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RICS APC - Residential (TS NBS) > Ethics - Level 3 > Flashcards

Ethics - Level 3 Flashcards

1
Q

What is the central purpose of the RICS?

A

Maintain highest standards

PROTECT CONSUMERS - through regulation

Information and advice

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2
Q

When was the RICS granted royal charter?

A

1881

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3
Q

What does the Royal Charter do?

A

Grant issued by Monarch

Allows RICS to be self governed.

Sets objective to maintain and promote the usefulness of profession

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4
Q

How do we get Bye-Laws?

A

Bye Laws are ratified by the Privy Council

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5
Q

When were the Bye-Laws last updated?

A

February 2020

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6
Q

What does the RICS constitution consist of?

A
  1. The Royal Charter
  2. The 10 Bye Laws (ratified by the privy council)
  3. Ten Regulations (Approved by RICS Governing Council)
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7
Q

What are the RICS regulatory goals known as?

A

The 5 principles for better regulation (PACTT)

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8
Q

How best to remember the 5 principles of better regulation?

A

PACTT

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9
Q

What are the 5 Global Professional and Ethical Standards?

A
  1. INTEGRITY
  2. SERVICE
  3. TRUST
  4. RESPECT
  5. RESPONSIBILITY
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10
Q

Which two Global Professional and Ethical Standards resonate with you the most?

A
  1. Provide a high level of service
  2. Promote trust in the profession - I deal with peoples homes and they are very precious over them.
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11
Q

What are the 6 steps required to set up a practice?

A
  1. Inform RICS
  2. Appoint contact officer
  3. Obtain PII
  4. Set up client account and procedures for client money
  5. CHP
  6. Arrange CPD and staff training
  7. Ensure meet requirements of Rules of Conduct
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12
Q

Would you accept a gift or offer of hospitality from someone in a work capacity?

A

Gifts/hospitality are generally acceptable - linked with the Bribery Act 2010.

  • If you are at all unsure, decline the gift.
  • The Act defines acceptable gifts and hospitality
  • The gift should be reasonable and proportionate
  • The gift must be offered openly
  • The gift should not be regular, cashier to influence decisions

If accepted;

  • Act openly and transparently
  • Keep a record on a gift register
  • Consideration toward the value and timing
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13
Q

What 7 steps must you take for the handling of clients money?

A
  1. Clients must have access
  2. Kept separately and clearly identifiable
  3. ‘client’ in account name
  4. Interest must be agreed with client
  5. Ledger of transactions
  6. Agree terms and inform client of bank details
  7. Must never be over drawn
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14
Q

What are the RICS 5 principles for better regulation?

A

The RICS has a Royal Charter allowing them to be self governed.

They are governed by the Bye-Laws and principles of better regulations (PACTT).

  1. Proportionality - make the penalty proportional to the breach
  2. Accountability - Regulators must be able to explain their actions under public scrutiny. Promote complete fairness
  3. Consistency - treat everyone equally
  4. Targeting - focusing on serious breaches
  5. Transparency - Regulations are simple, clear and effectively communicated to all members, clients and public.
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15
Q

Why does the RICS have Rules of Conduct?

A
  1. Provide framework for members
  2. client knows they get set level of service
  3. professional guidance for members
  4. Uphold standards
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16
Q

What are the Rules of Conduct for members?

A

There are 9.

  1. Interpretation
  2. Communication
  3. Ethical behaviour
  4. Competence
  5. Service
  6. CPD requirements
  7. Solvency
  8. Information to RICS
  9. Cooperation
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17
Q

What are the Rules of Conduct for Firms?

A

There are 15.

  1. Interpretation
  2. Communication*
  3. Professional Behaviour
  4. Competence
  5. Service
  6. Training and CPD
  7. Complaints handling*
  8. Clients money*
  9. Indemnity
  10. Advertising*
  11. Solvency*
  12. Arrangements for a sole practitioner of incapacity or death
  13. Use of designations
  14. Information to RICS
  15. Cooperation
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18
Q

What sort of information do RICS firms have to send the RICS annually?

A

This is the annual return. Failure to do so leads to a penalty.

  1. Type of business and staffing
  2. Nature of clients
  3. Training provision
  4. CHP details and records
  5. PI insurance details
  6. Whether hold client money
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19
Q

what must a CHP include?

A
  1. ADR mechanism
  2. The CHP must include two stages;
    - Complaint considered by senior staff or complaints handling officer.
    - If not resolved, referred to an independent 3rd party with authority to award redress.
  3. It must include the names and contact details of investigating persons.

It must be clear, transparent, impartial and free of charge.

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20
Q

If you were chartered and a friend asks you for advise, what would you do?

