Board

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14
Q

Why is the RICS structured the way it is?

A

Structure ensures RICS operates efficiently + maintains high standards

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15
Q

Tell me about the UK structure of the RICS

A

4 National Associations (London, Birmingham, Belfast, Scotland)

12 Regional Boards (e.g. West Midlands, East Midlands, London etc.)

Local associations

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16
Q

Who granted the Royal Charter + when?

A

Privy Council in 1881

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17
Q

Who are the Privy Council?

A

Part of UK government

They granted + awarded the Royal Charter

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18
Q

What is the role of RICS?

A
  1. To maintain the highest professional standards
  2. To protect customers + businesses through strict regulation
  3. To be the leading source of information + independent advice on land, property, construction + associated environmental issues
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19
Q

What are the key functions of RICS?

A
  • Customer protection
  • Influence policy
  • Set standards
  • Accredit professionals
  • Quality assurance
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20
Q

What is a Royal Charter?

A

Formal document issued by monarch - grants power or right to an individual or body

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21
Q

Who is the current RICS president?

A

Nicholas Maclean FRICS

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22
Q

Who is the RICS Senior Vice President?

A

Maureen Ehrenberg FRICS

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23
Q

Who is the CEO of the RICS?

A

Justin Young (from 5th July 2023)

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24
Q

What do you understand by the term self-regulation?

A

RICS has a Royal Charter

This means there is no government regulation

Instead, they are internally regulated through Bye Laws + Regulations

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25
Q

Are RICS members regulated by the Government as well as the RICS?

A

No

RICS is an independent professional body that regulates its members / it is self-regulated

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26
Q

What are the benefits of the RICS being self-regulated?

A

Avoids time + cost of Government introducing/maintaining legislation

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27
Q

How many RICS members are there?

A

Over 130,000 members in more than 140 countries globally

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28
Q

What are the four levels of membership?

A

FRICS
MRICS
AssocRICS
Trainee / Student

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29
Q

How can you become FRICS?

A

To apply, need to be 5 years or more at MRICS + provide evidence (4 out of 12 fellowship characteristics). Must also provide CPD record

Characteristics:
- Service to RICS
- Service to another body
- Market or industry recognition
- Qualification
- Training
- Dispute resolution
- Leadership
- Management
- Diversity + inclusion
- Client care
- Operation
- Society + environment

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30
Q

What are the principles of better regulation?

A

These are set out by UK Cabinet Office’s Better Regulation Commission + are adopted by RICS in regulatory model

  1. Proportionality
  2. Accountability
  3. Consistency
  4. Targeting
  5. Transparency
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31
Q

What regulation and laws govern the RICS?

A

RICS Bye Laws and Regulations

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32
Q

What is a Bye-Law?

A

Rules applied internally using powers granted by Royal Charter

Set out general principles

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33
Q

Give an example of one of the RICS Bye-Laws.

A

B3.1 Use of designations - chartered members are entitled to use designated initials FRICS (if fellow) + MRICS (if professional member)

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34
Q

What are Regulations?

A

Rules, procedures + processes for members + firms

Refers to + builds upon Bye Laws

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35
Q

When were the RICS Bye Laws + Regulations last updated?

A

Bye Laws - Feb 2020

Regulations - June 2024

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36
Q

What are ethics?

A

Moral values

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37
Q

How would you define the ethical behaviour of a chartered surveyor?

A

Acting in accordance with the 5 Rules of Conduct

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38
Q

What is the full document relating to the Rules of Conduct and when was it effective from?

A

RICS Rules of Conduct, global, Oct 2021

Effective from 2 Feb 2022

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39
Q

Explain the new RICS Rules of Conduct - what do they replace?

A

5 rules for members + firms with example behaviours for each rule

Members voted to create a single document. Greater focus on evolving technology + climate change

Replaced:
- Ethical + Professional Standards
- Rules of Conduct for Members
- Rules of Conduct for Firms

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40
Q

When do the new RICS Rules of Conduct take effect?

A

2nd Feb 2022

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41
Q

Who do the new RICS Rules of Conduct relate to?

