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
2
Q
What are the 5 benefits of being an RICS member? (MARKSN)
A
Market advantage
Recognition
Knowledge
Status
Network
3
Q
What are the benefits of being a RICS Regulated Firm? (CCADSN)
A
Credibility
Competitive advantage
Professional development
Professional support
Professional network
4
Q
What is the RICS?
A
Independent global professional body for Chartered Surveyors
5
Q
When was the RICS founded?
A
1868
6
Q
Where are the RICS International Headquarters located?
A
12 Great George Street, Parliament Square, London
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
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.
9
Q
Who are the RICS Board?
A
Delegated by Governing Council
Oversees delivery of business plan + operational management (excluding standards + regulation)
10
Q
Who are the Standards + Regulation Board?
A
Exclusively responsible for regulatory functions, including setting standards, governance, policy + operational oversight in public interest
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
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
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
14
Q
Why is the RICS structured the way it is?
A
Structure ensures RICS operates efficiently + maintains high standards
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
16
Q
Who granted the Royal Charter + when?
A
Privy Council in 1881
17
Q
Who are the Privy Council?
A
Part of UK government
They granted + awarded the Royal Charter
18
Q
What is the role of RICS?
A
- To maintain the highest professional standards
- To protect customers + businesses through strict regulation
- To be the leading source of information + independent advice on land, property, construction + associated environmental issues
19
Q
What are the key functions of RICS?
A
- Customer protection
- Influence policy
- Set standards
- Accredit professionals
- Quality assurance
20
Q
What is a Royal Charter?
A
Formal document issued by monarch - grants power or right to an individual or body
21
Q
Who is the current RICS president?
A
Nicholas Maclean FRICS
22
Q
Who is the RICS Senior Vice President?
A
Maureen Ehrenberg FRICS
23
Q
Who is the CEO of the RICS?
A
Justin Young (from 5th July 2023)
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
25
Are RICS members regulated by the Government as well as the RICS?
No
RICS is an independent professional body that regulates its members / it is self-regulated
26
What are the benefits of the RICS being self-regulated?
Avoids time + cost of Government introducing/maintaining legislation
27
How many RICS members are there?
Over 130,000 members in more than 140 countries globally
28
What are the four levels of membership?
FRICS
MRICS
AssocRICS
Trainee / Student
29
How can you become FRICS?
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
30
What are the principles of better regulation?
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
31
What regulation and laws govern the RICS?
RICS Bye Laws and Regulations
32
What is a Bye-Law?
Rules applied internally using powers granted by Royal Charter
Set out general principles
33
Give an example of one of the RICS Bye-Laws.
B3.1 Use of designations - chartered members are entitled to use designated initials FRICS (if fellow) + MRICS (if professional member)
34
What are Regulations?
Rules, procedures + processes for members + firms
Refers to + builds upon Bye Laws
35
When were the RICS Bye Laws + Regulations last updated?
Bye Laws - Feb 2020
Regulations - June 2024
36
What are ethics?
Moral values
37
How would you define the ethical behaviour of a chartered surveyor?
Acting in accordance with the 5 Rules of Conduct
38
What is the full document relating to the Rules of Conduct and when was it effective from?
RICS Rules of Conduct, global, Oct 2021
Effective from 2 Feb 2022
39
Explain the new RICS Rules of Conduct - what do they replace?
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
40
When do the new RICS Rules of Conduct take effect?
2nd Feb 2022
41
Who do the new RICS Rules of Conduct relate to?
They relate to all members and firms regulated by the RICS
42
What are the ethical principles that the Rules of Conduct are based on?
1. Honesty
2. Integrity
3. Competence
4. Service
5. Respect
6. Responsibility
43
What are the 5 Rules?
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
44
What do you consider the term integrity mean?
Being honest + moral + doing the right thing
45
Give an example behaviour for each of the 5 Rules.
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
46
What are the core professional obligations of members and firms to RICS?
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
47
What is the RICS Ethics Decision Tree?
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?
48
What disciplinary procedures can the RICS impose?
- Caution
- Reprimand
- Fine
- Conditions on firm's registration or individual's membership
- Expulsion
49
In what circumstances can disciplinary procedures be imposed?
If a member or firm fails to meet the professional and ethical standards set out by the RICS
50
When did RICS last update their disciplinary panel rules?