A
  1. decline and advise them use RICS ‘find a surveyor scheme’
  2. If happy to advise, I would not offer advice without PII.
  3. If I have PII - ensure all information given was subject to a thorough checking process.
  4. Contact me during working hours to discuss T&Cs of appointment
  5. Adhere to Rules of Conduct.
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21
Q

What is PII?

A

Professional Indemnity Insurance -

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22
Q

What is PII and what benefits does it offer?

A
  • provides financial cover if a client suffers financial loss as a results of a breach of professional duty e.g. neglect or error.
  • The profession is protected from financial loss
  • The firm does not have to pay for the damage from their own resources.
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23
Q

What basis should PII be underwritten?

A

On a claims made basis.

  • where the insurance policy in place at the time the breach is DISCOVERED is used to cover the claim.
  • Not the policy in place at the time of the breach.
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24
Q

Tell me about the Merrett Vs Babb case?

A
  • Babb did a valuation as an employee of a company
  • Valuation was negligent.
  • original company no longer existed.
  • The Court rules they could go against Babb for the losses.
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25
Q

Why was the Merrett Vs Babb case significant?

A
  • The case saw a professional employee was vulnerable to claims being brought directly against them for advice given on behalf of their employer.
  • Highlights importance of run-off cover.
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26
Q

How long should run-off cover be in place off?

A

Run off cover is cover for a firm that has ceased trading, it protects the firm and its employees from future claims.

The length depends on type of contracts the professional has been involved in.

Usually 6 years if contract executed under hand.
Or 12 years if executed by deed.

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27
Q

What are the requirements regarding PII by the RICS?

A
  1. Must be made on an each and every basis.
  2. Gives minimum policy wording for firms and members
  3. Sets out minimum levels of indemnity required
  4. Sets out maximum levels of uninsured excess
  5. Run off cover in place for minimum of 6 years
  6. Cover in place for past and present employers, directors, and partners.
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28
Q

What measures should be taken to avoid PI claim?

A
  1. keep records
  2. Record advice given
  3. Use letter of engagement and terms of engagement
  4. Dont advise outside experience
  5. Use RICS guidelines
  6. Avoid excessive workloads
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29
Q

If you put together a fee proposal, but a couple of months into the job you realise that you have under forecasted your resources, do you go back to the client and ask for more money?

A
  1. No, if the project has not changed, it is your fault for forecasting too low.
  2. Yes, if the project requirements has changed a fee increase could be negotiated
  3. DO NOT reduce the level of service you offered originally.
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30
Q

What are the CPD requirements?

A
  • Minimum of 20 hours - half must be formal.
  • RICS professional and ethical standards every three years
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31
Q

How is the RICS structured?

A
  1. Privy Council - Granted by RICS Royal Charter
  2. Governing Council
  3. Regulatory Tribunal
  4. Standards and Regulations Board
    Management Board - inform and oversee RICS affairs
    Audit Committee
    Nominations Committee
    Presidential Nominations Committee
  5. Finance Committee
    World Regional Boards and Market Advisory Panels
    Remuneration Committee
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32
Q

What are the RICS Bye-Laws?

A

Enabling Principles

There are 10

  1. Application and definitions
  2. Membership and registration
  3. Designations
  4. Contributions to funds
  5. CONDUCT
  6. Governing council officers and staff
  7. Subordinate Boards, committees and groups
  8. Procedure for general meetings
  9. Accounts and Audits
  10. General
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33
Q

Who is the president of RICS?

A

Clement Lau

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34
Q

What is the RICS motto?

A

Est Modus in Rebus

There is measure in all things

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35
Q

What is a consent order/ Regulatory Compliance Order?

A

An agreement between RICS and regulated member that they are liable for disciplinary action.

The order states the action the member must take in a specified time period.

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36
Q

What is a fixed penalty?

A

An administration fine or caution issued by RICS

A procedure for breaches of the Rules relating only to the supply of information to the RICS.

Any fixed penalty issued and not rescinded will remain on a Regulated Member’s record for a defined period.

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37
Q

What are the principles of the bribery act?

A

UK and foreign companies operating in the UK have duty of having corporate measure in place to prevent bribery and have in place control measures.

Fine if they don’t have control measure in places.

Can receive a fine and imprisonment (max 10 years) if committed of bribery.

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38
Q

What are the principles of GDPR?

A
  1. Lawfulness, fairness, transparency
  2. Purpose limitation
  3. Data minimisation
  4. Accuracy
  5. Storage limitation
  6. Integrity and confidentiality (security)
  7. Accountability

LAPD SIA

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39
Q

What are the principles of Money Laundering Regulations 2017?

A

Additional obligations of firms working in areas of higher money laundering risk.

Aims to stop criminals using professional services to launder money by requiring professional to take a risk-based approach.

