Ethics RICS rules of conduct Flashcards
What does RICS stand for?
Royal Institution of Chartered Surveyors
True or False: The RICS rules of conduct apply only to members in the UK.
False
Fill in the blank: RICS rules of conduct are designed to ensure _____ and professional behavior.
integrity
What is one of the key principles of the RICS rules of conduct?
To act with integrity
Multiple Choice: Which of the following is NOT a principle of RICS rules of conduct? A) Integrity B) Transparency C) Accountability D) Profitability
D) Profitability
What must RICS members do when faced with a conflict of interest?
Disclose the conflict and manage it appropriately
True or False: RICS members are required to keep their skills and knowledge up to date.
True
What is the consequence of breaching RICS rules of conduct?
Disciplinary action, which may include suspension or expulsion
Short Answer: Name one of the obligations that RICS members have towards their clients.
To act in the best interests of their clients
Fill in the blank: RICS members must maintain _____ in their professional conduct.
professional competence
What is the primary purpose of the Bribery Act 2010?
To combat bribery and corruption in both public and private sectors.
True or False: The Bribery Act 2010 applies only to public officials.
False.
Fill in the blank: The Bribery Act 2010 makes it an offense to offer, promise, or give a bribe to __________.
another person.
What are the four main offenses under the Bribery Act 2010?
Bribing another person, being bribed, bribery of foreign public officials, and failure to prevent bribery.
Multiple Choice: Which of the following is NOT a defense under the Bribery Act 2010?
A lack of awareness of the bribery.
What is meant by the term ‘advantage’ in the context of the Bribery Act 2010?
An advantage can be anything that provides a benefit or a gain to the person receiving the bribe.
True or False: The Bribery Act 2010 allows for facilitation payments.
False.
What is the maximum penalty for individuals found guilty under the Bribery Act 2010?
10 years imprisonment and/or an unlimited fine.
Short Answer: What is required for a company to have a defense against charges of failing to prevent bribery?
The company must demonstrate that it had adequate procedures in place to prevent bribery.
What does the term ‘foreign public official’ refer to in the Bribery Act 2010?
An individual who holds a legislative, administrative, or judicial position of any kind in a country or territory outside the UK.
What is the primary purpose of the Bribery Act 2010?
To combat bribery and corruption in both public and private sectors.
True or False: The Bribery Act 2010 applies only to public officials.
False
List one principle of the Bribery Act 2010.
Proportionality
Fill in the blank: The Bribery Act 2010 emphasizes the importance of ________ in preventing bribery.
Transparency
What does the principle of ‘Integrity’ refer to in the context of the Bribery Act 2010?
Ensuring that organizations maintain ethical standards and conduct.
Which principle of the Bribery Act 2010 focuses on the need for clear policies and procedures?
Accountability
True or False: The principle of ‘Risk Assessment’ is not a requirement under the Bribery Act 2010.
False
What is meant by ‘Proportionality’ in the Bribery Act 2010?
The measures taken to prevent bribery should be proportionate to the risks faced.
List two principles of the Bribery Act 2010.
Risk Assessment and Due Diligence
What is the principle of ‘Due Diligence’ in the Bribery Act 2010?
Conducting thorough checks on third parties to mitigate bribery risks.
Multiple Choice: Which of the following is NOT a principle of the Bribery Act 2010? A) Transparency B) Accountability C) Ignorance
C) Ignorance
What principle emphasizes the need for effective training and communication within organizations?
Awareness
True or False: Organizations are encouraged to implement a zero-tolerance policy towards bribery under the Bribery Act 2010.
True
What is the significance of ‘Monitoring and Review’ in the Bribery Act 2010?
To ensure ongoing compliance and effectiveness of anti-bribery measures.
Fill in the blank: The Bribery Act 2010 requires organizations to have ________ measures in place.
Preventive
What does the principle of ‘Communication’ entail under the Bribery Act 2010?
Ensuring all employees are informed about anti-bribery policies.
List three principles of the Bribery Act 2010.
Integrity, Accountability, Risk Assessment
What role does the principle of ‘Enforcement’ play in the Bribery Act 2010?
To ensure that breaches of the Act are appropriately investigated and punished.
True or False: The Bribery Act 2010 encourages organizations to report suspected bribery.
True
What is the relationship between ‘Risk Assessment’ and the other principles of the Bribery Act 2010?
Risk Assessment informs the development of other principles by identifying potential bribery risks.
What does RICS stand for?
Royal Institution of Chartered Surveyors
True or False: The RICS Rules of Conduct apply only to members in the UK.
False
Fill in the blank: The RICS Rules of Conduct are designed to promote __________ and integrity.
professionalism
What is the primary purpose of the RICS Rules of Conduct?
To ensure that members act with integrity, competence, and professionalism.
Which of the following is NOT a principle of the RICS Rules of Conduct? A) Integrity B) Accountability C) Profitability
C) Profitability
What should RICS members do if they encounter unethical behavior?
Report it according to the procedures outlined in the RICS Rules of Conduct.
True or False: Compliance with the RICS Rules of Conduct is optional for members.
False
Name one of the core principles of the RICS Rules of Conduct.
Integrity, Transparency, Competence, or Professional behavior.
Short answer: How often must RICS members engage in continuing professional development?
Regularly, as determined by RICS guidelines.
What is the consequence of failing to comply with the RICS Rules of Conduct?
Disciplinary action, which may include suspension or expulsion from RICS.
Fill in the blank: RICS members must act in the __________ of their clients and the public.
best interest
True or False: RICS Rules of Conduct are static and do not change over time.
False
What does the RICS Rules of Conduct require regarding conflicts of interest?
Members must disclose any conflicts and manage them appropriately.
What is one expectation of RICS members regarding communication?