A

They relate to all members and firms regulated by the RICS

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42
Q

What are the ethical principles that the Rules of Conduct are based on?

A
  1. Honesty
  2. Integrity
  3. Competence
  4. Service
  5. Respect
  6. Responsibility
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43
Q

What are the 5 Rules?

A
  1. Members + firms must be honest, act with integrity + comply with their professional obligations, including obligations to the RICS
  2. Members + firms must maintain their professional competence + ensure that services are provided by competent individuals who have the necessary expertise
  3. Members + firms must provide good quality + diligent services
  4. Members + firms must treat each other respect + encourage diversity + inclusion
  5. Members + firms must act in the public interest, take responsibility for their actions + act to prevent harm + maintain public confidence in the profession
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44
Q

What do you consider the term integrity mean?

A

Being honest + moral + doing the right thing

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45
Q

Give an example behaviour for each of the 5 Rules.

A
  1. Members + firms being open + transparent with clients about fees + services
  2. Members + firms only undertaking work where have knowledge, skills + resources to carry out competently
  3. Members + firms understanding client’s needs + objectives before accepting any professional work
  4. Members + firms not bullying, victimising or harassing anyone
  5. Members + firms responding to complaints made about them promptly, openly + professionally
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46
Q

What are the core professional obligations of members and firms to RICS?

A

Members:
1. Members must comply with CPD requirements
2. Members must cooperate with RICS
3. Members must promptly provide all information reasonably requested by SRB or those exercising delegated authority on its behalf

Firms:
1. Firms must publish a CHP, including ADR provider approved by RICS + maintain complaints log
2. Firms must ensure all previous + current work is covered by adequate + appropriate PII cover that meets standards approved by RICS
3. Firms with sole principal must make appropriate arrangements for work to continue in event of their incapacity, death, absence from or inability to work
4. Firms must cooperate with RICS
5. Firms must promptly provide all information reasonably requested by SRB or those exercising delegated authority on its behalf
6. Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS
7. Firms must report to RICS any matter they are required to report under Rules for Registration of Firms

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47
Q

What is the RICS Ethics Decision Tree?

A

Flowchart that helps to determine whether to proceed when faced with an ethical grey area

  1. Do you have sufficient facts?
  2. Is it legal?
  3. Is it in line with RICS global professional + ethical standards?
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48
Q

What disciplinary procedures can the RICS impose?

A
  • Caution
  • Reprimand
  • Fine
  • Conditions on firm’s registration or individual’s membership
  • Expulsion
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49
Q

In what circumstances can disciplinary procedures be imposed?

A

If a member or firm fails to meet the professional and ethical standards set out by the RICS

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50
Q

When did RICS last update their disciplinary panel rules?

A

1 October 2019

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51
Q

What are the different levels of action within the disciplinary procedures?

A
  1. Action by Head of Regulation (initial investigations + actions)
  2. Disciplinary panel (handles more serious breaches)
  3. Appeal panel (reviews appeals against decisions)
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52
Q

What do you understand by the term professional practice?

A

Application of specialised knowledge, skills + judgement by individuals or organisations providing professional services to clients

Characterised by a commitment to ethical conduct, ongoing professional development + adherence to professional standards

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53
Q

What money laundering regulations or legislation are you aware of?

A

Money Laundering, Terrorist Financing + Transfer of Funds (Information on the Payer) Regulations, 2017 (as amended 2019)

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54
Q

What is a red flag of money laundering?

A
  • If client avoids personal contact without good reason
  • If client has criminal associations
  • If client is a PEEP or subject to sanctions
  • If parties reside in a high-risk country, e.g. Iran, Iraq
  • If source of funds is unusual, e.g. large cash payments
  • If client is secretive about who they are
  • If client is secretive about source of funds
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55
Q

What bribery legislation are you aware of?

A

Bribery Act 2010

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56
Q

What is a bribe?

A

Something given or promised in expectation of a change in behaviour

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57
Q

What is a gift?

A

Something given without the expectation of a change in behaviour

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58
Q

What are the penalties for accepting a bribe?

