Ethics - lvl 1 Flashcards
1
Q
Professional and Ethical Standards Decision Tree
A
- Questions to go through when you are asked to act in a potentially unethical manner or situation.
- Encourages members to consider legalities of actions and their consistency with RICS RoC
- Consult senior colleagues and have clear reasoning.
- If in doubt, phone RICS Regulation Confidential Hotline for ethical issue
Test: would you want decision to be made public?
2
Q
What does good governance mean to you?
A
- Professionalism & Transparency: Ensuring clarity in governance structures, processes, and maintaining high standards.
- Trust & Resilience: Earning trust through transparent operations, acting in the public interest, and designing governance for long-term stability.
- Diversity & Inclusivity: Ensuring diverse representation and engaging all stakeholders in an open manner.
3
Q
How do professional integrity and professional ethics differ?
A
- Professional Integrity: An individual’s consistent adherence to moral principles in their actions.
- Professional Ethics: Formal rules set by a profession dictating right and wrong behavior.
- Integrity is personal commitment, while ethics provides the framework.
4
Q
What is the new maxim of RICS in relation to compliance?
A
Responsible Business
5
Q
What do you understand by the term professional practice?
A
- Refers to the ethical and competence standards expected of its members.
- Ensure professionalism to protect consumers and businesses.
6
Q
Why do you want to become a member of RICS?
A
- Regulation & Standards: Uphold and work to the highest industry standards.
- Professional Status: Recognized globally as a mark of professionalism.
- Knowledge & Expertise: Access to the latest industry research and news.
- Networking Opportunities: Connect with a global community of professionals.
- Training & Development: Continuous professional development resources.
- Career Advancement: Enhances employability and career prospects.
7
Q
What are the key functions of RICS? x5
A
- Standards: Develops and enforces professional and ethical standards.
- Regulation: Regulates members and firms for compliance.
- Education: Accredits courses and offers member training.
- Research: Produces market surveys and guidance.
- Policy Engagement: Advocates for sustainable built environment policies.”
8
Q
What is a Royal Charter?
A
RICS’ Charter: Granted by Queen Victoria in 1881, recognizing RICS as a professional body in the UK.
RICS’ Powers: Enables self-regulation and permits the appointment of a Governing Council.
Obligations: Directs RICS to foster the profession for public benefit.
9
Q
Who is the current RICS president?
A
Ann Gray FRICS
10
Q
Who is the current CEO of the RICS?
A
Justin Young
11
Q
What are the levels of membership for the RICS?
A
- Graduate
- Assoc RICS
- Member RICS
- Fellowship RICS
12
Q
What must you do to achieve FRICS status?
A
- Five or more years at MRICS
- Leadership role
- Professional/technical achievement
- Academic achievement or raising profile of RICS
13
Q
What is the structure of the RICS?
A
Governing Council:
- Supreme governing body of RICS.
Sets RICS’s strategy, vision, and approves constitutional changes.
Oversees the RICS Board and the Standards and Regulation Board.
RICS Board:
- delivering the business plan
- overseeing operations
Professional Group Panels (To be established in 2023):
Result of Lord Bichard’s recommendation.
Six panels: Construction, Valuation, Commercial Property, Residential Property, Land and Natural Resources, and Building Surveying and Building Control.
Each panel will have a Chair, part of the Knowledge and Practice Committee.
World Regional Boards:
RICS’s global membership is divided into five regions.
Each board develops a strategy and business plan for its region.
Regions include: Asia Pacific, Europe, Middle East and Africa, and Americas.
Standards and Regulation Board:
- exclusive responsibility for RICS’ regulatory functions.
- Independently led, comprising both non-members and RICS members.
- Oversees professional standards,
- entry/admission to the profession,
- education/qualification standards,
- dispute resolution services, and
- the Regulatory Tribunal.
14
Q
What is the SRB
A
The SRB focuses on the
- conduct and competence of RICS members,
- to set proportionate standards in the public interest and based on risk.
Its approach is to foster:
- a supportive atmosphere that encourages a strong, diverse, inclusive, effective and sustainable surveying profession
15
Q
What do you understand by the term self-regulation?
A
RICS Role: A self-regulatory body under its Royal Charter ensuring public trust and maintaining professional standards.
SRB: Independently led board responsible for global regulatory strategy development and oversight.
Reports its activities and performance to the RICS’ Governing Council.
16
Q
Can you tell me what you understand by the principles of better regulation? PACTT
A
- Proportionality – making penalty proportional to breach
- Accountability – to members and public
- Consistency – treating all members the same
- Targeting – serious breaches
- Transparency – to members, clients and public
17
Q
What is a Bye-Law?
A
A list of laws applied internally using powers granted by the Royal Charter
18
Q
Give an example of one of the RICS Bye-Laws.
A
- Members of RICS shall consist of the following classes:
(a) Chartered Members, comprising:
(i) Fellows;
(ii) Professional Members;
(b) Non-Chartered Members; and
(c) Honorary Members - demonstrate the attainment of the appropriate Professional Competence to be admitted
- Chartered Members shall be entitled to use Designatory Initials or Designations
19
Q
Explain to me the new RICS Rules of Conduct - what do they replace?
A
- promoting and enforcing the highest ethical standards in the RICS
- support positive change in the built and natural environments.
- Rules of Conduct for Members
- Rules of Conduct for Firms
- Global Professional and Ethical Standards
20
Q
When do they take effect?
A
2 February 2022.
21
Q
Who do they relate to?
A
The rules apply to all members and firms regulated by RICS, regardless of where they work or practice.
22
Q
What are the 6 ethical principles that the Rules of Conduct are based on? HICSRR
A
Honesty
Integrity
Competence
Service
Respect
Responsibility
23
Q
What are the 5 Rules?
A
Rule 1: Honesty and Integrity - Members and firms must be honest, act with integrity, and comply with their professional obligations.
Rule 2: Competence - Members and firms must maintain their professional competence.
Rule 3: Service- Members and firms must provide good-quality and diligent service.
Rule 4: Respect - Members and firms must treat others with respect and encourage diversity and inclusion.
Rule 5: Responsibility - Members and firms must act in the public interest and take responsibility for their actions.