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40
Q

Your brother in law is a chartered surveyor. You find out he is working outside RICS rules and regulations, what do you do?

A
  • verify the facts
  • confront him - remind of duties as a member of RICS.
  • Inform the RICS - specifying my relationship to the person and any corrective action needed
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41
Q

Can you tell me about a piece of CDP you completed recently?

A

Nationwide Health and Safety CPD

  • Home working
  • Wellbeing
  • Fire risk
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42
Q

What is the difference between formal and informal learning?

A
  1. Formal - structured assessment
  2. Informal - Private reading etc
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43
Q

How will you record CPD and return this to RICS?

A

RICS portal

Record type, date, subject, number of hours etc

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44
Q

What is on the latest cover of Modus?

A

Why millennials are leaving the city for the suburbs?

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45
Q

How do you keep up with current affairs and topical issues?

A

RICS news/modus

Property Week.

General news.

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46
Q

What is your CPD strategy?

A
  • Meet manager to set objectives
  • Set CPD based on current topics/Nationwide issues
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47
Q

What sets out the governance of the institution?

A

regulations and bye laws

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48
Q

How many qualified members are there?

A

over 130,000

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49
Q

What do you need to provide to become a FRICS?

A
  1. MRICS for 4+ years
  2. Leadership role
  3. professional/technical achievement
  4. raising the profile of RICS
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50
Q

In the governance structure how many professional groups are there and what is their role?

A

17.

They outline the standards of competence and practice.

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51
Q

What are the benefits of being an RICS member?

A
  1. Status
  2. Recognition
  3. Market advantage
  4. Knowledge
  5. Networking
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52
Q

State a commonality between Rule of Conduct for members and firms?

A

Rule 3

  • states that members and firms should act with integrity and avoid conflict of interest.
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53
Q

What is the ethical decision tree?

A

Framework for members to follow to determine how they should act in a situation.

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54
Q

Where can an RICS member go to if they have ethical concerns?

A

Senior member of staff

RICS Regulation Confidential Hotline.

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55
Q

What are the benefits of regulations and rules of conduct for Firms?

A
  1. Confidence - for client
  2. Professionalism - firms will provide clear, impartial and expert advice
  3. Security - firms have to have recognised complaints procedure and access to independent redress and PII cover.
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56
Q

What are the three levels of disciplinary action?

A
  1. Action by Head of Regulation
  2. Regulatory Tribunal
  3. Appeal Panel
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57
Q

What are the three sections of the Rules of Conduct for Firms?

A
  1. General
  2. Conduct of Business
  3. Firm Administration
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58
Q

What is the initial investigation stage for disciplinary action?

A

Head of Regulation investigates.

They consider the following actions;

  1. Fixed Penalty Notice
  2. Regulatory Compliance Order
  3. CPD Sanctions
  4. disciplinary panel
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59
Q

What are CPD sanctions?

A

Obligation for a member to undertake CPD requirements.

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60
Q

What is action by Regulatory Tribunal?

A
  1. Procedure used for serious breaches of conduct
  2. Head of Regulation can determine if a hearing is required
  3. 50% of the panel are lay members
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61
Q

What is an International Standard?

A

This is mandatory standard.

E.g. RICS Valuation - Global Standards

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62
Q

What are Professional Statements?

A

They are mandatory standards

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63
Q

What are Practice Statements?

A

They are mandatory statements.
e.g.
Surveyors Acting as Expert Witnesses 2014

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64
Q

What are guidance notes?

A

These are voluntary but promote good practice.

Comparable Evidence in Real Estate Valuation 2019

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65
Q

What are Codes of Practice?

A

These are mandatory and provide up to date research and advice.

e.g
Code of Measuring Practice 2015

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66
Q

When negotiating a fee, what should you do?

A

Fees should be market based

Agreed as and when services are required.

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67
Q

When negotiating a fee, what should you not do?

A

Avoid price fixing or fee cutting

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68
Q

When would it be appropriate to decline an instruction?

A
  1. Conflict of interest
  2. If you are not competent
  3. If the work involves illegal activity
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69
Q

What is a conflict of interest?

A
  • reduced impartiality
  • pre-existing relationship
  • affect duty to deliver services to required standard.
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70
Q

What is conflict avoidance?

A

When an instruction is declined due to a CoI

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71
Q

What is conflict management?

A

When an instruction is acceptable and steps are agreed in writing to manage the conflict.

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72
Q

What a is ‘Party Conflict’ ?

A

Relates to member working on the same instruction for two different parties

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73
Q

What is an ‘Own Interest Conflict’?

A

Relates to a personal interest e.g. shares own in the company

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74
Q

What is a ‘Confidential Information Conflict’?

