Ethics, Rules of Conduct and Professionalism Flashcards
1
Q
How do the RICS ensure the standards of professional conduct are upheld?
A
The RICS has Rules of Conduct, Global, October 2021, effective February 2022
The rules apply to all members and firms regulated by the RICS
2
Q
Rule 1
A
Members and firms must be honest and act with integrity and must comply with their professional obligations including those to the RICS.
Informed consent - Chris representing tenant
3
Q
Rule 2
A
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
Willowbrook - client requested a planning appraisal, referred to a colleague within P&D
4
Q
Rule 3
A
Members and Firms must provide a good quality and diligent service
When obtaining comparable evidence for valuation purposes, I will always call agents involved in the deal to verify information and make a record of all details obtained.
5
Q
Rule 4
A
Members and firms must treat others with respect and encourage diversity and inclusion
Member of EDI network, undertake CPD and address any unconscious bias. Encourage everyone to provide their opinion
6
Q
Rule 5
A
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.
Stonehenge – careful of actions and what was said to ensure no reputational damage
7
Q
Can you provide 5 example behaviours that comply with rule 1?
A
M & F do not mislead other by their actions or omissions, or by being complicit in the actions or omissions of others
Firms have effective processes to identify actual and potential conflicts of interest, to enable appropriate decisions to be made whether to accept work and keep records of decisions made about actual and potential conflicts of interest.
M & F are open and transparent with clients about their fees and services
Members and firms do not take unfair advantage of others
M & F do not facilitate any financial crime including money laundering, tax evasion, bribery or corruption. Firm have effective processes to prevent directors, partners or employees from doing so.
8
Q
Can you provide 5 example behaviours that comply with rule 2?
A
Members must only undertake work they have the knowledge, skills and resources to carry out competently.
M & F supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently.
M & F reflect on the work they have undertaken and its impacts and consider how they might apply what they have learned to their future work.
Members maintain and develop their knowledge and skills throughout their careers. They identify development needs, plan and undertake CPD activities to address them and are able to demonstrate they have done so.
M & F stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards. Firms ensure their director, partners and employees do so.
9
Q
Can you provide 5 example behaviours that comply with rule 3?
A
M & F must understand clients needs and objectives before accepting any professional work.
M & F agree with clients scope of service to be provided and its limitations and timescales for the work.
M & F communicate with clients and others clearly and in a way, they can understand
M & F understand the risks and benefits of using relevant technology
Firms have effective quality assurance processes for their work
10
Q
Can you provide 5 example behaviours that comply with rule 4?
A
M & F respect the rights of others and treat others with courtesy
M & F do not bully, victimise or harass anyone
Firms check their supply chains do not involve modern slavery or other abuses of the workforce
M & F work co-operatively with others
M & F develop an inclusive culture in their workplaces, support equal access and opportunity for all and identify and address unconscious bias
11
Q
What are the professional obligations for RICS members in Appendix A of the Rules of Conduct?
A
- Members must comply with CPD requirements set by the RICS
- Must cooperate with the RICS
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board or those exercising delegated authority on its behalf
12
Q
What are the professional obligations for RICS regulated firms in Appendix A of the Rules of Conduct?
A
- CHP Firms must publish a complaints-handling procedure, which includes an ADR provider approved by RICS, and maintain a complaints log.
- PII 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 the RICS
- SOLE PRINCIPAL Firms with a sole principle must take appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work
- COOPERATE Firms must cooperate with the RICS
- SRB Firms must promptly provide all information reasonably requested by the Standards and Regulation Board or those exercising delegated authority on its behalf
- REGULATED BY RICS Firms must display on the business literature, in accordance with RICS published policy on designation, a designation to denote that they are regulated by RICS.
- REPORT TO RICS Firms must report to the RICS any matter that they are required to report under the Rules for the Registration for Firms
13
Q
Can you explain how you act with integrity?
A
Being trustworthy in all that I do
Being open and transparent in the way that I work
Respecting confidential information
Not taking advantage
Not allowing bias, conflict of interest or the undue influence of others override my decision
Not offering or accepting gifts, hospitality or services which might suggest an improper obligation.
14
Q
Why must you act within your capabilities and competencies?
A
Because in the RICS rules of conduct, rule number 2 states that Members must only undertake work that they have the knowledge skills and resources to carry out. Undertaking work that I am not capable of may lead to a complaint or a claim for negligence.
