Ethics, Rules of Conduct and Professionalism

Question 1

What is the central purpose of the RICS?

Answer 1

1. To maintain the highest standards of education and training
2. To protect consumers through strict regulation of professional standards
3. To be the leading source of information and independent advice on land, property, construction and associated environmental issues

Question 2

What is the purpose of CPD

Answer 2

1. Ensures you remain up to date with relevant legislation and any changes in the industry
2. To remain up to date of market trends, patterns and innovations
3. Requirement of the RICS

Question 3

Give me an example of when you have acted with integrity in your work.

Answer 3

I acted with integrity when agreeing rent concessions with our tenants during the coronavirus outbreak in 2020. I demonstrated compassion and understanding towards their circumstances and found ways to support their business in the immediate and future term.

Question 4

Give me an example of when you have provided a high standard of service.

Answer 4

I provided a high level of service to the fund manager of the Cowdray Centre in Colchester, by consistently driving rental values across the estate and setting record rents for the town. I also worked alongside the project management team on the site’s refurbishment to future-proof the existing units.

Question 5

Give me an example of when you have acted in a way that promotes trust in the profession.

Answer 5

I have promoted trust by keeping information regarding private sales confidential. I also instruct the necessary anti-money laundering and know your client checks before instructing solicitors, to ensure that no conflicts of interest are present.

Question 6

Give me an example of when you have treated others with respect.

Answer 6

I treat my colleagues tenants and other parties with courtesy, politeness and consideration regardless of factors such as sexual orientation, social background, race, ethnicity or age.

Question 7

Give me an example of when you have taken responsibility.

Answer 7

I took responsibility for miscommunicating the estimated rental value of an industrial unit. I explained to the valuers that the ERV should be lower than I had previously stated based on the advice given to me by the rent review surveyor, and I communicated to the client the reason behind the subsequent fall in value.

Question 8

What would you do if you were asked to do something unethical?

Answer 8

I would decline the request and report it via the whistleblowing policy if made internally. If made by an external party I would notify my line manager, to ensure that they were made aware ahead of any future projects with the firm or its employees.

Question 9

What has the RICS produced to help surveyors make ethical decisions?

Answer 9

The RICS has created the Ethics Decision Tree, which members can refer to if they are asked to do something they are unsure about.

Question 10

When was the RICS formed?

Answer 10

1868

Question 11

Who is the current CEO of the RICS?

Answer 11

Richard Collins

Question 12

How would you approach a conflict of interest?

Answer 12

Follow the guidance set out in the RICS Global Professional Statement on Conflicts of Interest, 2017:

1. Conflict avoidance - decide whether the conflict is manageable and whether proceeding is in the best interest of all parties.
2. Written advice to both parties - disclose the nature of the conflict, explain how you will manage it and request written confirmation of informed consent.
3. Conflict management - set up an information in accordance with provisions agreed with the clients.

Question 13

What is money laundering?

Answer 13

Money laundering is legitimising the proceeds of crime.

Question 14

What should be included in Terms of Engagement?

Answer 14

They set out the proposed fee basis, payment of expenses and state that a copy of of the firm’s complaints handling procedure will be available upon request.

Question 15

What is the structure of the RICS?

Answer 15

RICS’ governance structure combines governance bodies, as well as the Executive Team and Presidential Team.

Question 16

What are the THREE benefits of regulation for firms?

Answer 16

1. Confidence - for client as regulated firms are monitored by RICS regulation
2. Professionalism - firms have to provide clear, impartial and expert advice
3. Security - firms have to have recognised CHP, access to ADR and PII cover

Question 17

What would you do if you had a personal conflict of interest and how would you manage this?

Answer 17

I would ensure that all parties were aware of the conflict and I would refer the instruction internally with the appropriate information barriers in place.

Question 18

What would you have to do if you were required to hold clients’ money?

Answer 18

RICS has issued a Professional Statement on Client Money Handling, 2019:
• Client account must be kept separate and clearly identifiable
• The word ‘client’ is on the bank account and cheque book
• A client must be able to have their monies on demand
• Payment of interest is agreed with a client and accounts must be kept in credit
• Regular bank reconciliation
• Accurate records are kept with a running balance available
• Annual audit and reporting obligations by certified accountant employed by RICS
• If cash receipts are used to settle transactions, make sure records show all cash transactions
• Signatories must be agreed with authorised staff and two signatories should be required
• A discrete account is for a single named client account only
• RICS Regulatory Review Visits can be undertaken by RICS usually on a routine 3 yearly basis
• Firms handling client money need to display their procedure on their website

Question 19

If you thought it was appropriate to accept a gift from a client, how would you proceed?

Answer 19

I would record it on my firm’s Gifts and Hospitality Register.

Question 20

What is the law associated with gift giving and receiving?

Answer 20

Bribery Act 2010 and Proceeds of Crime Act 2002.

Question 21

What are the SIX principles of the Bribery Act 2010?

Answer 21

1. Proportionality
2. Top level commitment
3. Risk assessment
4. Due diligence
5. Communication
6. Monitoring and review

Question 22

What are the FOUR offences under the Bribery Act 2010?

Answer 22

1. Bribing
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent bribery

Question 23

How would you define a bribe?

Answer 23

A bribe can be the giving, offering, promising or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust.

Question 24

What would you do if you were suspicious of a client?

Answer 24

I would not make them aware of my suspicion as that could be considered ‘tipping off’, which is an offence. Instead, I would report and escalate internally to a compliance manager.

Question 25

What are the FOUR levels of membership for the RICS?

Answer 25

1. FRICS
2. MRICS
3. AssocRICS
4. Trainee/Student

Question 26

What is an RICS Practice Statement?

Answer 26

A document that provides members with mandatory requirements e.g. Surveyors Acting as Expert Witnesses, 2014.

Question 27

What is an RICS Guidance Note?

Answer 27

A document provided by RICS to promote good practice. RICS strongly recommend that you have regard to the contents of any relevant guidance note e.g. Comparable Evidence in Real Estate Valuation, 2019

Question 28

What is a conflict of interest?

Answer 28

A conflict arises when a member or firm’s independence and impartiality is threatened due to the existence of a conflict between two parties.

Question 29

How long must a firm maintain records for under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, 2017?

Answer 29

5 years

Question 30

What should you do if a third parties requests access to your files?

Answer 30

You must get the client’s approval first unless you are subject to a statutory duty overriding the client’s confidentiality rights e.g. the police or HMRC investigation.