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RICS FINAL INTERVIEW > Ethics - Level 3 (Ready) > Flashcards

Ethics - Level 3 (Ready) Flashcards

1
Q

What is the role of the RICS?

A
  • Maintain highest standards of education and training
  • Protect consumers through strict regulation and legislation
  • To be the industry leading source of information and independent advice on land, property, construction and environmental issues
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2
Q

What are the RICS Rules of Conduct for Members?

A
  • Ethical
  • Competence
  • Service
  • CPD
  • Solvency
  • Information to RICS
  • Co-operation with RICS
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3
Q

What are the RICS Rules of Conduct for Firms?

A
  • Professionalism
  • Indemnity
  • Competence
  • Service
  • CPD
  • Clients money handling?
  • Complaints handling procedure

Part 3 (ASADIC)

  • Advertising
  • Solvency
  • Arrangements to cover incapacity or death of sole practitioner
  • Designations
  • Information to RICS
  • Co-operation with RICS
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4
Q

Why do you have a duty to the public?

A
  • Royal Charter
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5
Q

Can you tell me about your firms anti-bribery policy?

A
  • Zero tolerance on bribery
  • No cash is to be accepted
  • Gifts with a value of more than £50 should be declined
  • Hospitality with a cost per head of more than £100 must be approved by FD
  • Require approval to spend more than £50 per gift per person and meals of £100 per head
  • All gifts must be logged in gift register
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6
Q

What is the key legislation about bribery?

A
  • Bribery Act 2010

- Proceeds of Crime Act 2002

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7
Q

What is your firms anti-money laundering policy?

A
  • Have an appointed Money Laundering Reporting Officer who reports any suspicious activity to the National Crime Agency using Suspicious Activity Report (SAR)
  • Carry out risk assessments
  • Provide staff training
  • Carry out CDD (or EDD)
  • Comply with requirements relating to foreign public officials
  • We ensure appropriate record keeping
  • Ensure that anti-money laundering checks are carried out to confirm the identity of proposed purchasers
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8
Q

What hospitality event were you invited to?

A

Lords Cricket

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9
Q

Who holds your company’s gift register?

A

Finance Director

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10
Q

What would you have done if the Reading sites location was revealed?

A
  • Inform my Director immediately
  • Inform the matter immediately to my Firms Compliance officer
  • Inform the recipient that any information received in error should be disposed of securely
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11
Q

When were the Rules of Conduct last updated?

A
  • March 2020

- Being updated now to be consolidated

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12
Q

What changes are proposed to the Rules of Conduct?

A
  • New simplified structure
  • Set of five rules to cover members and firms
  • Integrity
  • Professional competence
  • Service
  • Respect
  • Responsibility
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13
Q

Would you accept a bottle of wine from an as yet uninstructed agent?

A

No, this could be seen as a bribe

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14
Q

What are the offences under the Bribery Act 2010?

A
  • Giving a bribe
  • Receiving a bribe
  • Failing to prevent a bribe
  • Bribing a foreign public official
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15
Q

Why would not applying reasonable rent-free periods and voids be an ethical issue? What could the impact be?

A
  • If I did not assume a correct rent free period, I may have provided by Director with an incorrect value
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16
Q

What needs to be declared on your hospitality register?

A
  • All gifts and hospitality
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17
Q

What are the RICS Global Professional and Ethical Standards (2015)?

A

STIRR

  • Service
  • Trust
  • Integrity
  • Respect
  • Responsibility
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18
Q

What is the Professional and Ethical Standards Decision Tree?

A
  • Framework of questions members should ask themselves when asked to act in a potentially unethical manner or situation
  • Encourages members to consider legality of their actions and consistency with RICS Global Professional and Ethical Standards
  • Ultimate test is whether you would be happy for your actions to be made public
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19
Q

What steps are outlined in the decision tree?

A
  • Do you have sufficient facts?
  • Is it legal?
  • Is it in line with RICS Global Professional and Ethical Standards?
  • Have you consulted appropriate people to make a decision?
  • Do you have clear reasoning to make your decision?
  • Would you be content for your actions to be made public?
  • ACT AND THEN REFLECT ON THE OUTCOME
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20
Q

What are the three levels of disciplinary action?

A
  • Action by Head of Regulation
  • Disciplinary Panel
  • Appeal Panel
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21
Q

What is meant by the term self regulation?

A

The RICS self regulates, which means that it operates within its own regulatory framework as opposed to government legislation

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22
Q

What penalties can a disciplinary panel issue?

A
  • Compliance order
  • Unlimited fine
  • Conditions upon future registration
  • Expulsion
  • Publication of results
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23
Q

What is a regulatory compliance order?

A
  • Used for low level breaches

- Written document stating what member must do for specified period

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24
Q

When would a fixed penalty be issued?

A
  • Only relating to when information is supplied to the RICS
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25
Q

What is a CPD sanction?

A
  • Sanction placing obligation on member to follow CPD requirements
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26
Q

When would action be taken by Displinary Panel?

A
  • More serious breaches
  • Decided by Head of Regulation
  • 50% of panel are lay members (unbiased decision)
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27
Q

What is an appeal panel?

A
  • Will consider review of decision made in disciplinary procedure
  • Renews decision made having regard to evidence previously submitted and an new representations
  • Can allow the appeal and vary penalty
  • 50% lay members (unbiased decision)
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28
Q

What are the offence under the Bribery Act 2010?

A
  • Giving a bribe
  • Receiving a bribe
  • Bribing a foreign public official
  • Failure to prevent a bribe
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29
Q

What are the key principles of the Bribery Act 2010?

A
  • Proportionality
  • Top level commitment
  • Risk assessment
  • Due diligence
  • Communication
  • Monitoring and review
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30
Q

Who is responsible in the event an employee commits a bribe?

A
  • Their company, unless they can show they had adequate policies and procedures in place to prevent bribery
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31
Q

Who is Bribery policed by?

A

The Serious Fraud Office (SFO)

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32
Q

What are the different types of due diligence checks?

A
  • Customer due diligence

- Enhanced due diligence

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33
Q

When would you be required to carry out enhanced due diligence?

A
  • When dealing with a politically exposed person, their family member or business associate
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34
Q

What guidance has the RICS released in relation to bribery?

A

RICS Professional Statement - Countering Bribery, corruption, money laundering and terrorist financing 2019

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35
Q

What are the CPD requirements?

A
  • 20 hours a year
  • 10 hours must be informal
  • Members must maintain an understanding of RICS Professional and Ethical standards within a 3 year rolling period
  • CPD must be recorded using RICS online management system
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36
Q

What guidance have the RICS issued on Complaints Handling?

A
  • RICS Guidance Note on Complaints Handling 2016
  • A firms written complaints handling procedure must be approved by the RICS
  • Firms must include RICS approved ADR mechanism in their CHP
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37
Q

At what point should your PII insurer be made aware of a complaint?

A
  • As soon as possible, as this could lead to a claim for negligence
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38
Q

What is the standard minimum procedure for handling a complaint?

A
  • Acknowledged within 7 days
  • Investigated within 28 days
  • Complainant must be given details of CHO
  • Ask for complaint to be made in writing
  • Procedure must be quick, clear, transparent and impartial

Stage 2

  • If complainant not happy, second stage involves using independent redress scheme (chosen by firm)
  • Name of relevant IDS must be provided to complainant
  • Examples are CEDR, RICS Dispute Resolution Service
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39
Q

What is an independent redress scheme?

A
  • Used if unable to resolve complaint internally

- Examples are CEDR and RICS Dispute Resolution Service

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40
Q

What is a suitable margin of error?

A
  • The permissible amount allowed by courts, for example in valuation
  • Can be varied, but case law suggests between 5-10% or 15% in exceptional circumstances
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41
Q

What does the Limitation Act 1980 say about negligence?

A
  • Limitation period of 6 years for tort
  • Limitation period of 6 years for contract
  • Alternative limitation period of 3 years from date of knowledge with 15 year longstop
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42
Q

How can you avoid negligence?

A
  • Clearly understand clients objectives
  • Ensure competency
  • Undertake work in accordance with RICS Standards and Guidance notes
  • Make detailed notes / take photographs
  • Cap professional liability excess in your ToE’s
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43
Q

What is professional indemnity insurance?

A
  • Insurance that covers clients, surveyors and third parties in claims of negligence
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44
Q

What are the requirements for PII?

A
  • Related to turnover in preceding year
  • Up to £100k - £250k
    £100k - £200k - £500k
    Over £200k - £1m
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45
Q

How would you arrange PII for a new business?

A
  • Based on a prediction of revenue and adjust in due course accordingly
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46
Q

What is the maximum level of uninsured excess?

A

Liability up to £500k - Greater of 2.5% of sum insured or £10k
Liability over £500k - 2.5% of sum insured

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47
Q

On what basis should a PII policy be?

A
  • Retroactive

- Covering claims that are first made during period of insurance, regardless of when negligent act occured?

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48
Q

What steps would you take if you were handling client money?

A
  • Set up client account and label it “client”
  • Ensure money is available on demand
  • Agree how interest will be paid
  • Conduct regular reconciliation
  • Agree signatories
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49
Q

What steps would you take if starting a new practice?

A
  • Inform RICS by completing Firm Detail Form
  • Appoint Responsible Principle
  • Register with RICS for regulation
  • Arrange Professional Indemnity Insurance
  • Set up Client account for handling clients money
  • Obtain RICS approval for Complaints Handling Procedure
  • Set up Complaints Log
  • Appoint Complaints Handling Officer
  • Obtain logo kit
  • Ensure CPD logged online
  • Set out staff training plan
  • Ensure completion of online RICS Annual Return at end of each year
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50
Q

How would you close a practice?

A
  • Inform the RICS
  • Inform your clients and arrange for them to be handed over to new firm
  • Return any client money
  • Inform your insurer and arrange for suitable run off cover for minimum of 6 years
  • Hold clients information for minimum of 6 years
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51
Q

What are the main areas or practice set out in the RICS Professional Statement: Client Money Handling?

A
  • Holding client money
  • Providing information to clients
  • Receipts of client money
  • Payments from clients account
  • Accounting records
  • Compliance
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52
Q

What are the different types of conflict of interest?

A
  • Party conflict
  • Own interest conflict
  • Confidential information conflict
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53
Q

What are the requirements for the registration of a firm?

A
  • If more than 50% of principals are RICS members, it HAS to be regulated
  • If more than 25% of members are RICS members, it can apply to be regulated
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54
Q

What are the benefits of regulation for firms?

A
  • Confidence - for clients as regulated firms are monitored by RICS regulation
  • Professionalism - firms have to provide clear, impartial and expert advice
  • Security - recognised Complaints Handling Procedure, access to free independent redress and PII cover
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55
Q

What information is required by RICS for registration?

A
  • Type of business and staffing details
  • Statutory regulated activities
  • Nature of clients
  • Complaints handling procedure
  • Professional Indemnity Insurance details
  • Whether firm holds clients money
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56
Q

Why do you want to be a part of the RICS?

A
  • I want to join an organisation that sets the highest standards for property work
  • Want to be part of a global network
  • Want to have professional recognition
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57
Q

Can you give me some examples of professional groups?

A
  • Planning and development
  • Commercial Property
  • Valuation
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58
Q

What is the current structure of the RICS?

A
  • Privy Council granted Royal Charter
  • Governing Council

Below this are:

  • Regulatory Board
  • Management Board
  • Audit Committee
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59
Q

What is the UK Structure?

A
  • 4 National Associations
  • 10 Regional Boards
  • Local Associations
  • CEO Dr Sean Thompkins
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60
Q

Who is President of the RICS?

A

Kathleen Fontana (as of November 2020)

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61
Q

Who is President Elect?

A

Clement Lau

62
Q

Who is Chair of Governing Council

A

Chris Brooke

63
Q

What are the names of the RICS President and CEO?

A

President is Kathleen Fontana

CEO is Dr Sean Thompkins

64
Q

What does it mean that RICS has a Royal Charter?

A

They can go to Crown Court to get Bye Laws to allow discipline through court system

65
Q

What is a Bye Law?

A

A regulation made by a Local Authority of corporation

66
Q

What is the background of the RICS?

A
  • Established 1868
  • Granted Royal Charter by Privy Council in 1881
  • 134,000
67
Q

What are the four levels of membership?

A
  • FRICS
  • MRCIS
  • AssocRICS
  • Student / Trainee
68
Q

What are the requirements to become FRICS?

A
  • Five or more years MRICS
  • Leadership role
  • Professional / technical achievement
  • Academic achievement
  • Raising the profile of the RICS
69
Q

What are the benefits of being a member of the RICS?

A

SRMKN

  • Status
  • Recognition
  • Market Advantage
  • Knowledge
  • Networking
70
Q

How is RICS currently amending the Royal Charter?

