Ethics, Rules of Conduct and Professionalism: Professional Practice Issues Flashcards
How do you ensure you comply with your firm’s bribery and gifts policy?
Do not accept gifts with a monetary value of over £100
Any gifts that are accepted ensure they are logged on the gift register
Consider the proportionality and timing of it and whether it would impact the impartiality of my professional judgement
What are the 6 principles of the Bribery Act (2010)?
Proportionality
Top Level Commitment
Risk Assessment
Due Diligence
Communication
Monitoring and Review
What are the four main offences in the Bribery Act (2010)?
Offering a bribe
Receiving a bribe
Bribing a public official
Failing to report or prevent bribery
What is a bribe?
giving or receiving a financial or other advantage in connection with the improper performance of a position of trust, or a function that is expected to be performed impartially or in good faith
What bribery legislation are you aware of?
RICS Professional Standard on Countering Bribery and Corruption, Money Laundering and Terrorist Financing (2019)
Bribery Act (2010)
What is the purposed of the Bribery Act (2010)?
To prevent bribery and corruption in the UK and abroad
What does the RICS Professional Statement on Countering Bribery and Corruption, and Money Laundering and Terrorist Financing (2019) set out?
Sets out:
- Mandatory requirements for anti-bribery and corruption and for anti-money laundering and terrorist financing.
- Guidance setting out supporting good practice for anti-bribery and corruption and for anti-money laundering and terrorist financing
What would you do if you became suspicious that a client was involved in money laundering?
Notify my superiors of the suspicion
I would notify the authorities to investigate
What are some red flags for money laundering?
unwillingness to provide formal identification documents
requests payments in unusual currencies
deliberate loss making
requests for cash payments
time pressures on payments
What is money laundering
An attempt to conceal the proceeds of criminal activities through legitimate businesses
What are the potential penalties for breaching the bribery acy?
Individuals: max 10 years imprisonment and/or unlimited fine
Companies: unlimited fine
Under the Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, 2017, what are some of the key requirements for businesses?
Have a written money laundering and terrorist financing risk assessment
Implement systems, policies and controls and procedures to address money laundering and terrorist financing risks and meet the requirements under the regulations
Adopt appropriate internal controls
Staff training
Adhere to DD requirements
Undertake AML checks
How would you carry out Customer Due Diligence (CDD)?
- Verify client’s identity based on reliable independent source (e.g. passport)
- Make reasonable endeavours to establish the beneficial owner of the client
- Obtain the company’s number and registered office address / names of the directors
- obtain information on the purpose and intended nature of the business relationship and proposed funding arrangements as appropriate
When would you have to undertake Enhanced Due Diligence EDD?
For any transaction/business relationship involving a person in a high risk third country or a PEP
What is a politically exposed person?
someone entrusted with a prominent public function (e.g. MPs, ambassadors)
They generally present a higher risk of bribery/corruption due to their public profile
Who polices Money Laundering Regulations?
National Crime Agency
What does good governance mean to you?
Good governance is implementing clear and fair rules that are equal for all and are underpinned by honest and moral principles.
How do professional integrity and professional ethics differ?
Ethics are principles that guide behaviour, integrity is the action of following and acting in line with those principles
How would you identify red flags of modern slavery?
8 signs of modern slavery:
- Evidence of a workplace being used for accommodation.
- Workers are distrustful of authorities.
- Workers look uneasy, unkempt or malnourished.
- Signs of psychological trauma.
- Untreated injuries.
- Evidence of control over movement (being picked up and dropped off in groups)
- Signs of substance misuse.
What would a private individual have to produce for CDD purposes?
Valid passport or driving licence with photo
copy of a bank statement/credit card bill etc with proof of address (not more than 3 months old)
What would a private limited company have to produce for CDD purposes?
Certificate of incorporation
Full name, registered number, registered office address
Names of all directors
What is a bye-law?
A set of rules or law established by an organisation to regulate itself
What are the main offences under current money laundering regulations?
Concealing Offence - concealing, disguising, converting or transferring criminal property
Arranging Offence - facilitating the acquisition, retainment, use or control of criminal property
Acquisition, use of position offence - acquiring or using criminal property
How long should you keep anti-money laundering records for?
5 years from the date of business relationship ending / the date of transaction is completed. Material includes:
records of transactions
receipts
checks
What are the penalties for breaching money laundering regulations?
Jail sentence of up to 14 years or unlimited fines - seriousness is dependent on the amount of money involved
What is an aggregation clause in PII?
A clause that enables payouts from claims made under the same policy in the same year to be covered in one payment
What is a locum and who might need one?
A locum is another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work e.g in the event of illness
A sole trader would need a locum
What is whistleblowing?
Whistleblowing is ‘making a disclosure in the public interest’
What is a sanctions check and how would you carry this out?
A sanction check is to take measures to prevent transactions with persons prohibited from certain transactions or activities.
I carry out a sanctions check through Salesforce which checks if the entity/individual in question is on any UK sanctions list.
What are the 6 RICS values published as a result of the Levitt Review?
Integrity
Transparency
Inclusion
Collaboration
Advocacy and Passion
Accountability
Who polices Money Laundering Regulations?
National Crime Agency
Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge
Would not accept the instruction
Advise that it is outside my professional competence
Provide contact details of relevant colleague if possible
Tell me about how you would handle a client complaint.
Acknowledge the complaint within 2-3 days (RICS recommend 7 days)
Action the complaint within 14 days (RICS recommend 28 days)
Pass the complaint onto the complaints handling officer
If necessary pass onto legal team
If you identified a potential or actual conflict of interest, how could you handle this?
Dependent on the nature of the confllict
- Own Conflict – reject the instruction
- Party Conflict – ensure that I am not part of the work or project if possible so the company could still carry out the work, ensure information barriers are in place
- Confidential Information Conflict – ensure information barriers are in place
In all instances I would have to inform the client and ensure that they have provided informed consent to continue with an instruction knowing the conflict of interest exists.
How did you analyse and select a successful tender party?
Set up a scoring matrix analysing key components of the tender such as price, timings, scope of services provided, timings, relevant experience
What is the risk of advising outside of your scope of competence?
Provide poor client care
Not covered by your PI insurance
Open to potential negligence claim
Not complying with RICS Rules of Conduct
Under the 2019 RICS Professional Standard: Countering Bribery, Corruption, Money Maundering and Terrorist Financing, 2019, what are the mandatory requirements for regulated firms with regards to Bribery and Corruption?
Not offer/accept anything that could be constituted as a bribe
have procedures in place to comply with the law
report suspicions to the relevant authority
retain records to demonstrate that the firm has met the requirements of this professional standard
Under the 2019 RICS Professional Standard: Countering Bribery, Corruption, Money Maundering and Terrorist Financing, 2019, what are the mandatory requirements for regulated firms with regards to Money Laundering and Terrorist Financing?
Not facilitate ML or TF
have systems in place to comply with the law
report suspicion
verify clients using ID checks
retain records to demonstrate compliance