15
Q
Can you explain how you take responsibility?
A
o Be accountable for my actions
o Act will skill, care and diligence
o Ensure a proper complaint handling procedure is in place in the event someone makes a complaint about me.
o If I think that something is not right that I will respectfully challenge and try to resolve the issue
16
Q
Can you explain how you treat others with respect?
A
o I am always courteous and polite
o Always listen to other ideas, opinions and concerns
o Ensure that others are comfortable enough to speak up feel they matter
17
Q
What are the RICS’ 5 principles of better regulation?
A
- Proportionality.
- Accountability.
- Consistency.
- Targeting.
- Transparency.
18
Q
What is the difference between RICS ethics and rules?
A
- Ethics are a set of moral values.
- Rules of conduct are a framework that we work to.
19
Q
What were the Global Professional & Ethical Standards? (Replaced by the RICS Rules of Conduct, Global, October 2021
A
- Act with integrity.
- Always provide a high standard of service.
- Act in a way that promotes trust in the profession.
- Treat others with respect.
- Take responsibility.
20
Q
Why did the previous Rules of Conduct change?
A
- The previous rules had been in place since 2007.
- Following research and consultation with RICS Members, Firms and Members of the public, the
majority voted in favour of replacing the existing Rules of Conduct and separate Global Professional
and Ethical Standards. - This was to provide a single document to enable greater clarity for RICS members and firms.
- I also understand there is now a greater focus on clearer example behaviors, understanding evolving
technology and tackling climate change.
21
Q
Talk us through your understanding of the Rules of Conduct changes?
A
- The Rules of Conduct October 2021 Global Practice Statement will overhaul the previous separate
documents:
o Rules of conduct for Members.
o Rules of Conduct for Firms.
o Global Professional and Ethical Standards. - Appendix A of the Rules of Conduct now contains the professional obligations of Members and
Firms.
22
Q
Why does the RICS have Rules of Conduct?
A
- To provide a framework that we can all work to and so the client knows he is getting a set level of service.
- As well as being an important tool for the Institution, the Rules of Conduct are also a useful professional guide for individual institution members.
23
Q
Your brother-in-law is a chartered surveyor. You find out that he is working outside the RICS Rules of Conduct. What do you do?
A
- I verify the facts and confront him reminding him of his duties as a member of the RICS.
- I inform the RICS specifying my relationship to the person and any corrective action which I believe my brother-in-law is committed to put in place.
24
Q
In the case of a breach of a rule of conduct what is the procedure?
A
- Not every shortcoming will necessarily give rise to proceedings.
- A formal investigation by the Head of Regulation of the RICS is the first step in the process.
- The RICS can request information and/or visit and inspect to investigate compliance.
- Members must cooperate fully with all enquiries.
25
How can a disciplinary proceeding be triggered?
* Someone complaining to the RICS.
* An allegation by a client or third party.
* Information received or established by the RICS.
26
What three actions can be imposed after the end of the investigation stage?
* Fixed penalty.
* Regulatory Compliance Order (Consent Order).
* Disciplinary panel.
27
What are fixed penalties?
A fine by the RICS.
28
What are Regulatory Compliance Orders (consent orders)?
* It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a
breach of the RICS rules.
* It can require the member to take certain corrective actions, or restrain them from taking certain actions
for a specified period of time and may require them to pay a fine or costs.
29
When is a disciplinary panel applicable?
* They are used for more serious breaches of conduct.
* The panel will usually be held in public.
* The burden of proof is on the RICS.
* A balance of probabilities approach will be adopted.
30
What sort of breaches would expulsion be suitable for?
* Gross, persistent or willful failure to comply with an RICS rule of conduct.
* Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate
discrimination, misappropriation of a client’s money.
31
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 all RICS communication.
* Prepare a complaints handling procedure.
* Obtain Professional indemnity insurance cover.
* Abide by the Rules of Conduct
* Use the designation ‘Regulated by RICS’ on all practice material.
32
Would you advertise your new company in the press?
Yes as long as it is in a trustful and responsible manner in line with the Rules of Conduct
33
What insurances would you need if you were starting up your own firm?
* Professional Indemnity Insurance.
* Employer’s Liability.
* Public Liability.
* Building’s insurance of an office premises.
34
What sort of information do registered firms have to send to the RICS annually?
* It is called annual return and carried out on-line.
