Ethics, Rules of Conduct & Professionalism Flashcards
1
Q
what do the rics regulations and bye-laws set out?
A
the governance of the institution
2
Q
describe rule 3 from the 5 rules of conduct.
A
members and firms must provide good-quality and diligent service
3
Q
what are the 3 main roles of the rics?
A
- 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
4
Q
what are the 3 main areas of offence in the proceeds of crime act 2002?
A
- concealing criminal property
- arrangements - if a person enters into arrangement which they suspect facilitates money laundering
- if a person acquires or uses criminal property
5
Q
when a conflict arises between the interests of two or more clients of a firm, you must always undertake the 3 step process. describe step 1 out of 3
A
upon receipt of the full facts, consider whether conflict is irresolvable because your impartiality is compromised and should be avoided or whether it can be properly managed maintaining transparency and openness. decide whether you want to accept the instruction from client a and client b
6
Q
when starting a new practice how do you ensure you are rics compliant?
A
- inform rics by completing a firm detail form and register with rics for regulation of the firm
- appoint responsible principal
3.arrange pii - set up client money handling procedures and obtain rics apporval for chp
- appoint a complaints handling officer
- register for rics valuer registration scheme if undertaking red book valuations
7.use logo kit from rics website - ensure cpd logged and rics annual return form at end of each year
7
Q
what 7 mandatory professional obligations set out in Appendix A of the rules of conduct must rics regulated firms comply with?
A
- publish a complaints handling procedure, which includes an alternative dispute resolution provider approved by rics, and maintain a complaints log
- ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by rics
- if having a sole principal, make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work
- cooperate with rics
- promptly provide all information reasonably requested by the standards and regulation board, or those exercising delegated authority on its behalf
- display on their business literature, in accordance with rics’ published policy on designations, a designation to denote that they are regulated by rics
- report to rics any matter that they are required to report under the rules for the registration of firms
8
Q
define money laundering
A
when proceeds of criminal activities are disguised and then realised as legitimate assets
9
Q
describe the appeal panel process
A
appeal panels can consider a member’s or firm’s appeal against a review of any level of disciplinary procedure. the appeal panel will review the decision and then they can allow the appeal and vary the penalty previously imposed.
membership of this panel includes non-rics members
10
Q
in relation to money laundering what are the potential red flags?
A
- inability or unwillingness of parties to provide identity documents
- changes to parties involved in transactions
- payment of fees in unusual currencies
11
Q
How would you deal with a complaint from someone to whom you owe a duty of care? How would you deal with it initially and when would you escalate it and set the CHP in motion?
A
12
Q
what does the rics’ rules for regulation of firms (2019) state? (3 points)
A
- if 50% of principals of a UK surveying firm are RICS members then it has to be regulated and if at least 25% are then it can apply to be regulated
- principals are sole practitioners, directors, partners or board members (or someone who is able to act autonomously)
- each firm must nominate a responsible principal who is obliged to ensure all reasonable steps are taken and systems are in place to ensure compliance with rics requirements
13
Q
how would you deal with a complaint from someone to whom you a duty of care? When might it need to be escalated?
A
14
Q
name a mandatory practice statement
A
- surveyors acting as expert witness (2014, amended 2020)
15
Q
what does the rics rules of conduct state about pii?
A
firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets standards approved by RICS
16
Q
what is the latest document from the rics on pii?
A
UK professional indemnity insurance requirements Version 9 with effect from 1 April 2022
17
Q
what are the 3 aims of having pii?
A
- ensure if firm faces a claim it is protected from financial loss that it cannot meet from own resources
- protect insured member/firm against consequences of liability to pay damages to 3rd parties for breaches of professional duty that it commits through professional activities
- ensure that clients do not suffer financial loss which firm cannot meet
18
Q
when starting a new practice how do you ensure you are statutory compliant?
