Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APC Question Pack > Ethics Lv1 > Flashcards

Ethics Lv1 Flashcards

1
Q

Why do you want to become a member of RICS?

A

I would like to become part of one of the most respected and high-profile organisations for professionals involving property with the benefits of providing status, recognition, knowledge, a network and a market advantage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the role of RICS?

A

Develops and enforces leading international standards to protect consumers and businesses, ensuring the highest level of professionalism

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the key functions of RICS?

A

Regulate and promote the profession

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a Royal Charter?

A

charter requires RICS to act in the public interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Who is the current RICS president?

A

Ann Gray

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What do you understand by the term self-regulation?

A

RICS self regulates which means it operates within its own published regulatory framework

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Can you tell me what you understand by the principles of better regulation?

A

Act with Integrity, always provide a high standard of service, Act in a way that promotes trust in the profession, treat others with repsect, take responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is a Bye-Law?

A

These are enabling principles underpinning rules and regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

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

A

Bye-Law 5 conduct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

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

A

aim to address global risks and opportunties includes a simpler structure, clear examples to support each rule, focus on respect, diversity, highlight the use of data and technology, tackling global challenges and sustainability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When do they take effect?

A

02-Feb-22

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Who do they relate to?

A

example behaviours for firms and members

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the 6 ethical principles that the Rules of Conduct are based on?

A

honesty, integrity, competence service, respect and responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the 5 Rules?

A

“1)Honest and Integrity
2) Professional Competance
3) Quality and Diligent service
4) Respect
5)Responsibility”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Give an example behaviour for each.

A

“Honesty & Integrity - Not to mislead others by my actions, dont accept bribes, ensure carry out AML checks, ensure that client information is collected for the purpose required and not disclosed without consent or where required by law.

Professional Competance - Only undertake work you have the knowledge skills and resources to carry out. Ensure I stay up to date with professional codes and legislation. Ensure I carry out CPD.

Quality & Diligent service - Communicate with clients and understand their needs and objectives before accepting work. Ensure I communicate effectively. Duty of care towards the client and effective quality assurance processes in place such as director level sign off.

Respect - Not to bully, victimise or harrass anyone. I respect the right os others and treat them with courtesy. I also help develop and inclusive environment.

Responsibility - Members & Firms respond to complaints made against them promptly and openly. I dont undermine the profession and report any concerns regarding activity which goes against the rules of conduct. “

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

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

A

requirements for CPD, professional indemnity insurance, compalints handling, sole principal arrangements and cooperation with and regulation by RICS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What disciplinary procedures can the RICS impose?

A

Regulatory Tribunal Rules. Complaint or concern is investigated by the RICS and is considered serious enough head off regulation will consider taking disciplinary action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

In what circumstances can these be imposed?

A

For more serious cases it may be necessary for Head of Regulation to refer a case to a siciplinary panel, drawn from the independent regulatory tribunal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

When did RICS last update their disciplinary panel rules?

A

2nd march 2020, the conduct Appeal Committee was renamed the Regulatory tribunal, and the disciplinary registration and appeal panel changed to the Regulatory tribunal rules

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the different levels of action within these procedures?

A

Where a regulated Member fails to meet their CPD requirements three or more times within a ten year period, A regulated member is convicted of a criminal conviction that had the possibility of a custodial sentence on first conviction, There is not a substantial dispute of the facts, the public interest oes not require a hearing and the case is not likely to result win expultion or removal of registation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What do you understand by the term professional practice?

A

RICS develops and enforces leading international standards to protect consumers and businesses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What money laundering regulations or legislation are you aware of?

A

Money Laundering Regulations 2017

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is a red flag of money laundering?

A

“1) Secrative about source of funds, identity and reason for transaction
2) PEP
3) Has criminal associations
4) Avoids contact for no good reason
5) Large cash payments
6) Willing to pay high fees”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What bribery legislation are you aware of?