1 October 2019
51
What are the different levels of action within the disciplinary procedures?
1. Action by Head of Regulation (initial investigations + actions)
2. Disciplinary panel (handles more serious breaches)
3. Appeal panel (reviews appeals against decisions)
52
What do you understand by the term professional practice?
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
53
What money laundering regulations or legislation are you aware of?
Money Laundering, Terrorist Financing + Transfer of Funds (Information on the Payer) Regulations, 2017 (as amended 2019)
54
What is a red flag of money laundering?
- 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
55
What bribery legislation are you aware of?
Bribery Act 2010
56
What is a bribe?
Something given or promised in expectation of a change in behaviour
57
What is a gift?
Something given without the expectation of a change in behaviour
58
What are the penalties for accepting a bribe?
Individuals - max penalty of 10 years imprisonment +/or unlimited fine
Companies - unlimited fine
59
What is the key legislation relating to gifts + when did it come into force?
Bribery Act 2010
1 July 2011
60
What is the Bribery Act + what 6 principles is it based on?
Aims to reduce bribery business in UK + abroad
Based on proportionality, top level commitment, risk assessment, due diligence, communication, monitoring + review
61
What are the penalties for being involved in money laundering?
- 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
What constitutes an offence under the Bribery Act 2010?
1. Bribing
2. Receiving a bribe
3. Bribing a foreign public individual
4. Failing to prevent bribery
63
What constitutes an offence under the current money laundering regulations?
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
How long should you keep anti-money laundering records for?
5 years
65
What is Professional Indemnity Insurance (PII)?
Insurance that protects firms, clients + surveyors from negligence claims when duty of care is breached
66
What are the RICS requirements in relation to PII?
- 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
What are the different minimum levels of indemnity required based on a firm's turnover in the preceding year?
£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 + above = £1,000,000
68
What is a PII aggregation clause?
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
What does ‘claims made’ mean in terms of PII?
Means insurance covers claims made during the policy period, regardless of when incident occurred
70
Is a PII excess usually paid for per claim?
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
In a negligence claim, what would help to show that you acted with consideration and due process?
- Confirming client's instructions in ToE
- Ensuring competence
- Following legislation + professional standards
- Taking detailed notes
- Keeping up to date with market knowledge
72
Can good record keeping help to provide a defence in a PII claim?
Yes - provides evidence that member followed correct procedures, made responsible decisions + kept accurate of actions
73
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?
Confirm with insurer that you are adequately covered to provide services
74
What is run off cover?
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
What RICS requirements are there relating to run off cover?
Where RICS firm stops trading, must have £1m run off cover for minimum of 6 years for consumer claims
76
What changes did RICS recently make to the Minimum Approved PII Wording?
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
Would a dictated report avoid the need to have any written site notes?
No - always important to document all site notes + reasons for any decisions
78
Explain PII requirements relating to fire safety cover and cyber cover.
- 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
How long can a PII claim arise after the work is undertaken?
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
What is the Assigned Risks Pool (ARP)?
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
Who might need to access the ARP?
Firms who are unable to obtain PII in the insurance market to meet RICS minimum requirements
82
Explain your understanding of the RICS Practice Statement Risk Liability and Insurance (1st Edition).
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
Explain when you might agree a liability cap.
To limit amount of damages that can be claimed by a client in event of loss of negligent act
Helps firms manage risk
84
How would set out third party reliance in Terms of Engagement?
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
What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?
1. Scope of work
2. Basis on which fee will be calculated
3. Liability cap
86
What is an annual return?
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
Tell me what you understand about Complaints Handling Procedures (CHP).
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
When and how can the RICS be involved in a complaint about a firm or member?
RICS will become involved if member fails to respond to complainant or prevents party gaining access to independent redress mechanism
89
Can you tell me about the CPD requirements for members of RICS?
- Must undertake 20 hours a year
- At least 10 hours must be formal
- Must complete by 31st December + record online
90
Why is CPD important?
It ensures members continually update their skills and knowledge to remain professionally competent + up to date
91
Tell me about the RICS’ guidance on dealing with Conflicts of Interest.
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
What is a conflict of interest
When RICS members' independence + impartiality is threatened due to presence of a conflict
93
Tell me about the 3 types of conflict of interest
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
What is informed consent?