A
- disclose business name
- disability discrimination compliance (equality act 2010)
- financial services compliance
- bribery act 2010 compliance
- appoint money laundering officer
- health and safety and fire safety compliance
- register for data protection
- estate agency compliance
- inform hmrc for vat and tax registration
- ensure compliance with current employment law
- ensure insurance compliance for employer and public liability
19
Q
what do the rics standards documents lay out?
A
they lay out the ethical, conduct and competence related standards for the profession. by working to these standards, professional members and rics regulated firms deliver confidence and transparency. rics ensures these standards are upheld by the profession through a system of independently led regulation.
20
Q
who will disputes concerning the registration of a firm be heard by?
A
the rics standards and regulation board
21
Q
List 3 ways that a disciplinary procedure can be triggered?
A
- by someone complaining to the rics
- an allegation by a client or third party
- because of information received or established by the rics
22
Q
describe rule 2 from the 5 rules of conduct.
A
members and firms must maintain their professional competency and ensure that services are provided by competent individuals who have the necessary expertise
23
Q
in relation to Money laundering, terrorist financing and transfer of funds regulations 2017 (amended 2019) describe the enhanced due diligence process
A
- additional procedures are required for any transaction or business relationship involving a person in a high risk third country or politically exposed person (PEP) or PEP family member
- more detailed examination of the background and purpose of the transaction and increased monitoring
24
Q
Talk through stage one (in house) procedure for handling complaints
A
- details of CHP should be issued asap, clearly and in writing
- details of nominated CHOfficer shared to complainant
- procedures and timescales for investigation should be recorded
- complaint should be acknowledged within 7 days and investigated within 28
25
what must rics regulated firms do annually?
make a return to the rics confirming their compliance with their obligations
26
How would you create an information barrier?
Separating individuals within the same firm physically and/or electronically to prevent confidential information passing between them.
27
what are the 4 bribery offences?
1. bribing
2. receiving a bribe
3. bribing a foreign public official
4. failing to prevent bribery
28
what is the uk governance structure?
4 national associations, 10 regional boards and local associations
29
what is the purpose of the use of social media: guidance for rics members (2021)?
explains the importance of social media networks to members and firms. it reminds members of the high standards of professional behaviour expected of rics members and that the rules of conduct protect the interests of members and the profession as a whole.
30
what are the consequences for individuals and firms if the act is breached?
individuals = maximum penalty of 10 years and/or unlimited fine. firms = unlimited fine
31
what do sole practitioners do about CPH?
they must nominate a surveyor from another firm to act as their CHO
32
describe personal interest/own interest conflict
You must not let a personal interest interfere or influence your judgement. Full transparency is required, facts must be declared promptly and in writing before accepting instruction. If doing agency work you should comply with section 21 of estate agents act 1979
33
with regards to disciplinary procedures, when would fixed penalties orders be used?
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 a caution
34
what does the limitation act 1980 state the current limitation periods for negligence are?
contract - 6 years from the date of the negligent act, breach of contract or omission
tort - 6 years from the date the claimant suffered the loss
35
why are the rics current governance arrangements under review following Alison Levitt QC's Review in 2021?
the review publicly described a lack of clarity, structure and purpose of the rics current governance arrangements. Levitt called for a full independent review of the purpose, governance and strategy of RICS.
36
give 3 examples of mandatory international standards
1. rics valuation - Global standards (2021)
2. international property measurement standards (IPMS 4, 2019)
3. international construction measurement standards (ICMS, 2019)
37
what is the purpose of the proceeds of crime act 2002?
provides powers for enforcement authorities in the UK to recover criminal money and assets and creates a set of criminal offences intended to stop money laundering
38
describe rule 1 from the 5 rules of conduct.
members and firms must be honest, act with integrity and comply with their personal obligations, including obligations to rics
39
name the interim chair of governing council, current interim ceo, current president and president elect
interim chair of governing council is Nick Maclean, current interim ceo is Richard Collins, current president is Clement Lau and president elect is Ann Gray
40
describe the initial investigation stage.
1. first step is a formal investigation by the head of regulation.