To communicate clearly, accurately, and honestly.
Multiple choice: Which of the following must RICS members maintain? A) Professional indemnity insurance B) Personal wealth C) Social media presence
A) Professional indemnity insurance
Short answer: Who is responsible for enforcing the RICS Rules of Conduct?
RICS regulatory bodies and committees.
True or False: RICS members are encouraged to engage in activities that promote the profession.
True
What is the role of the RICS in relation to its members?
To provide guidelines, support, and regulatory oversight.
Fill in the blank: RICS members must ensure their work is carried out with __________.
competence
What are example behaviours of acting with integrity?
Conflicts of interest and how they are managed.
Members and firms identify actual and potential conflicts of interest throughout a professional assignment.
What is the main purpose of the Birchard Review conducted by RICS?
To assess and improve the standards and practices within the surveying profession.
True or False: The Birchard Review focuses solely on financial aspects of the surveying profession.
False
Fill in the blank: The Birchard Review was commissioned by ______ to enhance the integrity of the surveying profession.
RICS
Which key area does the Birchard Review emphasize for improvement in the surveying profession?
Ethical standards and professional conduct.
Multiple Choice: What type of feedback did the Birchard Review seek from industry professionals?
C. Both A and B
What are the three main types of conflict?
Party conflict of interest
Own interest conflict
Confidential information conflict
Explain the anti money laundering regulation?
The Anti-Money Laundering (AML) regulations are laws and procedures designed to prevent criminals from disguising illegally obtained money as legitimate income
What are the key elements of AML?
- Customer Due Diligence (CDD)
- Know Your Customer (KYC)
- Suspicious Activity Reporting (SAR)
- Record Keeping
- Ongoing Monitoring
- AML Compliance Programs
Why was the key principle of the Anti-Money Laundering (AML) designed?
The key principles of Anti-Money Laundering (AML) regulations are designed to prevent criminals from disguising illegally obtained money as legitimate income.
What are the key principles of the Anti-Money Laundering Regulation AML
Key Principles of AML Regulations
1. Customer Due Diligence (CDD) & Know Your Customer (KYC)
Businesses must verify the identity of customers before transactions.
Higher-risk customers (e.g., politically exposed persons (PEPs)) require Enhanced Due Diligence (EDD).
Continuous monitoring of customer activity is required to detect suspicious behavior.
2. Risk-Based Approach (RBA)
Organizations must assess money laundering risks based on their business model, customers, and transactions.
Higher-risk sectors (e.g., real estate, financial services) require stricter controls.
3. Suspicious Activity Reporting (SAR)
If a transaction appears suspicious, businesses must submit a Suspicious Activity Report (SAR) to the relevant authorities (e.g., the UK’s National Crime Agency (NCA) or the US Financial Crimes Enforcement Network (FinCEN)).
4. Record Keeping
Firms must maintain records of:
Customer identification data
Transaction history
AML risk assessments
Records must be kept for at least five years for regulatory audits.
5. Internal Controls & Compliance Programs
Businesses must implement AML policies, training programs, and monitoring systems.
Designation of a Money Laundering Reporting Officer (MLRO) or compliance officer.
6. International Cooperation
AML regulations encourage cross-border information sharing between financial institutions and regulators.
Compliance with global standards like the FATF recommendations ensures consistency in AML enforcement.
7. Sanctions & Penalties
Non-compliance with AML regulations can lead to:
Heavy fines and legal penalties
Loss of licenses for businesses
Criminal charges for individuals involved in money laundering activities
Tell me how you apply the AML regulation to you business.
I have an AML policy in place and an appointed Anti money laundering office.
I carry out carry due diligence CDD as set out in regulation 27, I do this by carrying out identification checks and confirming the nature of the transaction.
I carry out a written risks assessment on each transaction to assess if it is high or low risk. Any high risk transactions are reported to the anti money laundering officer.
Please explain the purpose of having professional indemnity insurance
To ensure that if I face a claim that I am protected from financial loss that cannot be meet from my own resources.
To protect myself against the condo of its liability to pay damages to a third party for breach of professional duty.
What is the minimum limit of indemnity if a firm turnover is £100,000 or less?
£250,000
What is the minimum limit of indemnity is a firms turnover is between £100K - £200K
£500,000
What is the minimum limit of indemnity if a firms turnover is £200K +
1 million pounds
What is the maximum level limit of indemnity of uninsured excess up to £500,000
The greater of 2.5% of the sun insured or, £10,000
If it’s over £500,000 it’s 2.5% of the sim insured
What does fully retroactive mean in relation to PPI?
All former work that is carried out by the firm will be covered.
PPI policies work on a “claim made” basis
What are the six guiding principles of the bribery act 2010?
Proportioning procedures
Top level commitment
Risk assessment
due diligence
Training and commination
Monitoring and reviewing policies and procedures
Can you give me an example behaviour of rule 1?
Members and firms must be honest, act with integrity and comply with professional obligations.
Members and firms must be open transparent with client about their fees and services.
Can you give me an example behaviour from rule 2?
Members and firms must maintain their professional competence and ensure the services are provided by competent individuals who have the necessary expertise.
Members and firms must only undertake work that they have knowledge, stills and resources to carry out competently.
Please give me an example behaviour of rule 3.
Members and firms must provide good quality and diligent service.
Members and firms agrees with client the scope of the service to be provided and it’s limitations, and the timescales for the work.
Please give me an example behaviour for rule 4?
Members and firms must treat others with respect and encourage diversity and inclusion.
Members and firms must develop an inclusive culture in their workplaces, support equal access and opportunity for all, and address unconscious bias.
Can you give me an example behaviour of 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.
Members and firms must respond to complaints made against them promptly, openly and professionally.