A

Individuals - max penalty of 10 years imprisonment +/or unlimited fine

Companies - unlimited fine

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59
Q

What is the key legislation relating to gifts + when did it come into force?

A

Bribery Act 2010
1 July 2011

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60
Q

What is the Bribery Act + what 6 principles is it based on?

A

Aims to reduce bribery business in UK + abroad

Based on proportionality, top level commitment, risk assessment, due diligence, communication, monitoring + review

61
Q

What are the penalties for being involved in money laundering?

A
  • Max 14 years prison sentence +/or unlimited fine for assisting with money laundering
  • Max 5 years prison sentence +/or unlimited fine for tipping off a person by informing them they are under suspicion for money laundering or for failing to report suspicion
62
Q

What constitutes an offence under the Bribery Act 2010?

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign public individual
  4. Failing to prevent bribery
63
Q

What constitutes an offence under the current money laundering regulations?

A
  1. Money laundering
  2. Failing to report suspicious activities relating to money laundering or terrorist financing
  3. Tipping off someone they are under investigation
  4. Failure to conduct due diligence
  5. Failure to maintain appropriate records
64
Q

How long should you keep anti-money laundering records for?

65
Q

What is Professional Indemnity Insurance (PII)?

A

Insurance that protects firms, clients + surveyors from negligence claims when duty of care is breached

66
Q

What are the RICS requirements in relation to PII?

A
  • Each firm must purchase policy on annual basis in accordance with Approved RICS Minimum Policy Wording
  • PII must be provided by RICS Listed Insurer
  • Must send certificate to RICS on annual basis
  • Must cover past + present employees
67
Q

What are the different minimum levels of indemnity required based on a firm’s turnover in the preceding year?

A

£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 + above = £1,000,000

68
Q

What is a PII aggregation clause?

A

Provision in insurance policies that allows multiple related claims to be treated as a single claim

E.g. if several claims arise from similar acts or omissions, they can be aggregated into one claim - simplifies process + reduces costs

69
Q

What does ‘claims made’ mean in terms of PII?

A

Means insurance covers claims made during the policy period, regardless of when incident occurred

70
Q

Is a PII excess usually paid for per claim?

A

Yes

This means that for each claim made against the policy, the insured party is responsible for paying the excess amount specified in their policy

71
Q

In a negligence claim, what would help to show that you acted with consideration and due process?

A
  • Confirming client’s instructions in ToE
  • Ensuring competence
  • Following legislation + professional standards
  • Taking detailed notes
  • Keeping up to date with market knowledge
72
Q

Can good record keeping help to provide a defence in a PII claim?

A

Yes - provides evidence that member followed correct procedures, made responsible decisions + kept accurate of actions

73
Q

If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?

A

Confirm with insurer that you are adequately covered to provide services

74
Q

What is run off cover?

A

Type of insurance that provides protection for claims made after a business has closed

Important for covering liabilities that may arise from past work, even after business has closed

75
Q

What RICS requirements are there relating to run off cover?

A

Where RICS firm stops trading, must have £1m run off cover for minimum of 6 years for consumer claims

76
Q

What changes did RICS recently make to the Minimum Approved PII Wording?

A
  1. Fire Safety Coverage: Enhanced coverage for fire safety, especially for buildings over four storeys
  2. External Wall Assessments (EWS): Specific coverage for EWS and Fire Risk Appraisals of External Walls (FRAEW) in the UK
  3. Cyber Security: Updated wording to better protect against digital threats like data breaches and cyber-attacks
77
Q

Would a dictated report avoid the need to have any written site notes?

A

No - always important to document all site notes + reasons for any decisions

78
Q

Explain PII requirements relating to fire safety cover and cyber cover.

A
  • PII required for fire safety cover. Relates to buildings 5 storeys + above (from 1 July 2024)
  • PII required for cyber cover. Protects digital threats, e.g. data breaches or cyber attacks
79
Q

How long can a PII claim arise after the work is undertaken?