2. head of regulation can initiate one of the following four actions upon completion of their investigation if they consider that disciplinary action is required:
a) serve a fixed penalty notice
b) make a regulatory compliance order
c) refer the matter to a single member of the regulatory tribunal for consideration
d) refer the matter directly to a disciplinary panel
41
give an example of a time you have used AML procedures at Cluttons
When dealing with the buyer of development site.
I completed a purchaser acceptance form (company name, company number, address, registered jurisdiction, risk assessment) which was signed by the client relationship partner.
I also provided our compliance officer with
- heads of terms
- certified passport
- certified proof of address
- title documents
- proof of funds
42
in relation to Money laundering, terrorist financing and transfer of funds regulations 2017 (amended 2019), describe the customer due diligence process
1. verify client identity based on reliable independent source (e.g. passport)
2. try to identify the beneficial owners of the client (companies house)
3. for a company its name, company number and registered office address
4. names of directors of the company unless company is listed
5. purpose and intended nature of the business and proposed funding arrangements
43
can you give 3 example behaviours from rule 5 of the rules of conduct? (public interest & responsibility)
1. Members and firms question practices and decisions that they suspect are not right, and raise concerns with colleagues, senior management, clients, RICS or any other appropriate person, body or organisation where they believe in good faith that it is necessary to do so.
2. Members and firms respond to complaints made against them promptly, openly and
professionally.
3. Members and firms cooperate with investigations into complaints or concerns, and provide information where it is reasonably requested and they can do so lawfully.
44
rics requires that the nature and extent of your pii must be appropriate for your business. it must meet the following 6 requirements.
1. an 'each and every claim basis or aggregate plus unlimited round the clock reinstatement basis
2. RICS' minimum policy wording or more comprehensive wording. As a minimum, you should ensure that policy wording is written on a full civil liability basis and the minimum level of indemnity based on the firm's turnover in the previous year.
3. the maximum level of uninsured excess (part of claim the firm must pay itself)
4. be fully retroactive (pii policies work on a claims made basis - claims that are made during the period of insurance regardless of when the negligent act occurred
5. all policies must be underwritten by an rics approved insurer
6. cover for all past and present employees to protect firm from work that has been carried out in its name
45
list 5 key points from the RICS professional statement 'client money handling' 1st ed (2019)?
1. client accounts must be kept separately
2. the word 'client' is on the bank account and cheque book
3. a client must be able to have their monies on demand
4. payment of interest is agreed with a client and accounts must be kept in credit
5. accurate records are kept with a running balance available
46
What is the purpose of the RICS ethics decision tree?
provides a framework of questions which members should ask themselves when facing a situation in which they are asked to act in a potentially unethical manner or situation. It encourages considering the legality of one's actions and their consistency with the rules of conduct, as well as to consult with appropriate people and have clear reasoning before making decisions. The ultimate test is whether members would be content to have their decisions or actions made public.
47
what are the three levels of disciplinary action?
1. action by head of regulation
2. regulatory tribunal
3. appeal panel
48
can you give 3 example behaviours from rule 1 of the rules of conduct? (integrity)
1. members and firms do not mislead others by their actions or omissions
2. members and firms do not allow themselves to be influenced improperly by others or by their own self-interest
3. members and firms are open and transparent with clients about their fees and services
49
how is the rics currently governed?
under the terms of its royal charter by various internal councils, boards and associations. the governing council has 25 members and runs the rics providing management and strategic direction.
the regulatory board, management board and various committees report to the governing council . there are 17 specialist professional groups covering property, land and construction. each professional group has an elected board and is responsible for outlining standards of competence and practice.
50
what does the RICS guidance note on complaints handling (2016) state?
1. a firm's written CHP must be approved by the RICS
2. always notify PII insurers as soon as there is a complaint to avoid negligence claim
3. CHP should be issued to client alongside terms of business
4. complaints log must be maintained
5. firms must include RICS approved ADR mechanism within CHP
51
define the rics global professional statement on conflicts of interest (2017)
mandatory statement that states a member must not advise or represent a client where doing so would involve a conflict of interest or significant risk of a conflict of interest, other than where all those who are or may be affected have provided their informed consent.
