Ethics, Rules of Conduct and professionalism

Question 1

What are the RICS Global Professional and Ethical Standards?

Answer 1

1. Act with integrity
2. Always provide a high standard of services
3. Act in a way that promotes trust in the profession
4. Treat others with respect
5. Take a responsibility

Question 2

What does it mean to Act with integrity?

Answer 2

* honest and straightforward in all you do
* being trustworthy
* being open and transparent in the way your work

What would an independent person think of my actions?

Question 3

What does it mean to Always provide a high standard of service

Answer 3

This means always ensuring that your client, or others to whom you have a professional responsibility, receive the best possible advice, support or performance of the terms of engagement you have agreed.
* be clear about services you are providing, act within you scope of competences

Question 4

What does it mean to Act in a way that promotes trust in the profession

Answer 4

This means acting in a manner, both in your professional life and private life, to promote you, your firm or organisation you work for and the profession in a professional and positive way.
* Do my actions promote the profession in the best light possible?

Question 5

What does it mean to Treat others with respect?

Answer 5

This means treating people with courtesy, politeness, and consideration, no matter their race, religion, size, age, country of origin, gender, sexual orientation or disability. It also means being aware of cultural sensitivities and business practices.
* How would I feel if somebody treated me this way?

Question 6

What does it mean to take responsibility?

Answer 6

This means being accountable for all your actions – don’t blame others if things go wrong, and if you suspect something isn’t right be prepared to do something.

Question 7

Give me an example when you have acted with integrity?

Answer 7

I acted with integrity when the during the site visit I rejected the Contractor’s QS invitation for lunch. Although it was most likely just a friendly invitation it could have been perceived or suggested as an improper obligation as I was due to assess their AfP

Question 8

Give me an example when you provide a high standard of service

Answer 8

On Project Winchester, I was asked by the Project Director to carry out some ad hoc analysis of market testing to assist our procurement team. I politely suggested to ask for additional resources outside of our project team as the current workload would not allowed me to complete my duties.

Question 9

Give me an example when you Acted in a way that promotes trust in the profession

Answer 9

I always keep my promises, specifically regarding the deadline. If I can not meet the deadline, I always communicate any potential issues with advance.

Question 10

Give me an example when you treat others with respect.

Answer 10

When conducting difficult negotiations in order to agree the cost of the change with the Contractor, I always treat all people with politeness and listen to their point of view.

Question 11

Give me an example when you have taken responsibility?

Answer 11

On Project Winchester, when an issue arose I always tried to find a solution not a person to blame. When I made a calculation error in my assessment of CE - I have communicated this back to the Contractor regardless if they noticed it.

Question 12

What are the rules of Conduct for Firm?

Answer 12

Part I – General
1. Interpretation – ‘Providing a surveying service to the public’, ‘Contact Officer’, ‘Firm’
2. Communication –
Part II – Conduct of Business
3. Professional behaviour - A Firm shall at all times act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with its professional obligations.
4. Competence - A Firm shall carry out its professional work with due skill, care and diligence and with proper regard for the technical standards expected of it.
5. Service - A Firm shall carry out its professional work with expedition and with proper regard for standards of service and customer care expected of it.
6. Training and Continuing Professional Development (CPD) - A Firm shall have in place the necessary procedures to ensure that all its staff are properly trained and competent to do their work.
7. Complaints handling - A Firm shall operate a complaints-handling procedure and maintain a complaints log. The complaints-handling procedure must include an Alternative Dispute Resolution (ADR) mechanism that is approved by the Standards and Regulation Board.
8. Clients’ money - A Firm shall preserve the security of clients’ money entrusted to its care in the course of its practice or business.
9. Indemnity - A firm shall ensure that all previous and current professional work is covered by adequate and appropriate indemnity cover which meets standards approved by the Standards and Regulation Board.
Part III – Firm Administration
10. Advertising - A Firm shall promote its professional services only in a truthful and responsible manner.
11. Solvency - A Firm shall ensure that its finances are managed appropriately.
12. Arrangements to cover the incapacity or death of a sole practitioner - A Firm which has a sole principal (i.e. a sole practitioner or a sole director in a corporate practice) shall have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absences.
13. Use of designations - A Firm registered for regulation must display on its business literature, in accordance with the Standards and Regulation Board’s published policy on designations, a designation to denote that it is regulated by RICS.
14. Information to RICS - A Firm shall submit in a timely manner such information about its activities, and in such form, as the Standards and Regulation Board may reasonably require.
15. Cooperation - A Firm shall cooperate fully with RICS staff and any person appointed by the Standards and Regulation Board.