A

Breach of contract - 6 years from negligent act (Limitation Act 1980)

Amendment under Section 14A - allows an additional period of 3 years from the date you first became aware of the damage, but this is subject to a maximum of 15 years from the date of the negligent act

Tort - 6 years from date claimant suffered loss

80
Q

What is the Assigned Risks Pool (ARP)?

A

Facility that is managed by the RICS + Miller Insurance Services LLP used to provide insurance coverage that is considered too high-risk for the standard insurance market

81
Q

Who might need to access the ARP?

A

Firms who are unable to obtain PII in the insurance market to meet RICS minimum requirements

82
Q

Explain your understanding of the RICS Practice Statement Risk Liability and Insurance (1st Edition).

A

Aims to assist regulated firms + clients to understand main risks + liabilities associated with professional services provided by RICS members

Provides guidance on mitigating or avoiding risks + liabilities associated with surveying work

States that PII is essential for risk management - firms should ensure cover is consistent with RICS requirements

83
Q

Explain when you might agree a liability cap.

A

To limit amount of damages that can be claimed by a client in event of loss of negligent act

Helps firms manage risk

84
Q

How would set out third party reliance in Terms of Engagement?

A

Make clear in their ToE that their advice may only be relied upon by the named Client – this gives control over future requests for third party reliance

85
Q

What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?

A
  1. Scope of work
  2. Basis on which fee will be calculated
  3. Liability cap
86
Q

What is an annual return?

A

Mandatory report that RICS-regulated firms must submit each year

Provides updated information about the firm’s activities, compliance with RICS standards + other relevant details

87
Q

Tell me what you understand about Complaints Handling Procedures (CHP).

A

System of dealing with formal complaints

Requirement for firms under Appendix A of Rules of Conduct to operate a written CHP, including ADR provider approved by RICS

88
Q

When and how can the RICS be involved in a complaint about a firm or member?

A

RICS will become involved if member fails to respond to complainant or prevents party gaining access to independent redress mechanism

89
Q

Can you tell me about the CPD requirements for members of RICS?

A
  • Must undertake 20 hours a year
  • At least 10 hours must be formal
  • Must complete by 31st December + record online
90
Q

Why is CPD important?

A

It ensures members continually update their skills and knowledge to remain professionally competent + up to date

91
Q

Tell me about the RICS’ guidance on dealing with Conflicts of Interest.

A

Professional Standard COI, 2017 - effective from 1 Jan 2018

Member must not advise or represent a client where doing so would involve a COI or significant risk of COI, other than where those who are affected have provided informed consent

92
Q

What is a conflict of interest

A

When RICS members’ independence + impartiality is threatened due to presence of a conflict

93
Q

Tell me about the 3 types of conflict of interest

A
  1. Party = when work for one party conflicts with another
  2. Own = relates to personal interest that threatens individual’s independence/impartiality
  3. Confidential information = relates to work between two parties that is confidential
94
Q

What is informed consent?

A

Consent given willingly by a party who may be affected by a COI

95
Q

What is double dipping (dual agency)?

A

Surveyor acting for buyer + seller or same property

96
Q

Why is double dipping (dual agency) an unacceptable practice?

A

Creates COI - agent cannot fully advocate for best interests for both parties

97
Q

How would you close down a regulated firm?

A
  • Inform RICS of closure + fill in deregistration form
  • Inform clients
  • Hand over arrangements to new firm
  • Return money held by clients to accounts
  • Notify PII insurers + arrange run off cover
  • Make arrangements relating to files (keep for up to 15 years under Limitation Act 1980)
  • Consider whether to notify any third parties, e.g. accountants, solicitors, bank
  • Seek advice if firm is insolvent
98
Q

What can you tell me about RICS guidance relating to bribery corruption or money laundering?

A

Professional Standard - effective Sept 2019

Sets out global mandatory requirements for RICS members + regulated firms in relation to bribery, corruption, money laundering + terrorist financing

3 parts - mandatory requirements, guidance setting out good practice, supplementary guidance

99
Q

What status does it hold?

A

Guidance is mandatory - failing to comply may result in disciplinary action by RICS

Legislation will be considered first (Money Laundering, Terrorist Financing + Transfer of Funds (Information on the Payer) Regulations, 2017 (as amended 2019))

100
Q

What are some of the key principles of this guidance?