Consent given willingly by a party who may be affected by a COI
95
What is double dipping (dual agency)?
Surveyor acting for buyer + seller or same property
96
Why is double dipping (dual agency) an unacceptable practice?
Creates COI - agent cannot fully advocate for best interests for both parties
97
How would you close down a regulated firm?
- 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
What can you tell me about RICS guidance relating to bribery corruption or money laundering?
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
What status does it hold?
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
What are some of the key principles of this guidance?
1. Due diligence
2. Risk assessment
3. Record keeping
4. Training
5. Reporting
6. Confidentiality
7. Compliance culture
101
What must firms do to comply with the guidance?
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
What must members do to comply with the guidance?
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
What should firms do to comply with the guidance?
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
What should members do to comply with the guidance?
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
What are the current RICS rules for registration of firms?
106
Who is a ‘qualified member’ of RICS?
Someone who has met requirements + passes assessment process
Includes Chartered Members (MRICS) + Associate Members (AssocRICS)
107
What is a phoenix firm?
- 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
When must a firm register for regulation?
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
What are the registration eligibility criteria?
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
Who is a Responsible Principal?
Person within RICS-regulated firm responsible for ensuring that the firm's professional, technical, and ethical standards are applied and upheld.
111
What happens if a firm cannot comply with the eligibility criteria?
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
What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?
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
Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.
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
What must be included in ToE relating to firm regulation?
115
What is a locum and who might need one?
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
How could a sole trader set up their CHP using a locum?
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
What RICS guidance relates to handling client money?
Professional Standard Client Money Handling, 2019
118
When was this last updated?
2019
119
What do the RICS Rules of Conduct say about client money?
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
Explain your understanding of the RICS Scheme Rules relating to client money protection.
- 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
What are the main schemes available to firms?
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
When were these last updated?
2019
123
What is the current compensation limit?
£50,000 per claim
Aggregate annual limit of £10.3 million
124
What does the annual regulatory review fee relate to?
Charge that firms pay for the review of how they handle clients' money. Fee helps cover cost of reviews
125
What might client money include?
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
How does this differ to office money?
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
What are some of the key principles of the RICS Professional Standard relating to client money protection? (12 for firms, 4 for members)
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
Explain the key themes from the RICS Futures 2020 Report (SEST)
- 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
Explain the potential implications of the Hart v Large case
- 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
Explain your understanding of precedent set in Burgess v Lejonvarn
Case established that professionals can owe a duty of care even without a formal contract
131
What do RICS set out as good practice for the use of social media?
- Being respectful + avoid criticising individuals
- Using professional + respectful language
- Removing posts if requested to do so for legitimate reasons
132
Explain your understanding of the RICS Levitt review
- 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
What is whistleblowing?
When someone reports illegal or unethical activities within an organisation to authorities or the public
134
What does good governance mean to you?
Practice of managing an organisation in a transparent, honest and ethical way
135
Explain what the Pandora Papers are and the ethical issues raised within them
An extensive leak of documents, revealing tax avoidance, corruption and COI in the secret offshore accounts of politicians, billionaires and celebrities
136
Explain what you understand by the RICS Bichard Review.
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
Explain some of the recommendations of the Bichard Review.
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
How will these recommendations be implemented by RICS?
139
What changes have taken place following the Bichard Review?
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
What is the RICS motto?
Est modus in rebus - there is measure in all things
141
What is LionHeart?
Independent charity for RICS professionals, past and present, + their families
142
What is the RICS Matrics?
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
How do professional integrity and professional ethics differ?
Professional integrity = being honest and consistent
Professional ethics = rules + standards that guide behaviour in a profession
144
What is modern slavery and how would you identify red flags of it?
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
Explain the implications of the Sanctions and Anti-Money Laundering Act 2018.
- 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
What is the Sanctions List and why should you be aware of it?
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
Why was the Register of Overseas Entities introduced?
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
What are the six RICS values published as a result of the Levitt review? (TIRRIC)
1. Transparency
2. Integrity
3. Respect
4. Responsibility
5. Innovation
6. Collaboration
149
Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022
Act established Register of Overseas Entities for overseas entities holding real estate
Makes it clear who owns property in UK
