Ethics, rules of conduct and professionalism Level Three

Question 1

Give me an example of when you have acted with integrity?

Question 2

Tell me about when you have provided a high standard of service.

Question 3

Tell me about how you have promoted trust in the profession.

Question 4

Explain how you have taken responsibility in your current role.

Question 5

Tell me about how you treat clients with respect.

Question 6

Tell me about how you treat other surveyors with respect.

Question 7

Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.

Question 8

If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.

Question 9

What would you do if you were asked by a client to reduce a fee proposal to win new work?

Question 10

What would you do if you became suspicious that a client was involved in money laundering?

Question 11

What would you do if you became suspicious that a client was involved in terrorist activities?

Question 12

If you were to set up in practice on your own, tell me about the types of insurance you would need.

Question 13

What is the central purpose of the RICS?

Answer 13

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 14

What is the RICS?

Answer 14

UK based professional body for surveyors

Question 15

Give a brief history of the RICS

Answer 15

1) Founded in London in 1868 by 49 surveyors as the institution of surveyors

2) Received royal charter as the Surveyors Institution in 1881 with the requirement of promoting the usefulness of the profession for the public advantage in the UK and globally

3) In 1930 it became the chartered surveyors institution

4) In 1946 they were granted the title royal and therefore in 1947 became the RICS

Question 16

How is the RICS linked to other bodies?

Answer 16

They work in collaboration with other professional bodies such as RIBA, governments, central banks etc

Question 17

How many RICS members are there? (roughly)

Answer 17

130,000

Question 18

Who is the current president, president elect and senior vice president of RICS?

Answer 18

President - Clement Lau
President elect - Ann Gray
Senior vice president - Tina Pailette

Question 19

What is the significance of the governing council?

Answer 19

They are the highest governing body

Question 20

What do the RICS governing body do?

Answer 20

1) Sets global strategy and ensures RICS fulfils its Royal Charter obligation

2) Provides strategic oversight on requirements for entry into the profession and the setting and enforcement of professional standards

Question 21

How is the governing council composed?

Answer 21

1) Chair of governing council

2) 6 Strategy seats (academia & education; capital markets and valuation; land; research and development; residential; urbanization and planning

3) 15 market seats (africa; asean; australiasia; brazil; canada; caribbean; china; europe x 22; hong long; india; middle east; UK & Ireland x 2; USA

4) RICS president, president elect and senior vice president

Question 22

What does the audit committee do?

Answer 22

Monitors the integrity and effectiveness of RICS’ financial reporting, internal control and risk management systems, reviews anti-fraud measures and raising concerns policies and reviews the effectiveness of and recommends each year the appointment of the external auditor

Question 23

Is the audit committee comprised of just RICS members?

Answer 23

No, it is also comprised of non-rics members?

Question 24

What is the standards and regulation board responsible for?

Answer 24

Strategy, policy and operational oversight of the standards, entry and admission to the profession (through RICS education and qualification standards) and regulatory functions of RICS

Question 25

What is the purpose of the management board?

Answer 25

Direct RICS affairs under delegated authority from governing council

Question 26

Who is the management board comprised of?

Answer 26

Non members, RICS members and RICS executives

Question 27

What is the rule 1 of RICS Rules of Conduct 2021?

Answer 27

Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS

Question 28

What is the rule 2 of RICS Rules of Conduct 2021?

Answer 28

Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise

Question 29

What is the rule 3 of RICS Rules of Conduct 2021?

Answer 29

Members and firms must provide good-quality and diligent service.

Question 30

What is the rule 4 of RICS Rules of Conduct 2021?

Answer 30

Members and firms must treat others with respect and encourage diversity and inclusion.

Question 31

What is the rule 5 of RICS Rules of Conduct 2021?

Answer 31

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.

Question 32

What obligations are mandatory to RICS members?

Answer 32

1. Members must comply with the CPD requirements set by RICS. 2. Members must cooperate with RICS. 3. Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.

Question 33

What obligations are mandatory for RICS regulated firms?

Answer 33

1. Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log. 2. Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS. 3. Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work. 4. Firms must cooperate with RICS. 5. Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf. 6. Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS. 7. Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.

Question 34

What are the RICS ethical standards?

Answer 34

A 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

Question 35

What does the first RICS ethical standard mean?

Answer 35

Be honest and straightforward in all that you do

Question 36

What does the second RICS ethical standard mean?

Answer 36

Always ensure 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 to. This standard includes, but is not limited to, the following behaviors or actions

Question 37

What does the third RICS ethical standard mean?

Answer 37

Act in a manner, both in your professional life and private life, to promote you, your firm or the organization you work for in a professional and positive way.

Question 38

What is an information barrier?

Answer 38

The physical or electronic separation of individuals within the same firm that prevents confidential information passing between them

Question 39

What are some things regulated firms must do in relation to bribery and corruption?

Answer 39

1) Prepare a written policy covering anti-bribery and corruption 2) Have an appropriate governance and systems and controls in place 3) Have a register for gifts and hospitality etc 4) Appoint a person in the company that can be contacted to discuss these matters 5) Carry out due diligence on third party suppliers to ensure they are acting appropriately

Question 40

What are some things RICS members should do in relation to anti-bribery and money laundering?

Answer 40

1) Declare gifts, hospitality etc to their employers 2) attend relevant training addressing these issues 3) be familiar and act in compliance with their employers policy 4) If in a senior management position, take a leadership role in attempting to ensure that their employer has an appropriate regime in place for addressing bribery and corruption

Question 41

What should RICS regulated firms do in relation to money laundering and terrorist financing?

Answer 41

1) Have a written policy addressing these issues 2) have appropriate governance systems in place 3) provide appropriate training for staff 4) keep reports of suspicion of money laundering and terrorist financing and the firms system to counter these risks

Question 42

In relation to money laundering and terrorist financing, what should RICS members do?

Answer 42

1) Keep up with training on the matter 2) Comply with their firms policy and processes relating to these matters 3) keep report of suspicious activity

Question 43

Why must a Chartered Surveyor do CPD?

Answer 43

It ensures that we remain up to date with relevant legislation and any changes in the industry

Question 44

Why must a Chartered Surveyor main solvent?

Answer 44

1) If we are not solvent then we are more at risk to taking bribes and not asking within the clients best interests 2) If we cant manage our own finances it does not reflect well on being able to manage our clients finance

Question 45

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

Answer 45

1) Speak to somebody more senior than me (line manager etc) 2) Whistle blow to the correct organization if required

Question 46

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

Answer 46

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 47

Why would you like to be a Chartered Surveyor?

Answer 47

1) Professional credentials promotes client confidence 2) Promotion of your professional excellence 3) RICS status gives a competitive advantage 4) International practice standards and guidance gives up to date and relevant knowledge 5) Promotes professional network

Question 48

What are the THREE benefits of regulation for firms?

Answer 48

1) Client confidence 2) Firms have to provide clear, impartial and expert advice 3) Firms have to have recognized CHP, access to ADR and PII cover

Question 49

What information is required by RICS for registration of firm and in annual return?

Answer 49

1) Type of business and staffing details 2) Statutory regulated activities 3) Nature of clients 4) Complaints handling procedure and records 5) PI insurance certificate 6) Whether the firm holds clients money or not

Question 50

Why are the RICS requiring 25% of Principal to be members in order for firms to apply to be regulated?

Answer 50

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

Question 51

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

Answer 51

Record it on my firm's Gifts and Hospitality Register

Question 52

What is the law associated with gift giving and receiving?

Answer 52

Bribery Act 2010 and Proceeds of Crime Act 2002

Question 53

What are the SIX principles of the Bribery Act 2010?

Answer 53

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

Question 54

What are the FOUR offences under the Bribery Act 2010?

Answer 54

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

Question 55

How would you define a bribe?

Answer 55

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 56

What identification do you require on a client to do Customer Due Diligence?

Answer 56

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) Publicly accountable body: proof of government ownership/control

Question 57

What is considered an appropriate margin of error?

Answer 57

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

Question 58

What are the FOUR levels of membership for the RICS?

Answer 58

1) FRICS 2) MRICS 3) AssocRICS 4) Trainee/student

Question 59

What must you do to achieve FRICS status?

Answer 59

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.

Question 60

In what circumstance will the RICS disciplinary procedure be triggered?

Answer 60

1) Someone complaining to RICS 2) Allegation by a client or third party 3) Information received or established by the RICS

Question 61

What are the THREE levels of disciplinary action?

Answer 61

1) Action by head of regulation 2) Disciplinary panel 3) Appeal panel

Question 62

What are the THREE most common breaches of the Rule of Conduct for Firms, 2007 (as amended 2017)?

Answer 62

1) Professional behavior 2) CPD 3) Protecting client money

Question 63

What FOUR actions can the Head of Regulation of the RICS impose?

Answer 63

1) Fixed penalty notice 2) Compliance order 3) CPD sanctions 4) Referred to disciplinary panel