Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

ETHICS QUESTIONS > ETHICS Q's > Flashcards

ETHICS Q's Flashcards

1
Q

What are the RICS By-Laws?

A

The RICS By-Laws are the governing rules that set out the legal framework for how RICS operates. They cover key areas such as membership requirements, professional conduct, regulatory powers, and disciplinary procedures. These by-laws ensure that RICS members and regulated firms uphold professional standards and act in the public interest.

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

When was the RICS founded?

A

1868

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

What is the address of the RICS

A

12 Great George Street, Parliament Square

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

How many members does the RICS have?

A

Over 140,000 members.

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

What are the four levels of membership?

A

FRICS, MRICS, AssocRICS, Trainee

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

What does you need to demonstrate to become FRICS?

A

You need to submit a portfolio showing your professional achievement. You also need to demonstrate four fellowship characteristics (e.g., have been MRICS for 5 years or more, have been in a leadership role, demonstrated professional / technical achievement, demonstrated an academic achievement or raised the profile of the RICS).

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

How is the RICS governed?

A

The RICS is governed by internal councils and boards.

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

Who is the chief executive officer?

A

Justin Young

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

Who is the president?

A

Justin Sullivan / Nick Mcclean

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

What is the purpose of the RICS?

A

The role of the RICS is to promote and enforce the highest standards and qualification across the property industry

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

What are the three main roles of the RICS?

A

To maintain the highest standards of education and training, to protect consumers by having strict regulations on professional standards and to be the leasing source of information and independent advice.

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

What was the purpose of The Bichard Review?

A

Clarify the purpose of the RICS, including its responsibility to act for the public advantage; make recommendations on its governing structure to deliver the purpose; and provide proposals for the incoming leadership and governing body on the future culture and strategy of the institution.
Review of the internal. governance failings with the RICS.
RICS recuruited Diversity, Equity and Inclusion and Sustinability Panel Charis to lead these priority issues.

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

What were the 5 key themes of governance outlines in The Bichard Review?

A

Strategy, people, culture, values and member service.

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

What are 5 benefits of being an RICS member?

A

STATUS (which provides client confidence)
Increased KNOWLEDGE
NETWORK (global)
Recognition
Market advantage.

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

What are the 2022 ‘rules of regulation’ for firms?

A

If at least 50% of principles are RICS members then the firm must be regulation. If at lease 25% of principles are RICS members then the firm can apply to be regulated.

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

Each firm must have a ‘Responsible Principle’, what is their role?

A

The role of the ‘responsible principle’ is to ensure that all reasonable steps have been taken and systems put in place to ensure compliance with RICS regulation. Sara Duncan is Colliers

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

Disputes about an RICS regulated firm will be heard by who?

A

The RICS Standards and Regulations Board.

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

Who is allowed to use the RICS logo?

A

Only registered firms and RICS members can use the logo.

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

What 7 details does a firm have to provide when registering with the RICS?

A
  1. Type of business and staffing,
  2. Name of the ‘Responsible Person’
  3. Confirmation of any statutory regulated activities
  4. Nature of clients
  5. Details of complaints handling procedure
  6. Details of professional indemnity insurance
  7. Confirmation of whether the firm holds clients money.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

When were the new RICS Rules of Conduct published?

A

October 2021 (effective from February 2022).

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

What are the 5 Rules of Conduct?

A

ICQRP Act with honesty & integrity, to maintain professional competence and ensure work is conducted by a competent individual, provide a good quality service, encourage diversity & inclusion and act in the public best interest & promote trust in the profession.

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

Under the RICS Rules of Conduct, Appendix A, what professional obligations must RICS members adhere to?

A

Comply with CPD requirements,
Cooperate with the RICS
Provide all information reasonably request by the Standards and Regulations board in a prompt manner.

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

Under the Rules of Conduct, Appendix A, what are the professional obligations for firms?

A

Publish a complaints handling procedure, ensure all previous and current work is covered by professional indemnity insurance, if there is a sole principal make sure there are arrangements in place for their work to continue in the event that they can no longer work, cooperate with the RICS, to provide all information reasonably requested by the Standards and Regulations Board, display on business literature that they are regulated by the RICS and report any matter they are required to report under the Rules for Registration of Firms.