Question 13

What are the requirements that Mace is obligated as RICS firm

Answer 13

Mace is obligated to comply with RICS rules of conduct for firms.

Question 14

What are requirement to register to be regulated by RICS firm?

Answer 14

1. Offer professional services in surveying disciplines to professional, corporate, institutional and other clients who rely on such services.
2. Have at least 25% principals (a senior manager, partner or owner), who are qualified RICS professionals (MRICS, FRICS, AssocRICS).
3. Agree to observe and comply with RICS Rules of Conduct for Firms, including working to RICS standards.

Question 15

How do you comply with Mace policies?

Answer 15

I comply with the following policies:
* Drugs and Alcohol Policy - I never attend work while unfit through alcohol.
* Antibribery and corruption policy - I always ensure that any gifts are in line with mace policy
* Data protection policy - I do not share any personal data with third parties.

Question 16

What is Mace Code of Ethics and how do you comply?

Answer 16

Mace Code of Ethics sets out the standards of behavior expected of all Mace employees in everything we do. Include:
* SPEAK UP – DUTY TO REPORT CONCERNS AND SUSPICIONS
* COMPLIANCE WITH ALL LAWS IN THE JURISDICTIONS IN WHICH WE OPERATE - zero tolerance approach to criminal offence
* zero-tolerance approach to bribery in any way in connection with its business, anywhere in the world, both with public officials and those in the private sector.
* conflict of interest - All business decisions should be based on what is ethical and in the best interests of Mace and not on the basis of personal considerations, relationships or business interests.
* INCLUSIVE WORKPLACE BEHAVIOUR: EQUALITY,
DIVERSITY, BULLYING & HARASSMENT.

I comply but working in line with these policies and in addition I am required to complete an ethical assessment every 6 month and notify any issues.

Question 17

What is a conflict of interest?

Answer 17

A conflict of interest is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another.

Question 18

What types of conflict of interest are you aware of?

Answer 18

A. Party Conflict - a situation in which the duty of an RICS member (working independently or within a non-regulated firm or within a regulated firm) or a regulated firm to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment (a ‘Party Conflict’)
B. Own Interest Conflict - a situation in which the duty of an RICS member (working independently or within a non-regulated firm or within a regulated firm) or a regulated firm to act in the interests of a client in a professional assignment conflicts with the interests of that same RICS member/ firm (or in the case of a regulated firm, the interests of any of the individuals within that regulated firm who are involved directly or indirectly in that or any related professional assignment) (an ‘Own Interest Conflict’)
C. Confidential Information Conflict - a conflict between the duty of an RICS member (working independently or within a non-regulated firm or within a regulated firm) under paragraph 2.2 to provide material information to one client, and the duty of that RICS member (working independently or within a non-regulated firm) or of a regulated firm under paragraph 2.1 to another client to keep that same information confidential (a ‘Confidential Information Conflict’).

Question 19

What is information barrier?

Answer 19

‘Information Barrier’ means: the physical and/or electronic separation of individuals (or groups of individuals) within the same firm that prevents confidential information passing between them.

Question 20

What is informed consent?

Answer 20

‘Informed Consent’ means: consent given willingly by a party who may be affected by a Conflict of Interest, that party having demonstrated to the RICS member working independently or within a non-regulated firm or regulated firm concerned that the party understands:

(a) that there is a Conflict of Interest or a significant risk of a Conflict of Interest and
(b) the facts known by the RICS member (working independently or within a non-regulated firm or within a regulated firm) or the regulated firm that are material to the Conflict of Interest and
(c) what that Conflict of Interest is or may be and
(d) that a Conflict of Interest may affect the ability of the RICS member (working independently or within a nonregulated firm or within a regulated firm) or a regulated firm to advise or act fully in the interests of a client.

Question 21

Give me an example when you experience conflict of interest?

Answer 21

I have not been directly involve in a conflict of interest, but whilst working on GMS during the procurement of the main contract - Mace interiors was listed as on the framework. As this would cause the potential conflict of interest with Mace consultancy PM/CM, Mace interiors decided not to bid for the work.

Question 22

What is Mace Quality Management Procedure?

Answer 22

sets out the key procedures in order to ensure the quality of services we providing. Including:
* requirement for peer reviews
* issuing QMS forms
* record keeping
* availability for an internal audit
* Client’s focus - service excellence strategy

Question 23

What is RICS CPD Policy for member?

Answer 23

CPD requirements for members:
*All members must undertake a minimum of 20 hours CPD each calendar year (January to December).
* Of the 20 hours at least 10 hours must be formal CPD.
* All members must maintain a relevant and current understanding of our professional and ethical standards during a rolling three-year period. Any learning undertaken in order to meet this requirement may count as formal CPD.
* Members must record their CPD activity online by 31 January.

Question 24

What is RICS CPD policy for students?

Answer 24

All APC candidates are required to complete a minimum of 48 hours’ CPD, every 12 months. This will be calculated on a rolling period from the date you submit for final assessment. You should check that your CPD activities are within the required period, working back from the date you submit.
You can enter activities into ARC from the date of your enrolment (Wednesday, October 31, 2018).

Question 25

How did you deal with Breach of Confidentiality on Project Winchester?

Answer 25

I managed a potential breach of confidentiality whilst working on Project Winchester. I was asked to issue a document for review to a colleague who to my knowledge was not security cleared. I advised the Project Director that this would not be in line with the client’s requirements and recommended a security cleared person to carry out the peer review.

Question 26

Can you please explain what are the liquidated dames and why this was outside of your competencies?

Answer 26

Liquidated damages are pre-determined damages set at the time that a contract is entered into, based on a calculation of the actual loss the client is likely to incur if the contractor fails to meet the completion date.

They might include:
* Loss of rent
* Loss of income
* Fees
* Storage costs.
* Rental costs.
* Fees and fines imposed by third parties.
* Finance costs.

It was outside of my competencies as these calculations were excluded from our scope of services as these are client’s internal figures and should be calculated based on actual loss that client is likely to incur

Question 27

What are unliquidated damages?

Answer 27

Unliquidated damages are damages that are payable for a breach of contract, the exact amount of which has not been pre-agreed. This is in contrast with liquidated damages which are a pre-agreed when the contract is entered into.

Construction contracts generally include a provision for the contractor to pay liquidated damages (or liquidated and ascertained damages, sometimes referred to as LADs) to the client in the event of a breach of contract - typically failing to complete the construction works by the completion date set out in the contract

Question 28

What are the rules of conduct for memeber?

Answer 28

Part 1 General
1. Interpretation - In these Rules, unless the context otherwise requires, ‘Member’ means
a Chartered Member, non-Chartered Member, Honorary Member or a
member of the attached classes.
2. Communication – method of communications (email, by post, in person etc.)

Part 2 Personal and Professional Standards
3. Ethical behaviours - Members shall at all times act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with their professional obligations.
4. Competence - Members shall carry out their professional work with due skill, care and
diligence and with proper regard for the technical standards expected of them.
5. Service - Members shall carry out their professional work in a timely manner and
with proper regard for standards of service and customer care expected of them.
6. Continuing Professional Development (CPD) - Members shall comply with RICS’ requirements in respect of continuing professional development.
7. Solvency - Members shall ensure that their personal and professional finances are
managed appropriately.
8. Information to RICS - Members shall submit in a timely manner such information, and in such form, as the Standards and Regulation Board may reasonably require.
9. Cooperation - Members shall cooperate fully with RICS staff and any person appointed
by the Standards and Regulation Board.

Question 29

What are considerations inlcuded in RICS Decision tree?

Answer 29

1. Do you have sufficient facts on the issues?
2. It is legal?
3. Is it in line with RICS global professional and ethical standards?
4. Have you consulted with appropriate people to make an informed decision?
5. Do you have a clear resoning in reaching your decision?
6. Would you be content for your actions to be made public – in the newspapers or on the internet?

Question 30

What is CPD?

Answer 30

Continuing professional development (CPD) is a commitment by RICS members to continually update their skills and knowledge in order to remain professionally competent.

Question 31

What happens if a member does not comply with the rule to complete 20 hours of CPD and/or does not record this online by the deadline?

Answer 31

All RICS members agree to comply with the Rules of Conduct of the Institution as a requirement of membership and as part of their professional obligations. This means members must complete their CPD by 31 December each year and log it online by 31 January the following year. Failure to comply with the rules on CPD will be treated in the same way as any other rule breach under RICS Disciplinary, Registration and Appeal Panel Rules. The range of sanctions includes reprimand, fine, conditions on registration, suspension, publication of disciplinary findings and expulsion from membership.

Question 32

What happens if a member fails to complete and record their CPD in a particular year?

Answer 32

The first year that a member fails to record sufficient CPD to meet the requirements of the CPD rule, they will have committed a breach and receive a Fixed Penalty caution in accordance with Rule 4(c) of the Disciplinary, Registration and Appeal Panel Rules 2009. 7

This will be sent via post or email to the preferred address or email address listed on the member’s RICS profile. It is important that all members keep these details up to date on their RICS profile.

This first CPD breach and the issue of a Fixed Penalty caution will remain on the member’s disciplinary record for 10 years.

Should further breaches of the CPD requirements occur, the member will face further disciplinary action as follows:

• Second CPD breach (within 10 years of receipt of caution):

o Fixed Penalty caution and fine (of £150 or local equivalent).

o RICS will also publish on the RICS website a list of members who are non-compliant for a second time.

o Non-payment of the fixed penalty fine within 28 days of notification will lead to the fine being increased (to £250 or local equivalent).

o If the fine remains unpaid, debt recovery action will be taken, and the member may be referred to a Disciplinary Panel.

• Third CPD breach (within 10 years of receipt of caution): o Potential referral to Disciplinary Panel which may result in expulsion from membership and likelihood of costs being awarded against the member.

Question 33

What does the Royal Charter mean to you?

Answer 33

A Royal Charter is an instrument of incorporation, granted by The Queen, which confers independent legal personality on an organisation and defines its objectives, constitution and powers to govern its own affairs.

Examples: RICS, University of Cambridge, RIBA,

Question 34

What are the principles of the Bribery Act 2010? How does this
affect your day to day activities?

Answer 34

The Bribery Act 2010 is an Act of the Parliament of the United Kingdom that covers the criminal law relating to bribery.

The Bribery Act creates four categories of offences:

• offering, promising or giving a bribe to another person;
• requesting, agreeing to receive or accepting a bribe from another person;
• bribing a foreign public official; and
• the corporate offence of failing to prevent bribery

As a part of Mace anti-bribery and corruption policies, Mace takes zero tolerance approach to bribery and corruption. Consequently, I as a Mace employee do not offer, receive or participate or any payments for benefits of myself or others. I am raising red flag if I have any concerns and I am following policies and procedures to seek approval for offering or receiving gifts or hospitality (log in Gifts and Hospitality register.

