Ethics, Rules of Conduct and Professionalism Flashcards
What is a Bribe?
A payment, gift or favour given to someone to influence their actions of decisions in favour of the person offering the bribe.
What are the four bribery offences?
- Bribing
- Receiving a bribe
- Bribing a foreign public official
- Failing to prevent a bribe
Is there legislation for bribery and what is it’s aim?
Yes, Bribery Act 2010
It aims to reduce bribery in business in UK and abroad.
What are the six principles of the Bribery Act?
- Proportionality
- Top level commitment
- Risk Assessment
- Due Diligence
- Communication
- Monitoring and review
Who policies the Bribery Act?
The Serious Fraud Office
What are the penalties if the Bribery Act is breached?
- Maximum penalty of 10 years imprisonment.
- and/or an unlimited fine for individuals.
- Companies face an unlimited fine.
Who is responsible for an employees actions in relation to bribery?
Companies are responsible for the employees corrupt act unless the can show they had adequate policies and procedures in place to combat bribery.
What is money laundering?
Money laundering is when proceeds of criminal activities are disguised or converted an then realised as legitimate assets.
Is there legislation relating to money laundering?
Yes, Terrorist Financing and Transfer of Funds Regulations,
The regulations cover estate agency work and relevant financial business work inside and outside the UK by a firm.
Name the key provisions of the regulations.
- A requirement to 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 regulation.
- Adopt appropriate internal controls.
- Provide staff training.
- Comply with new customer, enhanced and simplified due diligence requirements.
- Comply with requirements relating to politically exposed persons.
- Ensure appropriate record keeping, policies and procedures.
- AML checks must be undertaken to confirm the identity of the proposed purchaser of a property and check purchaser’s source of funds by the vendor’s agent before contracts are exchanged.
- To include additional high-risk factors when assessing the need for enhanced due diligence, and seek additional information and monitoring in certain cases.
What are types of due diligence checks?
- Customer Due Diligence
- Enhanced Due Diligence
What is required in a CDD?
- Identify and verify the client (e.g. passport, driving licence or electronic identification).
- Identify the beneficial owners of the client or person managing it using Companies House.
- For a company, its name, company number and address of the registered office.
- Names of the directors unless the company is listed on a regulated market.
- Information on the purpose and intended nature of the business relationship and proposed funding arrangements.
What is required in an EDD?
- Additional procedures required for any transaction or business relationship involving a person established in a high risk third country or a politically exposed person or a PEP family member/business associate.
- A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue of their position and influence that may hold.
- More detailed examination of the background and purpose of the transaction and increased monitoring.
What is the limit for the acceptance of cash?
10,000 euro
Who reports any suspicions of money laundering?
The Money Laundering Reporting Officer
Who does money laundering get reported to?
A Suspicious Activity Report to the National Crime Agency.
How long should a firm keep records for?
5 years
What are penalties for money laundering?
- Maximum 14 years prison sentence and/or unlimited fine for assisting with money laundering.
- Maximum 5 years prison sentence and/or unlimited fine for tipping off a person or failing to report suspicion.
What red flags should you be aware of for money laundering?
- Inability or unwillingness of parties to provide identity documents.
- Changes to parties involved in transactions.
Unusual transaction features such as unexpected urgency required by parties, potential loss-making or an unusual transaction for a client. - Payment of fees, purchase or rental monies in unusual currencies.
When was the RICS founded?
1868
What does the RICS stand for?
Royal Institute of Chartered Surveyors
How many members of the RICS is there?
Over 130,000
What types of membership are there?
- FRICS
- MRICS
- AssocRICS
- Trainee/Student
What is the governance structure of the RICS?
- Governing Council
- Standards and Regulation Board
- Management Board
Who is the CEO of the RICS?
Justin Young
Who is the President of the RICS?
Tina Paillet
What is the role of the RICS?
Promotes and enforces the highest professional qualifications and standards in the development and management of real estate, construction and infrastructure.
What are the three main roles of the RICS?
- To maintain the highest standards of education and training.
- To protect consumers through strict regulation of professional standards.
- To be the leading source of information and independent advice on land, property, construction and associated environmental issues.
What are the benefits of being a RICS member?
- Status
- Recognition
- Market Advantage
- Knowledge
- Network
What information is required by the RICS for registration?
- Type of business and staffing details
- Name of the Responsible Principle
- Statutory regulated activities
- Nature of clients
- Complaints handling procedure details and records
- Professional indemnity insurance details
- Whether the firm holds clients’ money
What are the FIVE Rules of Conduct?
- Be honest and act with integrity
- Maintain professional competence and services are provided by a competent individual.
- Provide good-quality and diligent service.
- Treat others with respect and encourage diversity and inclusion.
- Act in the public interest and maintain public confidence.