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

Why were the Rules of Conduct updated?

A

To provide a simpler set of rules to firms and members with example behaviours for each. The rules are supported by 12 supporting case studies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
What is the RICS Ethics Decision Tree?
The Ethics Decision Tree is a framework of questions that members should ask themselves when in a situation which could potentially mean they act in an unethical manner. The purpose is to prevent a member acting in an unethical way.
26
What is the main question members must ask themselves when referring to the Ethics Decision Tree?
The main question is whether members would be happy with their decision / actions being made public. You should also consider, it is lawful, do you have sufficient information, does it follow the RICS Rules of Conduct
27
What are the three levels of Disciplinary Action?
Action by Head of Regulation, Disciplinary Panel, and Appeal Panel.
28
What is the first stage of a disciplinary procedure?
A formal investigation by the Head of Regulation. The Head of Regulation can then: serve a fixed penalty notice, make a regulatory compliance order, refer the matter to a single member of the regulatory tribunal, or refer it directly to a disciplinary panel.
29
What is a fixed penalty?
A procedure used for breaches related to supplying information to RICS, which may result in a fine and/or caution.
30
What is a Regulatory Compliance Order?
A procedure for minor rule breaches that can be easily corrected (e.g., failure to complete required CPD).
31
When is Action by a Disciplinary Panel used?
For more serious breaches of conduct. The Head of Regulation decides if a hearing is required.
32
What penalties can a Regulatory Tribunal Disciplinary Panel impose?
A regulatory compliance order, reprimand, fine (including unlimited fines per breach, but proportionate), conditions on future regulation, removal from RICS regulation, and publication of the hearing outcome in RICS Modus Magazine, the RICS website, and the local newspaper where the member or firm is based.
33
What is the purpose of the Appeal Panel?
To review and consider appeals against disciplinary decisions, assess previous evidence and new representations, and vary the penalty if necessary.
34
What is the guidance on social media called?
Use of Social Media: Guidance for RICS Members (2021).
35
What is the purpose of the Use of Social Media: Guidance for RICS Members (2021)?
To highlight the importance of high professional behaviour standards expected from RICS members and firms when using social media.
36
When is RICS likely to investigate social media posts?
When posts are discriminatory, dishonest, abusive, or threatening, include bullying or harassment, or when previous warnings have been ignored.
37
What is the new material replacing the RICS Statements and Guidance?
The RICS Standards. RICS is re-categorising all statements and guidance notes into Standards.
38
What are RICS Professional Standards?
Expectations or requirements for RICS-regulated members and firms on providing a service. They include mandatory requirements ("must") and advised actions ("should").
39
What is the purpose of RICS Practice Information?
To support the practice, knowledge, and performance of RICS members and firms. It does not contain advice.
40
What should fees be based on?
Fees should be market-based and agreed on an ad-hoc basis.
41
Can you negotiate on fees with a prospective client once you have submitted your initial proposal?
Yes, as long as it is done professionally. This may be necessary if the client requests additional work and you do not want to lower your service quality.
42
True or False: When proposing fees, you should not be seen to be undercutting other firms.
True.
43
What must you do if receiving or offering a referral fee?
You must be transparent with your client and disclose it in the terms of engagement. You must also consider The Bribery Act (2010) and RICS Rules of Conduct (2021).
44
What must be included in Terms of Engagement?
The fee basis, payment of expenses, how they will be calculated, and a statement that the company’s complaints handling procedure is available on request.
45
What must you have in place before commencing an instruction?
You must: check professional competence, have written terms of engagement, complete an AML check, and conduct a conflict-of-interest check.
46
True or False: The Consumer Rights Act (2015) allows for a 14-day cooling-off period from the date that terms were agreed.
True.
47
When may it be appropriate to decline an instruction?
If you are not competent, the client refuses to sign terms or complete AML checks, there is a conflict of interest, insufficient facts, PI insurance cap issues, advice is for a friend (not covered by insurance), the client is on the UK Government Sanctions List, or if you would not want your actions made public.
48
What is a Conflict of Interest?