24
Q
Give me an example of rule 1
A
Always providing truthful information in reports and not misleading clients.
comply with their professional obligations and obligations to RICS
Avoid conflict of interest
25
Give me an example of rule 2
Members and firms only undertake work that they have the knowledge, skills, and resources to carry out competently.
Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills, and resources to do their tasks competently.
Members and firms check that subcontractors have the necessary knowledge, skills, and resources to do their tasks competently.
Members maintain and develop their knowledge and skills throughout their careers. They identify development needs, plan and undertake continuing professional development (CPD) activities to address them, and are able to demonstrate they have done so.
26
Give me an example of rule 3
Members and firms understand clients’ needs and objectives before accepting any professional work.
Members and firms agree with clients the scope of the service to be provided and its limitations, and timescales for the work.
Members and firms inform clients promptly and seek their agreement if it is proposed that any of the terms of engagement or estimated fees or costs be changed.
Members and firms undertake their work in a timely manner; with due care, skill, and diligence, and in accordance with RICS technical standards.
27
Give me an example of rule 4
Members and firms respect the rights of others and treat others with courtesy.
Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds.
Members and firms do not bully, victimise, or harass anyone.
Members and firms work cooperatively with others.
28
Give me an example of rule 5
Members and firms question practices and decisions that they suspect are not right, and raise concerns with colleagues, senior management, clients, RICS, or any other appropriate person, body, or organization where they believe in good faith that it is necessary to do so.
Members and firms support directors, partners, employees, colleagues, or clients who have acted in good faith to report concerns.
Members and firms respond to complaints made against them promptly, openly, and professionally.
29
What are the core professional obligations of firms and members to RICS in the RoC?
**For Members:**
* Comply with the CPD requirements set by RICS.
* Cooperate with RICS.
* Promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
**For Firms:**
* Publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
* Ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
* Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from, or inability to work.
* Display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
* Report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
30
RICS Hierarchy of Publications:
1. Rules of Conduct (for Firms and Members) (Mandatory)
2. Global Standards (Mandatory)
3. Professional Standard (Mandatory)
5. Guidance Notes (Voluntary)
6. Practice Information (Mandatory or Recommended Good Practice)
31
The RICS Red Book.
The RICS Red Book sets global standards for valuation practices, ensuring consistency, and transparency.
32
The RICS Black Book.
The RICS Black Book consolidates best practice guidelines for quantity surveying and construction, promoting consistency and professionalism in the industry.
33
# Dicipline
What disciplinary procedures can the RICS impose?
* Fixed penalty notice
* Regulatory compliance order
* Refer matter to single member of Regulatory Tribunal
* Refer matter to a Disciplinary Panel.
34
# Dicipline
In what circumstances can disciplinary procedures be imposed?
professional misconduct, Violated RICS standards, rules, or regulations.
outlined in the RICS Regulatory Tribunal Rules.
Most common breaches are ethical / professional behaviour, CPD, and client’s money.
35
# Dicipline
When did RICS last update their disciplinary panel rules?
RICS Regulatory Tribunal Rules - 2 February 2022 - same as RoC
36
# Dicipline
What are the different levels of action within these procedures?
* RICS investigates the complaint.
**Less serious:**
* Consent Order given if admitted.
* Possible fine or caution.
**Not admitted but no hearing needed:**
* Single Tribunal Member decides.
**Most serious:**
* Disciplinary Panel hearing.
* Outcomes range from fine to expulsion.
37
What can you tell me about RICS guidance relating to bribery, corruption or money laundering? CBCMLTF19
Countering bribery, corruption, money laundering and terrorist financing, 2019
38
What status does it hold? CBMLTF2019
RICS Professional Statement - Manadory
39
What are some of the key principles of this guidance?
**Part 1:**
**Bribery and Corruption:**
* No offering or acceptance of bribes.
* Implement procedures to adhere to the law.
* Report any suspicious activities to authorities.
* Conduct due diligence and regular risk evaluations in writing.
* Maintain records demonstrating compliance with the Professional Statement.
**Money Laundering and Terrorist Financing:**
* Do not facilitate or be involved in such activities.
* Establish systems to ensure legal compliance.
* Report any suspicions.
* Assess risks to the firm.
* Understand the client and the purpose of their instruction.
* Confirm client identity via ID checks.
* Keep records showing adherence to the Professional Statement.
**Part 2:**
**Guidance:**
* Draft a written policy for senior management oversight.
* Release a code of behavior for staff and offer training.
* Promote transparency.
* Create a register for gifts.
* Stay updated with relevant legislation.
**Part 3:**
**Supplementary Guidance:**
* Adopt a risk-based approach considering the client, the task, and the reason for the task.
* Handle politically exposed persons with enhanced due diligence.
* Identify the beneficial owner of entities like companies or trusts, possibly through annual returns.
40
# ML
What is money laundering
Money laundering is where proceeds of crime are disguised or converted and then realised as legitimate assets.
41
# ML
What money laundering regulations or legislation are you aware of?
**The Money Laundering and Terrorist Financing (Amendment) Regulations:**
* 2022:
Updates the 2017 Regulations.
Adds provisions on proliferation financing and beneficial owners.
* 2019:
*Introduces requirements for:*
Risk assessments.
System controls.
Customer due diligence measures.
Record keeping.
Reporting suspicious activity.
*New definitions for:*
"Cryptoasset exchange provider."
"Custodian wallet provider."
"Art market participant."
**Proceeds of Crime Act 2002:**
Allows UK authorities to recover assets believed to be from crime proceeds.
Establishes criminal offences to combat money laundering.
42
# ML
What are the penalties for being involved in money laundering?
* Maximum of 14 years in prison and / or unlimited fine for assisting in money laundering
* Maximum of 5 years and / or unlimited fine for not tipping off or not reporting suspicion of money laundering
43
# ML
What is a red flag of money laundering?
* Inability / unwillingness to provide identity documents
* Changes to parties involved in transaction
* Unusual transaction features – unexpected urgency, potential loss-making, unusual transaction for a client
* Payment of fees or purchase costs in unusual currency
44
# ML
What constitutes an offence under the current money laundering regulations?
**Concealing:** Hiding the origins of illegally obtained money.
**Arranging**: Helping someone obtain or use illegal funds.
**Failure to Report:** Not alerting authorities about suspected money laundering.
**Tipping Off:**Warning someone they're being investigated.
**Lack of Due Diligence:** Not verifying client identities or monitoring business relationships.
45
# ML
How long should you keep anti money laundering records for?
5 years
46
# ML
Explain the implications of the Sanctions and Anti-Money Laundering Act 2018.
Provides Updated UK's framework for sanctions and anti-money laundering post-Brexit.
Enables UK to impose, update, and enforce sanctions independently.
47
# ML
What is the Sanctions List and why should you be aware of it?
A list of individuals/entities subject to UK sanctions.
Ensures businesses don't breach sanctions; non-compliance can lead to penalties.
48
# ML
Why was the Register of Overseas Entities introduced?
Introduced for transparency in foreign ownership of UK property.
Aims to prevent money laundering via the UK property market.
Reveals true property owners, reducing hidden ownership.
49
# ML
Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022.
**Register:** Mandates disclosure of beneficial owners by foreign entities owning UK property.
**Anti-Money Laundering:** Targets illicit funds in the UK property market.
**Sanctions:** Boosts UK's power to impose sanctions for economic crimes.
**Enforcement:** Amplifies investigative and penalty powers.
**Reputation:** Reinforces the UK as a transparent business hub.
50
# ML
What would you do if you became suspicious that a client was involved in money laundering?
**Immediate Halt:** Stop all transactions/activities with the suspicious client.
**Suspicion Evaluation:** Identify the reason for suspicion, such as unusual transactions or inconsistent documents
**Non-Disclosure:** Avoid discussing suspicions with the client or outsiders to prevent "tipping off."
**RICS Adherence**: Follow Rule 1 of RICS Rules of Conduct, emphasizing honesty, integrity, and not facilitating financial crimes.
**Internal Reporting**: Use the company's designated form to report suspicions confidentially to the firms MLRO.
**Documentation**: Maintain detailed records of all interactions and transactions with the suspicious client.
**Cooperation**: Assist any external authorities involved, as per the "Sanctions and Anti-Money Laundering Act."
**Risk Management:** Log the incident in the company's annual risk assessment.
**Monitoring:** Keep a close watch on the client's activities for any further suspicious actions.
**Seek Guidance:** Consult superiors or relevant departments when in doubt.
**Training:** Stay updated on best practices and legal requirements through regular training.
51
What would you do if you became suspicious that a client was involved in terrorist activities?
**Immediate Response:** Cease any activities that might support the client's suspected terrorist involvement.
**Internal Reporting**: Alert the organization's Money Laundering Reporting Officer (MLRO) about the suspicions.
**Legal Awareness**: Familiarize with the Terrorism Act 2000 to avoid unintentional violations related to terrorism-linked activities.
**Disclosure**: Consider making a formal disclosure if there's genuine belief or suspicion, as outlined in the Terrorism Act 2000 and Proceeds of Crime Act 2002.
**Risk Evaluation**: Assess potential risks of money laundering or terrorist financing, especially if the client uses new technologies or methods.
**Country Analysis**: Be cautious if the client is linked to high-risk countries known for corruption, terrorism, or sanctions.
**Professional Integrity:** Adhere to Rule 1 of RICS Rules of Conduct, emphasizing honesty, integrity, and professional compliance.
**External Reporting**: If suspicions are strong and credible, consider notifying external authorities like the police or National Crime Agency.
**Documentation:** Keep detailed records of all interactions and actions related to the suspicions.
**Ongoing Monitoring**: Continuously observe the client's activities to detect further suspicious actions or gather more evidence.
52
# Bribe
What bribery legislation are you aware of?
Bribery Act 2010 - Aims to reduce bribery in business in UK and abroad.
53
# Bribe
What is a bribe?
Involves giving, offering, promising, or receiving a gift, payment, or service.
Aimed to induce improper performance of a function or activity.
Can also be a reward for such improper performance.
Undermines impartiality.
Conflicts with working in the client's best interest.
54
# Bribe
If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.
In essence, accepting a bribe risks professional, legal, and reputational consequences, contradicting RICS standards and company policies. Immediate Rejection: I'd decline the offer due to potential CoI, compromising objective advice to the seller.
**Objective Duty:** My primary role is to provide objective and independent advice. A bribe would undermine this.
**Integrity Concerns**: Accepting an incentive risks perceived lack of integrity and damages professional reputation.
**RICS Values:** Accepting a bribe contradicts RICS's core values of consumer protection and public advantage. UK Bribery Act 2010: Criminalizes all forms of bribery with severe penalties, including imprisonment and fines.
**Corporate Accountability:**Organizations can be liable for failing to prevent bribery.
**International Reach:** The Act applies globally to UK nationals, residents, and businesses.
**Defensive Measures:** Organizations must show adequate anti-bribery procedures to defend against accusations.
**Reputational Risks:** Bribery scandals can cause lasting reputational damage. Company Reporting: I'd report the incident internally, aligning with the company's Anti-Bribery & Corruption Policy.
55
# Bribe
What are the penalties for accepting a bribe?
Maximum penalty of 10 years in prison and / or unlimited fine
56
# Bribe
What constitutes an offence under the Bribery Act 2010?
1. Bribing
2. Receiving a bribe
3. Bribing a foreign official
4. Failing to prevent bribery
57
# Bribe
What would you do if you were asked by a client to reduce a fee proposal to win new work?
**Bribery Implications**: Offering significant fee reductions to secure business can be seen as a form of bribe.
**Ethical Business Conduct**: Business should prioritize quality and ethics over merely securing contracts
**Unfair Competition**: Reducing fees to undercut competitors is not a fair business practice.
**Integrity Concerns**: Offering fee reductions to outbid others may compromise professional integrity.
**Respect for Peers**: Undercutting fees disrespects fellow surveying firms and their value.
**Service Quality**: Assess if the desired service level can be maintained at a reduced fee.
**Devaluing Profession**: Drastic fee cuts can diminish the perceived value of the surveying profession.
**Sustainability Issues**: Continual undercutting is not a viable long-term business strategy.
.
58
# PII
What is Professional Indemnity Insurance (PII)?
To protect clients, surveyors and third parties against negligence claims where a duty of care is breached and a claim for damages rises
59
# Neg
What is negligence
Failure to exercise due care expected in professional/business activities.
Results in harm or damage to another party.
Lacks intentional misconduct but shows carelessness or oversight.
60
# PII
Can you tell me about the RICS requirements in relation to PII?
* Firms must ensure all past and current professional work is covered by adequate and appropriate PII.
* The insurance should be on an 'each and every' claim basis or aggregate plus unlimited reinstatement basis.
* The policy wording should be RICS' minimum or more comprehensive, based on the firm's turnover.
* The policy should be fully retroactive, covering claims made against the insured during the insurance period regardless of when the negligent act occurred.
* The policy should be underwritten by an RICS listed insurer and cover all past and present employees.
61
# PII
What is a PII aggregation clause?
single incident that creates multiple claims, can be treated as a single claim for the purpose of the policy limit.
62
# PII
What does ‘claims made’ mean in terms of PII?
insurance covers you for any claims made during the period the insurance is active, no matter when the incident that led to the claim actually happened.
63
# PII
Is a PII excess usually paid for per claim?
The maximum level of uninsured excess varies based on the firm's turnover. For firms with a turnover of £10,000,000 or less, the maximum uninsured excess is the greater of 2.5% of the sum insured or £10,000.
64
# Neg
In a negligence claim, what would help to show that you acted with consideration and due process?
* Clear and precise TOE
* Ensure competent to undertake work
* Undertake work in accordance with RICS Standards and Guidance Notes
* Make detailed notes and take photos
* Keep abreast with market knowledge and legislation – undertake and record CPD
* Cap the professional liability excess on your PII policy in the TOE
65
# PII
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?
professionals might need to review and potentially adjust their PII coverage to ensure they are adequately protected against potential claims related to those services.
66
# PII
Can good record keeping help to provide a defence in a PII claim?
Yes
67
# PII
What is run off cover?
To ensure firms, members, and clients are not exposed to financial detriment following cessation of trading.
RICS requires firms to obtain fully retroactive run-off cover
68
# PII
What RICS requirements are there relating to run off cover?
- Consumer claims - minimum cover of £1,000,000 over minimum of 6 years
- Non-consumer claims – firms must decide cover, minimum of 6 years
* Firms unable to obtain run-off cover, can apply for RICS Run-off Pool
69
# PII
What changes did RICS recently make to the Minimum Approved PII Wording?
RICS Policy: Firms should have a policy with RICS' minimum wording or a more comprehensive one.
Policy Basis: It should cover all civil liabilities.
Indemnity Level: Based on the firm's previous year's turnover. Some firms may opt for higher coverage to manage risks better.
70
# PII
Explain PII requirements relating to fire safety cover
Insurers may impose a fire safety exclusion.
From 1 May 2021, any exclusion will not apply to professional work relating to buildings four storeys or under.
71
# PII
How long can a PII claim arise after the work is undertaken?
6 years after work complete
72
# PII
What is the Assigned Risks Pool (ARP)?
Firms unable to obtain run-off from their incumbent insurer or the open market can apply for coverage to the run-off Pool.
73
# PII
Who might need to access the ARP?
Firms that cannot obtain run-off coverage from their current insurer or the open market.
74
# PII
Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance (1st Edition).
Risk Awareness: Understand risk management and your professional liability to maintain service standards.
Insurance: Stay informed on insurance options, especially professional indemnity, for protection against claims.
Contracts: Ensure clarity in risk allocation in contracts and awareness of global standards.
ADR: Utilize alternative dispute resolution methods for efficient conflict resolution.
75
# PII
Explain when you might agree a liability cap.
- limit their financial exposure in potential claims.
- Sets the maximum amount that can be claimed from the professional or firm.
76
# PII
How would set out third party reliance in Terms of Engagement?
**Definition:** Specify who qualifies as a third party.
**Permission**: State conditions under which third parties can rely on advice.
**Disclosure vs. Reliance**: Clarify the difference and potential liabilities.
**Risks:** List potential challenges and legal implications.
**Insurance**: Highlight the need to review coverage for third-party reliance.
**Fees:** Address if additional charges apply for permitting third-party reliance.
77
# PII
What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?
1. Check if professionally competent
2. No conflicts of interest / personal interest
3. Confirm Terms of Engagement agreement in writing
78
# CHP
Tell me what you understand about Complaints Handling Procedures (CHP).
A CHP is a structured process that firms use to address and resolve complaints from clients. It ensures that complaints are dealt with promptly, transparently, and fairly.
79
# CHP
What does a RICS Firm need to have in the CHP
Proceedure - align with the RICS Guidance Note on Complaints Handling 2016 and requires RICS approval.
complaints log , their progress, and outcomes must be maintained.
**Alternative Dispute Resolution (ADR):** The CHP must incorporate a RICS-approved ADR mechanism for resolving disputes.
**Complaints Handling Officer:** For sole practitioners, an external surveyor or firm should be designated as the Complaints Handling Officer.
**Documentation:** The CHP should be provided to the client in the Terms of Engagement (TOE), and aof all
**Notification:** Always inform the insurer about any complaints, as they might escalate to negligence claims.
80
# CHP
What are the CHP proceedures
**Stage 1 (In-House):**
* Upon receiving a complaint, disclose the CHP details.
* The process should be swift, transparent, and impartial.
* The Complaints Handling Officer investigates the complaint, which must be in writing.
* Acknowledgement should be within 7 days, with a full investigation within 28 days.
**Stage 2 (ADR – Third Party Resolution):**
* If the complainant is unsatisfied with the in-house resolution, they can escalate to an independent redress scheme, like the RICS Dispute Resolution Service or The Centre for Dispute Resolution.
81
# CHP
When and how can the RICS be involved in a complaint about a firm or member?
**Stage 2 (ADR – Third Party Resolution)**
* If complainant is unhappy with stage 1 review, stage 2 involves independent redress scheme that firm has chosen to use
* Name of relevant scheme must be provided – such as RICS Dispute Resolution Service, or The Centre for Dispute Resolution
82
# CHP
What is a locum and who might need one?
Sole practioner.