A

Occurs when duty of member to provide material information to one client

conflicts with

their duty to another client to keep that same information confidential.

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75
Q

What is informed consent?

A
  • Where there is a CoI
  • a party is informed in writing of this
  • the party is fully aware of the risks involved and other options available
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76
Q

What is the RICS statement for Conflicts of Interest?

A

Professional Statement on Conflicts of Interest 2017.

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77
Q

What does the RICS statement on conflict of interest state?

A

Members must not advise a client where doing so would involve a conflict of interest or a significant risk of one

Other than when informed consent is provided.

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78
Q

How would you handle a CoI?

A
  1. Conflict Avoidance - can conflict be managed, if not decline the instruction.
  2. Written advice to both parties stating;
    - Disclose nature of conflict etc
    - Request written confirmation - INFORMED CONSENT
  3. Conflict management
    - Once received informed consent
  • set out how the conflict will be managed.
  • Information barrier.
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79
Q

What do the RICS Bye-Laws state about confidentiality?

A

‘client confidentiality must be maintained for all client affairs’

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80
Q

What is the RICS note on CHP?

A

RICS Guidance Notes on Complaints Handling 2016

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81
Q

What is Assigned Risk Pool?

A

Assistance available at a cost for members who cannot arrange cover

82
Q

What should a member do i they have gone into administration and they are facing claims?

A

They can contact the Members Support Service.

83
Q

What is the RICS note on PII?

A

RICS Guidance Note on PII, Risk, Uncertainty and Insurance in Valuation Work 2018

84
Q

What is the RICS note on clients money?

A

RICS Professional Statement ‘Client Money Handling’ 2019

85
Q

What are the 6 areas of the RICS Professional Statement ‘Client Money Handling’ 2019?

A
  1. Holding client money
  2. Providing information to clients
  3. Receipts of client money
  4. Payments from client accounts
  5. Accounting, records and controls
  6. Compliance
86
Q

When setting up a new practice, what statutory compliance needs to be obeyed?

A
  1. Disability discrimination compliance (Equality Act 2010)
  2. Bribery Act 2010 (gifting register)
  3. Fire safety compliance
  4. Asbestos register and COSHH
  5. Register with HMRC for VAT and tax
87
Q

What do you need to to when closing a practice to be compliant with RICS?

A
  1. Inform RICS
  2. Inform clients and arrange handover
  3. Return client money
  4. Inform insurers and arrange run-off cover
  5. Retain a copy of client files for 6 years.
88
Q

What are the 6 principles of the Bribery Act 2010?

A

DR PT MC

  • Due diligence
  • Risk Assessment
  • Proportionality
  • Top level commitment
  • Monitoring and review
  • Communication
89
Q

What are the four offences linked with Bribery Act 2010?

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign public official
  4. Failing to prevent bribery
90
Q

Is hospitality prohibited by the Bribery Act 2010?

A

No

Offering a client reasonable and proportionate hospitality will not constitute an offence as long as is it recorded in the gift register

91
Q

What can firms do to avoid bribery?

A
  1. offer staff training
  2. Have appropriate procedures in place
  3. Have a gift register
92
Q

What are the penalties for bribery?

A

Max penalty of 10 years imprisonment

Companies can face an unlimited fine

93
Q

What should firms do to prevent ML and TF?

A
  1. written risk assessment
  2. Implement systems
  3. staff training
  4. Due diligence checks
  5. AML checks must be undertaken to confirm the identity of a proposed purchaser of a property and check the source of the funds.
94
Q

What is Customer Due Diligence?

A
  • Identify the client
  • verify their identity based on an independent source eg. passport
95
Q

What are the Customer Due Diligence ML checks for a Ltd?

A
  1. Certificate of incorporation
  2. Full name, registered address, registered office
  3. Name of all directors and names of all shareholders with 25% or more holding.
96
Q

What are the Customer Due Diligence ML checks for an individual?

A
  1. Check valid passport or driving licence
  2. Bank statement or council tax bill not more than 3 months old
97
Q

What is Enhanced Due Diligence?

A

Additional procedures required

  • when a business transaction involves a person established in a ‘high risk country’ or is a politically exposed person (PEP).
98
Q

What are the penalties if fail to comply with ML regulations?

A
  1. 14 year prison sentence and/or unlimited fine for assisting with ML.
  2. 5 year prison sentence and/or unlimited fine for tipping someone off that they are being investigated.
99
Q

Under the Proceeds of Crime Act 2002, what are the 3 main areas of offence?

A
  1. Concealing criminal property
  2. Assisting with arrangements
  3. Acquisition use and possession
100
Q

What is the RICS note on criminal activity?