* Failure to do so leads to a fixed penalty.
* It includes:-
o Type of business and staffing.
o Nature of clients.
o Training provision.
o Complaints handling procedures details and records.
o PI insurance details.
o Whether the firm holds clients’ money.
35
What processes do regulated firms need to put in place when handling Clients' Money?
* Preserve the security of clients' money which does not belong wholly to the company.
* RICS regulated firms that operate a client account must:-
o Set clear segregation of duties for employees.
o A Principal oversees the client money accounting functions.
o Principles cannot override controls.
o Competent and knowledgeable staff are to process clients' money with cover provided for long term absence.
o Accounting systems and data must be secure.
o Client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name.
o Clients must always have access to funds.
o We must agree the terms and advise the client on bank details.
o The account must not be overdrawn.
o We must maintain client ledgers and provide a running balance.
36
What are the different types of client money accounts?
* Pooled accounts that hold money for more than one client.
* Discrete accounts reference a single named client.
37
What is meant by the term Negligence?
* A duty of care is owed to all clients and 3rd parties using reasonable skill and care.
* If it is breached due to Negligence a claim may arise resulting in damages being paid or a Professional Indemnity Insurance claim.
* Negligence is a failure to provide the duty of care that is owed to the client.
38
Tell us about the Merrit V Babb case law?
* This case dates back to 2001 and highlights the importance of having run-off cover in place.
* A surveyor was sued for negligence by a former client.
* Because the surveying firm was no longer in existence therefore the individual surveyor was pursued for damages successfully.
* This caused a big shock in the industry and highlighted the need to ensure that run-off cover is in place for all previous employees.
39
What limitation periods are associated with underhand and deed forms of contract?
* 6 years when executed under hand (one person)
* 12 years when executed as a deed.
40
What must a complaints handling procedure include?
* The RICS provides a model form.
* The process must include a redress mechanism.
* Details of the policy should be issued to the client with the Terms of Business.
* It must be clear, quick, transparent and impartial and free of charge within the first stage.
* Names and contact details of the nominated investigating person must be stated.
* The complaint must be investigated within 28 days.
* All complaints, their progress and outcomes must be recorded.
* We must note the need to advise PI insurers of a complaint immediately.
* The process must have two stages as a minimum:-
o Stage 1 is where there needs to be consideration of the complaint by a senior member of the
firm or the complaints handling officer.
o Stage 2 if the issue is not resolved, the complaint is referred to an independent third party with
the authority to award redress. The complainant may be expected to contribute towards costs
at this stage.
41
What is an independent redress scheme?
* It is a consumer scheme designed to handle small issues that would be disproportionally 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 which redress scheme they want to use, it could be an ombudsman, arbitration or sometimes adjudication.
* If the complaint relates to a large amount of money or if the complainant wishes so, he can take the matter to court.
42
What do you do if you receive a letter of complaint?
* I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing additional information as required.
* I would also highlight the importance of informing our Professional Indemnity insurance providers immediately.
43
What is the ‘Clients’ Money Protection Scheme’?
* This is a money protection scheme operated by the RICS.
* It contains provision for any member of the public to be reimbursed their direct loss of funds when using an RICS regulated firm.
* This is provided through an RICS insurance policy.
44
What is the purpose of the joint names on a client account?
For the purpose of dual authorisation.
45
What are the continuous professional development (CPD) requirements?
* Members must undertake and record appropriate lifelong learning.
* On request by the RICS they must provide evidence that they have carried out the CPD to maintain and improve their levels of professional competence.
46
How many hours CPD must you do?
* A minimum of 20 hours CPD must be achieved per calendar year, of which a minimum 10 hours must be formal.
* Members must undertake learning on the standards expected around RICS Ethics on a rolling 3-year period.
* All CPD’s must be recorded via the RICS on-line management system.
47
What sorts of activities are included as CPD?
* It must have a clear learning objective relevant to my role to count as CPD.
* 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, internal CPD’s and on the job shadowing.
48
What recent article have you read from the RICS?
Information regarding the supplementary guidance to Rule 4:
The guidance aims to support members and firms by illustrating good practice in six areas:
* inclusive spaces
* inclusive recruitment
* inclusive policies
* inclusive culture
* everyday life at work
* career progression
49
What does PII stand for?
Professional Indemnity Insurance.
50
What is the purpose of Professional Indemnity Insurance?