In cases where complaints are about the sole practitioner directly, a locum can offer an impartial perspective, ensuring that the complaint is handled fairly and without bias.
83
# CHP
How could a sole trader set up their CHP using a locum?
**Define & Train:** Clearly outline the locum's responsibilities in the CHP, provide them with necessary training, and ensure they have access to essential resources.
**Communication & Record Keeping:** Inform clients about the locum's role in handling complaints, establish clear communication channels, and ensure detailed records of all complaints and resolutions are maintained.
**Review & Confidentiality:** Periodically assess the effectiveness of the CHP with the locum, making necessary updates, and emphasize the importance of maintaining complainant confidentiality throughout the process.
84
# CPD
Can you tell me about the CPD requirements for members of RICS?
* Members must undertake 20 hours per annum
* At least 10 hours must be formal CPD – structured learning with clear objectives
* Must maintain a relevant and current understand of RICS Professional and Ethical Standards on 3 year rolling period
* Members must record in RICS CPD Management System
85
# CPD
Why is CPD important?
* Comply with rule 2 of RoC.
* Skill Enhancement: It ensures professionals stay updated with the latest knowledge and adapt to industry changes.
* Professional Credibility: Engaging in CPD showcases commitment to professionalism and upholds industry standards.
* Career Progression: Regular training opens up new career opportunities and provides a competitive edge in the job market.
86
# CPD
difference between formal and informal CPD
**Formal CPD:**
* Structured learning (e.g., courses, seminars).
* Accredited by professional bodies.
* Includes assessments (e.g., exams).
* Requires documentation.
**Informal CPD:**
* Unstructured learning (e.g., reading, discussions).
* Not accredited.
* Self-directed.
* Less emphasis on documentation.
87
# CoI
Tell me about the RICS’ Global Professional Statement on dealing with Conflicts of Interest.
RICS Global Professional Statement on Conflicts of Interest 2017:
* Mandatory from January 2018
* States members must not advise client where conflict exists unless informed consent of all parties affected
* Informed consent only allowed when proceeding is considered is in interest of all who may or are affected and is not prohibited by law
* All firms must have effective systems to ensure compliance with statement
* All firms must keep records to show compliance
88
# CoI
What are the Three types of conflict?
1. ‘Party Conflict’ – same or related work instruction for two different parties
2. ‘Own Interest Conflict’
3. ‘Confidential Information Conflict’ – relating to work between two parties that is confidential
89
# CoI
What is double dipping (dual agency)?
single real estate agent represents both the buyer and the seller in a property transaction.
90
# CoI
How to manage a conflict of interest:
1. Conflict Avoidance – do you accept or avoid
2. Written Advice to Both Parties
a. Disclose nature of conflict and set our how firm wishes to deal with conflict (information barrier)
b. Be clear – ensure parties make own decision (suggest independent advice)
c. Request written informed consent to act in accordance with procedure proposed
3. Conflict Management – set up procedure agreed in informed consent (information barrier)
91
# CoI
Why is double dipping (dual agency) an unacceptable practice?
* Conflict of Interest: Difficult to serve both parties' best interests.
* Lack of Transparency: Potential to withhold information.
* Reduced Advocacy: Both parties might not get full representation.
92
# CoI
Is multiple introductions okay?
Yes can act but need informed consent for multiple potential buyers
93
# CoI
What is incremental advice?
Instructions with non regulated firms where agent approached to provide other services.
The key is information barrier and informed consent.
94
# CoI
what is an Information barrier:
* Robust to ensure no information passed
* ‘Reasonable steps’ taken to operate effective barrier
* Separate surveyor on both sides, physically separate (different building or floor)
* Information should be securely stored
* Clear audit trail – firm’s compliance officer must oversee actions
95
# CoI
What is a conflict of interest
Arises when member independence / impartiality threatened due to existence of conflict between clients:
* Financial interest
* Personal interest
* Commercial relationship
* Acting on both sides of a transaction
96
# CoI
What is informed consent
* Only in writing. Person explaining must be transparent and sure party affected understands what they are doing
* Surveyors should only seek informed consent if satisfied all parties are best served by doing so
97
# Prop Prac
What are the current RICS rules for registration of firms?
Rules for the registration of firms. Version 7.
98
# Prop Prac
When did these last change?
Effective 2 February 2022
99
# Prop Prac
Who is a ‘qualified member’ of RICS?
a chartered member of RICS
100
# Prop Prac
What is a phoenix firm?
A new entity is created to continue the business of a company that has gone insolvent.
101
# Prop Prac
When must a firm register for regulation?
* provides surveying services to the public,
* operates in Regulated Area A,
* and at least 50% of the firm’s Principals are RICS Members
102
# Prop Prac
What are the registration eligibility criteria?
The above, plus:
- Eligibility: Firms providing surveying services to the public.
- Principal Requirement: Head of Regulation must be convinced the firm plans to ensure at least 25% of its Principals are RICS Members soon.
- Support & Supervision: Head of Regulation must believe the firm is adequately backed and overseen by a compliant RICS-registered firm or firms.
103
# Prop Prac
Who is a Responsible Principal?
A firm that is registered or registering with RICS must always have a Responsible Principal.
The Responsible Principal ensures the firm complies with its regulatory and statutory obligations.
This person should be appropriate for the appointment, able to influence the strategic objectives of the firm, and either be an RICS Member or have sufficient experience in regulatory compliance activities.
104
# Prop Prac
What happens if a firm cannot comply with the eligibility criteria?
The Head of Regulation may exercise powers if they consider that a firm that has been granted registration would no longer be eligible to register for regulation by RICS.
These powers include taking no action, adding or varying conditions to the firm’s registration, deregistering the firm, or suspending the firm from registration.
105
# Logo
What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?
Only Members or Registered Firms can use the RICS logo.
Only RICS Registered Firms can use the ‘Regulated by RICS’ designation.
106
# Logo
When did these rules last change?
22 February 2022
107
# Logo
Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.
Sole practitioners who are chartered members can use it.
Partnerships/companies can use it if 50% or more partners/directors are chartered members and it's used only in the trading name.
108
# Prop Prac
What must be included in ToE relating to firm regulation?
Must state the firm is regulated by RICS and uphold RICS Rules of Conduct.