A conflict arises when a firm or member’s independence or impartiality is threatened due to a conflict between two clients.
49
What types of conflicts exist?
Personal conflicts, financial conflicts, acting on both sides of a transaction, and commercial relationships.
50
What is the definition of Conflict Avoidance?
Not accepting the instruction to prevent a conflict from arising.
51
What is Conflict Management?
Accepting an instruction with measures in place to manage the conflict properly.
52
What is the standard called which refers to conflicts of interest?
RICS Global Professional Standard: Conflicts of Interest (2017).
53
What does the RICS Global Professional Standard: Conflicts of Interest (2017) state?
You must not act where there is a conflict of interest or a significant risk of one, unless all parties provide informed consent.
54
When can you proceed despite a conflict of interest?
Only if all parties give informed consent, it is in their best interests, and it is not prohibited by law.
55
How do you handle a conflict of interest when one arises or is likely?
Decide whether to decline the instruction (conflict avoidance) or if it can be managed with openness and transparency. If proceeding, provide full disclosure and obtain written client consent. Continue managing the conflict throughout.
56
How can a firm manage a conflict when acting for both sides?
Setting up information barriers to prevent the exchange of confidential information.
57
What does the RICS Professional Statement: Conflicts of Interest – UK Commercial Property Market Investment Agency (2017) say about Dual Agency?
Dual Agency, where an agent acts for both buyer and seller, was strictly prohibited by RICS from January 2018.
58
In Investment Agency, what does the term ‘Multiple Introductions’ refer to?
When an agent acts for multiple buyers trying to acquire the same property. The agent must clarify in the terms of engagement whether they are acting on an exclusive or non-exclusive basis.
59
When can a personal conflict arise?
When advising family, friends, or individuals with whom you have a financial or personal interest.
60
What do the RICS By-Laws state about client confidentiality?
Client confidentiality must be maintained for all client affairs.
61
What should you do if a third party requests access to client accounts?
Only disclose information if you have informed client consent or if statutory obligations (e.g., police or HMRC investigation) override confidentiality.
62
How long should you hold onto client files?
A minimum of 6 years, after which they should be securely disposed of or destroyed.
63
What should you do if you receive confidential information by mistake?
Dispose of it immediately.
64
What should you do if you suspect or receive a complaint?
Inform your PII insurers immediately, as this could lead to a negligence claim.
65
What must be included in a Complaints Handling Procedure?
Include details of an RICS-approved Alternative Dispute Resolution Mechanism and the Complaints Handling Officer.
66
What is the timeline for when a complaint is received?
Acknowledge the complaint within 7 days, and investigate within 28 days.
67
What happens if the complainant is not happy with the internal investigation?
The complainant can seek alternative dispute resolution.
68
If you are a sole practitioner, how do you nominate a complaints handling officer?
Ask a surveyor in another firm to act as your complaints handling officer.
69
What are the CPD requirements for members?
Members must complete at least 20 hours of CPD per year, with 10 hours being formal CPD.
70
How do members record their CPD?
CPD must be recorded on the RICS CPD Management System, by 31st January each year.
71
What is the definition of formal CPD?
Formal CPD involves structured learning with clear objectives and outcomes (e.g., courses or webinars).
72
What is the definition of informal CPD?
Informal CPD includes self-managed learning relevant to your job (e.g., private study or informal webinars).
73
How can you decide whether CPD is formal or informal?
Refer to the RICS Decision Tree to help decide whether CPD is formal or informal.
74
What was demonstrated in the case Yianni v Edwin Evans?
The case showed that the residential valuer owed a duty of care to the purchaser relying on the valuation, even though instructed by the lender.
75
What was demonstrated in Hope Capital LTD v Alexander Reece Thompson LLP (2023)?
The case demonstrated that the purpose of the valuation is central to the valuer’s duty of care in negligence claims.
76
What is a Limitation Period?
The period within which a claim must be made.
77
Under the Limitation Act (1980), what are the current limitation periods for negligence?
For contract law, 6 years from the negligent act. For tort law, 6 years from when the claimant suffered a loss.
78
What are the ways in which negligence can be avoided?
By understanding the client’s objectives, having written terms of engagement, ensuring competence, and following RICS professional standards.
79