Question 35

Once qualified, and if you were to set up your own firm regulated
by the RICS, what are your obligations to achieve this?

Answer 35

1. Offer professional services in surveying disciplines to professional, corporate, institutional and other clients who rely on such services.
2. Have at least 25% principals (a senior manager, partner or owner), who are qualified RICS professionals (MRICS, FRICS, AssocRICS).
3. Agree to observe and comply with RICS Rules of Conduct for Firms, including working to RICS standards.

In addition, register the company with Company House, set up insurances, corporation tax etc.

Question 36

Who does Professional Indemnity protect?

Answer 36

• the firm to ensure that its protected from financial claims/loss
• insured member or firm against their liability to pay damages to the third party for breaches of professional duty
• the Client - ensure that the Client do not suffer a financial loss which the firm cannot meet.

Question 37

How do you ascertain the level of PI for your new firm?

Answer 37

As a minimum I would ensure that policy wording is written on a full civil liability basis; and the minimum level of indemnity based on the estimated turnover (for a new firm).

Minimum limits of indemnity:

turnover £100,000 or less - minimum limit: £250,000

turnover between £100,001 and £200,00 - minimum limit £500,000

turnover £200,001 and above - minimum £1,000,000.

Question 38

What happens to PI once you stop trading?

Answer 38

To ensure that firms, members and their clients are not exposed to financial detriment in the period following a firm ceasing to trade, RICS requires firms to obtain fully retroactive run-off cover.

Minimum policy requirements:

• for consumer claims - the requirements is for limit of £1M in all for period of six years from the expiry date of the policy in force
• For non- consumer claims - The requirement is for firms to have adequate and appropriate run-off, but RICS would expect run-off to be a maintained for a minimum period of six years from the cessation of the practice. Run-off for commercial activity may be arranged and paid for on an annual basis.

Question 39

For your example related to issuing valuation on the Project
Winchester, which of the ethical standards apply?

Answer 39

All of them:

1. Act with integrity - I was honest and not taking advantage of the contractor when they made mistake
2. Always provide a high standard of service - before issuing Payment Recommendation I follow the QMS process to ensure that documents are free from errors.
3. Act in a way that promotes trust in the profession - I act with professionalism and fulfill my obligations (recommendation issue on time and all information required were checked).
4. Treat others with respect - When explaining my assessment to the Contract I treated them with respect and politeness.
5. Take responsibility- if I made any mistakes or error I owned it

Question 40

How do you act with integrity on the negotiation of agreeing a
Final Account – you note this in your documents.

Answer 40

When agreeing on the final account, I ensured that I reviewed all information provided by the Contractor, when a calculation was incorrect or wasn’t fully evidence (under NEC3 Opt C Contract) I was straightforward and honest that payment for these part can not be recommended. In addition, I acted in the interest of my client and ensure that they have not overpaid and all information required where correct.

Question 41

What is your company’s policy on gifts and hospitality?

Answer 41

At Mace gift and hospitality policy is part of the antibribery policy and procedure and it is set in our Code of ethics. Key principles:

• Do not offer, accept or be involve in offering or accepting payment or other favor gifts or hospitality if this involve someone misusing their position or if someone would perceive it this way.
• seek approval for offering or receiving a gift or hospitality and submit relevant details to be registered in our Gifts & Hospitality register
• DO raise any bribery ‘red flags’ that you identify with your line manager, HR Business Partner or member of the Legal Team.
• DO NOT make any facilitation payments in connection with our business.
• Any single gift or hospitality of a value (or estimated value when the actual value is unknown and cannot be ascertained) exceeding £200 to be offered by you or that you are offered must be approved in advance in writing by your line manager / the Legal Team and recorded in our Gifts & Hospitality register (whether or not approval is obtained or refused).

Question 42

What does RICS guidance say about gifts and hospitality?