A

RICS Professional Statement

  • Countering Bribery, Corruption, Money Laundering and Terrorist Financing 2019
101
Q

What are the three parts of RICS Professional Statement - Countering Bribery, Corruption, Money Laundering and Terrorist Financing 2019?

A
  1. Mandatory requirements for anti-bribery, corruption, AML and TF
  2. Guidance setting out good practice for the above
  3. Supplementary guidance on some of the concepts detailed in the note
102
Q

What must a RICS firm do regarding bribery and corruption?

A
  1. Not offer or accept a bribe
  2. Have procedures in place to comply with the law
  3. Report suspicion to the relevant authority
  4. Act with due diligence to perform periodic written evaluations
  5. Retain records
103
Q

What must a RICS firm do regarding ML and TF?

A
  1. Not facilitate ML or TF
  2. Have systems in place to comply with the law
  3. Report suspicion
  4. Evaluate and review the risks presented to the firm
  5. Use third party checks where required
  6. Verify clients by checking ID
  7. Retain records to show the firm has met requirements.
104
Q

What is negligence?

A

A duty of care exists to all clients and third parties, using ‘reasonable care and skill’

When breached and their is a loss, a claim for damages arises.

105
Q

What is a margin of error?

A

The permissible ranged allowed by courts, for example in respect of valuations

106
Q

What were the margins or error stated in the K/S Lincoln and Others Vs CB case?

A

+/- 5% - residential property
+/- 10% - commercial property
+/- 15% - property with exceptional features

107
Q

What is the Limitations Act 1980?

A

The act states the current limitation periods for negligence;

Contract - 6 years from the date of negligent act

Tort - 6 years from the date the claimant suffered loss.

108
Q

How should a company avoid negligence?

A
  1. Clearly understand the client’s objectives
  2. Agree precise terms of engagement
  3. Ensure you are competent for the instruction
  4. Undertake work in accordance with RICS standards and Guidance Notes.
109
Q

What else is available to you when facing an ethical dilemma apart from ethical decision tree?

A

case studies on RICS website.

RICS confidential hotline

110
Q

What is the difference between the Rules of Conduct and Ethical Standards?

A

Rules – clear and instructional

Standards – are a framework to apply to different situations

111
Q

What RICS guidance relates to gifts and inducements?

A

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

112
Q

What guidance is there to deal with a conflict of interest?

A

UK and Global Professional Statements (Mandatory for Firms and Members).

  • Conflicts of interest, 1st edition, March 2017 (became effective 1st Jan 2018)
113
Q

When is a situation when you have to comply with ML regulations?

A

If a property is being let to an individual or company for more than 10,000euros/month.

Two types of Due Dilignce (CDD and EDD)

114
Q

If it is a company, on who do you do the ML checks on?

A

A person with significant control.

As stated on Companies House.

115
Q

What information does a person with significant control need to provide for ML checks?

A
  1. ID
  2. Council tax statement or bank statement - not more than 3 months old.

To check an address, use Experian and compare it to the council or bank statement.

116
Q

How does the NBS complaints procedure work?

A

A complaints handling team is set up to deal with complaints ​

Nationwide will respond within 7 days advising the case is being investigated

A full response will then be provided within 21 days

Includes an Alternative Dispute Resolution (ADR) mechanism in their Complaints Handling Procedure. ​

A complaint log is maintained. ​

117
Q

What is the Property Ombudsman?

A

A scheme providing customers and property agents with an alternative dispute resolution since 1990.

118
Q

What does ‘without prejudice’ mean in a letter?

A

The letter can not be produced in legal proceedings

119
Q

What is a Calderbank offer?

A

a settlement offer made on a “without prejudice save as to costs” basis

120
Q

Difference between RICS Guidance Note and RICS Practice Statement?

A

Guidance note is voluntary

Practice Statement is mandatory

121
Q

What checks do you do when you take on a new management client?

A

Anti-money laundering for person with significant control.

122
Q

What are the RICS IES?

A

International Ethical Standards

10 of them

123
Q

What do firm have to do for administration?

A

“1. Advertising - promote services in a truthful and responsible manner

  1. Solvency - ensure finances are managed appropriately
  2. Arrangement to cover the incapacity or death of a sole practitioner
  3. Use of designations - state on business literature that it is regulated by RICS
  4. Information to RICS - supply info to RICS when required
  5. Co-operation - to co-operate fully with RICS staff and any person appointed by the regulatory board”
124
Q

What is a recent rule change with firm registration?

A

If 50% of Principals of UK firm, which provides surveying services are RICS members they have to be regulated

125
Q

Provide an example of informed consent

A

Valuing a property being sold by KFH

Former boss works for KFH

Low likelihood of reduced impartiality

Informed consent

126
Q

What are the recent changes to the RICS PI Insurance Minimum Wording?