The Responsible Principal's details should be included.
109
# CM
What RICS guidance relates to handling client money?
RICS Professional Statement Client Money Handling, 1st Edition 2019:
110
# CM
When was this last updated?
October 2019
111
# CM
What do the RICS Rules of Conduct say about client money?
"Firms keep client money safe and have appropriate accounting controls." (Page 5, Rule 1, Example behaviour 1.10)
"Members do not misuse client money and comply with controls intended to keep it safe."
112
# CM
Explain your understanding of the RICS Scheme Rules relating to client money protection.
RICS Client Money Protection Scheme - for claims where RICS regulated firm is unable to repay client’s money.
All registered firms need to sign up.
Scheme split into two parts:
* surveying services,
* and residential activities.
Covers direct loss of client money, excluding indirect losses.
Some exclusions apply, like losses from jointly held funds where the client contributed to the loss.
113
# CM
What are the main schemes available to firms?
RICS Client Money Protection Scheme for Surveying Services
114
# CM
When were these last updated?
first in 2019.
updated in 05 October 2022 - reflect the new RICS Rules of Conduct,
115
# CM
What is the current compensation limit?
£50,000 per claim; annual cap of £10,300,000 for the scheme
116
# CM
What does the annual regulatory review fee relate to?
Reviews a member's scheme membership annually.
Levies are payable yearly, with rates published on the scheme's website.
117
# CM
What might client money include?
Client’s money includes rent, service charges, holding deposits.
118
# CM
How does this differ to office money?
Money of any currency belonging wholly to the RICS regulated firm or its principals
119
# CM
What are some of the key principles of the RICS Professional Statement relating to client money protection?
* Client accounts must be kept separately and clearly identifiable
* Word ‘Client’ must be on account
* Client can have monies on demand. Money can only be withdrawn for proper uses
* Payment of interest is agreed with client and accounts kept in credit
* Accurate records kept, running balance available
* Annual audit and reporting obligations by certified accountant employed by RICS are met
* All firms handling money, need to display procedure online
* RICS Regulatory Review Visits – usually every 3 years by accountant employed by RICS
120
# Hot Top
Explain the key themes from the RICS Futures 2020 Report.
* Rapid Industry Evolution: The need for RICS to adapt to the swiftly changing professional landscape, emphasizing continuous innovation.
* Technology and Ethics: The rise of technological innovations in the built environment and the ethical considerations surrounding data capture and use.
* Sustainability Challenges: The pressing issues of urbanization and climate change, emphasizing sustainable development and climate-resilient infrastructure.
121
# Hot Top
Explain the potential implications of the Hart v Large case.
* Duty of Care: Surveyors must continuously adapt their advice, especially for new properties.
* Clear Reporting: It's crucial to indicate uninspected areas and potential defects.
* Significant Damages: Courts may award substantial damages based on discrepancies between reported and actual property values.
122
# Hot Top
Explain your understanding of precedent set in Burgess v Lejonvarn.
professionals providing professional services pro bono and without a contract owe a duty of care in tort to act with reasonable care and skill.
Court of Appeal also determined they are under no duty to advise / give warnings, and nor are they liable for work they do not do.
123
What do RICS set out as good practice for the use of social media in their Regulation document (June 2021)?
* Maintain Professionalism: Always uphold the same professional standards on social media as in traditional communication.
* Avoid Discriminatory Content: Refrain from posting, sharing, or endorsing discriminatory or offensive material.
* Use Respectful Language: Ensure discussions, even criticisms, are conducted using professional and respectful language. Avoid personal attacks or derogatory remarks.
124
What is whistleblowing?
* Definition: Raising concerns about malpractice, mistreatment, or wrongdoing at work.
* Scope: Includes health and safety issues, financial inaccuracies, and regulatory breaches.
* Support: RICS has a policy to protect employees raising such concerns, with a designated Whistleblowing Champion for oversight.
125
Explain what the Pandora Papers are and the ethical issues raised within them.
* Ethical Standards: RICS emphasizes ethical practices to prevent illicit activities.
* Due Diligence: RICS members are urged to conduct thorough client checks.
* Guidance: RICS provides directives on countering bribery, corruption, and money laundering.
126
# Hot Top
Explain what you understand by the RICS Bichard Review.
* Background: The review was initiated after issues in 2018/19 impacted RICS's reputation.
* Purpose: RICS's role is to promote standards in land, real estate, and construction. The review suggests refining its objectives to emphasize positive change in the built and natural environment.
In essence, the review calls for RICS to prioritize public interest, address sustainability challenges, and strengthen member and global engagement.
127
# Hot Top
Explain some of the recommendations of the Bichard Review.
**Strategy:** RICS needs a clear strategy focusing on public interest, sustainability, member engagement, and global collaboration.
**Member Engagement:** RICS should enhance member services and give more autonomy to regions and boards.
**Global Approach:** RICS should increase its global influence through partnerships and collaborations with other institutions.
128
# Hot Top
How will these recommendations be implemented by RICS?
Implementation: RICS plans to swiftly adopt the recommendations, emphasizing member-driven decision-making and increased regulatory autonomy.
129
What is modern slavery and how would you identify red flags of it?
* Modern slavery includes slavery, servitude, human trafficking, and forced labor.
* Employee Behavior: Workers appearing fearful, avoiding eye contact, or showing signs of abuse.
* Working Conditions: Overcrowded living quarters, poor health and safety standards, or workers living on-site.
* Documentation Issues: Employees lacking personal IDs, or those documents being controlled by the employer.
130
# Hot Top
What are the six RICS values published as a result of the Levitt review?
* Integrity
* Transparency
* Inclusion
* Collaboration
* Advocacy
* Passion
131
# Hot Top
Explain your understanding of the RICS Levitt review.
* Criticism of RICS governance as a result of poor financial controls. Reputational damage. Apologies for wrongful dismissal of 4 non-executives who raised concerns. Review of internal governance, advice to increase board members.
* The Governing Council made a public apology to the 4 non-execs and published a values statement in response to the Levitt Review:
132
# Hot Top
What are some of the greatest challenges facing the RICS?
* Maintaining Relevance: Upholding public trust and adhering to ethical standards in an era of skepticism.