A

Bribery Act, 2010 - Uk legislation making it an offence to receive a bribe or bribe someone.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is a bribe?

A

An inducement or reward offered, promised, or provided to gain commercial, contractural or personel advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What are the penalties for accepting a bribe?

A

There is a maximum penalty of 10 years imprisonment and/or unlimted fine for individuals. Unlimted fine for corporations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What are the penalties for being involved in money laundering?

A

”* 14 years’ imprisonment and or unlimited fine for assisting
* 5 years’ imprisonment or unlimited fine for tipping off a person by informing then they are under suspicion
* unlimited fine “

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What constitutes an offence under the Bribery Act 2010?

A

“1. Bribing another person
2. Being Bribed
3. Bribing a public foreign official
4. Failure by a commercial organisation to prevent bribery”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What constitutes an offence under the current money laundering regulations?

A

“1) Tipping off someone who is under suspicion
2) Assisting a criminal to obtain, hide or invest funds
3) Failing to report knowledge or suspicion “

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

How long should you keep anti money laundering records for?

A

5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is Professional Indemnity Insurance (PII)?

A

It provides cover for the policy holder for legal action against them due to negligence, error or omission.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Can you tell me about the RICS requirements in relation to PII?

A

“UK Professional Indemnity Insurance requirements - Version 9 (effect 1st April 2022)

  • Firms must have adequate and appropriate PII insurance in place.
  • This can be on an ‘each and every claim’ or ‘aggregate basis’

Minimum Cover required based on turnover:
- £100k or less = £250,000
- £100,001 - £200,000 = £500k
- £200,001< = £1,000,000

Maximum Level of Uninsured excess based on turnover for previous year:
- £10,000,000 or less = The greater of 2.5% of the sum insured, or £10,000
- £10,000,000 or more = No limit set
UK Professional Indemnity Insurance requirements - Version 9 (effect 1st April 2022)

  • Firms must have adequate and appropriate PII insurance in place.
  • This can be on an ‘each and every claim’ or ‘aggregate basis’

Minimum Cover required based on turnover:
- £100k or less = £250,000
- £100,001 - £200,000 = £500k
- £200,001< = £1,000,000

Maximum Level of Uninsured excess based on turnover for previous year:
- £10,000,000 or less = The greater of 2.5% of the sum insured, or £10,000
- £10,000,000 or more = No limit set
“

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is a PII aggregation clause?

A

A clause which governs what happens if there is more than one claim in the same year.

34
Q

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

A

This means that the policy in place at the time the claim is made by the client will provide cover

35
Q

Is a PII excess usually paid for per claim?

A

It would depend of the policy was ‘any one claim’ or on an aggregate’ basis

36
Q

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

A

“1. Provide full details and records of meetings and conversations
2. Show evidence of advice and recommendations”

37
Q

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

A

Yes good record keeping can assist in the defence of negligence.

38
Q

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

A

“1. Inform your PII insurer to update your additional liability
2. You cant carry out work that isnt covered under PII cover”

39
Q

What is run off cover?

A

Run off cover is insurance which covers historical liabilities after it ceases to trade (minimum of 6 years)

40
Q

What RICS requirements are there relating to run off cover?

A

RICS expect run off cover for minimum of 6 years

41
Q

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

A

Following consultation, the excess requirements for larger firms have been removed, whilst the 2.5% maximum excess requirements for smaller firms remains

42
Q

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

A

Insurers may impose a fire safety exclusion. Exclusions vary dependent upon insurer; however, from 1 May 2021 any exclusion will not apply to professional work relating to buildings four storeys or under.

43
Q

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

A

If the retroactive date of the policy is stated as none, then the policy is fully retroactive and all previous works will be covered.

44
Q

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

A

“1. The scope of the work.
2.The basis on which the fee will be calculated.
3.The liability cap.”

45
Q

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

A

“1. Minimum of 20 hours CPD per year
2.10 Hours must be formal
3. Must maintain understanding of RICS professional and ethical standard during rolling 3 year periods
4. Must record CPD by January 31st
1. Address weak areas of knowledge
2. Up to date hot topics
3. Refrsh knowledge “

46
Q

What is double dipping (dual agency)?

A

Acting for both parties (buyer and seller)

47
Q

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

A

“Banned since January 2018

  • The Agents incentive is to close the deal and will comprimise acting in the best interest of the client. Creates a conflict of interest. “
48
Q

How would you close down a regulated firm?

A

“1. Inform RICS of retirement/closure
2. Ensure clients are informed and hand over arrangements to new firm
3. Return any monies held by clients to own accounts
4. Inform insurers and procure PII run off cover for minimum of 6 years
5. Retain copy of client files and records for minimum of 6 years.”

49
Q

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

A

“Money Laundering, Terrorist Financing and transfer of funds, 2017 (amended 2019)

  • Effective from January 2020
  • Guidance on Money Laundering, Terrorist Financing and transfer of funds
  • Also addresses the enforcement of 5th Anti money laundering directive.”
50
Q

What status does it hold?

A

Professional Statement

51
Q

What are the current RICS rules for registration of firms?

A

”"”The Rules are made by the Standards and Regulation Board, they set out:

  1. Which Firms are required to register with RICS for regulation
  2. Circumstances in which a Firm is eligible to apply for regulation, even though it is not required to do so
  3. The procedure for registration, deregistration and appeal and
  4. Together with the Rules of Conduct, the obligations of registration. “””
52
Q

When did these last change?

A

In February 2022

53
Q

What is a phoenix firm?

A

Firms which close in a disorderly way and then rapidly re-establish themselves as a new trading entity

54
Q

When must a firm register for regulation?

A

“A Firm is required to register for regulation by RICS if:

  1. the Firm provides surveying services to the public;
  2. the Firm is operating in Regulated Area A (UK);
  3. at least 50% of the Firm’s Principals are RICS Members.”
55
Q

What are the registration eligibility criteria?

A

“A Firm is eligible to register for regulation by RICS if:

  1. The Firm provides surveying services to the public and
  2. At least 25% of the Firm’s Principals are RICS Members”
56
Q

Who is a Responsible Principal?

A

A person who ensures the Firm complies with its regulatory and statutory obligations,

57
Q

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

A

If head of regulation is satisfied that firm is putting in place procedures to ensure eligability or that another RICS firm is supporting and supervising

58
Q

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

A

“As a qualified RICS member, you have the right to use the logo for personal use, whether you
are a partner, director or employee.”

59
Q

When did these rules last change?

A

Effective from February 2022

60
Q

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

A

The designation is intended to be subtle, while showing the public that they can trust your firm to work to the highest ethical and professional standards.

61
Q

What must be included in ToE relating to firm regulation?

A

CHP

62
Q

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

A

“Within Rule 1 - Honesty and Integrity the rules state that:

  1. Firms keep clients money safe and have appropriate accounting controls
  2. Members do not misuse client money and comply with controls intended to keep it safe”
63
Q

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

A

“RICS runs a Clients Money Protection Scheme:

Provides last resort protection where a RICS regulated firm is unable to repay clients money. There are limits and exceptions set out in the rules. “

64
Q

What are the main schemes available to firms?

A

Client Money Protection for Surveying Services’

65
Q

What might client money include?

A

Rent

66
Q

What are some of the key principles of the RICS Professional Statement relating to client money protection?

A

“RICS Mandatory Professional Statement ‘Client Money Handling’ 2019 (effective January 2020):

  1. Client accounts must be kept seperately and identifiable
  2. Client must be able to have their money on demand
  3. Accurate records are kept with a running balance sheet”
67
Q

Explain the key themes from the RICS Futures 2020 Report

A

“We are in a period of transition and change to our sector.

RICS to help navigate this change, the reprt touches on points such as building roads out of plastic and adopting drone technology. “

68
Q

Explain the potential implications of the Hart v Large case

A

“In this case the missed defects, failure to advise further investigations and lack of advise to obtain a PCC that led to the court assessing damages on a much broader scale (rather than just assessing the damages based on the actual value of the proeprty and the price paid).

Surveyors must be clear and advise clients on level of survey, scope of inspection, limitations and caveats.

Surveyors must recommend justifiable further investigation.

Consider if new information will affect advise after reporting and update if need to”

69
Q

Explain your understanding of precedent set in Burgess v Lejonvarn

A

Established that professional working pro bono and without contract owe a duty of care in tort to act in reasonable care and skill for services they provide. However not under a duty to advise or give warnings.Also are not liable for work they do not do.

70
Q

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

A

“RICS is more 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
* bully, harass or victimise a person or people
* show a pattern of frequent or a large number of concerning communications
* ignore previous advice or warnings about concerns.

RICS is unlikely to start investigations about social media posts that:
* are critical of an organisation or its policies and performance, rather than individuals
* use professional and respectful language
* are removed if a member receives a request to do so”

71
Q

Explain your understanding of the RICS Levitt review.

A

“The Independent Review was commissioned by RICS to investigate articles in the press that alleged that RICS ‘tried to supress a critical internal report into its finances in 2018/2019 and then unfairly dealt with those who sought to explore the issue’ (Levitt, 2021).

The outcome of the review is that governance principles were not followed by RICS. A key factor was lack of clarity around roles and responsibility of the various RICS boards, senior leadership and management. - Lack of scrutiny over actions of the CEO and COO. Power struggle rather than cover up.

There were 18 recommendations set out. Included Governance, executive remuneration, whistle blowing and legal advise. “

72
Q

What is whistleblowing?

A

A person , often an employee who reveals informaiton about activities taking place which is deemed illegal, immoral, illicit or unsafe.

73
Q

What does good governance mean to you?

A

Goood governance is where the governing body is able to work harmoniously to set and execute strategies, selecting and supporting leadership to deliver that strategy.

74
Q

What are the key values of the interim Governing Council statement relating to ethics, behaviour and culture?

A

“Post Levitt Review

  1. Integrity
  2. Transparency
  3. Inclusion
  4. Collaboration
  5. Advocacy
  6. Passion”
75
Q

Explain what you understand by the RICS Bichard Review

A

“The RICS appointed Lord Michael Bichard to lead an independent review into the RICS’ purpose, governance and strategy, following the publication of the Levitt Review in 2021.
“

76
Q

Explain some of the recommendations of the Bichard Review.

A

“Recommendations aimed to hand decision-making to members and ensure the Institution’s activities are centred on the public advantage.

Other recommnedations included consult widely on a proposed set of values for all which should include quality of service, respect and public advantage.

Changes to the RICS governance structure - An audit, risk, assurance and finance committee should be formed to replace existing audit and fiannce committees - enhanced responsibilities for managing risk. “

77
Q

How will these recommendations be implemented by RICS?

A

Five new working groups being established to take them forward.

78
Q

How do professional integrity and professional ethics differ?

A

“Ethics can be defined as rules and regulations that have been formed which allow an individual to work in accordance to moral principles.

Integrity can be defined as the quality of being honest and fair.

Ethics are more external whereas integrity is internal.

Ethics is not a choice whereas integrity is a personal choice.

Ethics can be imposed on individuals, but integrity cannot be imposed on.”

79
Q

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

A

“Severe exploitation of other people for personal or commercial gain.

Red Flags include: False documentation, multiple proeprty purchases of low value housing, excessive increase or decrease in proeprty value. Many red flags will link with AML. “

80
Q

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

A

Sanctions and Anti-Money Laundering Act 2018 (SAMLA 2018) was passed to allow the UK to impose economic and other sanctions, and money laundering and terrorist financing regulations once it left the EU at 11pm on 31 December 2020.

APC Question Pack (24 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions