Ethics, rules of conduct and professionalism Flashcards
1
Q
Why do you want to become a member of RICS?
A
It demonstrates a high level of competency and professionalism to clients
2
Q
What is the role of RICS?
A
RICS develops and enforces leading international standards to protect consumers and businesses, ensuring the highest level of professionalism.
3
Q
What are the key functions of RICS?
A
- 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.
4
Q
What is a royal charter?
A
A Royal Charter is an instrument of incorporation, granted by The King, which confers independent legal personality on an organisation and defines its objectives, constitution and powers to govern its own affairs.
5
Q
Who is the current RICS president?
A
Ann Gray
6
Q
What do you understand by the term self-regulation?
A
Self-regulation is the ability to understand and manage your behaviour and your reactions to things happening around you.
7
Q
Can you tell me what you understand by the principles of better regulation?
A
It provides guidance on how regulators should regulate
8
Q
What is a bye-law?
A
a regulation made by a local authority or corporation
9
Q
What is an example of an RICS bye-law?
A
Every member shall conduct themrselves in a manner befitting membership of RICS
10
Q
Explain to me the new RICS Rules of Conduct - what do they replace?
A
Rule 1- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Rule 3 - Members and firms must provide good-quality and diligent service.
Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion.
Rule 5 - 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.
They replaced the existing Rules of Conduct for Firms and for Members and the Global Professional & Ethical Standards
11
Q
When did the new Rules of Conduct take effect?
A
The Rules of Conduct are effective from 2 February 2022
12
Q
Who do Rules of Conduct relate to?
A
They are standards to protect consumers and businesses, they apply to all members and regulated firms
13
Q
What are the 6 ethical principles that the Rules of Conduct are based on?
A
The Rules of Conduct are based on ethical principles of honesty, integrity, competence, service, respect and responsibility.
14
Q
Give an example behaviour for each Rule of Conduct?
A
- Act with honesty/integrity - members should not mislead others by their actions
- Maintain professional competence - Ensure work is work undertaken competently and maintain knowledge via CPD
- Provide good quality and diligent service - understand clients needs and objectives to provide high quality service, data protection risks
- Treat others with respect - covers diversity and inclusion to avoid discrimination and unconscious bias
- Act in public interest - taking responsibility for own actions e.g. complaints handling
15
Q
What are the core professional obligations of firms and members to RICS?
A
These include requirements for CPD, professional indemnity insurance, complaints handling, sole principal arrangements, and cooperation with and regulation by RICS
16
Q
What disciplinary procedures can the RICS impose?
A
Only serious breaches of the rules are likely to result in disciplinary action; minor breaches can be dealt with through self-correction or firms’ processes.
Disciplinary actions are:
* fixed penalty - a fine
* consent order - A Consent Order is a formal written agreement between RICS and the Member or Firm, requiring: the Member or Firm to take corrective action or refrain from taking certain actions within a specified period of time * the Member or Firm to pay a fine and/or costs where appropriate.
* disciplinary panel for more serious breaches - A Disciplinary Panel’s role is to hear disciplinary cases involving Regulated Members, to make findings of fact in relation to allegations brought by RICS, in order to determine whether a Regulated Member is liable to disciplinary action and, if so, whether a sanction should be imposed.
17
Q
In what circumstances can disciplinary procedures be imposed?
A
Where a complaint or concern about a Regulated Member (RICS professional or RICS-regulated Firm) is investigated by RICS and is considered serious enough and supported by evidence
18
Q
When did RICS last update their disciplinary panel rules?
A
Feb 2022
19
Q
What are the different levels of action within the disciplinary procedures?
A
Fixed penalty notices, Regulatory compliance order, Sanctions
20
Q
What do you understand by the term professional practice?
A
Professional Practice is a term used to describe activities which will help you apply your knowledge to your industry, job role or workplace.
21
Q
What money laundering regulations or legislation are you aware of?
A
The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 and Proceeds of Crime Act 2002
22
Q
What is a red flag of money laundering?
A
Large cash payments, unexplained payments from a third party, or use of multiple or foreign accounts
23
Q
What bribery legislation are you aware of?
A
The Bribery Act 2010
24
Q
What is a bribe?
A
A bribe is an illegal or unethical gift or lobbying effort bestowed to influence the recipient’s conduct.
25
What are the penalties for accepting a bribe?
Unlimited fines and up to 10 yrs in jail
26
What are the penalties for being involved in money laundering?
Fines and up to 14 yrs in jail
27
What constitutes an offence under the Bribery Act 2010?
Offering or accepting a bribe
28
What constitutes an offence under the current money laundering regulations?
Money laundering describes offences concerning the possession, concealment, conversion, transfer or making of arrangements relating to the proceeds of crime.
29
How long should you keep anti-money laundering records for?
5 years
30
What is Professional Indemnity Insurance?
Professional indemnity insurance protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services or advice
31
What are the RICS requirements relating to PI insurance?
1. Minimum indemnity limit based on turnover
2. An ‘each and every’ claim basis or aggregate plus unlimited round the clock reinstatement
basis.
3. The maximum level of uninsured excess (the part of each claim the firm must pay itself)
4. Be fully retroactive. PII policies work on a ‘claims made’ basis. This means that the policy covers claims that are first made against the insured during the period of insurance regardless of when the negligent act occurred.
5. Cover for all past and present employees, including all partners, directors, members and employees.
6. Run-off cover
32
What is an aggregation clause?
An aggregation clause governs what happens if there is more than one claim under the same policy in the same year.
33
Is a PII excess usually paid for per claim?
Yes
34
In a negligence claim, what would help to show that you acted with consideration and due process?
By demonstrating that all potential defects were considered and ruled out and that any limitations were listed within the report
35
Can good record keeping help to provide a defence in a PII claim?
Yes - the retention of records can assist in the defence of an allegation of negligence
36
If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?
Obtain written confirmation from my insurer that cover will be extended and applied
37
What is run off cover?
Run-off cover is insurance for claims made against a firm or surveyor after they have stopped doing business
38
What RICS requirements are there relating to run off cover?
RICS requires regulated firms to put in place run-off cove with £1m aggregate limit for a period of six years for consumer claims from the expiry date of the policy in force at the time of cessation, which should be included automatically in the RICS minimum policy wording. However, firms must continue to obtain and purchase run-off cover for longer periods than six years, or with higher cover levels, if they deem that adequate and appropriate.
39
What changes did RICS recently make to the Minimum Approved PII Wording?
The excess requirements for larger firms have been removed, whilst the 2.5% maximum excess requirements for smaller firms remains. The turnover limit above which there will be no excess requirements is set at £10m.
40
Explain PII requirements relating to fire safety cover and cyber cover.
Under the new rules, RICS listed insurers are not permitted, without specific dispensation, to exclude fire safety claims on a property of four storeys or less and fire safety coverage must be provided as a minimum on an aggregate, defence cost inclusive basis. The RICS Minimum Policy Wording also now includes new exclusionary language in respect of Cyber related claims and losses.
41
How long can a PII claim arise after the work is undertaken
6 years
42
What is the Assigned Risks Pool (ARP)?
The assigned risks pool is for firms that are unable to obtain professional indemnity insurance (PII) in the insurance market. It provides emergency cover for a period of up to two years so that firms can continue to practice.
43
Who might need to access the Assigned Risks Pool?
All RICS UK registered firms are eligible for terms from the Assigned Risks Pool.
44
Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance (1st Edition).
The RICS Guidance Note Risk, Liability and Insurance (1st Edition) is intended to assist both RICS-regulated firms and their clients to understand the main risks and liabilities associated with professional services provided by RICS members. It guides firms in the negotiation of equitable contracts with clients and the avoidance of major risks and pitfalls.
45
Explain when you might agree a liability cap.
46
What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?
The scope of the work
The basis on which the fee will be calculated
The liability cap
47
Tell me what you understand about Complaints Handling Procedures (CHP).
A Complaints Handling Procedure provides clients with information on how a complaint will be handled by a company
48
When and how can the RICS be involved in a complaint about a firm or member?
RICS may investigate poor service where the service is unacceptably low (and thus is serious enough to warrant an investigation).
49
Can you tell me about the CPD requirements for members of RICS?
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. The remainder can be informal CPD.
50
Why is CPD important?
CPD is important as RICS is a standards-based organisation and its members operate in a constantly changing environment, e.g. new legislation.
51
What is double dipping (dual agency)?
When an agent represents both the seller and buyer
52
Why is double dipping (dual agency) an unacceptable practice?
Conflict of interest
53
How would you close down a regulated firm?
1. Notify PI insurer to arrange run-off
2. Inform RICS and complete deregistration form
3. Deal with any client money in line with RICS Client Money Handling
4. Back and copy files for storage up to 15yrs under Limitation Act
5. Notify HMRC, bank, accountant etc
54
What can you tell me about RICS guidance relating to bribery, corruption or money laundering?
This guidance sets out mandatory requirements for RICS members and RICS-regulated firms in relation to bribery, corruption, money laundering and terrorist financing. This took effect from 1st September 2019.
55
What status does the guidance on Bribery, corruption or money laundering hold?
It is a professional statement which is mandatory requirements for RICS
members and regulated firms.
56
What are some of the key principles of the bribery, corruption and money laundering guidance?
1. Not offer or accept anything that could constitute a bribe
2. Have plans in place to comply with applicable laws
3. report any suspicious activity
4. not facilitate or be complicit in money laundering or terrorist financing activities
57
What must/should firms/members do to comply with the bribery, corruption and money laundering guidance?
* 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 (as specified in local legislation)
* not facilitate or be complicit in money laundering or terrorist financing activities
58
What are the current RICS rules for registration of firms?
A Firm is required to register for regulation by RICS if:
a) the Firm provides surveying services to the public
b) the Firm is operating in Regulated Area A c at least 50% of the Firm's Principals are RICS Members
59
When did registration of firms rules change?
Feb 2022
60
What is a phoenix firm?
A phoenix firm is one carrying on the same business or trade successively through a series of companies where each becomes insolvent (cannot pay their debts) in turn.
61
When must a firm register for regulation?
A Firm is required to register for regulation by RICS if:
a) the Firm provides surveying services to the public
b) the Firm is operating in Regulated Area A c at least 50% of the Firm's Principals are RICS Members
62
What are the registration eligibility criteria?
A Firm is eligible to register for regulation by RICS if:
a) the Firm provides surveying services to the public and
b) at least 25% of the Firm’s Principals are RICS Members.
A Firm is also eligible to register for regulation by RICS if it meets the requirements of these Rules and either:
a) the Head of Regulation is satisfied that the Firm is implementing an appropriate plan to secure compliance with (b) within a reasonable period of time or
b) the Head of Regulation is satisfied that the Firm is appropriately supported and supervised by another RICS-registered Firm or Firms that fulfill the requirements in 4.1
63
Who is a Responsible Principal?
The Responsible Principal is someone that shall take all reasonable steps to ensure that the Firm complies with its regulatory and statutory obligations
64
What happens if a firm cannot comply with the registration eligibility criteria?
A Firm is also eligible to register for regulation by RICS if it meets the requirements of these Rules and either:
a) the Head of Regulation is satisfied that the Firm is implementing an appropriate plan to secure compliance with (b) within a reasonable period of time or
b) the Head of Regulation is satisfied that the Firm is appropriately supported and supervised by another RICS-registered Firm or Firms that fulfill the requirements in 4.1
65
Who is a ‘qualified member’ of RICS?
Someone that has qualified as an associate or chartered member
66
What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?
When using the RICS logo; the chartered surveyor designation and, where applicable in respect of firms, the Registered Firm designation, a Member or Registered Firm must:
a) comply with the Standards and Regulation Board’s Policy Statement and RICS branding guidelines for Members and Registered Firms as set out in Appendix A
b) comply with the Rules of Conduct, Rules for the Registration of Firms and these Rules
c) act in accordance with the obligations set out in RICS’ Royal Charter and Bye-Laws
d) not alter the RICS logo or RICS Registered Firm designation without permission
e) not use the RICS logo in a manner that could have an adverse impact upon its status as a
registered trademark
f) not use the logo or designation(s) in a manner that could bring the profession into disrepute and
g) not use the chartered surveyor designation in a manner that could have an adverse impact on its status as a registered trademark.
67
When did logo rules last change?
Feb 2022
68
What is the meaning of the RICS motto Est Modus in Rebus?
There is measure to all things
69
What is the RICS mission statement?
1. To qualify and equip their members to offer the highest standards of professional service
2. To promote and enforce stand
3. To lead solutions to the major changes facing the built environment through professional expertise
70
When was the RICS founded?
1868
71
How is the RICS structured?
1. It was founded in 1868 with the Royal Charter granted by the privy council in 1881
2. RICS is self regulated and internally monitored meaning that it is not regulated by the government or external parties
3. Bylaws determine how the RICS is regulated
4. The governing Council manages and agrees strategy for RICS
5. The regulatory board, audit committee, and management board are beneath the governing council and execute the strategy set by them
72
What are the RICS 5 principles of better regulation?
1. Proportionality
2. Accountability
3. Consistency
4. Targeting
5. Transparency
73
What is the difference between RICS ethics and rules?
Ethics are a set of moral values whilst rules of conduct are a framework that we work to
74
Why did the previous rules of conduct change?
The rules changed following research and consultation with members, firms, and the public. This was to provide a single document to enable greater clarity for members and firms. There is now a greater focus on clearer example behaviours, understanding involving technology, and tackling climate change
75
What is your understanding of the rules of conduct changes?
The Rules of Conduct 2021 global practice statement was to overhaul the previous separate documents
76
What are members' professional obligations?
1. Comply with CPD requirements
2. Cooperate with RICS
3. Promptly provide all information reasonably requested by the standards and regulation board, or those exercising delegated authority on its behalf
77
What are the professional obligations of firms?
1. Firms must publish a complaints handling procedure including an ADR provider
2. Firms must ensure that all previous and current professional work is covered by adequate appropriate professional indemnity cover meeting standards approved by RICS
3. Firms with a sole principal must make appropriate arrangements for their professional work to continue in the end of the incapacity due to death or absence from work i.e. using a locum
4. Firms must cooperate with RICS
5. Firms must provide all information reasonably requested by the standards and regulation board
6. Firms must display on their business literature in accordance with RICS published policy a designation that they are regulated by RICS
7. Must report to RICS any matter that they are required to report and the rules for the registration of firms
78
What are the steps of the Ethics decision tree?
There are a list of questions that lead to other questions - the results lead to a decision on whether to proceed and what action to take
79
Why do the RICS have rules of conduct?
1. to provide a framework for members and firms to work to and ensure a client receives a high level of service
2. rules are also useful professional guidance for members
80
Your brother-in-law is a chartered surveyor you find out he's working outside of the rules of conduct what would you do?
1. Verify the facts and confront him reminding him of his duties as a member of the RICS
2. Inform the RICS specify my relationship to the person and any corrective action which I believe my brother-in-law is committed to putting in place
81
What are the procedures for a breach of a rule of conduct?
1. Not every shortcoming will necessarily give rise to proceedings
2. A formal investigation is carried out by the head of regulation of the RICS
3. RICS can request information and or visit and inspect to investigate compliance
4. Members must cooperate fully with Enquiries
82
How is a disciplinary proceeding triggered?
1. someone complaining to RICS
2. Allegation by a client or thrid party
3. information received or established by RICS
83
when Is a disciplinary panel applicable?
For more serious breaches of conduct, these are held in public and the burden of proof is RICS
84
what sort of breach results in expulsion?
1. Gross, persistent, wilful failure to comply with the rules of conduct
2. Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliperate discrimination, misappropriation of clients money
85
What procedures must you follow if you are starting up a new practice?
* contact the RICS for guidance and obtain a company start-up pack
* inform the RICS and register for regulation
* appoint a contact officer for RICS communication
* prepare a complaint-handling procedure
* obtain PI cover
* Abide by the rules of conduct for firms
* Use the Regulated by RICS designation on all practice material
86
Can you advertise your new company in the press?
Yes as long is it is in a trustful and responsible manner in line with the rules of conduct
87
What type of insurances would you need for new company?
1. PI insurance
2. Employers liability
3. Public liability
4. Buildings insurance for premises
88
What sort of information to register firms have to send to RICS annually?
* it is called an annual return
* failure to do so results in a fixed penalty
* includes type of business and staffing, nature of clients, training provision, complaints handling procedures and records, PI insurance details, whether the firm holds clients money
89
What do regulated firms need to put in place when handling clients money?
A firm would need to follow RICS standards Client money handling 1st Edition 2019
* hold money in a separate client account
* account only holds client money
* must include the word "client" and name of "firm" in the title of the account
* funds must be instantly available
* client must instruct payment for penalties for removal from high interest 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
* provide client details in writing of the account, it's name, and the firm's procedures for handling client money
* only make payments for client matters
90
What is meant by the term negligence?
* duty of care owed to all clients and third-parties using reasonable skill and care
* if breached a negligence claim may arise resulting in damages paid
* negligence is a failure to provide the duty of care that is owed to the client
91
What is the Merrit v Babb case law?
A surveyor was sued for negligence by a former client after the surveying firm had ceased to exist and this highlighted the need to ensure that run-off cover is in place
92
What is the limitation period with underhand and deed forms of contract?
6 yrs underhand
12yrs deed
93
Must a complaints handling procedure include?
* a redress mechanism
* details should be issued to the client with the terms of business
* must be clear quick transparent and impartial and free of charge
* names and contact details of the nominated investigating person
* that the complaint must be investigated within 28 days
* all complaints, their progress and outcomes must be recorded
* the need to advise PI insurers of a complaint immediately
* two stages - stage 1 is to consider the complaint stage 2 is to refer to an independent 3rd party (the complainant may be expected to contribute costs)
94
What is an independent redress scheme?
* a consumer scheme designed to handle small issues that would be disproportionately expensive to take to court
* if the scheme judges in favour of the complainant it is binding
* if it judges in favour of the firm the complainant can escalate the matter to court
* RICS firms must specify the redress scheme
95
What would you do if you received a letter of complaint?
* acknowledge receipt and handle it in accordance with the CHP
* inform the PI insurer
96
What is the client's money protection scheme
A money protection scheme operated by RICS
97
What activities are included as CPD?
* it must have a clear learning objective relevant to my role
* formal CPD can be classed as Web-based training with structured assessments, formal seminars, providing training to others where research and preparation is required
* informal CPD is classed as private reading or job shadowing
98
How would you differentiate between types of CPD?
I would consult the RICS CPD decision tree
99
What type of articles do you read?
I receive the CABE building engineer magazine and use the Building Magazine website
100
Do you keep up-to-date with topical issues?
I am on a mailing list for the property care Association webinars and CABE digital and paper media, and RICS journals (Modus/Property Journal), isurv newletter
101
What was the most recent article that you read?
RICS consumer guide on spray foam insulation - relates to spray foam installed retrospectively for insulation. Main issues are hidden problems as a result of leaks or condensation. Increasing the thickness of loft insulation at ceiling level is likely to be cheaper and equally effective. Spray foam is also an increased fire risk. RICS advises homeowners to seek independent expertise, commercially separated from
the installer and manufacturer, to advise if spray foam is appropriate for their property. Non-permeable membranes trap moisture. Spray foam can affect the value of a property and is likely to require further investigation.
102
What is your CPD strategy?
I attend formal conferences and monthly webinars. Informal CPD is carried out when possible.
103
How does PII benefit the professional?
It protects a business for financial losses
104
How does PII benefit a client?
They are able to recover financial losses
105
What are the RICS requirements for PII?
* Cover must be made on and each and every claim basis
* RICS sets out minimum levels of indemnity and maximum levels of uninsured excess
* Run-off cover must be in place for min. 6 years
106
What are the minimum levels of indemnity and maximum levels of uninsured excess?
* Turnover £100k or less - £250k
* Turnover £100k to £200k - £500k
* Turnover £200k plus - £1m
Excess:
Turnover £10m or less - the greater of 2.5% of the sum insured or £10k
Turnover £10m plus - no limit set
107
How can you try to avoid PI claims?
* keep detailed records of meetings and conversations
* Records recommendations and advice given
* use proper letters of engagement, scope of services, and terms of engagement
* don't advise on specialism outside your field of experience
* follow RICS guidance and avoid poor management of workload
108
Can a clam be made if an estimate prepared by a QS is incorrect?
Only if there was a lack of reasonable care and skill
109
How can you limit of liability when agreeing to terms of appointment with a client?
Ensure run off cover is in place and that the appointment is based on reasonable care and skill
110
What are the main elements included within a fee proposal?
* terms and conditions
* scope of services
* exclusions
* assumptions
111
Could you ask the client for more money if you're free proposal was incorrect?
Only if the scope of work or services had increased
112
Once verbal agreement is made what would you do next?
Follow it up with a formal letter including the terms & conditions, fees and scope of services
113
What are the RICS requirements for holding client money?
A separate client account must be used and accurate accounting records kept
114
What is a conflict of interest?
Where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially
115
What procedures could be implemented if two separate departments were working for the same client?
Ensure exclusivity of staff, separate communication lines, confidentiality or nondisclosure agreements
116
If a client insisted that he works for them despite a conflict of interest how would you proceed?
I would make them aware of the potential for reduced impartiality and seek a letter of instruction from the client to continue. I would agree working procedures to manage the conflict of interest with the clients and the teams involved.
117
Under the bribery act, in what circumstances is a facilitation payment permitted?
When you are under duress such as a danger or risk to life or physical threat. The matter would need to be reported thereafter
118
You are offered a prize by a main contractor of an iPad Air what would you do?
I would consider that it could be interpreted as a bribe and therefore inappropriate. I will decline the prize and suggest a charitable donation is made instead
119
Receive an invite to attend a theatre with some members of your project in but they have dropped out, would you still attend?
No, as they won't be present it is unlikely to be seen as a business event and I will decline the hospitality. Invite would need to be declared in accordance with the company policies
120
What would you do if you were invited to lunch by a contractor who is tendering on a project you are working on?
It could be seen as an offence under the UK bribery act and I would respectfully decline explaining that it is inappropriate. Persistent invitation may need to be reported
121
what is a locum?
A locum is effectively another professional who is appointed to 'stand in' for the surveyor if they are unable to work
122
What is the Bichard review?
An independent Bichard RICS Review which was commissioned by the RICS Governing Council to review the Institution’s purpose, governance and strategy. It followed the Levitt review into treasury management issues in 2018-2019 which recommended an external review.
123
What are the key elements of the Bichard review?
* return control of RIC to members
* reaffirm that RICS is a professional organisation and not a profit-led enterprise
* introduction of clear governance structure
* a revised purpose for the RICS based on enhancing knowledge of surveying and promoting usefulness of the profession
* Focus more on sustainability and member engagement
* separate commercial activity from other activities
* establish a diversity and inclusion panel to advise the standards and regulation board
* improve technology
* RICS to reaffirm commitment to work in the public interest
Review and set out responsibilities of the Standards and Regulation board
124
What was the Levitt review?
The Independent Review was commissioned by RICS to investigate articles in the press that alleged that RICS ‘tried to supress a critical internal report into its finances in 2018/2019 and then unfairly dealt with those who sought to explore the issue’
125
What were the general recommendations following the Levitt review?
It includes the principles of good governance, the RICS structure and professional ethics.
126
How will Birchards recommendations be implemented by RICS?
The recommendation was that they be phased and working groups were set up to implement these changes
127
How do professional integrity and professional ethics differ?
"Ethics" are principles that guide behaviour, while "integrity" suggests that we should carry out ethical principles in our daily lives and activities
128
What is modern slavery and its red flags?
Modern slavery is when an individual is exploited by others, for personal or commercial gain. Red flags include unusual staffing policies or financial indicators
129
Explain the implications of the Sanctions and Anti-Money Laundering Act 2018.
The Act covers anti-money laundering and terrorist funding. Through further regulations, it allows the British government to make provisions for enabling or facilitating the detection or investigation of money laundering and terrorist financing, or the prevention of either.
130
What is the Sanctions List and why should you be aware of it?
A list of people or entities that have been sanctioned by the UK government, which may include trading restrictions. Penalty up to 7yrs in prison
131
Why was the Register of Overseas Entities introduced?
The Register of Overseas Entities (ROE) was brought into being under the Economic Crime (Transparency and Enforcement) Act 2022 (the Act) and was introduced to address concerns regarding a lack of transparency around who ultimately owns land in the UK.
132
What are the six RICS values published as a result of the Levitt review?
integrity, transparency, inclusion, collaboration, advocacy and passion.
133
Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022.
The government has introduced the Economic Crime (Transparency and Enforcement) Act 2022, which is aimed at strengthening the UK's fight against economic crime. The new measures include: a beneficial ownership register for overseas entities holding UK real estate. strengthening of unexplained wealth orders (UWOs)
134
How do you ensure that you comply with bribery legislation?
I follow RICS guidance
135
How do you ensure you comply with money laundering regulations?
I follow RICS guidance
136
Tell me about an instance of when you have been offered a gift or hospitality by a client.
I haven't been offered anything by a client but subcontractors would often provide bottles of alcohol at Christmas. The company policy deemed gifts under £50 as acceptable and no need to report. However, I would decline to prevent any assumptions from being made.
137
Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge.
I would advise the client that this was not something I was experienced in and to seek advice from a chartered surveyor who specilaised in this field. For example, I occasionally get calls for lease extensions and I advise that I am not qualified or competent for these works and that they should look elsewhere.
138
How would you keep client’s money securely and safely held?
I don't handle client money in my current role but would seek RICS guidance if this became a requrement
139
Tell me about how you would handle a client complaint.
I would acknowledge it and review in accordance with the company CHP
140
Tell me about your understanding of your firm's process for escalating a complaint to Alternative Dispute Resolution (ADR).
In the event that a complainant did not accept the company position, I would suggest ADR to resolve the dispute and confirm our compliance with their decision
141
Tell me about a conflict of interest check you have carried out.
When a potential client contacts me for a quote, I ask them how they obtained my company details, the agent they are buying through, and if they have any connection to my company or the seller. I compare any information provided to ensure there is no relationship with an existing client.
142
If you identified a potential or actual conflict of interest, how could you handle this?
I would notify the cllient and explain the risk of reduced impartiality. I would respectively decline the work.
143
Give me an example of when you have acted with integrity?
I was overpaid by a client, I informed them and returned the extra amount
144
Tell me about when you have provided a high standard of service.
I believe I provide a high standard of service daily. I keep customers informed of updates on the survey, such as progress, I am diligent, and provide them with a clear and detailed report. If asked, I will investigate certain things in more detail
145
Tell me about how you have promoted trust in the profession.
I am diligent and provide a client with a clear and detailed report, advising on defects and anything that had the potential to become a defect
146
Explain how you have taken responsibility in your current role.
I had to take responsibility to establish the business, gains client instructions, and meet their objectives
147
Tell me about how you treat clients with respect.
I communicate formally, listen to their concerns and objectives, and ensure I provide a service they require
148
Tell me about how you treat other surveyors with respect.
I don't often encounter other surveyors but treat all people equally and act in a kind and courteous way
149
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.
I would refer to RICS and UK Gov guidance and ensure insurance requirements are met.
150
If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.
This is not something likely to happen in my role but I would decline it and report it
151
What would you do if you were asked by a client to reduce a fee proposal to win new work?
I would review costs and consider it providing it was beneficial to the company and in compliance with regulations
152
What would you do if you became suspicious that a client was involved in money laundering?
I would report it to the authorites - National Crime Agency or HMRC
153
What would you do if you became suspicious that a client was involved in terrorist activities?
I would report it to the authorites - National Crime Agency
154
If you were to set up in practice on your own, tell me about the types of insurance you would need.
PI insurance
PL insurance
Employers liability insurance
Directors insurance
155
What is a professional statement?
Mandatory requirements for RICS members and firms
156
What is a guidance note?
A document that provides users with recommendations or an approach for
accepted good practice as followed by competent and conscientious
practitioners.
157
What are RICS rules of conduct?
These Rules set out the standards of professional conduct and practice expected of members and firms registered for regulation by RICS.
158
What is an international standard?
High-level standard developed in collaboration with other relevant bodies.
159
What is an RICS COP?
A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
160
What is the RICS jurisdiction guide?
This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally.
161
how long should you keep anti money laundering records?
5 years
162
What is a liability cap?
A liability cap limits the amount of damages that can be claimed by a client in the event of loss, even in the event of a negligent act. This helps firms to manage risk around the provision of surveying services.
163
What RICS information is provided for client money handling?
* Client Money Handling 1st edition Oct 2002 (professional standard)
* RICS Client money handling professional statement (UK) October 2019
* RICS Guidelines Fraud response plan May 2022
164
What are some of Birchard's recommendations?
There are 36 recommendations including:
* RICS should reaffirm its commitment to work in the public interest and
for the public advantage.
* RICS Matrics should be re-invigorated to give younger members a
stronger voice in the Institution
* A Diversity and Inclusion Panel should be established to provide advice
to the RICS Board and Standards and Regulation Board.
* RICS needs to significantly improve its technology
* RICS should commission an independent review of its effectiveness and
the degree to which its work is undertaken for the public advantage
every five years.
165
What is the timeline for Birchard's recommendations?
q4 2022 - q4 2023
166
When may RICS investigate a social media post?
RICS may investigate a social media post that adversely impacts upon public confidence or trust in the profession.
This includes posts that are:
*Discriminatory (which would also breach the Equality Act 2010)
*Dishonest
*Abusive or threatening
*Bullying, harassing or victimising another person or people
*Shows a pattern of frequent or a high number of concerning posts
*Ignores previous advice or warnings about RICS concerns, or a request from RICS to remove a post
167
What is the structure of the RICS
1.Privy Council
2. Governing council
3. Standards & regulation board and Management board
4. Under management board is: Audit, risk assurance and finance, Nominations and Remuneration committee, and worl regional boards
168
What is the composition of the governing council?
* RICS President
* RICS President-Elect
* RICS Senior Vice-President
* Senior Independent Governor
* 4 Strategy Seats (Academia and Education; Capital Markets and Valuation; Land; Research and Development; Residential; Urbanisation and Planning). 2 Strategy Seats are currently vacant (Research and Development; Urbanisation and Planning)
* 14 Market Seats (Africa; ASEAN, Australasia; Brazil; Canada; Caribbean; China; Europe x2; Hong Kong; India; Middle East; UK & Ireland x1; USA). 1 UK & Ireland Market Seat is currently vacant
169
What would you do if you came across something not seen before?
* research building regs
* research books
* research RICS (isurv)
* consult with specialist
* refer to specialist if needed
170
What are the recent Governing Council elections for?
RICS members have the chance to elect their preferred candidates to represent them on our highest governance platform. Members will have until 1200hrs (BST) on 24 April 2023 to vote for their preferred candidates across a number of constituencies. UK & Ireland seats are uncontested as the number of applications did not exceed the number of seats available.