To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, errors or omissions.
51
What benefits does PII provide for the professional?
* The professional is protected from financial losses.
* The firm does not have to meet the claim from their own assets and resources.
52
What benefits does PII provide for the client?
They are able to recover their financial losses.
53
On what basis is PII underwritten in the UK?
On a claims made basis - The insurance policy that is in place at the time the breach is discovered is responsible for providing the indemnity, not the insurance policy in place when the breach was made.
54
What are the requirements regarding Professional Indemnity Insurance set by the RICS?
* The policy cover must be made on an ‘each and every’ claim basis.
* The RICS sets out the minimum levels of indemnity.
* The RICS sets out the maximum levels of uninsured excess.
* Run off cover must be in place for at least 6 years.
* The policy should include cover for past and present employees, directors and partners.
55
Where do you get PII?
The RICS has a list of approved insurers
56
What are the minimum levels of PII indemnity?
Based on firm's turnover in the preceding year:
£100,000 or less - £250,000
£100,001 to £200,000 - £500,000
£200,001 and above - £1,000,000
57
What are the maximum levels of PII uninsured excess?
Based on firm's turnover in the preceding year:
£10,000,000 or less - The greater of 2.5% of the sum insured, or £10,000
£10,000,001 and above - No limit set
58
What measures should be taken to try and avoid PI claims?
* Keep full and detailed records of meetings and conversations.
* Record recommendations and advice given.
* Use proper letters of engagement, scope of services and terms of engagement.
* Don’t advise on a specialism outside your field of experience.
* Use RICS guidelines.
* Avoid poor management and excessive workloads.
59
If you made a mistake in your cost plan what would your insurance company expect?
For you to notify them and comply with any conditions & procedures set out in the insurance policy.
60
What are the main elements included within a fee proposal?
* Terms and conditions.
* Scope of services.
* Exclusions.
* Assumptions.
61
If you put together a fee proposal, but a couple of months into the job you realise that you have under forecasted your resources, would you go back to the client and ask for more money?
* If project requirements such as the services, scope or value of the project has increased then I would go back to client and request a fee increase.
* If the scope of works had remained the same, this highlights a mistake within our fee bid and the additional work would need to be carried out without reducing the level of service being offered and without requesting additional fees from the client.
62
Once you and your client agreed the services that are to be provided verbally what would you do next?
Follow up with a formal letter which includes the terms and conditions, fees and scope of services that are to be provided.
63
If the client gives you a lump sum fee before going on holiday, what would you do?
I would place the funds in a separately identified client account and agree a drawdown of monies against the services being provided with the client.
64
Tell me what you understand about conflicts of interest?
* A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
* An existing relationship will result in reduced impartiality and Chartered Surveyors have an obligation to make clients aware of this and if necessary, decline work opportunities where a conflict of interest occurs.
65
How could the conflict of interest be managed internally if two separate departments were working for the same client?
* I could put in place procedures to ensure exclusivity of staff.
* This would avoid any cross over of information between the departments.
* I would also ensure that there are separate communication lines into the client.
* Separate geographical locations and secure office and data storage would also need to be provided.
* Staff could also sign up to confidentiality or non-disclosure agreements.
* I would also need to monitor the potential conflict and keep the client updated on progress.
66
If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?
* I would check the clients understanding around the conflict of interest.
* I would then make the client aware of the potential for reduced impartiality.
* If they were still insistent on the appointment, I would seek a letter of instruction from the client to continue.
* Following the appointment I would agree working procedures to manage the conflict of interest with the client and the teams involved.
67
What is the Bribery Act 2010?
* The UK's main anti-corruption law.
* Contains 5 key offences and introduced strict liability for commercial organisations.
* The legislation applies to all UK Entities and includes associated Persons for example sub-consultants and external advisors.
68
What RICS document relates to bribery?
RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing (Global, 1st edition, February 2019)
69
What are the offences of the Bribery Act?
o Making a bribe.
o Receiving a bribe.
o Bribery of a foreign public official.
o Failure of a corporate entity to prevent bribery on its behalf.
70
What are the six principles of prevention companies should put in place under the Bribery Act?
1. Proportionate Procedures.
2. Top Level Commitment.
3. Risk Assessments.
4. Due Diligence.
5. Communication.
6. Monitoring & Review.
71
Under the Bribery Act, under what circumstance is a facilitation payment permitted?