When starting a new practice, what steps must you adhere to, to comply with the RICS?
Inform RICS about the new firm, appoint a responsible principal for RICS communication, take out PII, register for regulation by RICS, set up procedures for handling client money (if necessary), register for the RICS valuer registration scheme (if undertaking Red Book valuations), have a complaints handling procedure, a complaints log, appoint a complaints handling officer, use the RICS logo on all material, log CPD on the RICS CPD Management System, and have structured training for staff.
80
What are examples of statutory compliance when setting up your own firm?
Compliance with the Bribery Act (2010), appoint a Money Laundering Officer (in line with Anti-Money Laundering Regulations 2017), register for Data Protection (GDPR) and Estate Agents Compliance (Estate Agents Act, 1979).
81
What steps must be undertaken when closing a practice?
Inform RICS, inform clients, have steps to pass work to a new firm, return any money held by the client, inform insurers, have run-off cover for 6 years, and keep a copy of client accounts for 6 years.
82
What is the key legislation relating to gifts and bribery?
Bribery Act, 2010.
83
What is the aim of the Bribery Act, 2010?
To reduce bribery in business in the UK and abroad.
84
What is the definition of a briber?
A bribe is the giving, offering, or receiving of an advantage (e.g., payment) in return for an action which is either illegal or in breach of trust.
85
What are the 6 principles to prevent bribes under The Bribery Act (2010)?
Proportionality, top level commitment, risk assessment, due diligence, communication, and monitoring & review.
86
What are the 4 offenses under the Bribery Act (2010)?
Giving a bribe, receiving a bribe, bribing a foreign public official, and failure to prevent a bribe.
87
In what circumstance is a company not responsible for corruptive actions from the employees?
When the company can demonstrate they had appropriate procedures and policies in place to prevent bribes.
88
Is hospitality prohibited by the Bribery Act (2010)?
No, hospitality is not prohibited. Offering reasonable and proportionate hospitality is allowed as long as it is recorded in the gift/hospitality register.
89
What steps can companies take to prevent bribery?
Have clear policies, provide staff training, conduct regular reviews, and undertake risk assessments.
90
What is the penalty for acting against the Bribery Act (2010)?
Maximum 10 years in prison and/or an unlimited fine.
91
What is the regulation regarding Money Laundering called?
Terrorist Financing and Transfer of Funds (information on the payer) Regulation, 2017 (amended in 2023).
92
What is the definition of Money Laundering?
Money laundering is when you disguise the origin of money that has come from criminal activity, so it can be used without detection.
93
What are the key provisions of the Money Laundering Regulation?
Written risk assessment, systems and policies, internal controls, staff training, appropriate record-keeping, and checks for high-risk cases.
94
Under the AML regulations, what are the legal responsibilities for Estate Agents?
Estate agents must be registered with HMRC, must undertake AML checks on all parties (landlords, tenants, purchasers) when the letting is above €10,000 per month, and enhanced due diligence is needed for red flags (e.g., high-risk countries, non-face-to-face business).
95
When should you look into a transaction in more depth when conducting an AML check?
When the transaction is complex, extremely large, has an unusual pattern, or lacks an apparent economic or legal purpose.
96
What is Customer Due Diligence?
Identifying the client and verifying their identity based on reliable sources (e.g., passport, driving licence). You must also identify the beneficial owners (those with 25%+ share).
97
When is Enhanced Due Diligence required?
When the transaction is high risk, such as involving a high-risk third country or a politically exposed person.
98
How long should firms hold details of due diligence checks?
Firms should keep records for a minimum of 5 years.
99
What is the penalty for assisting with money laundering?
Maximum 14 years in prison and/or a minimum fine.
100
What is the fine for tipping someone off that they are a suspect of money laundering or failing to report a suspicion?
Maximum 5 years in prison and/or an unlimited fine.
101
What are the Red Flags associated with Money Laundering?
Unwillingness to provide documents, changes in the parties involved, unusual activity (e.g., urgency, loss-making transaction), and money dealt in unusual currencies.
102
What is the purpose of the RICS Global Standard: Countering Bribery, Corruption, Money Laundering & Terrorist Financing (2019)?
This standard sets out the mandatory global requirements for RICS members and regulated firms regarding bribery, corruption, money laundering, and terrorist financing.

ETHICS QUESTIONS (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions