Ethics Rules of Conduct and Professionalism Flashcards
What is equality?
Equality refers to the state of being treated the same, with fairness and impartiality, regardless of factors like race, gender, age, or disability. It ensures everyone has equal opportunities and access to resources.
What is equity?
Equity involves providing fair treatment by considering individual needs and circumstances, ensuring everyone has the resources or opportunities they need to succeed, even if it means different support for different people.
What is your company’s gift policy?
No gifts - proportionality - we donate to charity
Would you review accounts personally?
No - I would always recommend that these are checked by a qualified accountant.
How would you set up a new business with the RICS?
Inform RICS of practice by completing a Firm Details Form
Appoint a Responsible Principal for all RICS communication
Register with RICS for regulation of firm
Arrange Professional Indemnity Insurance and send details to RICS
Set up procedures for client money handling, including protection scheme
Register for the RICS Valuer Registration Scheme (VRS)
Obtain RICS approval for Complaints Handling Procedure
Set up complaints log
Appoint a Complaints Handling Officer (or elect a surveyor in another practice if a sole practitioner)
Use a logo kit from the RICS for all practice material
Plan for succession/future running of the business if a sole practitioner
Ensure CPD logged online on the RICS CPD Management System
Ensure completion of an online RICS Annual Return at the end of each year
If a client said they had just won on the horses and wanted to pay money into client account what would you do?
Refuse
RICS Professional Standard : Countering bribery, corruption, money laundering and terrorist financing 2019
Proceeds of Crime Act 2002
Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 - accept up to 10,000 euros in cash. Penalties - max 14 years in prison and/or unlimited fine for assisting with money laundering. max 5 years in prison for tipping off a person
Bribery Act 2010 - Policed by SFO - maximum 10 years imprisonment
limit on 10,000 for acceptance of cash
MLRO must report any suspicious activity to the NCA (National Crime Agency)
Customer Due Diligence, Enhanced Due Diligence
Why do you want to be a member of the RICS?
Status
Recognition
Market advantage
Knowledge
Network
6 Principles of the Bribery Act 2010
Proportionality
Top Level Commitment
Risk Assessment
Due Diligence
Communication
Monitoring and review
6 Principles of the Bribery Act 2010
Proportionality
Top Level Commitment
Risk Assessment
Due Diligence
Communication
Monitoring and review
Four types of bribery offences
Bribing
Receiving a bribe
Bribing a foreign official
Failing to prevent a bribery
Penalties for bribery
Policed by the SFO
maximum penalty of 10 years imprisonment / unlimited fine
Key legislation on money laundering?
Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, 2017
RICS guidance on handling clients money?
And 6 areas of good practice?
RICS Professional Statement Client Money Handling 2019
1 Holding Client Money
2 Providing information to clients
3 Receipts of clients money
4 Payments from clients accounts
5 Accounting records and controls
6 Compliance
What is the RICS legislation for COI?
RICS Professional Standard Conflicts of Interest 2017
What are the 3 types of conflicts?
Party Conflict
Own Interest Conflict
Confidential Information Conflict
What money laundering regulations are you aware of?
RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing 2019
Money laundering Regulations (updated 2023) - EDD and PEPs
How would you ensure compliance with the RICS PS on Client Money Handling 2019
Client accounts must be separate
The bank account must be named ‘client’
Client must be able to have their money on demand
The RICS also runs a Clients Money Protection Scheme
What steps do you need to undertake when setting up your own practice?
Inform the RICS and register for regulations
Professional indemnity insurance
Appoint Complains Handling Officer
Set up appropriate procedures for handling clients money
Compliance with statute - DDA, H&S, Money Laundering Act
Appoint a locum
If your client wanted to give you £10,000 euros in cash to hold what would you do?
Recommend that they deposited into an online bank account instead through a clear paper trail. I would be able to accept it but I would recommend this.
Why do you want to become a member of the RICS?
The RICS sets the global standard for Real Estate
To be acknowledged professionally
To expand my network
To have access to resources and training (CPD)
Commitment to ethics and standards
What must RICS members do?
Comply with CPD requirements
Cooperate with the RICS
Promptly provide all information requested by the standards and regulation board
Which Part of the Building Regulations 2010 covers accessibility and access to and use of buildings?
Part M of the Building Regulations covers accessibility and access to and use of buildings.
Bichard Review?
2022 - Followed the Levitt Review
Focussed on Governing Structure of the RICS
Focus on diversity and inclusion
Independent review of RICS governance every 5 years
How long does a Tenant have to remedy a breach after Section 146 Notice under law of property act 1925 is served?
6 months
How would you undertake conflict of interest checks?
Alert both parties of conflicts
Communication
Conflict avoidance vs conflict management
Get informed consent
How can you manage a conflict?
COI check software
Information barrier
Parties acting on two sides must be different and they must be physically separated
Virtual IT barrier
All information should be stored securely
Keep a clear audit trail of the conflict check process and all written and oral communication- firms compliance officer must oversee.
What is the adequate and appropriate run off cover following cessation of trading?
£1,000,000 of aggregate cover over a period of 6 years
6 main areas of good practice as set out in the RICS PS Client Money Handling, 2019?
Holding client money
Providing information to clients
Receipts of client money
Payment from client accounts
Accounting records and controls
Compliance
What would you request from a new client before agreeing terms of engagement?
What is the legislation/guidance from Government and RICS
Terrorist financing and transfer of funds (information on the payer) regulations, 2017
RICS Professional Standard: Countering bribery and corruption, money laundering and terrorist financing 2019
CDD checks - identify client and verify their identity (passport, drivers licence), person with significant control, names of directors
EDD checks - high risk 3rd country, politically exposed person (PEP)
What are some of the other requirements under money laundering regs
Limit of 10,000 euros for the acceptance of cash
Detailed record keeping
Monitor the business relationship
Must be a compliance officer
Must be a Money Laundering Reporting Officer who reports any suspicious activity to the NCA - National Crime Agency
A firm maintains records for a minimum of 5 years and reports to Companies House any discrepencies between the information the firm holds and that held in the Companies House Register.
