Ethics, Rules of conduct and professionalism Level One Flashcards

Question

What is a Royal Charter?

Answer 1

Set core expectations for professional practice by members and firms.

Answer 2

All members and firms regulated by the RICS (ByeLaw 5.1)

Answer 3

2nd February 2022

Answer 4

Rule 1 - Members and firms (M's & F's) must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS. Rule 2 - M's & F's must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise. Rule 3 - M's & F's must provide good quality and diligent service. Rule 4 - M's & F's must treat others with respect and encourage diversity and inclusion. Rule 5 - M's & F's must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence the profession.

Answer 5

I identify conflicts of interest prior to undertaking an instruction

Answer 6

I was asked if we would be interested in tendering for project management work and advised them that we could not do this as outside knowledge, skills and resources. I develop my knowledge and skills via CPD, keeping up with legislation and codes of practice such as the new RICS guidance note on Japanese Knotweed.

Answer 7

I contact applicants on a Level 2 Home Survey Standard to understand their needs and objectives and to explain scope of service we are offering. I'll agree a time scale for the return of the report.

Answer 8

Oldest form of sovereign incorporation (creation of legal entity). Today new charters are usually conferred on bodies such as professional institutions and charities working in the public interest, which are able to demonstrate financial stability and permanence, and pre-eminence in their field.

Answer 9

A by-law is a rule or law established by an organization or community to regulate itself, as allowed or provided for by some higher authority.

Answer 10

Advancing the highest ethical and technical standards for professionals in land, property and the built environment. Protecting and providing benefits to consumers by enforcing standards and codes of best practice. Providing expert impartial advice to governments, business and the public.

Answer 11

Clement Lau FRICS

Answer 12

Members must conduct themselves in a manner befitting membership of the RICS

Answer 13

RICS self-regulates, meaning that it operates within it's own published regulatory framework, rather than being legislated by Government.

Answer 14

3 documents: Rules for firms, Rules for members, and Global ethical principles. In effect from Feb 2022.

Answer 15

For less serious offences a Regulatory Compliance Order to ensure future compliance. Can include fines, caution or conditions of membership. Serious offences may mean facing a disciplinary panel and can levy sanctions incl expulsion and costs.

Answer 16

Bribery Act 2010; Proceeds of Crime Act 2002; The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

Answer 17

RICS require regulated firms have adequate PII cover including a min of 6 years run-off cover with £1m aggregate cover on a claims made basis with availabiity also through Assigned risk pool. Min levels required = £250,000 for £100,000 income or less, £500,000 for £101,000 - £200,000 income and £1m for £201,000 +

Answer 18

CPD Requirements of 20 hours, minimum 10 Formal Cooperate with RICS Provide all information reasonable and requested by RICS.

Answer 19

Publish a complaint-handling procedure including ADR resolution and maintain a complaints log. Work to be covered by adequate PII. Those with sole principal must have adequate arrangements for their work to continue in the event of incapacity. Co-operate with RICS Display that they are regulated by RICS on literature. Report to RICS any matter that are required to under the rules of Registration of Firms.

Answer 20

Framework can all work to so that any clients know they are getting a set level of service Tool for institution and professional guide.

Answer 21

Inform RICS that you are registering as a regulated practice Appoint a contact officer Register for Regulation with RICS Arrange PII Set up Client Account for Handling Client money Set up a complaints handling procedure Set up arrangements for CPD and Staff training

Answer 22

Clients must always have access to funds Must be kept separately and clearly identifiable Interest on account must be agreed with client Maintain clear ledger/running balance of any transactions agree terms and advise clients on the bank details must never be overdrawn

Answer 23

Proportionality Accountability Consistency Targeting Transparency

Answer 24

Annual Return (on-line) - Types of business and staffing. Nature of clients Training Provisions Complaints procedure & log PI insurance details Details on whether any client moneys are held