A
  1. Due diligence
  2. Risk assessment
  3. Record keeping
  4. Training
  5. Reporting
  6. Confidentiality
  7. Compliance culture
101
Q

What must firms do to comply with the guidance?

A

Bribery + corruption:
- Not offer or accept anything that could constitute a bribe
- Have procedures in place to comply with law
- Report suspicions to relevant authority
- Undertake written evaluations of risks firm faces
- Retain records to show compliance with PS

Money laundering + terrorist financing:
- Not facilitate or be complicit with money laundering + terrorist financing
- Have systems in place to comply with law
- Report suspicion
- Evaluate + review risks
- Verify client by undertaking ID checks
- Retain records to show compliance with PS
- Take appropriate measures to understand client + purpose of instruction

102
Q

What must members do to comply with the guidance?

A

Bribery + corruption:
- Not offer or accept anything that could constitute a bribe
- Ensure they have adequate knowledge of bribery + corruption to comply with PS
- Report suspicion to relevant authority (before line manager)

Money laundering + terrorist financing:
- Not facilitate or be complicit with money laundering + terrorist financing
- Report suspicion to relevant authority (before line manager)

103
Q

What should firms do to comply with the guidance?

A

Bribery + corruption:
- Prepare written policy covering anti-bribery + corruption, including a RA
- Implement register covering gifts, expenses, entertainment, COI, charitable donations
- Appoint person in company to discuss compliance + ethical matters
- Carry out due diligence on third party suppliers

Money laundering + terrorist financing:
- Have a written policy covering money laundering + financing risks
- Provide training
- Keep records of suspicious activity confidential
- Identify beneficial owner of company/client involved within a transaction
- Appoint senior person to be responsible for ensuring policies are in place + complied with

104
Q

What should members do to comply with the guidance?

A

Bribery + corruption:
- Declare items to employer, including gifts, hospitality, entertainment, expenses
- Attend training
- Act in compliance with employer’s policy

Money laundering + terrorist financing:
- Attend training
- Comply with employer’s policy
- Keep records of suspicion confidential

105
Q

What are the current RICS rules for registration of firms?

106
Q

Who is a ‘qualified member’ of RICS?

A

Someone who has met requirements + passes assessment process

Includes Chartered Members (MRICS) + Associate Members (AssocRICS)

107
Q

What is a phoenix firm?

A
  • Where an RICS regulated firm closes in a disorderly way + then re-registers quickly as a new trading entity
  • Typically relates to firms with 1-4 partners + happens where a firm becomes insolvent or closes without having sufficient run-off cover in place
108
Q

When must a firm register for regulation?

A
  1. If firm offers professional surveying services to clients
  2. Has at least 50% of principles (senior managers, partners, owners) who are qualified RICS professionals
  3. Agreed to comply with RICS standards + rules
109
Q

What are the registration eligibility criteria?

A
  1. If firm offers professional surveying services to clients
  2. Has at least 25% of principles (senior managers, partners, owners) who are qualified RICS professionals
  3. Agreed to comply with RICS standards + rules
110
Q

Who is a Responsible Principal?

A

Person within RICS-regulated firm responsible for ensuring that the firm’s professional, technical, and ethical standards are applied and upheld.

111
Q

What happens if a firm cannot comply with the eligibility criteria?

A

Will not be able to register with RICS for regulation or may have its registration revoked

RICS may also take disciplinary action against member or firms that fail to comply with the rules + regulations

112
Q

What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?

A

Only firms regulated by RICS can use the logo + designation

Firms must ensure that the use is not misleading + obtain the RICS’ prior written consent

Failure to comply can lead to disciplinary action

113
Q

Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.

A

The term is restricted to firms that are regulated by RICS and have at least one RICS member as a principal or director

This is to ensure the use of the designation is reserved for those who have met the rigorous standards of the RICS

114
Q

What must be included in ToE relating to firm regulation?

115
Q

What is a locum and who might need one?

