Ethics Mock Questions

Question 1

Tell me what you understand about conflicts of interest.

Answer 1

Someone has a competing personal or professional interest making it difficult for them to fulfil their duties impartially.

Question 2

How could the conflict of interest be managed internally if two separate departments were working for the same client?

Answer 2

• Exclusivity of staff
• separate communication lines
• sign NDAs
• monitor potential conflict

Question 3

If the client was insistent that you work for them despite an existing conflict of interest, how would you proceed?

Answer 3

• Check the client understands the conflict and the potential for reduced impartiality.
• Informed consent
• Procedures to manage conflict
• Agree in writing

Question 4

Minimal levels of PII cover for firms?

Answer 4

• RICS has a standard form that determines minimum levels.
• Turnover based.

Question 5

What are the maximum levels of uninsured excess?

Answer 5

• Depends of firms turnover in the proceeding year.
• Turnover £10m or less then maximum uninsured excess is the greater of 2.5% of the sum insured or £10,000
• If turnover exceeds £10m or above there is no limit set.

Question 6

What types of insurances do firms require?

Answer 6

• PII
• Building/Contents
• Employer Liability
• Run-off

Question 7

What are the new rules of conduct?

Answer 7

Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.

Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.

Rule 3 - Members and firms must provide good-quality and diligent service.

Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion.

Rule 5 - Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

Question 8

Why did the previous rules of conduct change?

Answer 8

• Existing had been in place since 2007.
• Following consultation with Members, firms and the public.
• Greater focus on clarity.
• Clearer examples, incorporating evolving technology and tackling climate change.

Question 9

What are the main principles of the Bribery Act?

Answer 9

• Offences: Making, receiving, bribing a foreign public official, failure to prevent a bribe.
• Includes associated persons.
• 6 principles of prevention - 1. Proportionate Procedures, 2. Top Level Commitment 3. Risk Assessments 4. Due Diligence 5. Communication 6. Monitoring and Review.

Question 10

Under the bribery act, under what circumstance is a facilitation payment permitted?

Answer 10

-Okay when you are under duress.
- Threat to life etc.

Question 11

A contractor you are working with offers you an iPad, how do you proceed?

Answer 11

• Decline politely - suggest it is donated to charity.
• Timing - inappropriate as still working with party.
• Register in gift register and report to line manager.

Question 12

Can you summarise the main AML Legislation?

Answer 12

• Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2019
• Covers works for surveyors and relevant financial business work inside and outside the UK by a firm.
• Proceeds of Crime Act 2002
• Provides power to enforcement authorities in the UK to recover in criminal and civil proceedings money and assets which are deemed to be the proceeds of crime.

Question 13

Can you outline some of the key provisions of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017?

Answer 13

• Written Risk Assessments and Company Policies
• Appropriate internal Controls
• Staff Training
• Comply with Due Diligence Requirements
• Appropriate record keeping.
• AML checks on purchasers and vendors
• To include high-risk factors in AML due diligence checks.

Question 14

What are the principles of surveying safely?

Answer 14

• Sets out best practice principals for the management of health and safety for firms and members.
• Firms should ensure a safe working environment, equipment, staff training.
• ‘Safe Person’ concept.

Question 15

What are the penalties of non-compliance with MEES?

Answer 15

• Breach less than 3 months - £5,000 or 10% Rateable value (Max £50,000)
• Breach more than 3 months - £10,000 or 20% of rateable value (Max £150,000).

Question 16

What are the 6 steps of a risk assessment?

Answer 16

• Identify hazards
• Identify people at risk of those hazards
• Evaluate risk severity and likelihood.
• Record findings on RA form
• Review regularly
• Advise all involved on risk assessment outcome and methods to minimise risk.