Ethics, rules of conduct and professionalism Flashcards
In terms of PII insurance, what does ‘on a claims made basis’ mean
That it is the insurance policy that is in place at the time the breach is discovered that is claimed under, NOT the insurance policy in place when the breach was made
What is a consent order / Regulatory compliance order?
- A Regulatory Compliance Order is an agreement between RICS and a Regulated Member that they are liable for disciplinary action (a Regulated Member is and RICS professional or regulated firm).
The Regulated Member:
- admits that they have fallen short of the standards expected
- agrees to an appropriate sanction
- in some cases, take steps to meet the standards expected
and/or to prevent it happening again
Who polices the Bribery Act?
Serious Fraud Office
What are the three levels of disciplinary action?
- Action by Head of regulations
- Disciplinary panel
- Appeal Panel
What benefits does PII provide for the professional?
- The professional is protected from financial loss
- Does not have to meet the claim from their own assets and resources
Why do you want to become Chartered?
- See being a member of the RICS as being the gold standard of my profession.
- The level of guidance notes and support they offer their members will allow me to better serve my clients.
- I know the RICS designation if highly valued by clients and will further my career development and opportunities.
- I am committed to life long learning, professional and personal improvement and believe the RICS will support me in achieving this.
What is money laundering
Concealing the source of the proceeds of criminal activity to disguise their illegal origin.
How have you managed a conflicts of interest?
I would obtain informed consent from the client and set up an information barrier.
How long should run off cover be in place?
Depends on the type of contracts the professional has been involved with
- Usually 6 years if contract executed under hand
- 12 years if executed as a deed
Why register for regulation if it is optional?
Demonstrates that you:
- practice to globally recognised standards
- behave ethically and act with integrity and honesty
- Have the required skills and competence to do the job
- Manage conflicts of interest transparently
- Safeguard the security of clients money
- Manage your finances appropriately
- Provide adequate and appropriate indemnity for the work that you do
- Handle complaints and disputes fairly
What is your general view on providing gifts and hospitality?
Nothing wrong providing it is within the agreed limits as per my company’s AML policy and that all gifts received are inputted into my company’s gift register.
What is the purpose of the rules of conduct for members/firms?
The Rules provide a strong foundation for RICS, its professionals, and the firms it regulates, helping to protect the public and uphold the reputation of the profession.
The Rules of Conduct demonstrate to clients, consumers and the public the high professional standards that RICS professionals and firms work to. Being able to show that you are a qualified RICS professional or that your firm is regulated by RICS provides independent external confidence.
What is a byelaw?
The laws that govern the institution
What is the definition of an inclusive environment?
An inclusive environment is a safe space in which integration of diverse experiences and perspectives can freely coexist. It’s a place where people feel respected by and connected to each other.
What is the structure of Countering bribery and corruption, money laundering and terrorist financing 1st edition, February 2019
- A professional statement setting out mandatory requirements for anti-bribery and corruption and for anti-money laundering and terrorist financing.
- A guidance note setting out supporting good practice for anti-bribery and corruption and for anti-money laundering and terrorist financing.
- Supplementary guidance on some of the concepts described in parts 1 and 2.
Why do you not accept expensive gifts from clients?
The gift could have be misconstrued as an advantage
What is the difference between formal and informal learning?
Formal: web based training with structured assessment, formal seminars, providing training to others where research and preparation is required.
- Informal: private reading, internal CPD’s, shadowing /
mentoring trainee
Can you tell me the 5 Globas & Ethical Standards?
1 - Act with integrity -
Honest, open, transparent, conflict of interest
2 - Always provide a high standard of service -
Provide best advice, support or performance to whom you have a professional
Responsibility
3 - Always act in a way that promotes Trust in the profession -
Act professionally and positively in both private and professional settings
4 - Treat others with respect - Courtesy, politeness, be aware of cultural sensitivities
5 - Transparency - Be accountable
If you suspected a client of money laundering, what would you do?
Notify the Money laundry Monitoring officer within my organisation
When was the RICS established?
Royal Charter was granted on 26th August 1881
How do you provide a high standards of service?
I give my clients the best possible advice
What is an anti-money laundering check?
An identity assessment to ensure all purchasers etc are who they claim to be, and are not investing on behalf of somebody else.
What law relates to anti money laundering?
Anti-Money Laundering regulations 2017
Who polices money laundering regulations?
HMRC
What is the latest RICS business plan?
The RICS Covid 19 recovery business plan 2020/2021. This replaces the former RICS business plan 2018-2021
Name me a professional standard
RICS Valuation- Global Standards (2020)
What steps must you take for handling clients money
- clients must always have access to the funds
- client account must always be separate and clearly identifiable
- account must have the word ‘client’ in the name
- interest on the account must be agreed with the client
- Must maintain a client ledger or running balance of all transactions
- agree the terms and advise client on bank details
- account can never be overdrawn
What is the central purpose of the RICS?
- To maintain the highest standards of education and training
- To protect consumers through the 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 minimum levels of indemnity? / How do you determine the level
of PI cover?
Depends on the firms turnover:
- If turnover is £100k or less it is £250k
- If turnover is £100 - £200k it is £500k
- If turnover is above £200k it is £1m
Can members use the RICS Logo
Yes, on personal website, business cards and email signatures.
What is money laundering?
Is the process of making illegally-gained proceeds (i.e., “dirty money”) appear legal
Tell me about Merrett v Babb?