A

Another professional who is appointed to stand in for surveyor if they are unable to work, e.g. in event of accident, illness, unforeseen circumstances, prolonged absence or death

Sole practioner

116
Q

How could a sole trader set up their CHP using a locum?

A

Locum should be someone with suitable experience and qualifications to handle complaints

The ToE with the locum should clearly outline their role in handling complaints, including the procedures to be followed

117
Q

What RICS guidance relates to handling client money?

A

Professional Standard Client Money Handling, 2019

118
Q

When was this last updated?

119
Q

What do the RICS Rules of Conduct say about client money?

A

Falls in example behaviours under Rule 1:

  • Firms keep client money safe + have appropriate accounting controls
  • Members do not misuse client money + comply with controls to keep it safe
  • Members + firms do not facilitate any financial crime including money laundering, tax evasion, bribery or corruption
120
Q

Explain your understanding of the RICS Scheme Rules relating to client money protection.

A
  • RICS Client Money Protection Scheme - operated by RICS
  • Scheme provides protection as last resort, in instances where RICS regulated firm is unable to repay client’s money, up to limits + exceptions set out in scheme rules
  • Maximum claim per client is £50,000 + there are aggregate annual claim limits
  • If client money remains unclaimed for 3 years, firms must donate to registered charity
121
Q

What are the main schemes available to firms?

A

Client Money Protection Scheme - provides protection to clients in the event that the firm is unable to repay money that is held on their behalf. The most recent update was in April 2019. (Relevant to property management)

RICS Insurance Backed Guarantee Scheme - provides protection to clients in the event that the firm is unable to honour its contractual obligations. The most recent update was in October 2021. (Relevant to valuations and other commercial services)

122
Q

When were these last updated?

123
Q

What is the current compensation limit?

A

£50,000 per claim

Aggregate annual limit of £10.3 million

124
Q

What does the annual regulatory review fee relate to?

A

Charge that firms pay for the review of how they handle clients’ money. Fee helps cover cost of reviews

125
Q

What might client money include?

A

Money that a firm holds or receives, for or from a client

E.g. rents, service charges, deposits, client money held but due to be paid to contractors

Office money is NOT client money

126
Q

How does this differ to office money?

A

Funds that belong to firm, e.g. fees received from clients for services provided

Held in the firm’s own accounts + are not subject to the same regulations and protections as client money

127
Q

What are some of the key principles of the RICS Professional Standard relating to client money protection? (12 for firms, 4 for members)

A
  1. Client accounts must be separate + identifiable
  2. Word ‘client’ must be included on bank account + cheque book
  3. Client must be able to have monies on demand
  4. Payment of interest is agreed with client + accounts must be kept in credit
  5. Regular bank reconciliation at least monthly
  6. Maintain accurate records
  7. Annual audit by certified accountant employed by RICS
  8. If cash receipts are made to settle transactions, make sure records show all cash transactions
  9. Signatories must be agreed with authorised staff + 2 sigs are required
  10. Discrete account is for a single named client account only
  11. RICS Regulatory Review Visits of inspections can be undertaken by RICS usually on 3 year basis by accountant employed by RICS
  12. Firms handling client money need to display procedures document on website
  13. Any unidentified monies must be identified
128
Q

Explain the key themes from the RICS Futures 2020 Report (SEST)

A
  • Sustainability: Emphasising environmental responsibility + sustainable practices
  • Ethics: Maintaining high ethical standards in the profession
  • Skills + Talent: Developing skills to meet future industry needs
  • Technology: Adopting new technologies, e.g. AI and big data
129
Q

Explain the potential implications of the Hart v Large case

A
  • Highlighted the importance of thorough surveys + ensuring potential issues are identified + reported
  • Case led to stricter standards for home buyers to protect buyers from hidden defects
130
Q

Explain your understanding of precedent set in Burgess v Lejonvarn

A

Case established that professionals can owe a duty of care even without a formal contract

131
Q

What do RICS set out as good practice for the use of social media?