* The only circumstance in which it is OK to make a facilitation payment is when you are under duress.
* For example if there is a real and present risk or danger to "life, limb or liberty".
* If you or your companions are under immediate physical threat.
* You should put safety first, make the payment and report the matter immediately.
* Or as soon as is practicable to your manager or your ethics compliance contact.
72
What is the Decision Tree and how does it work?
This decision tree provides guidance on making informed decisions by asking a series of yes or no questions. The questions cover determining if sufficient facts are available, if a decision is legal, consulting others, considering risks and options, and ensuring the reasoning is clear, informed, and could be publicly explained. Following all the steps and answering "yes" to the questions allows one to proceed with acting, then reflecting on the outcome. Answering "no" or "unsure" directs one to not proceed or seek more information before deciding.
73
Please explain your company's gift policy.
Must be customary and reasonable in terms of value and frequency.
Ad hoc less than £50 do not need to be declared (e.g. a bottle of wine/chocolates)
£50-£500 must be declared on gift register (e.g. Case of wine, attendance at sporting event)
Over £500 must be approved by an unrelated equity partner, compliance or finance director before it can be accepted.
Prohibited if frequent, a cash payment, or attendance at something like a gentleman only event/club. Still must be recorded on register.
74
What happened recently within the Standards and Regulation Board?
Chair (Dame Janet Paraskeva) and board resigned in June 2023. Interim board is chaired by Nigel Clarke.
75
At The Spur, what would you do if the tenant offered you £500 to inform them?
I would decline to prevent being influenced in my valuation.
76
What is money laundering?
How criminals change money and other assets into clean money or assets that have no obvious link to their criminal origins. The purchase of property has the potential to be used by organised criminals to launder money due to the amount of money which can be "cleaned" in a single transaction.
77
What are the five main categories of AML red flags that property professionals need to be aware of (as set out in the Red Flag Indicators RICS guidance)?
* the client
* the parties
* the source of funds
* the transaction
* the instruction
78
Please give an example of a red flag in a client when considering AML?
If the client is secretive or evasive about who they are, the beneficial owner, the source of funds, the reason for the transaction, or what the big picture is
79
Please give an example of a red flag in the parties when considering AML?
If the parties have connections of a family or other business nature which causes doubts as to the real reason for the business
80
Please give an example of a red flag in the source of funds when considering AML?
If the source of funds for the transaction is unusual such as large cash payments or unexplained payments from a third party
81
Please give an example of a red flag in the transaction when considering AML?
If the transaction has unusual features such as size, nature, frequency or manner of execution or it is potentially loss making
82
Please give an example of a red flag in the instruction when considering AML?
If the instruction is unusual for the business, such as willingness of the client to pay high fees
83
How would you react if a client asks you to reduce your fee to undercut a competetor?
I would speak with the client to understand whether they would consider changing the basis of the fee, for example changing from fixed fee to hourly rate. If they do not accept this, I would consider whether it would make commercial sense to accept the instruction or not.
84
Who do surveyors have a duty of care for?
The client, third paties and the public
85
Why would you want your firm to be regulated by the RICS?
* Credibility
* Quality assurance
* Global network
* Professional development
* Competitive advantage
* Dispute resolution
* Professional support
* Ethical standards
86
What is the Bichard review?
* The Bichard Review was an independent review commissioned by the RICS Governing Board in December 2021 into the purpose, governance and strategy of the RICS
* This was commissioned following the Levitt Review and aimed to create a new sense of purpose and direction of the RICS
* The review advised on 36 recommendations that are currently being implemented which include:
o Commercial Activity will now be separated from other activities within the RICS and led by a suitable qualified executive with strong commercial experience who reports to the Commercial Committee
o RICS Matrics should give younger members a stronger voice through an improved governance structure with an appropriately selected representative from the community of younger members to sit on the Governing Council
o A Diversity and Inclusion Panel will be setup to provide advice to the RICS Board and Standards and Regulation Board
o Improvement of Technology within the RICS
o A Public Interest Panel will be set up to advise the Governing Council
* The Governance Structure will be updated to include a Public Interest Panel, Sustainability Panel, Commercial Committee and Audit, Risk, Finance & Assurance Committee
87
Which section of the Red Book concerns ethics?
PS 2 Ethics, competency, objectivity and disclosure
88
During you valuation at The Spur, Wickham, what RICS publication did you refer to prior/during the inspection?