Court case in 2001
- Babb had done a valuation as an employee of a company for a house purchased by
Merrett
- Valuation later found to be negligent
- The original company no longer existed
- Court ruled Merrett could pursue the individual – Babb – for the losses
- Big shock in the industry
A client offers tickets to the races what would be your response?
Depends on whether it is furthering a working relationship or it is being offered in a time whether tendering in being undertaken. My default position would be to decline if I felt it compromises my ability to make an informed decision without compulsion.
How do you have regards for the rules for members
Ethical behavior- I avoid conflicts of interest and act responsibly inside and outside of work.
Competence- I carry out my work with due skill and care and in line with technical standards.
Service- I provide a good professional service to my internal clients and assist where necessary.
CPD- I have carried out the required amount CPD
Solvency- I keep my professional and personal finances appropriately managed.
What is the current president of the RICS up to?
The top 5 priorities of the new President are:
- Building back better - building confidence in society’s efforts to mitigate and adapt to climate change.
- Data and technology - supporting standards adoption, thought leadership and market insight to ensure a consistent and ethical approach to data and governance.
- Professionalism - looking at how we can ensure that the profession is equipped with the skills, competencies and behaviours to remain relevant and sustainable and what we can do collectively to foster public confidence in the profession as a custodian of the built and natural environment.
- the future of the workplace - Our vision is to ensure that workplaces can face their present challenges and are fit for future generations.
- Diversity and inclusion - promoting inclusiveness to reflect the needs and experiences of the diverse societies we serve.
What are the levels of members?
- Student Member
- Associate Member of RICS
- Member of RICS
- Fellow of RICS
What is a bribe and what are the 5 offences?
Something given in expectation of a change in behaviour
- Giving a bribe
- Taking a bribe
- Bribing an official
- Bribing a foreign official
- Not having measures in place to prevent bribery
Name me two guidance notes
- Commercial Property Service Charge handover procedures, 1st edition
- Complaints Handling, 1st edition, 2016
What is bribery
An advantage offered or given in expectation of a change in behaviour
How do you become a Fellow of the RICS
Three core principles at the heart of being an RICS Fellow:
- acting to further RICS and the profession
- acting for the benefit of a third party to reflect RICS’ public interest mandate
- promoting RICS objectives and the profession.
What do you need to do to close down a practice ?
Inform the RICS Keep clients informed Return client monies within your firm Inform insurers (Run off cover for 6 years) Retain files for 6 years minimum
What are the time limits for professional negligence claims ?
Under the Limitation Act 1980 these are:
The applicable limitation period in most professional negligence cases is six years from the date of the negligence.
However, this may be extended where the negligence only becomes apparent at a later stage. In those cases the relevant limitation period is three years from the date of knowledge of the facts which might give rise to a claim.
There is a long stop date of fifteen years within which claims must be brought.
What is the RICS Motto?
Est modus in rebus - there is measure in all things
What penalties can the disciplinary panel impose?
- Issue a compliance order
- Impose an unlimited fine proportionate to the offence
- Impose conditions upon future continued RICS registration
- Expulsion from membership or remove firm
- Require publication on website and modus
What are the key principles of the Bribery Act?
- Proportionality - The action taken should be proportionate to the risk and the size of the organisation.
- Top level commitment - Those in senior positions are best placed to ensure the organisation conducts business without bribery.
- Risk Assessment - Many organisations will have little or no risk of bribery but a risk assessment will show the nature or extent of exposure to bribery.
- Due Diligence - This is about having a risk based approach to business relationships - with those you deal with or who provide services for you.
- Communication - Employers will need to communicate their policies and procedures to staff and others who perform services, additional training may help raise awareness, and this would be proportionate to the size and type of organisation.
- Monitoring and Review - Risks to your organisation may change, over time you may want to carry out regular reviews and re-assessments.
Explain the potential implications of the Hart v Large case.
Surveyors can be considered negligent for not recommending further investigation is required or that a full building survey is requried.
Surveyors should therefore:
- Continue to keep your advice under review and consider the type of property and RICS guidance when recommending a survey;
- Be mindful of your duty to recommend a full Building Survey where necessary (and record that you have done so);
- Ensure you report anything that has not been inspected with an explanation as to why. This is particularly important at the moment, when surveyors are being required to undertake inspections that may be limited due to the restrictions in place due to the COVID-19 pandemic;
- Consider the appropriateness of recommending a professional consultant’s certificate which could ultimately protect both the surveyor and the purchaser.
How would you deal with a situation such as a friend asking you to provide them with surveying advice?
- cannot give advice on your own without PII cover in place
- if I had my own PII in place, ensure the information given was subject to the thorough checking process given to all information before issue, regardless of who it was to.
- if not comfortable acting for them, refer them to RICS find a surveyor scheme
- always adhere to the RICS rules of conduct
How do you promote trust in the profession?
By acting responsibly in my professional and personal life.
What basis should PII be underwritten?
On a claims made basis
What is the significance of the Merrett vs. Babb case?
- Considered if a professional employee was vulnerable to claims brought directly against them for advice given on behalf of their employers
- Highlights importance of run off cover
- Professional individuals and firms must ensure that run off cover is in place after they leave or their firm’s employment or a firm ceases trading
- Individuals should ensure that their ex company keeps up this cover on their behalf
How do you act with integrity?
I am open and transparent in all my dealings, in my professional and personal life.
What is included as part of a companies annual return ?
Type of business Statutory regulated activities Nature of clients CHP details and records Professional indemnity insurance details Whether the firm holds client money