Answer 25

RICS provides a model form.... Redress mechanism Provided in terms of business Clear, quick, transparent, impartial and free of charge Name & contact info of nominated investigator Complaint to be investigated in 28 days All complaints, progress and outcomes to be recorded Advise PI of complaints 2 Stages: Complaint considered by internal senior member of firm, if not resolved then referred to independent 3rd party with the authority to award redress

Answer 26

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

Answer 27

Head of Regulation at the RICS investigates claims of misconduct. They have the power to: 1. Serve a Fixed Penalty notice 2. Make a Regulatory Compliance Order 3. CPD sanctions 4. Refer to a Disciplinary Panel Member has right to appeal decision made at a Disciplinary Panel by going to an Appeal Panel

Answer 28

RICS ensures firms comply by conducting audits Firms have to provide information when registering with the RICS and in an annual return

Answer 29

It is one of the Rules of Conduct for Members, 2007 (as amended 2013) Ensures you remain up to date with relevant legislation and any changes in the industry

Answer 30

It is one of the Rules of Conduct for Members, 2007 (as amended 2013) May impair your decision making and mean that you're more likely to take bribes and not act in the best interest of the client. If you're unable to manage your own finances, it does not reflect well on you being able to manage your client's finances

Answer 31

When I valued an office building in Croydon for loan security purposes, I ensured that I undertook sufficient due diligence

Answer 32

When I valued an office building in Croydon for loan security purposes, I spoke to agents to verify information when collecting comparables, to ensure that I provided the most accurate opinion of value

Answer 33

When I valued an office building in Croydon for loan security purposes, I undertook a conflict of interest check to ensure that I was not conflicted when undertaking the instruction

Answer 34

When I valued an office building in Croydon for loan security purposes, I ensured that I notified the tenant prior to conducting an inspection

Answer 35

When I valued an office building in Croydon for loan security purposes, I took responsibility for ensuring that the client received the report within the agreed time scales

Answer 36

I would speak to someone more senior, such as a supervisor or line manager I would whistleblow if required e.g. I would report suspected Money Laundering to the MLRO

Answer 37

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

Answer 38

Will need to undertake Customer Due Diligence (CDD) to identify the client and verify their identity If the client is a politically exposed person (PEP), a PEP family member/business associate or from a high-risk third country then you should undertake Enhanced Due Diligence (EDD)

Answer 39

I use my firm's internal system, which is a Microsoft Dynamics database to check the client name and the address of the property again all known jobs.

Answer 40

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

Answer 41

Money laundering is legitimising the proceeds of crime.

Answer 42

Creates a contract with the client Sets out the proposed fee basis, payment of expenses and that a copy of of the firm's complaints handling procedure is available upon request

Answer 43

Inform the RICS Inform clients and arrange for them to be handed over to a new firm Return any clients' money Set-up professional indemnity run-off cover for a minimum of 6 years Retain a copy of client files and record for a minimum of 6 years

Answer 44

Governing Council (33 members) runs the RICS Regulatory Board, Management Board and various committees report to the Governing Council 17 specialist professional groups covering property, land and construction

Answer 45

Reduced size of Governing Council to a minimum of 25 seats, with 15 geographical seats A new Chair of the Governing Council will act for up to 6 years President will focus on ambassadorial duties and continue to be elected on an annual basis

Answer 46

1. Status - professional credentials provide client confidence 2. Recognition - promotion of your professional excellence 3. Market advantage - RICS status gives you a competitive advantage 4. Knowledge - International practice standards and professional guidance 5. Network - access to over 130,000 members worldwide

Answer 47

CPS: 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

Answer 48

Minimum of 20 hours of CPD per year, of which at least 10 hours must be formal Member must maintain an understanding of RICS Professional and Ethical standards every 3 years Members must record their CPD using the RICS CPD Management System on the RICS website by the 31st December

Answer 49

ECS CPD SIC: Ethical behaviour Competence Service Continuing Professional Development (CPD) Solvency Information to the RICS Co-operation

Answer 50

PCS CPD CCI: Professional behaviour Competence Service Continuing Professional Development (CPD) Complaints handling Clients' money Indemnity insurance

Answer 51

1. Type of business and staffing details 2. Statutory regulated activities - such as for financial services 3. Nature of clients 4. Complaints handling procedure and records 5. Professional indemnity insurance certificate 6. Whether the firm hold clients' money

Answer 52

Can only rely on information provided by a third party where there is an appropriate level of confidence in the quality of the information provided by that party Guidance contained within RICS Countering bribery, corruption, money laundering and terrorist financing, 2019

Answer 53

Cannot value the property if you have had "previous involvement" which is usually defined as being within the past two years

Answer 54

Depends whether you would be able to act impartially, whether you believe that you undertaking the instruction would be in the best interest of all those who are or may be affected and whether its prohibited by law

Answer 55

Party Conflict - acting on both sides of a transaction Own Interest Conflict - relating to a personal interest Confidential Information Conflict - relating to work between two parties which is confidential

Answer 56

Ensure that all parties were aware and provided informed consent Would refer the instruction instruction internally and ensure that the appropriate information barriers were setup

Answer 57

Restricted access to files Clear desk policy Private meeting rooms Physical barriers e.g. restricted floor access

Answer 58

RICS has issued a Professional Statement on Client Money Handling, 2019: * Client account must be kept separate and clearly identifiable * 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

Answer 59

Until April 2020: a regulated firm is a practice that has 50% or more principals who are RICS members From April 2020: if a practice provides surveying services and 50% of principals are RICS members, then it has to be regulated. If firms want to apply to be registered then they must now have more than 25% of Principals as RICS members (previously they only required one Principal to be an RICS member)

Answer 60

Concerned that as the RICS profession and brand grows, having a single RICS qualified Principal does not provide sufficient assurance that RICS professional standards have adequate influence within the senior management of firms

Answer 61

Would be inappropriate if you were doing a job for that client Would consult the Ethics Decision Tree and my firms anti-bribery procedure Would consider RICS Professional Statement Countering bribery, corruption, money laundering and terrorist financing, 2019

Answer 62

Record it on my firm's Gifts and Hospitality Register

Answer 63

Bribery Act 2010 and Proceeds of Crime Act 2002

Answer 64

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

Answer 65

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

Answer 66

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

Answer 67

Private: identify client and their identity based on a reliable independent source (e.g. passport or driving licence). Proof of address (e.g. bank statement, council tax statement) not more than 3 months old Company: certificate of incorporation, full name, company number and address of registered office (names of directors and beneficial owners as anyone who has a shareholding of 25% or more) PLC: London Stock Exchange listing Publicly accountable body: proof of government ownership/control

Answer 68

Wouldn't make them aware as that could be 'tipping off' which is an offence Would report and escalate internally to a compliance manager

Answer 69

Framework of questions members should ask themselves Encouraged members to consider the legality of their action and the consistency with the RICS Global and Professional Ethical Standards Ultimate question is whether members would be content to have their decisions or actions made public RICS Regulation Confidential Hotline offers further assistance to members with any ethical issue

Answer 70

When valuing it depends on the availability of comparable evidence and the complexity of the valuation, as to what would be an acceptable margin of error ±10% is usually considered to be a reasonable margin of error but more likely ±5% for residential property Case of Dunfermline Building Society and CBRE (2017) assumed an acceptable margin of error of ±15%

Answer 71

Founded in 1868 RICS has a Royal Charter, granted by Privy Council in 1881 RICS Regulations and Bye-laws set out the governance of the institution

Answer 72

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

Answer 73

Provide evidence of achievement to the Fellowship assessor of FOUR Fellowship characteristics. They are grouped into the following categories: 1. Champion 2. Expert 3. Influencer 4. Role model A personal statement on current role, practices and ambitions.

Answer 74

4 National Associations 10 Regional Boards Local Associations

Answer 75

Dr Sean Thompkins

Answer 76

Tim Neale (President elected from November 2019) Kath Fontana (President-Elect)

Answer 77

PACTT: 1. Proportionality: making the penalty proportional to the breach 2. Accountability: to all members and the public 3. Consistency: treating all members the same 4. Targeting: serious breaches 5. Transparency: to all members, clients and the public

Answer 78

Ethical framework for the global property market Published by the International Ethics Standards Coalition

Answer 79

* Did not originate from the RICS but are promoted by the RICS * RICS are currently reviewing the Global Professional and Ethical Standards, 2015 and may extend them to reflect the International Ethics Standards more closely

Answer 80

* Two short documents setting out the standards of professional conduct and practice expected of members and firms * RICS announced in November 2019 that there would be a full review of the Rules of Conduct in 2020

Answer 81

Someone complaining to the RICS Allegation by a client or third party Information received or established by the RICS

Answer 82

1. Action by Head of Regulation 2. Disciplinary panel 3. Appeal panel

Answer 83

1. Professional behaviour 2. CPD 3. Protecting client's money

Answer 84

1. Fixed Penalty notice 2. Compliance Order 3. CPD Sanctions 4. Refer to disciplinary panel

Answer 85

Only used for breaches relating to the supply of information to the RICS by firms and members

Answer 86

Written document which states the actions which the member or firm must take or desist from taking for a specified period of time Used for minor breaches which can be easily corrected

Answer 87

Used for more serious breaches of conduct

Answer 88

50% are lay members (non RICS members)

Answer 89

1. Compliance Order 2. Unlimited fine per breach 3. Conditions upon future continued RICS registration 4. Expulsion from membership or remove a firm 5. Publication of results (Modus, RICS website, local newspaper)

Answer 90

Consider a member's or firm's appeal to the outcome of a disciplinary procedure Will review the evidence previously presented and any new representations Can allow the appeal and vary the penalty previously imposed

Answer 91

High-level, principle-based mandatory standard developed in collaboration with other relevant organisations e.g. RICS Valuation - Global Standards, 2019

Answer 92

Conflicts of Interest, 2017 UK Commercial Real Estate Agency, 2016 Property Measurement, 2018

Answer 93

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

Answer 94

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

Answer 95

Document produced with other professional bodies and stakeholders to provide up-to-date research and advice to practitioners e.g. Rating Consultancy Code of Practice, 2017 Have the same status as a professional statement or a guidance note (mandatory or recommended good practice)

Answer 96

Firms should avoid price fixing, aggressive fee cutting or collusion with competitors Fees should be market-based and agreed on an ad-hoc basis with clients Must consider the RICS Global Professional and Ethical Standards, 2015 and Rules of Conduct, 2007 as amended

Answer 97

* Must be completely transparent with your clients and consumers, so they understand you are receiving or offering a referral fee * State in you terms of engagement if applicable * Consider your actions in context of the Bribery Act 2010 and the RICS Global Professional and Ethical Standards, 2015

Answer 98

CCT: 1. Competence 2. Conflicts of interest check 3. Terms of Engagement

Answer 99

Section 18, Estate Agents Act 1979 Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, 2017

Answer 100

Consumer Rights Act 2015 allows a cooling off period of 14 days from the date of the agreement

Answer 101

1. You are not competent to undertake the work 2. You do not have sufficient facts on the issue 3. Proposed client will not sign the terms of engagement or complete the AML checks 4. There is a conflict of interest 5. Proposed client is on the UK Government's sanctions lists

Answer 102

I would be unable to give them advice as my firm's professional indemnity insurance would not cover work carried out on a personal basis I would refer them to another surveyor who would be able to advise them appropriately

Answer 103

Arises when a member or firm's independence and impartiality is threatened due to the existence of a conflict between two parties

Answer 104

Must have effective systems and controls in place appropriate to the size and complexity of their business, to ensure full compliance Firms must keep records to show their compliance with the statement

Answer 105

* "Reasonable steps" must be taken to operate an effective barrier to prevent information passing between the two parties * Surveyors acting on the two sides must be different and be physically separated *Information regarding the instruction should be securely stored * Keep an audit trail of all actions taken. Firms Compliance Officer must oversee all actions

Answer 106

RICS Conflicts of Interest – UK commercial property market investment agency, 2017

Answer 107

Dual agency – contractual relationships with the buyer and the seller must not be undertaken in any circumstances Multiple introductions – where agent has competing contractual relationships simultaneously with several buyers, must make it clear whether they are acting on an exclusive or non-exclusive basis. If on a non-exclusive basis, the agent must obtain informed consent from all the parties they are advising Incremental advice – where agent is approached to provide incremental advice on a transaction, they can only do so if they obtain informed consent and an ethical barrier is put in place e.g. if they are disposing of an asset and asked to provide valuation advice

Answer 108

Arises when acting for a family member, a close business associate or someone with whom you have a financial / personal interest / benefit (known as a ‘connected person’)

Answer 109

Must not let it interfere with or influence your professional judgement. Full transparency is required. Facts must be declared in writing before the instruction is accepted

Answer 110

Section 21, Estate Agents Act 1979 Any personal interest with a "connected person" (i.e. someone who could benefit financially from the transaction) should be declared in writing

Answer 111

* My firm was instructed to value an office building in the City for loan security purposes * My firm had sold the property within the past 2 years * In accordance with VPGA 2 of the “Red Book” my firm had to decline the instruction due to having had ‘previous involvement’ within the past 2 years * This was an example of conflict avoidance

Answer 112

Reduce bribery in business in the UK and abroad

Answer 113

Companies are responsible for an employees' corrupt acts unless they can show that they had adequate policies and procedures in place to combat bribery

Answer 114

Offering clients reasonable and proportionate hospitality does not constitute an offence, as long as they are recorded in a gift/hospitality register

Answer 115

Identification of potential risks, staff training, provision of clear policies and regular reviews

Answer 116

Serious Fraud Office

Answer 117

Individuals: maximum of 10 years imprisonment and/or an unlimited fine Companies: an unlimited fine

Answer 118

Gifts, hospitality and entertainment must be recorded on the Gifts Register Receiving - gifts with a value of more than £50 should be declined, require approval for meals where the value is more than £125 per head or entertainment/hospitality with a value of more than £250 per head Giving - require approval spend more £50 per gift per person (£100 in a 12 month period), more than £125 per head on meals (£250 in a 12 month period) or £250 per head on entertainment/hospitality (£500 in a 12 month period)

Answer 119

Estate agency work and relevant financial business work inside and outside the UK by a firm

Answer 120

1. Written money laundering and terrorist financing risk assessment for the firm 2. Implement systems, policies and controls and procedures 3. Provide staff training 4. Comply with new customer due diligence (CDD), enhanced due diligence (EDD) and simplified due diligence requirements (SDD) 5. Comply with the requirements relating to politically exposed persons (PEPs) 6. Ensure appropriate record keeping, policies and procedures 7. Vendor's agent must undertake AML checks to confirm the identity of the proposed purchaser and verify their source of funds before contracts are exchanged 8. Money Laundering Reporting Officer (MLRO) must be appointed to report any suspicions to the National Crime Agency using a Suspicious Activity Report (SAR)

Answer 121

* Letting agents have to register with HMRC within 12 months of May 2020 if they let individual properties for more than the equivalent of €10,000 per month * Where they undertake lettings of properties for more than €10,000 per month, they will have to undertake CDD check on landlords and tenants on any new letting or subletting * EDD will have to be undertake when any red flags occur

Answer 122

If the client is a politically exposed person (PEP), a PEP family member/business associate or from a high-risk third country

Answer 123

My firm has a policy not accept cash payments, although the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, 2017 allows for a maximum of €10,000 to be accepted in cash.

Answer 124

HMRC are responsible for policing the regulations for estate agents

Answer 125

Assisting with money laundering: maximum 14 years prison sentence and/or unlimited fine Tipping off a person or for failing to report suspicion: maximum 5 years prison sentence and/or unlimited fine

Answer 126

Provides powers for enforcement authorities in the UK to recover in criminal and civil proceedings money and other assets which are deemed to be the proceeds of crime Creates a set of criminal offences intended to combat money laundering

Answer 127

1. Concealing criminal property: if a person conceals, disguises, converts or transfers criminal property 2. Arrangements: if a person enters into or becomes concerned in an arrangement which they know or suspects facilities the acquisition, retention, use or control of criminal property by or on behalf of another person 3. Acquisition use and possession: if a person acquires, uses or has possession of criminal property

Answer 128

RICS Countering bribery, corruption, money laundering and terrorist financing, 2019

Answer 129

1. Mandatory requirements for anti-bribery and corruption and for anti-money laundering and terrorist financing 2. Guidance setting out supporting good practice for the above 3. Supplementary guidance on some of the concepts set out in Parts 1 and 2

Answer 130

* Not offer or accept anything that could constitute a bribe * Have procedures in place to comply with the law * Report suspicion to the relevant authority * Act with due diligence to perform periodic written evaluations of the risk the firm faces * Retain records to show the firm has met the requirements of the Professional Statement

Answer 131

* Not facilitate or be complicit in ML and TF * Have systems in place to comply with the laws * Report suspicion * Evaluation and review the risks presented to the firm * Use third party reliance for checks only where there is a level of confidence for the quality of information provided by the third party * Take appropriate measures to understand the client and the purpose of the instruction * Verify the client by undertaking basic ID checks * Retain records to show how the firm has met the requirements of this Professional Statement

Answer 132

* Have a written policy in place * Publish a code of behaviour for staff * Encourage transparency * Set up a gifts register * Provide staff training * Senior management to take control of procedures * Keep up to date with legislation

Answer 133

*‘Risk-based approach’ – considering who you act for, what you are doing and why you are being asked to do something – when assessing risks to your business * Dealing with politically-exposed persons (PEPs) – they are higher risk as they hold positions of influence and enhanced due diligence is required *The need to identify the beneficial ownership of a company partnership or trust – such as by requesting a recent Certificate of Incorporation or Annual Return for a company

Answer 134

Includes structured learning that has clear learning objectives and outcomes e.g. seminars

Answer 135

Includes self-managed learning that is relevant or related to your professional role

Answer 136

A minimum of 6 years before disposing and destroying them securely (although can be sued for negligence for up to 15 years)

Answer 137

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

Answer 138

* Cannot use the information for their own purposes * Client and sender should be advised of the error * Matter should be recorded in a note to the firm's compliance officer * Any confidential information received in error should be disposed of securely

Answer 139

1. Duty of care owed 2. Breach of the duty of care 3. Loss that was caused by that breach

Answer 140

Contract: 6 years from the date of the negligent act, breach of contract or omission. (If later) up to 3 years from the date of knowledge of the damage. Claims for negligence are barred for any period longer than 15 years after the negligent act, breach of contract or omission Tort: 6 years from the date the claimant suffered the loss

Answer 141

* Understand client’s objectives and confirm precise instructions in writing in the Terms of Engagement * Ensure you are competent to undertake the instruction * Undertake the work in accordance with the relevant RICS Standards and Guidance Notes * Make detailed file notes and take photographs * Keep up to date with market knowledge and legislation and undertake and record your CPD * Cap the professional liability excess on your PII policy in the Terms of Engagement

Answer 142

RICS approved insurer e.g. AIG, Allianz and AXA

Answer 143

RICS Professional Indemnity Insurance Requirements, 2019

Answer 144

Estimate their turnover and adjust in due course

Answer 145

Consumer claims: minimum of £1,000,000 of aggregate cover over a minimum of six years Commercial claims: must consider what is an adequate level of cover for a minimum period of six years RICS recommend more length cover as claims can be made up to 15 years after work is undertaken

Answer 146

RICS Run-off Pool

Answer 147

RICS Low Earners Scheme

Answer 148

RICS Assigned Risk Pool

Answer 149

RICS Member Support Service (MSS)

Answer 150

RICS Guidance Note on PII, Risk, Uncertainty and Insurance in Valuation Work, 2018

Answer 151

Holding deposits, rent, service charge and retentions

Answer 152

1. Holding client money 2. Providing information to clients 3. Receipt of client money 4. Payments from client accounts 5. Accounting records and controls 6. Compliance

Answer 153

* RICS Clients' Money Protection Scheme * Scheme split into two parts covering money held by firms undertaking surveying activities and those undertaking residential agency activity

Answer 154

* Inform RICS of your new practice by completing a Firm Detail Form *Appoint a Contact Officer for all RICS communication * Register with RICS for regulation of the firm by the Regulatory Board * Arrange Professional Indemnity Insurance and send details to RICS * Set up procedures for Members Accounts Regulations for handling clients’ money, including Client Money Protection Scheme details * Register for the RICS Valuer Registration Scheme (VRS) if undertaking Red Book Global valuation work * Obtain RICS approval for the Complaints Handling Procedure * Set up a complaints log * Appoint a Complaints Handling Officer * Obtain a logo kit from the RICS to use to produce all practice material to ensure compliance with the designation ‘Regulated by RICS’ * Plan for succession/future running of the business if a sole practitioner * Ensure CPD logged online on the RICS CPD Management System * Set up staff training plan * Ensure completion of an online RICS Annual Return at the end of each year

Answer 155

* Requirement to disclose business name * Disability discrimination compliance (Equality Act 2010) * Financial services compliance (Financial Services and Markets Act 2000 and Financial Services Act 2012) * Bribery Act 2010 compliance * Appoint a Money Laundering Reporting Office (Money Laundering Regulations, 2017) * Health and Safety compliance (Health & Safety Act 1974, as amended) * Asbestos register (Control of Asbestos Regulations, 2012) * Fire Safety compliance (Regulatory Reform (Fire Safety) Order 2005) * Register for data protection (General Data Protection Regulation, 2016 and Data Protection Act 2018) * Set up estate agency compliance (Estate Agents Act 1979, Consumer Protection Regulations 2008, Misrepresentation Act 1967) * Inform HMRC for VAT and Tax registration (VAT registration threshold is currently £85,000 per annum turnover) * Ensure compliance with current employment law i.e. National Living Wage, working hours, stakeholder pensions, gender pay gap reporting etc. * Ensure insurance compliance for employer and public liability

Answer 156

* Inform RICS of your retirement/closure * Ensure that your clients are informed at the earliest opportunity and hand over arrangements made to the new firm * Return any monies held by clients to their own accounts * Inform your insurers and procure professional indemnity insurance run off cover for a minimum of 6 years in accordance with RICS requirements * Retain a copy of the client files and records for a minimum of 6 years

Answer 157

* Lack of diversity in the industry * Keeping up with an ever-evolving industry

Answer 158

* Use of the RICS logo has been restricted to members and regulated firms only * The 'regulated by RICS' designation must be displayed clearly to ensure visibility * Prescribed text that must be included in the terms of engagement * Companies are only allowed to use 'chartered surveyor(s)' designation in trading name and not company name

Answer 159

16 countries have been identified as high-risk third countries by the European Commission. These include: Afghanistan, Iraq, Syria, Iran and North Korea

Answer 160

Rules of Conduct for Firms, 2007 (as amended 2017) require firms to have PII Protect clients and your company from negligence claims

Answer 161

1. Advertising 2. Solvency 3. Arrangements to cover the incapacity or death or a sole practitioner 4. Use of designations 5. Information to the RICS 6. Co-operation

Answer 162

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

Answer 163

RICS Standards and Regulatory Board

Answer 164

* Responsible principal - firm must nominate a responsible principal who is obliged to ensure all steps are taken to ensure compliance with regulatory and RICS requirements, including reporting to the RICS * Logo - restriction on the use of the logo to regulated firms and restriction of the designation 'Chartered Surveyors' to the trading name only * Eligibility changes - firms can only be registered if 25% of their principals are chartered (increased from a single chartered surveyor before)

Answer 165

Client money handling, 2019