Answer 42

Generally, the RICS register Firm or member must not offer or accept, directly or indirectly, anything that could constitute a bribe.

In addition a register should be implement by a RICS regulated firm to ensure transparency of gifts and hospitality.

Question 43

If you are a sole trader, what do you need to have in place should
you be unable to perform your duties, say due to ill health, death
or some other way you are incapacitated?

Answer 43

As per Rules of Conduct for firms A Firm which has a sole principal (i.e. a sole practitioner or a sole director in a corporate practice) shall have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absences.

This means having in place insurances:

Alongside PII you’ll also need:

• professional indemnity insurance
• public liability
• buildings insurance
• employer liability cover
• directors and officers cover
• contents insurance
• business interruption insurance.

ideally with critical illness, salary protection policy

Question 44

Can you explain how your example of identifying potential breach
of confidentiality on the Project Winchester is acting in accordance with the ethical standards?

Answer 44

1. I act with integrity by being honest about Client’s requirements with regards to security
2. I provided a high standard of services by ensuring that we are working in line with Client’s requirements.
3. I promoted trust in profession by doing a right thing
4. I took responsivity for my actions as I knew that the person was not security cleared.

Question 45

Explain your comments on the GMH project where you could not
advise on the LAD’s for this project and outwith your
competence?

Answer 45

Calculation liquidated damages was outside of our scope of services as these are client’s specific cost and I would not be able to fully assessed them as they may include some direct or indirect cost within the Client’s organization that I was not aware about.

Question 46

What are the rules for using the RICS logo?

Answer 46

1. Personal use of the logo RICS Members have the right to use the RICS logo appropriately and professionally on personal stationery (e.g. business cards), whether a partner, director or employee. This applies to all qualified members – Fellows (FRICS), Professional Members (MRICS) and Associate Members (AssocRICS), no matter what type of organisation they work for or the surveying activities they carry out.
2. Use of the logo by firms The logo can only be used by a firm which is registered for regulation with the RICS – a Registered Firm. It must be used appropriately and professionally. The RICS logo is a registered trademark and should not be used or altered without permission.

see Rules for the use of the RICS logo and designations by firms

Question 47

Can you give me an example of a time when you have acted in
accordance with the rules for members?

Answer 47

• By issuing cost report or payment recommendation on time I acted in accordance with rule number 5: Service as I worked in a timely manner and with proper customer care.
• I ensure that my personal finance are managed appropriately (Rule nr 7 - Solvency)
• I act with integrity (honest) in my day to day work (Rule number 3 Ethical behavior)

Question 48

How do you deal with handling client’s money if you were to set
up your own RICS regulated firm?

Answer 48

I would work in line with RICS professional standard and guidance UK on ‘Client’s money handling’:

• hold all client money in client money account over which the RICS-regulated firm has exclusive control;
• ensure that a client money account does not contain any sums other than the whole or any part of client money paid into it.not
• hold office money in a client money account unless it is a receipt of mixed monies where the office money is awaiting transfer
• ensure that all client money accounts include the word ‘client’ (written in full) and the name of the firm in the title of the account, and that discrete client money accounts include an identifier (e.g. the client or property name) in the title of the account to easily distinguish it from other accounts of the RICS-regulated firm
• ensure that money held in a client account is immediately available even at the sacrifice of interest
• ensure that where the client has given instructions to hold monies in a high interest account with penalties for instant access, penalties are only paid out of the client account if the client has provided specific informed consent and this will not result in an overdrawn balance – otherwise the bank must be instructed that penalties are to be applied to the office account
• confirm the bank operating conditions in writing with the bank that holds the client money account.
• ensure that where a client requests that money is held in an account to which it and the firm has access, this is a bank account set up by the client, not a firm bank account.

Question 49

What is a ‘Chinese Wall’? (now informed consent/ information barrier)?

