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APC - KB > Ethics, Rules of Conduct and Proffesionalism > Flashcards

Ethics, Rules of Conduct and Proffesionalism Flashcards

1
Q

What is the key legislation to consider surrounding gifts and bribery?

A

The Bribery Act 2010.

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2
Q

What does the Bribery Act 2010 do?

A

It aims to reduce bribery in business in the UK and abroad.

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3
Q

Define a bribe.

A

A bribe can be the giving, offering, promising, or receiving of an advantage such as a payment or a service for an action that is illegal or a breach of trust.

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4
Q

What are the six principles for prevent ting bribery under the UK Bribery Act 2010?

A
  1. Proportionality
  2. Top level commitment
  3. Risk assessment
  4. Due diligence
  5. Communication
  6. Monitoring and review
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5
Q

What are the four bribery offences?

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign public official
  4. Failing to prevent bribery
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6
Q

What does government guidance state in relation to corporate entertainment and bribery?

A

Hospitality is not prohibited by The Bribery Act 2010 provided the hospitality is proportionate and is accurately recorded in a gift/hospitality register.

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7
Q

Are companies responsible for their employee’s corrupt actions?

A

Yes, unless they can show that they had adequate policies in place to combat bribery, including identifying potential risks, staff training, clear policies and regular reviews.

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8
Q

What are the penalties for bribery?

A

Individuals - maximum penalty of 10 years imprisonment and/or an unlimited fine for individuals.
Companies - an unlimited fine.

The Serious Fraud Office police this.

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9
Q

What are the 5 Key Rules of Conduct (2021)?

A
  1. Act with honesty and integrity
  2. Maintain professional competence.
  3. Diligent service
  4. Respect and promote diversity and inclusivity
  5. Act in the public interest and take responsibility for their actions, maintain confidence in the profession.
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10
Q

What is the Modern Slavery Act 2015?

A

It is a UK law which is designed to combat modern slavery and human trafficking in all its forms:
- human trafficking
- forced labour
- slavery and servitude
- exploitation of vulnerable people

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11
Q

What is a conflict of interest?

A

A conflict of interest arises when a member or firm’s independence and impartiality is threatened due to the existence of a conflict between two clients. Examples include:
- Financial Interest
- A personal interest
- Commercial relationships
- Acting on both sides of a transaction

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12
Q

What is conflict avoidance?

A

When you do not accept the instruction if a conflict is present.

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13
Q

What is conflict management?

A

When an instruction is accepted with a conflict, steps are agreed upon and put in place to manage the conflict.

E.g., information/ethical barrier, with written agreement of all parties.

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14
Q

What is the RICS professional standard relating to conflicts?

A

RICS Global Professional Standard: Conflicts of Interest, 2017.

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15
Q

How do you handle a conflict of interest?

A

Conflict avoidance - only act for one party.

If you are going to accept an instruction, you need to write to both parties to disclose the nature of the conflict, ensure the parties can make their own decision, and obtain informed consent. Then, they must manage the conflict effectively.

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16
Q

What is Informed Consent?

A

Informed consent means that a client (or clients) knowingly agrees to a potential or actual conflict of interest after being fully informed of the nature and risks involved.

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17
Q

What is Dual Agency?

A

Where an agent has a contractual agency relationship with both the seller and the buyer at the same time.

RICS members must not undertake this from 1st January 2018 onwards.

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18
Q

What is Incremental Advise?

A

When an agent is approached by another party to provide advice, to include valuation, building surveying or planning, related to purchase or disposal that is incremental to an existing instruction.

E.g. where an agent acting for the seller is approached by the buyer, or it’s lender, to provide a valuation.

Must only be completed if consent is given and barriers are in place.

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19
Q

What is a Personal/Own Interest Conflict?

A

This arises when acting for a family member, a close business associate, or someone who you have a financial or personal interest or benefit.

You must not let the personal influence interfere with judgement or professional advise. You must declare facts promptly.

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20
Q

What is money-laundering?

A

When criminal activities are disguised or converted and then realised as legitimate assets.

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21
Q

What regulations relate to Anti-Money Laundering?

A

The Money Laundering, Terrorist Financing and Transfer of Funds Regulations.

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22
Q

What are the levels of due diligence checks?

A

Level 1 - Customer Due Diligence
Level 2 - Enhanced Due Diligence

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23
Q

What is Customer Due Diligence?

A

Identifying the customer’s ID based on a reliable independent source.
Make reasonable endeavours to identify the beneficial owners of the client.
For a company, it’s name, number and address is required, and the names of the directors unless the company is on a regulated market.

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24
Q

What is Enhanced Due Diligence?

A

Required for any transaction or business relationship involving a person establishing a high-risk third country or a politically exposed person or PEP member/business associate.

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25
What is a PEP?
Politically Exposed Person - generally someone who has been entrusted with a prominent public function and will be higher risk for bribery and corruption due to the influence they may hold.
26
How long must a firm maintain AML records for?
5 years and to report to Companies House any discrepancies between the information the firm holds on their customers compared to the information held in the Companies House Register.
27
What are the penalties associated with Anti-Money Laundering?
Assisting with Money Laundering - Maximum 14 years sentence and/or an unlimited fine. Tipping off/failing to report suspicion - Maximum 5 years prison sentence and/or unlimited fine.
28
What Customer Due Diligence is required for a Public Limited Company (PLC)?
The London Stock Exchange listing.
29
What Customer Due Diligence is required for a publicly accountable body?
Government ownership/control.
30
What Customer Due Diligence is required for a Private Limited Company?
Certificate of Incorporation Full Name, Company Number, Registered office and business address. Names of all directors and shareholders over 25% holding. Identification of a higher risk client.
31
What Customer Due Diligence Checks are required for a private individual?
Copy of proof of photographic ID (Passport or Driving Licence) Copy of proof of address (bank statement, card bill, council tax statement, not more than 3 months old).
32
What are some red flags to look out for in money laundering?
- Inability or unwillingness to provide ID documents - Changes to parties involved in transactions - Unusual transaction features such as unexpected urgency, potential loss making, or an unusual transaction - Payment of fees, purchase or rental monies in unusual currencies.
33
What must Terms of Engagement State?
State in writing the client's agreement to the proposed fee payment of expenses and that a copy of the firm's complaints handling procedure is available upon request.
34
In what instance is a bribe deemed acceptable in the RICS view?
If there is threat to life.
35
What are the two stages for complaints handling procedures?
Stage 1 - In house Details of the CHP should be issued whenever a complaint is received, must be quick, clear and impartially implemented. A nominated person must be stated and the complaint must be made in writing. Timelines must be outlined and a complaint should be acknowledged within 7 days and investigated within 28 days. Stage 2 - ADR - Third-party resolution. If they're not happy with the outcome then a Third Party. Options are The Centre for Effectiveness Dispute Resolution, The Property Redress Scheme and The RICS Dispute Resolution Service.
36
In your Lease of Retail Space, Cannock, example you explained the tenant did not instruct a solicitor what sort of action did you take?
In line with the RICS Professional Standard: Code for Leasing Business Premises 2020, I made the recommendation that the tenant obtain professional advice and the existence of the code and supplemental guide (found in the appendix)
37
Which document refer to unrepresented tenants and duty of care?
RICS Professional Standard: Code for Leasing Business Premises, 2020. Specifically, in section Part 2 - Mandatory requirements (Part 1.2.)
38
Who is the Chair of the RICS?
Martin Samworth FRICS
39
Who is the acting president of the RICS?
Nicholas Maclean OBE RD BSc FRICS IRRV RICS President Elect 2025
40
What RICS documents are mandatory and which are guidance?
Currently, the RICS has two types of documents: - RICS Professional Standard - RICS Practice Information Professional Standard contains mandatory and best guidance information, where mandatory is stated with 'must' and best practice is stated with 'should'. Practice Information is not mandatory but provides additional information for guidance and support.
41
When was the RICS founded?
1868
42
When was the Royal Charter granted?
Granted by the Privy Council in 1881.
43
What sets out the governance of the institution?
RICS Regulations and Bye-laws
44
How many members are currently in the RICS?
As of 2023, there were 113,000 qualified members, and 28,000 trainee members.
45
What are the four levels of membership?
RICS Fellow - FRICS Chartered Member - MRICS Associate Member - AssocRICS RICS Student
46
What must you provide in order to become a Fellow?
Evidence of 4 fellowship characteristics, which include 5 years or more at MRICS, a leadership role, and professional/technical achievement, academic achievement, or raising the profile of the RICS. A portfolio of professional achievement to support the application is required to include in your CPD.
47
What is the current governance structure of the RICS?
It is governed under the terms of its Royal Charter by various internal councils and boards. The governing council currently has 29 members.
48
Who is the Chief Executive Officer?
Justin Young
49
Who is the current RICS President?
Nicholas Maclean, OBE
50
Who is the RICS Vice President Elect?
Maureen Ehrenberg, FRICS, CRE
51
What is the Role of the RICS?
- To maintain standards via education and training - Protect consumers through regulation and professional standards - be the leading source of information and independent advice on land, property, construction, and associated environmental issues.
52
What is the Bichard Review?
53
What are the 5 Future Foundations?
- Vision - Mission - Strategic Goals - Values - A world class organisation
54
What is included in the RICS Vision?
A natural and built environment that is sustainable, resilient, and inclusive for all.
55
What is included in the RICS Mission?
- Inspire members - Advance knowledge - Uphold standards
56
What are the RICS Strategic Goals?
- Lead ad influence on sustainability - Attract a diverse generation - Strengthen trust in the profession - Enhance member value and engagement
57
What are the RICS Values?
- Professional - Collaborative - Inclusive - Ambitious
58
What is a world class organisation?
An efficient, effective and inspiring professional body that is easy to do business with.
59
What are the benefits of being a RICS Member?
- Status - Recognition - Market Advantage - Knowledge - Network
60
What are the requirements for registration?
Firms providing surveying services to the public must register for regulation to ensure there is a recognised quality benchmark. - Firms must annually make a return to the RICS confirming compliance with obligations
61
Why is regulation important?
It provides a gold standard of quality control for clients.
62
What do the Rules of regulations of firms 2022 state?
- If 50% of the Principals of a UK firm provides surveying services, are RICS Members, then the firm must be regulated. - If 25% of Principals or more within a UK firm providing surveying services, then it can apply to be regulated. - (Principals are sole practitioners, directors, partners, or board members etc). - Each firm must nominate a Responsible Principal who is obligated to ensure reasonable steps are taken to ensure systems are in place to ensure compliance with regulations. - Complete annual return on the RICS portal
63
Who hears disputes relating to registrations of a firm?
The RICS Standards and Regulation Board.
64
Who can use the RICS logo?
Rules came into effect in April 2020. Only RICS Memes and Registered Firms can use the logo.
65
What information is required by the RICS for registration?
- Type of business - Name of Responsible Principal - Statutory Regulated Activity (e.g. financial services) - Nature of clients - Complaints handling process - Professional Indemnity Insurance details - Whether the firm holds clients' money
66
When were the rules of conduct published?
October 2021, with an effective date of 2nd February 2022.
67
Who do the Rules of Conduct apply to?
Firms and members.
68
Within the RICS Code of Conduct is Appendix A, what is contained with the appendix?
It sets out professional obligations for both members and firms.
69
What are the professional obligations for members?
- Comply with CPD requirements. - Co-operate with RICS - Provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
70
What are the professional obligations relating to firms?
1. Publish a complaints handling policy, have approved ADR, and maintain a log. 2. All work to be covered by adequate professional indemnity insurance 3. If having a sole principal, make appropriate arrangements for their cover. 4. Cooperate with RICS 5. Promptly provide all information requested by the Standards and Regulation Board 6. Display any business literature in accordance with RICS policy 7. Report to the RICS under any matters that are required to report under Rules for registration of firms.