A
  • Changes agreed Nov 2018
  • Governing Council reduced to minimum of 25 seats (currently 50), 15 of which geographical
  • New Chair of Governing Council will act for up to 6 years
  • President will focus on ambassadorial duties and continue to be elected annually
71
Q

How does the RICS maintain a high level of standards?

A
  • Through guidance, advice, regulation and disciplinary action
  • Examples are rules of conduct
  • Guidance notes
  • Professional Statements
  • Requirement for CPD
72
Q

What are the most common breaches of Rules of Conduct?

A
  • Professional behaviour
  • CPD
  • Protecting clients money
73
Q

Would you accept a gift / hospitality from a client?

A

I would always have regard to:

  • Rules of Conduct for Members
  • Bribery Act 2010
  • Company’s Anti Bribery Policy

Depends on context and type of gift - Is it reasonable and proportionate?
Can it be seen as a bribe?
Is it likely to impair my professional opinion?

74
Q

What does the Red Book say about Ethics?

A

PS2 it states you must:

  • Comply with minimum terms of engagement
  • Disclose necessary information
  • Display professional competence
75
Q

What went into your terms of engagement?

A

Must be in accordance with Estate Agents Act 1979

  • Date
  • Details or property and parties
  • Type of agency
  • Agency rights
  • Full information of fee and any additional costs
  • Scope of services
  • Complaints handling procedure
  • Statutory cooling off period (14 days)
76
Q

When did the RICS last update their disciplinary panel rules?

A

October 2019

77
Q

What are the RICS principles of better regulation?

A

PACTT

  • Proportionality
  • Accountability
  • Consistency
  • Targeting
  • Transparency
78
Q

What are the RICS Bye Laws?

A 
1 - Application and Definitions
2 - Membership and Registration
3 - Designations
4 - Contribution to Funds
5 - Conduct
6 - Governing Council, Officers and Staff
7 - Subordinate Boards, Committees and Groups
8 - Procedure for General Meetings
9 - Accounts and Audit
10 - General
79
Q

Can you tell me about a key principle of the Rules of Conduct for Firms?

A

Complaints Handling - Which says that a firm must operate a CHP and maintain a log of complaints
- Must include an ADR mechanism

80
Q

Can you tell me about a key principle of the Rules of Conduct for Members?

A

Competence - Members should carry out work with due care, skill and diligence and with proper regard to the standards expected of them

81
Q

Give me an example of when you have acted with integrity in your work.

A

When valuing a development opportunity in Hounslow, I ensured that I undertook sufficient due diligence

82
Q

Give me an example of when you have provided a high standard of service.

A

When collecting comparable evidence for a development opportunity in Canning Town, I spoke to agents to verify information, to ensure that I provided the most accurate opinion of value

83
Q

Give me an example of when you have acted in a way that promotes trust in the profession.

A

When valuing a development opportunity in Hounslow, I carried out a conflict of interest check to confirm that I was not conflicted when undertaking the work.

84
Q

Give me an example of when you have treated others with respect.

A

When valuing a development opportunity in Hounslow, I ensured that I notified the landowner prior to conducting an inspection.

85
Q

Give me an example of when you have taken responsibility.

A

When valuing a development opportunity in Hounslow, I took responsibility for ensuring that my Director received the report within the agreed time scales

86
Q

If you were to take on a new client, what checks would you undertake?

A

Customer Due Diligence (CDD) to identify the client and verify their identity
- If I was dealing with a person from “high risk third country”, a PEP or their business associate or family member, I would be required to carry out Enhanced Due Diligence (EDD)

87
Q

At what point can a disciplinary procedure be triggered?

A
  1. Complaint to the RICS
  2. Allegation by a Client or third party
  3. Information to the RICS
88
Q

What are the steps of the Disciplinary procedure?

A
  1. Initial Investigation by Head of Regulation

They can either

  1. Serve Fixed Penalty Notice
  2. Make Regulatory Compliance Order
  3. Issue CPD Sanction
  4. Refer the matter to Disciplinary Panel
89
Q

What action can the Disciplinary Panel then take?

A

They can:

  1. Issue a Compliance Order (same as HoR)
  2. Impose an unlimited fine
  3. Impose conditions upon future registration
  4. Expulsion
  5. Require publication of results
90
Q

What is Customer Due Diligence?

A
  • Identify client using driving license / passport

If a company

  • Company Reg. No / name / address
  • Stock market listing no.

Always establish the purpose of the business relationship and proposed funding arrangements

91
Q

What is Enhanced Due Diligence?

A
  • Additional checks are required because you are dealing with a politically exposed person OR a person involved in a “high risk third country”
92
Q

What Money Laundering Regulations or legislation are you aware of?

A
  • The Money Laundering, Terrorist Financing and Transfer of Funds (Information to the payer) Regulations 2017
  • RICS Countering Bribery and corruption, money laundering and Terrorist Financing 2019
93
Q

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

A
  • Information to the RICS
  • Allegation by a client or third party
  • Complaint to the RICS
94
Q

How would you close down a regulated firm?

A
  • Inform the RICS
  • Inform your clients
  • Arrange for your clients to be handed over to the new firm
  • Return clients money
  • Inform your insurer and set up suitable run off cover
  • Maintain a copy of client information for minimum of 6 years
95
Q

What are the requirements for opening an RICS registered firm?

A
  • Inform the RICS
  • Information about nature of business
  • Information about nature of clients
  • Anti money laundering officer appointed
  • Responsible principle appointed
  • Complaints handing procedure approved by RICS
  • Approved ADR service
  • Confirm whether handling client money
  • Arrange suitable level of PII
96
Q

What are the requirements for opening an RICS registered firm?

A
  • Inform RICS
  • Appoint Responsible Principle
  • Register with RICS for regulation by Regulatory Board
  • Arrange PII and send details to RICS
  • Set up procedures to address requirements of Client Money Handling Professional Statement, including details of client money protection scheme
  • Register for the RICS Valuer Registration Scheme (if undertaking Red Book Valuation)
  • Obtain RICS approval for CHP
  • Set up complaints log
  • Appoint Complaints Handling Officer
  • Obtain logo kit
  • Plan for succession
  • Ensure CPD logged
  • Set up staff training plan
  • Ensure completion of an online RICS Annual Return each year
97
Q

What are the three current topical issues at the RICS

A
  • Independent inquiry by Alison Levitt QC to review events of 2018 surrounding a treasury management audit (results published next month)
  • RICS Rules of Conduct being revised to a set of 5 rules, likely to come out next month and be effective by October
  • RICS Strategic review “Defining our Future” focusing on purpose of the RICS and its future priorities
98
Q

What is an RICS Annual Return?

99
Q

What is the purpose of the 5 principles of better regulation?

A
  • The RICS self regulates, and has a duty of care to the public
  • The 5 principles set out how the RICS regulates itself internally to maintain the highest standards of professionalism and integrity in the benefit of the public interest
100
Q

What was the Carsberg review 2005?

A
  • Review of RICS regulation
101
Q

Pick two of the 5 principles of better regulation and explain what they mean?

A

Proportionality - The RICS should only intervene when necessary and remedies imposed should be proportionate.

Accountability - Regulators must be able to justify their actions under public scrutiny to promote complete fairness

102
Q

What would you do if you received a notice of PII claim from a client or their solicitor?

103
Q

What do you understand by the term “Professional Practice”?

104
Q

What constitutes an offence under current money laundering regulations?

A
  • Assisting with money laundering - 14 years prison sentence and/or unlimited fine
  • Tipping off a person or for failing to report suspicion: maximum 5 years prison sentence and/or unlimited fine
105
Q

Tell me about the guidance you are aware of in relation to Conflicts of Interest

A

RICS Professional Statement on Conflicts of Interest 2017

106
Q

What can you tell me about RICS guidance in relation to Bribery, corruption or money laundering?

A
  • RICS Professional Statement on Countering Bribery and Corruption, Money Laundering and Terrorist Financing 2019
  • Sets out what firms MUST do to counter these things
107
Q

What are the requirements for the registration of firms?

A

After April 2020 - Firms with at least 50% principals HAVE to be registered
- Firms with 25% CAN apply to be registered

108
Q

What information is required by the RICS for registration and in the annual return?

A
  • Type of business
  • Statutory regulated activities
  • Nature of clients
  • Complaints handling procedure
  • Professional indemnity insurance
  • Whether firm handles clients money
109
Q

Give me three examples of RICS core material that you have had regard to in your work?

A
  • RICS Professional Statement Conflicts of Interest
  • RICS Code of Measuring Practice
  • RICS Surveying Safely Guidance Note
110
Q

What should be included in terms of engagement?

A

a. Identification and status of valuer
b. Identification of client
c. Identification of any other intended user
d. Identification of asset
e. Valuation currency
f. Purpose of valuation
g. Basis of value
h. Valuation date
i. Nature and extent of work

111
Q

What is the Proceeds of Crime Act 2002?

A
  • Provides powers for enforcement authorities in UK to recover the proceeds of crime
  • Defines the main offences of ML
  • Concealing
  • Arrangements
  • Acquiring
112
Q

What are the THREE main offences under Proceeds of Crime Act 2002?

A
  • Concealing - proceeds of crime
  • Arrangements - Enter arrangements which supports the acquisition of proceeds of crime
  • Acquisition - of proceeds of crime
113
Q

What is the RICS guidance on bribery and corruption called?

A

RICS Countering Bribery, Corruption, money laundering and terrorist financing 2019

114
Q

What are the three parts of RICS Guidance on Bribery , Corruption, Money Laundering and Terrorist Financing 2019?

A

Mandatory Requirements
Guidance
Supplementary Guidance

115
Q

What does RICS Countering Bribery, Corruption, Money Laundering and Terrorist Financing say firms must do in terms of B&C?

A
  • Not offer or accept anything that could constitute a bribe
  • Have procedures in place to comply with the law
  • Report suspicions
  • Act with due diligence to perform risk assessments
  • Retain records to demonstrate compliance
116
Q

What does RICS Countering Bribery, Corruption, Money Laundering and Terrorist Financing say firms must do in terms of ML & TF

A
  • Not facilitate or be complicit on ML or TF
  • Have systems in place to comply
  • Report suspicion
  • Undertake risk assessments
  • Take appropriate measures to understand the client and purpose of instruction
  • Verify client by undertaking ID checks
  • Retain records to demonstrate compliance
117
Q

How long should files be kept for?

118
Q

What should you do if a client requests access to information?

A

Get clients approval

- unless HMRC or police investigation

119
Q

What are the criteria for proving a negligence claim?

A
  • Duty of care owed
  • Breach of that duty
  • Damaged caused by that breach
120
Q

Who must PII policies be underwritten by?

A

RICS insurer e.g Allianz or AXA

121
Q

What is the regulatory document issued by the RICS on Professional Indemnity Insurance called?

A

RICS Professional Indemnity Insurance Requirements 2019

122
Q

Who can members apply to if they cannot arrange Professional Indemnity Insurance?

A

RICS Assigned Risk Pool

123
Q

Who can members go t if they are facing personal negligence claims by work carried out by a former employer who they thought had PII, but does not?

A

RICS Member Support Service (MSS)

124
Q

What guidance did the RICS publish on the Professional Indemnity Insurance and valuation?

A

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

125
Q

What are the SIX main area of good practice set out in the RICS Professional Statement Client Money Handling, 2019?

A
  1. Holding client money
  2. Providing information to clients
  3. Receipt of client money
  4. Payments from client accounts
  5. Accounting records and controls
  6. Compliance
126
Q

What scheme does the RICS run for instances where an RICS Regulated Firm is unable to repay a client’s money?

A
  • RICS Clients’ Money Protection Scheme
  • Scheme split into two parts covering money held by firms undertaking surveying activities and those undertaking residential agency activity
127
Q

What statutory regulations would you have to comply with when starting a new firm?

A
  • Requirement to disclose business name
  • Disability discrimination compliance (Equality Act 2010)
  • Financial services compliance (Financial Services and Markets Act 2000 and Financial Services Act 2012)
  • Bribery Act 2010 compliance
  • Appoint a Money Laundering Reporting Office (Money Laundering Regulations, 2017)
  • Health and Safety compliance (Health & Safety Act 1974, as amended)
  • Asbestos register (Control of Asbestos Regulations, 2012)
  • Fire Safety compliance (Regulatory Reform (Fire Safety) Order 2005)
  • Register for data protection (General Data Protection Regulation, 2016 and Data Protection Act 2018)
  • Set up estate agency compliance (Estate Agents Act 1979, Consumer Protection Regulations 2008, Misrepresentation Act 1967)
  • Inform HMRC for VAT and Tax registration (VAT registration threshold is currently £85,000 per annum turnover)
  • Ensure compliance with current employment law i.e. National Living Wage, working hours, stakeholder pensions, gender pay gap reporting etc.
  • Ensure insurance compliance for employer and public liability
128
Q

What are the new rules with regards to the use of the RICS logo and designations?

A
  • Use of the logo restricted to members and regulated firms
  • “Regulated by RICS” must be displayed clearly
  • Prescribed text to include in ToE’s
129
Q

What is a high risk third country?

A
  • North Korea
  • Syria
  • Afghanistan
  • Iraq
  • Iran
130
Q

What are the Part 3 - Rules of Conduct for Firms (Adminsitration)

A

ASADIC

  • Advertising
  • Solvency
  • Incapacity arrangements
  • Designations
  • Information to RICS
  • Co-operation with RICS
131
Q

What has the RICS Regulatory Board been renamed as?

A

RICS Standards and Regulatory Board

132
Q

What changes were introduced to the RICS Rules of Registration of firms 2019?

A
  • Eligibility - Minimum 25% (previously 1)
  • Logo usage
  • Responsible Principle
133
Q

What document has RICS issued on the handling of client money?

A

Client Money Handling 2019

134
Q

When did Client Money Handling 2019 become effective?

A

1st January 2020

135
Q

What are the main Client Money Handling schemes available?

A

Client Money Protection Scheme

136
Q

When was the Client Money Protection Scheme last updated?

137
Q

What is the current compensation limit?

138
Q

What does the annual regulatory review fee relate to?

A

All firms that handle client money pay a regulatory review fee
- Fees generated from this pay for the costs of the Client Money Regulatory Review visit programme

139
Q

What is the RICS Assigned Risk Pool?

A
  • Members can apply to them if they cannot arrange PII
140
Q

Who can retired/part time members apply to for PII?

A

RICS Low Earners Scheme

141
Q

Who can members apply to if they are unable to arrange run off cover?

A

RICS Run Off Pool

142
Q

What level of run off cover is required?

A

Consumer claims: £1,000,000 for 6 years

Commercial claims: consider adequate level for 6 years

RICS recommends 15 years

143
Q

What does The Consumer Rights Act 2015 state?

A
  • Amends existing consumer protection law and gives consumer new protection
  • Consolidates the law relating to unfair terms of contract between businesses and consumers
  • Letting agents must clearly display summary of charges in the office and on the website
  • If a resi agent holds clients money, firm is required to publish a statement on whether they are a member of a client money scheme and details of the scheme
144
Q

What is the key legislation regarding Money Laundering?

A
  • Money Laundering, Terrorist Financing and Transfer of Funds (Info to the payer) regulations 2017
  • The Money Laundering and Terrorist Financing (amendment) regulations 2019
145
Q

What do the ML, TF and ToF regulations 2017 require?

A
  • Have an appointed MLRO
  • Carry out risk assessments and money laundering checks
  • Provide staff training
  • Carry out CDD / EDD
  • Comply with req. relating to foreign public officials
146
Q

What is the name of the new document outlining the new rules of conduct?

A

RICS Professional Statement Ethical Principles and Rules of Conduct 2021

147
Q

What are the five new rules of conduct?

A 
Service
Competence
Integrity
Respect 
Responsibility
148
Q

When are the new rules of conduct set to be introduced?

A

Introduced next month, effective October 2018

149
Q

What guidance have the RICS issued on conflicts of interest?

A

RICS Professional Statement Conflicts of Interest

  • Sets out mandatory guidance for management / avoidance of conflicts
  • RICS members must maintain confidentiality unless permitted by law
  • RICS members must identify and manage conflicts of interest
  • Keep record of informed consent
  • Keep record of decisions made
  • Outline measures taken to avoid conflicts arising
150
Q

Does the RICS provide any other advice on conflicts of interest?

A

RICS Professional Statement on Conflicts of Interest in Commercial Property Market Investment Agency 2017

  • Introduces multiple introductions
  • Incremental advice
  • Dual agency
151
Q

What guidance would you refer to if handling client money?

A

RICS Professional Statement Client Money Handling 2019

  • Deals with holding client money
  • Providing information to clients
  • Receipts of client money
  • Payments from client accounts
  • Keeping records of accounts
  • Proving compliance

RICS FINAL INTERVIEW (21 decks)

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