Answer 49

An information barrier within an organisation used in order to prevent exchanges or communication that could lead to a conflict of interest

Question 50

What is a bribe?

Answer 50

The exchange of something of value in return for someone doing or agreeing to do something improper in a business context
Bribery also covers the offer or request for a bribe, even if it is not completed

Question 51

What legislation exists in relation to bribery in the UK?

Answer 51

Bribery Act 2010

Question 52

What procedures should RICS corporate members follow in relation to preventing bribery?

Answer 52

RICS corporate members should follow the 6 principles in preventing bribery practices:

• Proportionate procedures - procedures should be proportionate to the bribery risks the company faces
• Top level commitment - zero tolerance to bribery
• Risk assessment - the company should periodically assess the internal and external risks of bribery
• Due diligence - systematically investigate employees and business partners (the level of which should be informed by the risk assessment)
• Communication (including training) - communicate policies, operate confidential whistle-blowing service, provide training
• Monitor and review - periodically review procedures and make improvements where necessary

Question 53

What are facilitation payments and what is their legal status?

Answer 53

• Also known as ‘grease’ or ‘speed’ payments
• Unofficial payments made to public officials in order to secure or expedite the performance of a routine government action
• Illegal under the Bribery Act 2010

Question 54

What considerations should RICS members have in relation to offering or accepting gifts and hospitality?

Answer 54

Only offer or accept gifts and hospitality that are customary, proportionate and reasonable in terms of value and frequency
Never offer or accept any gift or hospitality if it may improperly influence your decisions/judgement or give the appearance of doing so (e.g. consider the timing of the gift)

Only offer or accept gifts and hospitality that you would be happy for others to know about
Follow the policies and procedures of your employer in relation to gifts, hospitality and promotional expenditure - e.g. record in company’s gifts and hospitality register
Report any concerns about bribery to your employer or to RICS Regulation

Question 55

What is the purpose of the current UK legislation on bribery?

Answer 55

Criminalises bribery in the UK, making it a criminal offence to directly or indirectly:

Offer, promise or give a bribe
Request, agree to receive or accept a bribe

Question 56

Explain the term ‘claims made basis’.

Answer 56

The policy at the time the claim is made will respond, not the policy in place at the time of the negligence.
Insurer will only pay out if the policy was within the period of the insurance, not after, unless there is run off cover

Question 57

What must a RICS regulated firm do in relation to bribery and corruption?

Answer 57

-Not offer or accept, directly or indirectly, anything that could constitute a bribe -Have plans in place to comply with applicable laws governing bribery and corruption and ensure that these are followed -Report any activity they are aware of that breaches anti-bribery and corruptions laws to the relevant authorities (as specified in local legislation) where there is no legislation the activity should be recorded and if possible reported to a senior colleague. -act with due diligence to perform periodic written evaluations of the risks that face the firm and that may lead to the facilitation of bribery and corruption; in determining the appropriate level of due diligence, the firm may consider the type of business activities they engage in and the environment in which they operate. -Retain information detailing how the firm has met the requirements of this professional statement

Question 58

What must a RICS regulated member do in relation to bribery and corruption?

Answer 58

-not offer or accept, directly or indirectly anything that could constitute a bribe -ensure that they have adequate knowledge of bribery and corruption to be able to comply with the requirements of this professional statement -Report any activity they are aware of that breaches applicable anti-bribery and corruption laws to the relevant authorities; where there is no legislation the activity should be recorded and, if possible, reported to a senior manager.

Question 59

What must a RICS regulated member do in relation to money laundering and terrorist financing?

Answer 59

• not facilitate or be complicit in money laundering or terrorist financing activities -report any suspicions of money laundering or terrorist financing activities to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager.

Question 60

What procedures should a RICS regulated firm have in place to prevent bribery?

