Ethics, Rules of Conduct and Professionalism

Question 1

What are terms of engagement? What would they include?

Answer 1

Sets out the agreement between the Client and the Service Provider.

1. Identify Client and Service Provider.
2. Declaration on conflicts of interest.
3. List relevant legislation and standards.
4. Scope of works and limitations.
5. Limit on liability.
6. Description of the deliverables.
7. Basis of fee calculation.
8. Complaints handling procedure.

Question 2

What are the requirements of a complaints handling procedure?

Answer 2

1. Fit for purpose
2. Made available.
3. Understood by all.
4. Regularly reviewed at senior level.
5. Agreed by PII providers.
6. Details to access an independent redress provider.

Question 3

On receiving a complaint what actions would you take?

Answer 3

1. Acknowledge receipt of the complaint and provide the Client with a copy of the firms CHP within 7 days.
2. Log in the complaints log.
3. Identify if there is a need to notify your PI insurance provider.
4. Provide an update within 28 days.

Question 4

What is negligence?

Answer 4

A breach in a duty of care.

Question 5

How do you determine if there is a duty of care?

Answer 5

Caparo three stage test:

1. Is there reasonable foresight that failure to take care could cause damage to others.
2. Is there a relationship of proximity.
3. Is it fair, just and reasonable that the law should recognise a duty to take reasonable care not to cause damage.

Question 6

What is ethics?

Answer 6

A set of moral principles.

Question 7

What is integrity?

Answer 7

The quality of acting in an honest manner.

Question 8

What is a conflict?

Answer 8

When your duty to act in the Client’s best interest is comprimised.

Question 9

What other insurance policies do firms requires aside from PI?

Answer 9

Employer’s Liability Insurance.

Question 10

What is a bribe?

Answer 10

The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach
of trust.

Question 11

What are the six principles for bribery prevention?

Answer 11

1. Proportionality
2. Top level committment
3. Risk Assessment
4. Due Diligence
5. Communication
6. Monitor and Review

Question 12

What is a facilitation payment?

Answer 12

A payment made to a government official with the purpose of speeding up a routine administrative action

Question 13

When is a facilitation payment permitted?

Answer 13

You are under duress and there is a real and present risk or danger to life, limb or liberty.

Question 14

What are the 5 global professional and ethical standards?

Answer 14

1. Act with integrity.
2. High standard of services.
3. Promote trust in the profession.
4. Respect
5. Responsibility

Question 15

What are the 5 principles of better regulation?

Answer 15

1. Proportionality
2. Accountabilty
3. Consistency
4. Targeting
5. Transparecny

Question 16

What steps would you take in establishing a firm?

Answer 16

Inform the RICS
Appoint a contact officer
PII
CHP
Client Money Account
Staff training and CPD

Question 17

What information does registered firms have to provide the RICS annualy?

Answer 17

Type of business and staffing.
Nature of Clients.
Training provision.
CHP and any records.
PII details.
Client money statement.

Question 18

What are the RICS bye-laws?

Answer 18

1. Application and definitions.
2. Membership and registration.
3. Designations.
4. Contribution to funds..
5. Conduct
6. Governing Council, officers and staff.
7. Subordnate boards, committess and groups.
8. Procedure for general meetings.
9. Accounts and audit.
10. General