A
  1. Fire Safety
  2. Cyber cover
  3. New Risk, Liability and Insurance Guidance Note.
127
Q

What are the International Ethics Standards 2016?

A

Ethical Framework for the global property market published by the International Ethics Standards Coalition.

10

128
Q

What is the International Ethics Standards Coalition?

A

63 professional bodies, associations and standards-setting organisations from across the world.

129
Q

What is RIDDOR?

A

Reporting of Injuries, Diseases, and Dangerous Occurrences Regulations 1995

130
Q

What is your duty under RIDDOR?

A
  1. Report injuries within 7 days to HSE
  2. Keep a record of all injuries
  3. Keep injury information for minimum of 3 years
131
Q

What is your opinion of the RICS Rules of Conduct?

A

A positive and necessary set of rules

Ensures RICS standards are maintained

132
Q

Who determines regulation?

A

The Better Regulation Commission

133
Q

Do all shortcomings of Rules of Conduct give rise to disciplinary procedures?

A

No, each case is assessed on a case by case basis.

  1. Serve a Fixed Penalty Notice
  2. Make a Regulatory Compliance Order
  3. CPD sanctions
  4. Refer to a Disciplinary Panel
134
Q

Outline the appeal panel

A
  1. Consider member’s appeal
  2. Review with regard to evidence.
  3. Appeal Board can allow appeal and vary penalty imposed
  4. 50% of Panel are lay members
135
Q

What are the different types of RICS Core Material?

A
  1. International Standards - Mandatory
    - RICS Valuation - Global Standards, 2019 (effective Jan 20)
  2. Professional Statements
    - Conflict of Interest, Global, 2017
  3. Practice Statements
    - Surveyors Acting as Expert Witnesses, 2014
  4. Guidance Notes
    - Surveying Safely, 2018
  5. Codes of Practice
    - Service Charge Residential Management Code 3rd Ed 2016
136
Q

What is included NBS’ terms of engagement?

A
  • Nationwide has standard terms of engagement
  • What is included (example x3/4)
  • a Identification and status of the valuer
  • b Identification of the client(s)
  • c Identification of any other intended users
  • d Identification of the asset(s) or liability(ies) being valued
137
Q

Who is the presidential team?

A

Clement Lau - President

Ann Gray – President-Elect

Tina Paillet – Senior Vice President

138
Q

What are the benefits of being regulated by RICS

A

Commitment to highest standards​

Open to independent scrutiny​

Ethical approach​

Protection (via Professional Indemnity Insurance - PII)​

Security (via Complaints Handling Procedure - CHP)​

Guarantee of professional training and experience

139
Q

What is the definition of Ethics?

A

Set of standards expected of a professional​

Moral principles to conduct standards and behaviour by​

Above legal minimum ​

Being ethical means conforming to accepted moral standards.​

140
Q

What do the International Ethical Standards do?

A

Establish ten global ethics principles for professionals operating in the natural and built environment sector.

These principles ensure professionalism is delivered consistently and transparently throughout the world.

141
Q

Information barrier

A

Information barriers are arrangements that are designed to prevent the flow of information between separate departments or individuals.

142
Q

When can informed consent be sought?

A

Where the RICS member or regulated firm is satisfied that proceeding despite a Conflict of Interest is: ​
​
(a) in the interests of all of those who are or may be affected and ​

(b) is not prohibited by law, ​

​and that the conflict will not prevent the member or regulated firm from providing competent and diligent advice to those that may be affected.​

143
Q

What are regulated firms responsibility with conflicts of interest?

A

They must have effective systems and controls appropriate to the size and complexity of their business to ensure compliance

144
Q

What does the Bribery Act 2010 prohibit?

A

The payment of bribes

makes commercial bodies criminally liable for such payments by persons associated with them, unless they can show they had adequate procedures in place to prevent it.

145
Q

What is a key implication of the Bribery Act 2010?

A

A company with a presence in the UK can be prosecuted for bribery, or for failing to prevent it, even when the alleged bribery takes place outside the UK.

146
Q

What are the implications of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017?

A

Firms are required to:

  • written risk assessment
  • due diligence for customers
  • money laundering officer
147
Q

What is the key principle of handling Clients’ money?

A

To ensure that clients’ money is kept safely, securely and can be clearly linked to the client at all times.

148
Q

What are the key aspects of Client money handling 1st edition, October 2019 professional statement?

A

1) Preserve the security of clients
2) RICS firms holding clients money must ensure they are registered with the appropriate RICS scheme
(e. g. RICS Client Money Protection Scheme for Surveying Services

149
Q

What are some bodies within the RICS?

A

1) Matrics - supports new members entering the profession
2) Lionheart - independent charity that offers confidential advice, information and other support to past and present members

150
Q

What is the Law of Contract?