Answer 60

-Have a written policy covering anti bribery and corruption -appropriate governance and systems, proportionate to the type of work the firm does -Encourage transparency through implementing a register (for gifts, hospitality, travel, political contributions, donations, conflict of interest) - Provide clear guidance for staff so they understand their role in preventing bribery and are aware what: facilitation payments, bribes, price fixing to create monopoly or cartel, failure to declare conflict of interest -appoint contactable person in business to discuss compliance and ethics matters - Publish a code of behavior and provide this to staff -Carry out due diligence checks on suppliers to ensure they act appropriately.

Question 61

What are the signs of money laundering?

Answer 61

• Client asks to make payment in huge amount in cash (above £15,000) -High risk countries involved -Client has unusually high levels of knowledge about money laundering - Business entity not on internet or uses unusual domain eg. hotmail or yahoo. -Client secret about true identity -No obvious purpose for a transaction. - Large financial transactions by recently created companies.

Question 62

What is good complaint handling?

Answer 62

-Ensure all staff members have access to and an understanding of a firm’s CHP -Carefully record all complaints at the earliest opportunity -Establish an adhere to a review process to ensure effective management

Question 63

What has the RICS published in regards to bribery and money laundering?

Answer 63

In 2019 the RICS published the professional statement: countering money laundering, bribery and terrorist financing.

Question 64

What roles and responsibilities should firms have in place in order to counter bribery and money laundering practices?

Answer 64

A person who is responsible for ensuring anti-money laundering policies are in place and are complied with and any key risks

Question 65

Why appoint a compliance and ethics champion?

Answer 65

Appointing a compliance and ethics champion is potentially a very effective way to help embed systems that detect an counter money laundering and terrorist financing, bribery and corruption.

Question 66

What is customer due diligence (CDD)?

Answer 66

This involves collecting standard evidence to verify the identity of different types of clients and carry out additional checks if necessary. An assessment of the likelihood that a client is laundering money or financing terrorists must be made by the employee.

Question 67

What if a friend asked for advice?

Answer 67

• I dont have my own PI insurance - I can provide advice, just make it clear that opinions are my own and not my company’s. The advice would be informal. - I can provide my opinion and refer them to seek more advice.

Question 68

A junior surveyor working in your team incorrectly over certifies on an interim valuation – what do you do?

Answer 68

The first thing to do is to check the facts and make sure an over certification has actually taken place. Assuming it has, then you need to actually check whether the valuation has been processed of not. If it has not then withdraw it and re-certify. If the valuation has been paid, then you need to remember it is an interim certification and assuming it is not the final certificate then financially matters can be rectified next month. However you will still need to talk to the client, explain the situation, and also ensure that sufficient preventative measures are put in place to stop this happening again in the future. The client may be unhappy, but you must be able to demonstrate that you have recognised the problem and have dealt with it. You will also need to talk to the main contractor to explain the situation so that he understands what the course of action is at the next interim valuation. The key issue to remember with this subject is read and be familiar with the RICS rules and regulations and codes of conduct

Question 69

On the theme of Professional Indemnity Insurance, are you familiar with the term limit of liability and where it would be used?

Answer 69

Limit of liability is generally used to cap or place a limit on the level of exposure a business signs up to in a formal contract. For example often in a contract to provide Quantity Surveying services, there is a requirement to provide Professional Indemnity Insurance at a specified level. This level may be £5million. However the wording of the clause is important here. If you are being asked to provide £5million in aggregate, then effectively you are providing £5million PII cover – once this figure is exceeded in terms of claims against a company’s policy then nothing further is paid. However, if you are being asked to provide £5million each and every claim, then effectively you are providing £5million PII cover for each claim made. As you have not idea how many individual claims could be made then there is an argument to say you are providing unlimited PII cover. As a result of this companies often try to negotiate the inclusion of a limit of liability clause into their contracts. This would effectively limit their exposure to whatever the limit of liability was set at. Clients often don’t like this concept, however it does make business sense to try to limit exposure to something that is reasonable for both parties and manageable by both parties.