* Addressing Global Changes: Navigating urbanization and resource shortages due to demographic shifts.
* Ensuring Professional Growth: Emphasizing continuous professional development and active engagement with RICS directives.
133
What are hot topics?
* Clause 213: The Levelling Up and Regeneration Bill includes a clause allowing the Secretary of State to investigate RICS's performance, raising concerns about RICS's independence.
* Independence Concerns: RICS emphasizes its need to act in the public interest without government interference.
* Bichard Review: RICS is implementing recommendations from an independent review to enhance its governance and strategy, with support from Secretary of State Michael Gove. RICS WLCA standard is pivotal for:
* Consistent Carbon Measurement: It offers a uniform method to measure carbon in the built environment, ensuring accuracy and reliability.
- Promoting Sustainability: By highlighting carbon costs of design choices, it aids in managing carbon budgets and pushing for a net-zero future.
- Upholding RICS's Reputation: As a leading standard, it reinforces RICS's commitment to sustainable practices and ethical standards in the built environment.
134
# Neg
Why may it be appropriate to decline an instruction?
* Not competent
* Insufficient facts
* Proposed client will not sign TOE
* Conflict of interest
* PII cap cannot be agreed
* Advice on a pro bono basis (charity) and PII will not cover
135
# Neg
How can you avoid negligence claims?
* Clear and precise TOE
* Ensure competent to undertake work
* Undertake work in accordance with RICS Standards and Guidance Notes
* Make detailed notes and take photos
* Keep abreast with market knowledge and legislation – undertake and record CPD
* Cap the professional liability excess on your PII policy in the TOE
136
# Neg
What should a surveyor do if they find out a confidential piece of information in error about a party who is not their client?
* If surveyor becomes aware of confidential information (accidental email), then this cannot be used for their own purposes. Advise sender and record matter with firm’s compliance officer
137
# Neg
What should you do if a third parties requests access to your files?
* If third party wants access, consent from client first, unless statutory authority - HMRC / Police investigation
138
# Pro Pra
How long should files be kept for?
* Old files held for 6 year minimum (secure disposal)
139
# Hot Top
Tell me about the RICS Business Plan
**Purpose:** The business plan for 2021-2022 outlines RICS' goals and strategies for the year.
**Focus:** RICS emphasizes trust, professionalism, and public interest.
**Strategic Goals:**
Build trust through transparency and integrity.
Influence global standards.
Stay relevant by updating qualifications.
Promote sustainability in the industry.
**Key Actions:**
Develop and promote global standards.
Produce industry research.
Offer educational opportunities.
Enhance digital services.
**Financial Goal:** Aim for a balanced budget by year-end.
140
# Pro Prac
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.
* Inform RICS of new practice – for regulation by Regulatory Board
* Appoint Responsible Principal for all RICS communication
* Arrange PII and send cover details
* Set up client’s money handling procedure
* Register for RICS Registered Valuer scheme – if undertaking Red Book valuations
* Obtain approval for Complaints Handling Procedure
* Set up complaints log
* Appoint Complaints Handling Officer
* Obtain logo kit from RICS, comply with designation ‘Regulated by RICS’
* Plan for succession if sole practioner
* Ensure CPD logged online
* Set up staff training plan
* Ensure completion of RICS Annual Return
* Sole practioner must nominate a surveyor / firm to act as Complaints Handling Officer
141
# Pro Prac
If you were to set up in practice on your own, tell me about the types of insurance you would need.
**"Professional Indemnity Insurance (PII)**: Covers legal costs and expenses for defending claims related to negligence, errors, or breaches in professional duty arising from the surveyor's services.
**Public Liability Insurance:** Protects against claims for injury or property damage to third parties due to the surveyor's business activities.
**Business Interruption Insurance:** Offers coverage for loss of income caused by events, like natural disasters, that disrupt regular business operations.
**Motor Vehicle Insurance:** Essential if using a vehicle for business, especially for transporting equipment or site visits.
**Personal Accident and Sickness Insurance:** Provides benefits or lump sum payments if the surveyor can't work due to injury or illness."
142
# Pro Prac
What is an annual return?
**Firm Details**: Basic information like name and address.
**Financial Information**: Key financial data.
**Professional Indemnity Insurance (PII):** Coverage details and claims.
**Staff and Personnel:**Number and qualifications of staff.
**Training and Development:**Courses and training initiatives.
**Complaints and Disciplinary Actions:** Complaints received and resolutions.
**Client Money Handling:** Processes for handling client funds.
**Declaration**: Confirmation of accuracy and compliance.
143
# Pro Prac
How would you close down a regulated firm?
* Inform RICS of closure
* Inform clients and hand over arrangements to new firm are made
* Return client money
* Inform insurers and arrange run off cover for a minimum of 6 years
* Retain copy of client files and records for minimum of 6 years
144
# Pro Prac
Closure of RICS Firm
* Inform RICS of closure
* Inform clients and hand over arrangements to new firm are made
* Return client money
* Inform insurers and arrange run off cover for a minimum of 6 years
* Retain copy of client files and records for minimum of 6 years
145
# Solar
On the solar farm, how did you ensure that the tender process was aligned with the RICS Rules of Conduct?
**Fairness and Transparency: **
Ensure transparency and fairness in the tender process, adhering to Rule 1 (Integrity).
**Clear Scope and Responsibilities:**
Define roles and responsibilities clearly, promoting trust as per Rule 3.
**Competitive Tendering**:
Use competitive processes to treat all contractors fairly, aligning with Rule 4.
**Early Contractor Involvement (ECI)**:
Involve contractors early for technical expertise, meeting Rule 2 (Competence).
**Standards and Policies**:
Adhere to industry standards and RICS policies, ensuring competent advice (Rule 2).
**Diligence and Minimum Service**:
Conduct the tender process diligently, delivering high standards as per Rule 2.
**Practical Considerations**:
Address practical aspects for well-informed clients, adhering to Rule 3.
**Guidance Levels**:
Follow guidance levels for competent, objective advice, in line with Rule 2 and Rule 3.
146
# Cow
On Cow Lane, why was it important to flag the non-compliance?
**Honesty and Integrity (Rule 1)**:
Recognized a potential threat and advised the client transparently, ensuring no misleading actions.
Prioritized the client's best interests by recommending a halt in operations until the issues were understood.
**Professional Competence (Rule 2)**:
Demonstrated competence by identifying the need for an ecological survey to address the pre-commencement condition.
Ensured the client received expert advice by recommending a qualified Ecologist for the survey.
**Good-Quality and Diligent Service (Rule 3)**:
Acted diligently by promptly addressing the threat of enforcement from the LPA.
Provided quality service by guiding the client through the necessary steps to address the situation.
**Respect and Inclusion (Rule 4)**:
Treated the LPA with respect by proactively communicating the steps being taken to address the situation.
Ensured all parties involved, including the client and the LPA, were treated with courtesy and respect.
**Acting in the Public Interest (Rule 5)**:
Acted in the public interest by advising the client to cease operations, preventing potential harm to the environment or public.
Demonstrated responsibility by notifying the LPA about the ecological survey, ensuring transparency and accountability.
147
# Cow
How is this relevant to trust in the profession?
* Acting in the Public Interest (Rule 5):
Immediate Action:
* Prioritized broader public interest by advising client to cease operations.
* Demonstrated ethical decision-making foundational for building trust.
Transparency with Authorities:
* Proactively notified the LPA about the ecological survey.
* Addressed potential issues head-on, fostering trust through transparency.
Expert Recommendations:
* Advised on an ecological survey by a qualified Ecologist.
* Reliance on expertise bolsters trust in the profession's competence.
Preventing Harm:
* Acted to understand and address issues, preventing potential harm.
* Reinforced the profession's commitment to societal well-being.
Upholding Standards:
* Adhered to the RICS Rules of Conduct in challenging situations.
Consistency in upholding standards is crucial for promoting trust.
148
# Cow
llWhat would you have done, if anything, if the client had chosen not to address the non-compliance?
**Honesty and Integrity (Rule 1):**
Continue to communicate transparently with the client about the potential consequences of non-compliance, ensuring they are fully informed of the risks.
Document all communications and decisions related to the non-compliance issue to maintain a clear record.
**Professional Competence (Rule 2):**
Offer alternative solutions or mitigation strategies that might be more acceptable to the client, ensuring they are based on thorough research and professional expertise.
**Quality of Service (Rule 3):**
Continue to provide diligent service, monitoring the situation and updating the client on any new developments or potential risks.
**Respect and Inclusion (Rule 4):**
Respect the client's decision while emphasizing the importance of ethical and compliant behavior.
Ensure open communication with the client, fostering a collaborative environment.
**Public Interest (Rule 5):**
Even if there's no significant harm to the public, consider the broader implications of the client's decision on the reputation of the profession and the trust of other stakeholders.
Encourage the client to address the non-compliance in a way that maintains public confidence in the profession, even if it's not a legal requirement.
In this scenario, while whistleblowing might not be the appropriate course of action, it's still essential to uphold the professional standards and ethics outlined in the RICS Rules of Conduct. Your role would be to guide and advise the client, ensuring they make informed decisions while maintaining the integrity and reputation of the profession.
149
Tell me about your work with the RICS Youth Engagement Programme.
* Actively participate to uplift and promote the surveying profession.
**Target Audience**: Focus on youngsters from low socio-economic and ethnically diverse backgrounds.
**Core Belief**:
* Talent pipeline should mirror the diverse society we serve.
* a varied workforce fosters creativity and brings diverse ideas and perspectives.
*** Outcome**: Aiming to ensure the next generation of RICS professionals is as diverse and innovative as possible.
150
On Beenham Industrial Area, why did the business’ present an issue in terms of the RICS Rules of Conduct?
* Past Misconduct: The business had a history of illegal practices, leading to fines.
* Conflict with RICS Rules: Their past actions were in contradiction to RICS Rules of Conduct (Rules 1,3,5), emphasizing honesty, integrity, and client care.
151
# Been
Could it have been acceptable to take this instruction?
* Risk to Client: Given the business's history, accepting the instruction could jeopardize the client's interests.
* Ethical Concerns: Accepting might compromise adherence to RICS standards of integrity and responsibility.
152
# Been
In these circumstances, why is it important to take decisions on a firm level?
* Collaborative Insight: Discussing with colleagues ensures diverse perspectives and a well-informed decision.
* Unified Stance: A firm-level decision ensures consistency in approach and upholds the company's reputation.
153
# Been
How did you take personal responsibility?
* Proactive Research: Conducted thorough due diligence on the business.
* Transparent Communication: Clearly communicated findings to the business, explaining the decline.
* Prioritized Client's Interests: Made decisions aligned with protecting the client and upholding RICS standards.
154
# Hot topic
Department for Levelling Up, Housing and Communities
* DLUHC proposed a new use class for short-term lets and associated rights.
* Consultation includes new permitted development rights and planning fees for new build short-term lets.
* DLUHC aims to simplify plan-making, making them faster and more community-inclusive.
* Consultation period: July 25th to October 18th, 2023, covering only England.
* Clause 213 of Levelling Up and Regeneration Bill allows investigation into RICS.
* RICS expressed concerns over potential impacts and remains in discussions with DLUHC.
155
# Hot top
What does the Sustainability report say
Surveyed 4,000 professionals; tracked green building demand and carbon measurement trends.
Found rising demand for green buildings and digital sustainability tools; gaps in carbon measurement standards.
Challenges include high costs, skill shortages; solutions involve collaboration and targeted regulations.
156
# Hot Top
What does the Levelling-up and Regeneration Act 2023 say?
Accelerates planning; mandates eco-friendly, community-centric housing with infrastructure.
Enables councils to repurpose empty buildings; supports outdoor seating for businesses.
Boosts local input in development; aims for devolution deals across England by 2030.
157
# Hot top
What does the Levelling-up and Regeneration Act 2023
1. Built Environment Changes:
Revised planning system with enhanced community involvement.
New Infrastructure Levy replacing previous levies.
New environmental standards and property auction mechanisms.
2. Sustainability Focus:
Green technologies mandated in new builds.
Carbon measuring for large projects.
3. RICS Involvement:
Collaborating on the Levelling Up Bill.
Addressing concerns over property auctions and RICS governance.