A

A contract is an agreement entered into voluntarily by 2 parties, where consideration (generally money) has passed between those 2 parties, and where the terms of that agreement are enforceable.

151
Q

What is the law of Tort?

A

The law of tort is designed to regulate the conduct of individuals to each other and allows for compensation or damages if 1 party suffers a loss through another’s action. It deals with civil wrongs.

152
Q

What is the Carsberg review?

A

A review of RICS regulation which recommended greater separation of regulatory and representational functions

153
Q

What is the Levitt Enquiry?

A

Review concluded 4 non-exec board members, who raised legitimate concerns that audit had been supressed, were wrongly dismissed. ​

Main recommendation from the report – External review needed for the purpose, governance and strategy of RICS ​

In addition ​

  • Executive remuneration to be review ​
  • Whistle blower policy to be reviewed ​
  • Legal advice provided with the RICS as the client (not senior management) ​
  • Greater oversight for the Governing Council.
154
Q

What are some penalties of Disciplinary procedures?

A
  • Caution​
  • Fine​
  • Conditions - May be required to do additional training in area of breach. -
  • Removal of Registration​
  • Expulsion -
155
Q

What are the requirements of PII?

A

Firms turnover and minimum limit of indemnity

  • £100k or less - £250k
  • £100k to £200k - £500k
  • £200k and above - £1m
156
Q

What is your involvement with RICS?

A

Feedback on consultations (e.g JK)

157
Q

How do you identify a conflict of interest?

A

Database checks

existing records search

declare personal interests

158
Q

How do you handle gifts and hospitality?

A

Declare items to employer

Use a gift register.

159
Q

How do you check your employer’s compliance with RICS rules for firms?

A

Monitor for compliance with rules of conduct for firms.

Investigation any concerns.

(NBS not a registered firm)

160
Q

How do you set up professional indemnity insurance?

A

Contact a provider eg Zurich

161
Q

What is the process of registration of a firm with RICS?

A

An application to register for regulation by RICS.

Upon receipt of an application from a Firm to register for regulation the Head of Regulation may:

a) grant registration
b) grant registration subject to conditions
c) refuse registration

162
Q

If you are successful with your APC and you decide to start your own business as a chartered surveyor what sort of things will you need to consider and do

A
  • advise RICS that you are starting a business;​
  • register for regulation;​
  • meet the requirements of the Rules;​
  • understand the need for insurances (employers liability, public liability, etc.), a health and safety policy, equal opportunities policy, etc.; and​
  • use the RICS logo as set out by RICS and use only the appropriate alternative designation relevant to your professional group.
163
Q

What is client’s money and how can a firm preserve the security of this?

A
  • systems in place to ensure that clients’ money can be clearly linked to the clients
  • is protected on their behalf in all circumstances including:​
  • insolvency​
  • misappropriation by any party; ​
  • death of a sole practitioner.
164
Q

Explain the systems you need in place to handle client’s money

A
  • Keep in designated account
  • Include name of firm and word ‘client’ in name of the account
    • Make sure the bank doesn’t combine funds in your client account with any other account your firm holds.​
  • Agree terms of account handling in writing.​
  • Nominate authorised staff to handle money.​
165
Q

If you are successful in undertaking a project for a client and they send you a case of wine as a thank you, what should you do?

A

consider - conflict of interest. ​

refer to your employer’s gift register/policy ​

The important point is to show that you would not accept a gift that may influence your future judgment.

166
Q

Explain understanding of 5 Global Ethical Standards

A

Standards – are a framework to apply to different situations

167
Q

What are the Rules of Conduct

A

These Rules set out the standards of professional conduct and practice expected of members and firms registered for regulation by RICS.

168
Q

What is a conflict of interest?

A

Where there is reduced impartiality as there is a pre-existing relationship which will affect duty to deliver services to the required standard.

169
Q

What is your biggest takeaway from Surveying Safely guidance note?

A

Safe person concept - each individual assumes individual behavioural responsibility for their own, their colleagues’ and others’ health and safety while at work

170
Q

How do you measure your client’s satisfaction?

A

Feedback questionnaire

Repeat business

171
Q

Client wants you to overvalue a property. Do you do it?

A

No - breach of conduct​

Role should be independent ​

Not in line with 5 RICS professional standards​

172
Q

How do the RICS monitor members and firms?

A

Firm’s annual returns​

Client account visits eg Client’s Money or Valuer Registration scheme ​

CPD ​

PII

CHP

173
Q

What is a bribe?

A

‘An illegal inducement to encourage an individual or individuals to act in a certain way’​

An illegal inducement to influence behaviour

174
Q

What do you need to register as a Regulated Firm?

A

Requirements include: ​

Head office address

Date firm established​

Contact officer

Names & titles of principals​

CHP in place​

PII Insurance​

175
Q

What is money Laundering?

A

Process of turning illegitimate funds into legitimate funds.​

176
Q

What might constitute an ethical issue?

A

Conflicts of interest​

Confidential information​

Discrimination -Although this may go into illegal​

Hospitality: - Is it proportionate, timing of the hospitality etc.

177
Q

Where do you go above the legal minimum in your work life?

A

NEED TO THINK OF ANSWER

178
Q

What is the most important rule of conduct for members?

A
  1. Ethical Behaviour

But they all are important and have their place

179
Q

Where have you demonstrated each of the ethical standards?

A

1) Integrity -
2) Service - Meeting SLA
3) Trust -
4) Respect - Treating everyone the same during inspections
5) Responsibility - Errors or delays in reports

180
Q

What is a Locum Agreement

A

Ensures cover for long term illness, holiday, death etc.

Can be RICS member or another suitably qualified professional

181
Q

What are the different types of conflict of interest?

A

Own interest

Party

Confidential Information

182
Q

Types of insurances needed for starting a business?

A
  • employers liability
  • public liability
  • Professional indemnity insurance
  • buildings insurance
  • directors and officers cover
  • contents insurance
  • business interruption insurance.
183
Q

Provide an example of each global ethical standards

A
184
Q

When do you need to register a firm?

A
  • A Firm is required to register if at least 50% of the Firm’s Principals are RICS Members
185
Q

Use of RICS logo

A

A firm that is registered for regulation must display on its business literature a designation that ensures people can easily identify it is regulated by RICS

186
Q

What is the valuer registration scheme?

A
  • quality assurance mechanism
  • monitors all registered RICS members who carry out valuations
  • ensure consistent standards
187
Q

What does integrity mean?

A

This means being honest and straightforward in all that you do.

188
Q

What are the new rules of conduct

A

Feb 2022

1) Simpler structure - consolidating the Rules of Conduct for Members and Firms and Global Professional and Ethical Standards
2) Examples
3) Focusing on respect, diversity and inclusion
4) Understanding evolving technology
5) Sustainability - embedded sustainability within the Rules

189
Q

Why do you want to become a member of RICS?

A
  • To be a member an institution which is regarded as the gold standard with the highest standards in the industry
190
Q

What is a red flag of money laundering?

A
  • If client is secretive or evasive about who they are, the beneficial owner, the source of funds, the reason for the transaction, or what the big picture is
191
Q

What is the Assigned Risks Pool (ARP)?

A
  • for firms that are unable to obtain (PII) in the insurance market
  • The ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of the RICS, in the insurance market
192
Q

Explain when you might agree a liability cap.

A

A liability cap is a contractual agreement that a client can only claim damages up to the amount agreed, even if the law would otherwise award a greater sum in damages.

RICS recommends to RICS-regulated firms the use of liability caps, where legally permissible and following the principles of good practice as a way to manage the risk in professional work, and to ensure that there is a fair allocation of risk and reward between members and their clients

193
Q

How would you close down a regulated firm?

A
  1. Inform RICS
  2. Inform clients and arrange handover
  3. Return client money
  4. Inform insurers and arrange run-off cover
  5. Retain a copy of client files for 6 years.
194
Q

Explain the key themes from the RICS Futures 2020 Report.

A
  • Talent & Skills
  • Data & Technology
  • Sustainability
  • we are in the midst of a period of significant transition across our sector. Our challenge is to help our profession navigate this change and enable it to manage the many opportunities and challenges that it will bring
195
Q

Explain the potential implications of the Hart v Large case.

A
  • scope of inspection including limitations etc
  • Recommending further investigation
  • Ensure clients understand the differences in levels of service
  • recommend a full Building Survey where necessary
  • report anything that has not been inspected & explain why.
  • Consider recommending a PCC
196
Q

What do RICS set out as good practice for the use of social media in their Regulation document (June 2021)?

A

RICS is likely to start investigations into social media posts that:

  • are discriminatory
  • are dishonest
  • are abusive or threatening, or likely to cause significant harm, distress or offence to a person
  • ignore previous advice or warnings about concerns.
197
Q

Act with integrity - example

A

Conflict of Interest

  • Jordan example
198
Q

Always provide a high standard of service - example

A

Always aim to meet SLA

  • If not possible advise client
199
Q

Act in a way that promotes trust in the profession - Example

A

Advise when work is outside scope (e.g. above mandate)

200
Q

Treat others with respect - example

A

Always act professionally, polite etc

201
Q

Take responsibility - example

A

Covid booking

202
Q

Add PE general questions here

A

RICS APC - Residential (TS NBS) (18 decks)

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