Ethics, Rules and Professional Conduct Flashcards
What are the 5 ethical standards?
ISTRR
- Act with Integrity
- Always provide a high standard of service
- Act in a way that promotes trust in the profession.
- Treat others with respect
- Take responsibility
What are the Rules of Conduct for members 2020?
ICE CS CPD SIC
9 rules
- Interpretation
- Communication
- Ethical Conduct
- Competence
- Service
- CPD
- Solvency
- Information to RICS
- Cooperation
What are the five principles of better regulation?
Proportionality Accountability Consistency Transparency Targeting
What are the rules of conduct for firms 2020?
ICP ECS CPD CCI ASA DIC
15 Rules
- Interpretation
- Communication
- Professional behaviour
- Competence
- Service
- CPD
- Complaints handling
- Handling clients money
- Indemnity insurance
- Advertising
- Solvency
- Arrangements for incapacity or death of sole practitioner
- Use of designations
- Information to RICS
- Cooperation
What are the six principles of the Bribery act 2010?
P TLC RA DD C MR
Proportionate procedures - organisation to have appropriate procedure to level of risk of bribery.
Top level commitment - top down implementation and culture
Risk assessment - assess nature of risk
Due diligence - based on risk of individual or work
Communication and training
Monitoring and review - procedure to be updated if required
What is Rule 1 of the 2021 RoC?
Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
What is rule 2 of the Roc 2021?
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
What is Rule 3 of the 2021 RoC?
Members and firms must provide good-quality and diligent service
What is rule 4 of the 2021 RoC?
Members and firms must treat others with respect and encourage diversity and inclusion.
What is rule 5 of the 2021 RoC?
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.
What is required of firms in relation to anti money laundering?
- Written AML risk assessment based on firms activities
- Implement systems policies, appropriate procedures and control to address this.
- Adopt internal controls
- Provide staff training
- Comply with due diligence (ED, CC, and SD) 6. Comply with requirements for PEPs
- Keep accurate records and procedures
- Report suspicions to MLO and NCA via a SAR
What is bribery?
The offer, promise, giving, demanding or acceptance of an advantage for improper activity.
What is corruption?
Mis use of power for gain
What is Berkeley policy on bribery and corruption?
Proportionate procedures Top level commitment Risk assessment Due diligence Communication Monitoring and review
What are the 3 main roles of the rics?
Maintain highest standards
Protect customers through regulation
Leading source of info and advice
What are the five principles of better regulation?
Proportionality Accountability Consistency Targeting Transparency
What are the RICS bye laws?
Rules on which the self regulation is based:
- Application and definition
- Membership and Registration
- Designations
- Contributions to Funds
- Conduct
- Governing council
- Subordinate boards committees and groups
- Procedure for general meetings
- Accounts and audit
- General
What disciplinary procedures can the rics impose?
- Action by HoR
- Disciplinary panel
- Appeal panel
What penalties can the HoR impose?
Fixed penalty notice
Consent order
Disciplinary panel
What are crimes under proceeds of crime act?
- Tipping off
- Assisting to hide, obtain or invest funds
- Failing to report knowledge or suspicion
What are penalties or Bribery act?
10 year imprisonment or u limited fine
What are RICS PI requirements?
Turnover £100k - £250k minimum
Turnover £200£ - £500k minimum
Turnover £200k + - £1m
Indemnity £500k - 2.5% or £10k
Indemnity £500k + - 2.5%
What is assigned risks pool?
For firms unable to obtain PI.
Maximum indemnity limit of £1m on aggregate and not each and every claim.
What is an annual return?
Six areas required: Type of business and staffing Statutory regulated activities Nature of clients CHP and records PI Whether firm holds client money
What is a complaint?
Expression of dissatisfaction.
What is the process of CHP?
1: written complaint received. Firm must acknowledge in 7 days and respond within 28
2. Complain reviewed by independent redress provider
3. Redress cover different for businesses and customers
What are CPD requirements?
APC: 48 hours a year
Members: 20 hours a year, 10 formal.
Ethics leaning to be done every 3 years
What are the three types or CoI?
Party conflict
Own interest conflict
Confidential information conflict
What are steps to closing a regulated firm?
Ensure clients aware Return monies held in account Inform insurers Procure run off cover for min of 6 years at250k Retain copy of files for min of 6 years
What are rules for registration?
Rules of registration for firms V7 with effect from 1 April 2020:
- Inform RICS using a Firms detail form
- Contact officer appoint
- Arrange PI
- Set up procedures for accounts and handling client money
- 25% of principles (if 50% must register)
- Register for valuer scheme if undertaking red book
- Obtain RICS approval for CHP
- Complaints log
- Complaints handling officer
- Obtain logo kit note designation
- Plans for succession
- Ensures CPD and training plans
Who is the responsible principle?
Primary responsibility for ensuring standards applied.
What are obligations of Client Money Handling?
Preserve the security of handling clients money
What is required when handling client money?
- Training for staff and records
- Non exclusive accounts opened by client - client and firm both have access
- Information to clients on name, bans and interest. Letter.
- Donating funds to charity - 3y
- Payment controls - 2 people and senior
- Unidentified funds
- Ensure all in form comply with PS
- Hold money in account where firm has exclusive control
- No other money in account
- Client and name of client in account name
- Ensure money is available immediately
What are compensation limits for RICS client money protection scheme?
£50k per claim within 12m of loss occurring and £10.3m for surveying services.
£50k per claim and £10.3m with further £10m (£20.3m) within 12 months of claim for residential agency firms.
What are implications of Hart v Large?
Large negligent in advice. Should have followed trail for damp and recommended further survey. Court noted liable for damages and losses - more than usual.
What has the RoC 2021 changed?
3 overarching standards: clarity, effectiveness, brevity
Combined RoC for members and firms.
- Honesty integrity and comply with obligations
- Maintain professional competence, services provided by competent individuals
- Good quality service, ToE
- Treat others with respect, promote inclusivity
- Act in public interest, act to prevent harm, maintain confidence in profession
What is the RICS maxim on compliance?
It is better to lead a firm to compliance than to force it. Sanctions are only considered in cases where non compliance has created a serious risk, there has been irresponsible behaviour or where a firm is uncooperative or acted dishonestly.
What is statutory compliance in setting up a new firm?
Financial services and markets act 2000
Financial services act 2012
Money Laundering, terrorist financing and transfer of funds (information on the payer) regulations 2017 - MLO
Health and safety act 1979
What is the RICS maxim on compliance?
It is better to lead a firm to compliance than to force it. Sanctions are only considered in cases where non compliance has created a serious risk, there has been irresponsible behaviour or where a firm is uncooperative or acted dishonestly.
What is statutory compliance in setting up a new firm?
Financial services and markets act 2000
Financial services act 2012
Money Laundering, terrorist financing and transfer of funds (information on the payer) regulations 2017 - MLO
Health and safety act 1979
What are compensation limits for RICS client money protection scheme?
£50k per claim within 12m of loss occurring and £10.3m for surveying services.
£50k per claim and £10.3m with further £10m (£20.3m) within 12 months of claim for residential agency firms.
What are implications of Hart v Large?
Large negligent in advice. Should have followed trail for damp and recommended further survey. Court noted liable for damages and losses - more than usual.
What is statutory compliance in setting up a new firm?
Financial services and markets act 2000
Financial services act 2012
Money Laundering, terrorist financing and transfer of funds (information on the payer) regulations 2017 - MLO
Health and safety act 1979
What is the RICS maxim on compliance?
It is better to lead a firm to compliance than to force it. Sanctions are only considered in cases where non compliance has created a serious risk, there has been irresponsible behaviour or where a firm is uncooperative or acted dishonestly.
What has the RoC 2021 changed?
3 overarching standards: clarity, effectiveness, brevity
Combined RoC for members and firms.
- Honesty integrity and comply with obligations
- Maintain professional competence, services provided by competent individuals
- Good quality service, ToE
- Treat others with respect, promote inclusivity
- Act in public interest, act to prevent harm, maintain confidence in profession
What are the six requirements of Client Money Handling?
Client money handling (1st Ed. 2019)
- Holding client money
- Providing information to clients
- Receipts of client money
- Payments from client accounts
- Accounting records and control
- Compliance
What are the six requirements on firms for client money handling?
- Holding client money
- Providing information to clients
- Receipts of client money
- Payments from client accounts
- Accounting records and control
- Compliance