A
  • Being respectful + avoid criticising individuals
  • Using professional + respectful language
  • Removing posts if requested to do so for legitimate reasons
132
Q

Explain your understanding of the RICS Levitt review

A
  • Independent review led by Alison Levitt QC
  • Investigated governance issues with RICS
  • Revealed poor management practices + wrongful dismissal of 4 non-executive board members
  • Led to recommendations for improved governance + transparency
133
Q

What is whistleblowing?

A

When someone reports illegal or unethical activities within an organisation to authorities or the public

134
Q

What does good governance mean to you?

A

Practice of managing an organisation in a transparent, honest and ethical way

135
Q

Explain what the Pandora Papers are and the ethical issues raised within them

A

An extensive leak of documents, revealing tax avoidance, corruption and COI in the secret offshore accounts of politicians, billionaires and celebrities

136
Q

Explain what you understand by the RICS Bichard Review.

A

Review undertaken by Lord Bichard in 2022 that aimed to clarify purpose of RICS, make proposals on governing structure + make proposals for incoming leadership + governing body on future culture + strategy of the institution

137
Q

Explain some of the recommendations of the Bichard Review.

A

Made 36 recommendations across 7 areas

  1. Renewed and increased focus on public interest
  2. Maintaining self-regulation (greater independence for regulatory functions)
  3. Increased focus on diversity + inclusion
  4. Empowering + enabling members through greater support for regional boards
  5. Undertaking an independent review of RICS governance
  6. A new simplified, clear + accountable governance structure
  7. Greater leadership on issues that matter most to society e.g. sustainability
138
Q

How will these recommendations be implemented by RICS?

139
Q

What changes have taken place following the Bichard Review?

A

8 recommendations have been completed

Royal Charter has been amended to emphasise public interest

Diversity + Inclusion Panel has been established

New regulatory framework has been delivered (SRB now directly reports to governing council to ensure greater independence in regulatory functions)

Independent public interest review will be conducted every 5 years

Initiatives have been put in place to better engage younger members

Improvements in technology have been implemented

Increased focus on activities that serve public interest

Steps have been taken to separate commercial activities from core functions of RICS

140
Q

What is the RICS motto?

A

Est modus in rebus - there is measure in all things

141
Q

What is LionHeart?

A

Independent charity for RICS professionals, past and present, + their families

142
Q

What is the RICS Matrics?

A

Early career community designed to support students, apprentices, trainees + those who are newly qualified (up to 10 years), as move into industry

Gives the community a platform to influence the profession, as well as an opportunity to network + gain support as they go through the assessment

Network is made up of 27 local communities across the UK

Offers peer support groups, mentoring, free CPD opportunities, networking + social events

143
Q

How do professional integrity and professional ethics differ?

A

Professional integrity = being honest and consistent

Professional ethics = rules + standards that guide behaviour in a profession

144
Q

What is modern slavery and how would you identify red flags of it?

A

Includes slavery, servitude, human trafficking, and forced labour

RICS has a zero-tolerance approach to any form of modern slavery

Red flags:
- Poor working conditions
- Restricted freedom
- Unusual behaviour
- Inadequate pay

145
Q

Explain the implications of the Sanctions and Anti-Money Laundering Act 2018.

A
  • Established UK Sanctions list
  • Gave legal authority to UK to establish own sanctions post-Brexit
  • Surveyors must check up-to-date copy before accepting new work from clients
146
Q

What is the Sanctions List and why should you be aware of it?

A

List of countries, individuals, entities + organisations that cannot be traded with due to having sanctions placed on them

Doing business with individuals or entities on the list is illegal and can result in significant financial and reputational consequences

147
Q

Why was the Register of Overseas Entities introduced?

A

Increases transparency to make it clear who owns property in UK

Allows easier prosecution for those involved in sanctions-busting inability or unwillingness of parties to provide identity documents

148
Q

What are the six RICS values published as a result of the Levitt review? (TIRRIC)

A
  1. Transparency
  2. Integrity
  3. Respect
  4. Responsibility
  5. Innovation
  6. Collaboration
149
Q

Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022

A

Act established Register of Overseas Entities for overseas entities holding real estate

Makes it clear who owns property in UK