71
You are in an ethical dilemma, what RICS documents/support is available?
Consult the ethical decision tree. The RICS Regulation Confidential Hotline.
72
What is the Ethical Decision Tree?
It is a framework of questions which members should ask themselves when facing an ethical dilemma?
73
What are three questions from the Ethical Decision Tree?
Is it legal? Is it in line with the Rules of Conduct? Would you be content if the actions were made public?
74
Who is responsible for disciplinary procedures within the RICS?
Standards and Regulation Board.
75
What are the three levels of disciplinary action?
1. Action by Head of Regulation 2. Disciplinary Panel (drawn from the independent regulatory tribunal) 3. Appeal Panel
76
What is the initial investigation stage for disciplinary action?
The head of regulation investigates, and if they consider disciplinary action required, they can consider four actions: 1. Fixed Penalty Notice 2. Make a regulatory compliance order 3. Refer a matter to a member of the regulatory tribunal. 4. Refer the matter directly to a Disciplinary Panel
77
What is a Fixed Penalty Notice?
Procedure used for breaches of the Rules relating only to the supply of information to the RICS by firms and members. These may consist of a fine and/or caution. For administrative breaches only e.g. failing to complete CPD, missing fee payment.
78
What is a Regulatory Compliance Order?
These are used for low-level breaches of Rules which could easily be corrected. It is written document which states the terms on which a member must do/not do actions for a time period, in agreement for a fine. Examples of this include non-compliance with CPD.
79
What is Action by Disciplinary Panel?
Procedure used for serious breaches. The Head of Regulation can consider that a hearing is required under the discipline rules. Membership of a Disciplinary Panel includes lay members.
80
What courses of action are available to Regulatory Disciplinary Panel?
1. Issue a Regulatory Compliance Order 2.Reprimand 3. Caution 4. Fine - unlimited amount but should be proportionate 5. Impose conditions upon continued membership 6. Expulsion from membership or removal a firm 7. Require publication of hearing in Modus Magazine, RICS Website and local newspaper.
81
What is the role of an Appeal Panel?
An appeal panel considers a member or firms appeal against a disciplinary procedure considering all the evidence and representations. The appeal panel can vary the penalty previously imposed and the membership of the panel includes lay members.
82
What are Lay Members?
Lay members are not surveyors or property professionals. They bring an independent, non-specialist perspective to decision-making, especially in Disciplinary panels or Appeal Panels. Can be beneficial to provide a consumer viewpoint.
83
Which guidance is available on Social Media?
Use of Social Media, Guidance for RICS members, 2024.
84
When is the RICS likely to investigate concerns about social media?
Where posts involve: - Discrimination - Dishonesty - Abusive or threatening behaviour, or likely to cause offence of harm. - Bullying, harassment or victimisation - Pattern of concerning communication - Ignoring a previous warning. They may take action if a post is felt to damage confidence or trust in the profession.
85
When is the RICS unlikely to investigate social media posts?
If a post is: - Critical of an organisation, its policies and performance, rather than individuals - Use professional and respectful language - Are removed if requested to do so
86
What are the Core Materials for RICS documents?
- RICS Professional Standards - RICS Practice Information - RICS Practice Alerts (key tools or warnings for alerting the profession of emerging areas of risk)
87
How should referral fee's be considered?
In line with the Bribery Act and Rules of Conduct.
88
What should be included in a Terms of Engagement document?
- Proposed fee basis - When payment is due - Currency - Copy of the firms complaints handling procedure available upon request. - Compliance with S18 of Estate Agency act for Agency work (Terms)
89
When is it appropriate to decline an instruction?
- You are not competent - Do not have sufficient facts - When the client will not sign terms or complete AML checks - There is a conflict of interest or personal interest - Where professional indemnity is capped and doesn't cover the instruction or wont cover for another reason (e.g. pro bono personal work). - The client is on the sanctions list - If you would not like your actions to be made public.
90
When is it appropriate to make multiple introductions?
When you are not acting on a exclusive basis with the client. If they are on a non-exlusive basis informed consent must be obtained when acting for multiple parties.
91

APC - KB (13 decks)

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