RICS Surveying safely 2nd edition, November 2018, effective February 2019
RICS Valuation - Global Standards, November 2021, effective 31 January 2022
89
At The Spur, Wickham, how had you formed your idea of value?
Through market awareness and a valuation previously undertaken of a similar property.
90
Are you aware of any guidance that applies to RICS Members when using Social Media?
* The RICS introduced the Guidance Note ‘Use of Social Media: Guidance for Members Version 1’
* Took affect from 30th June 2021
* Sets out the same standards as stipulated in the RICS Rules of Conduct and reminds members that these do not change whether communicating via social media, face to face or traditional forms of media
91
What are bye-laws?
Determine how the RICS is regulated.
92
Bye-law 2
Membership and registration
93
Bye-law 3
Designations
94
Bye-law 5
Conduct
95
What is the difference between bribery and hospitality?
Hospitality and gifts which are reasonable and proportionate are allowed and not considered bribes.
96
Is a bribe a civil or criminal offence?
Criminal
97
What is the maximum amount of cash you can accept?
10,000 euros
98
If you are an Expert Witness, who is your first duty of care to?
Members of the public
99
What are the 3 levels of disciplinary action?
- action by head of regulation
- disciplinary panel
- appeal panel
100
What would you do if you cannot get run off cover?
Apply for coverage to the RICS run-off pool
101
What is the minimum level of run-off cover you should get?
Consumer: £1m over a period of 6 years
Commercial: consider what is appropriate
102
What is the Limitation Act 1980?
Allows claims to be brought for up to 15 years from the date of the negligent act. Reiterates importance of run-off cover
103
What AML legislation is there?
- The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
- The Money Laundering, Terrorist Financing (Amendment) Regulations 2022
- Proceeds of Crime Act 2002
- Terrorism Act 2000
104
What is the penalty for breaching the Bribery Act 2010?
* Individuals: maximum 10 years imprisonment
* Organisations: unlimited fine
105
Who would you report bribery to?
Serious Fraud Office
106
What is the role of the RICS?
1. Protect the consumer through Rules of Conduct and Professional Standards
2. Ensure the highest level of training and education
3. Be the leading source of information and independent advice in land, property and construction
107
What RICS document related to client money?
Professional Standard: Client money handling, 1st edition, October 2019
108
How much PII cover does CJ have?
£50,000,000
109
What is the PII excess for CJ?
£50k for commercial valuation, £25k for other work
110
What should you do before accepting an instruction?
Check you are competent, then check for any conflicts, then issue terms of engagement
111
What are the ethical principles the Rules of Conduct are based upon?
* honesty
* integrity
* competence
* service
* respect
* responsibility
112
Please give me an example of when you have complied with Rule 1
Carry out conflict of interest checks upon receiving instructions and any changes to instruction in accordance with Conflicts of Interest Professional Standard.
Informed Consent – Saddlers example
113
Please give me an example of when you have complied with Rule 2
Willowbrook – client requested a planning appraisal, referred them to a colleague within P&D team
114
Please give me an example of when you have complied with Rule 3
When obtaining comparable evidence for valuation purposes, I will always call agents involved in the deal to verify information and make a record of all details obtained
115
Please give me an example of when you have complied with Rule 4
Member of Equality, Diversity and Inclusion Network, undertake CPD and address any unconscious bias.
116
Please give me an example of when you have complied with Rule 5
At protest encampment, careful of wording due to being filmed
117
When did the Bribery Act 2010 come into force?
1 July 2011
118
When do you need to undertake an AML check?
SALES
* Our client - at time of instruction
* The counterparty - as soon as the offer is accepted, no later than exchange date
LETTINGS
* Our client - at time of instruction
* The tenant (if paying £8,500/month or in a lump sum) - on or before lease is signed
119
What RICS document relates to PI claims?
RICS Guidance Note Risk, Liability and Insurance (1st edition) (amended November 2021)
120
What are the penalties for money laundering?
Up to 14 years imprisonment and/or a fine
Failure to report/tipping off - 5 years imprisonment and unlimited fine
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What would you do if you were to close down your practice?
* notify the RICS
* notify Companies House
* ensure run-off cover is in place
* keep files for 15 years
* return client money
* notify clients and advise them of an alternative surveyor who can undertake the work moving forwards