52
can you give 3 example behaviours from rule 3 of the rules of conduct? (quality service)
1. Members and firms understand clients’ needs and objectives before accepting any professional work.
2. Members and firms agree with clients the scope of the service to be provided and its
limitations, and timescales for the work.
3. Members and firms communicate with clients and others clearly and in a way they can
understand.
53
in relation to Money laundering, terrorist financing and transfer of funds regulations 2017 (amended 2019), what are the estate agents legal obligations?
1. letting agents must register with hmrc within 12 months of May 2020 if they let individual properties for more than €10,000/month
2. individuals/firms need to register with hmrc in order to trade
3. CDD checks on vendors, purchasers, landlords and tenants will need to be undertaken on new sales and any letting above €10,000/month
4. firms must have policies to identify and scrutinise transactions
54
in what instances would companies not be responsible for their employees' corrupt acts?
if they can show they have adequate policies and procedures in place
55
list 3 recent voluntary guidance notes
1. sustainability and esg in commercial property valuation and strategic advice (2021)
2. comparable evidence in real estate valuation (2019)
3. surveying safely (2018)
56
in relation to Money laundering, terrorist financing and transfer of funds regulations 2017 (amended 2019), what penalties will be given if failure to comply with regulations?
1. maximum 14 years prison sentence and/or unlimited fine for assisting with money laundering
2. maximum 5 years prison sentence and/or unlimited fine for tipping off off a person or failing to report them
57
in relation to conflict management between two or more clients of a firm, describe the 5 step guideline of information barriers
1. the barrier must be robust enough to offer no chance of information passing between the two parties
2. you must take reasonable steps to operate an effective barrier
3. the surveyors acting on two sides must be different and they must be physically separated, preferably in different buildings and with separate support teams
4. all information regarding the instruction should be securely stored
5. keep a clear audit trail of the conflict check process and all written and oral communication; the firm's compliance offer must oversee all actions
58
what is informal cpd?
self-managed learning that is relevant to professional role
59
what is the purpose of developing and enforcing leading international standards?
it protects consumers and businesses by ensuring the utmost level of professionalism is employed across the built and natural environment
60
what 6 principles is the bribery act based on?
1. proportionality
2. top level commitment
3. risk assessment
4. due dilligence
5. communication
6. monitoring and review
61
When was the rics founded?
1868
62
list 3 mandatory professional statements
1. countering bribery, corruption, money laundering and terrorist financing (2019)
2. conflicts of interest - global (2017)
3. uk commercial real estate agency (2016)
63
is hospitality prohibited by the bribery act?
no, as long as this is accurately recorded in a gift register
64
what does the rics aim to promote and enforce?
the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure
65
describe part 1 of the rics professional statement - countering bribery, corruption, money laundering and terrorist financing (2019)
part 1 = mandatory requirements
bribery and corruption - regulated firms must:
1. not offer or accept anything that could constitute a bribe
2. procedures in place to comply with the law and report suspicion to authority
3. retain records to show firm has met requirements of professional statement
money laundering and terrorist financing - regulated firms must:
1. not facilitate ML and TF
2. systems in place to comply with the law
3. evaluate and review risks presented to the firm
66
list 3 ways that negligence claims can be avoided
1. clearly understand the client's objectives and confirm precise instructions in the ToE
2. ensure you are competent to undertake instruction
3. undertake work in accordance with rics standards and guidance notes
67
a firm's written CHP must be approved by the RICS true or false?
TRUE
68
what are the key legislation with regard to gifts, bribery and corruption?
bribery act 2010 and proceeds of crime act 2002
69
describe part 2 of the rics professional statement - countering bribery, corruption, money laundering and terrorist financing (2019)
part 2 = guidance is provided
1. have a written policy in place
2. publish a code of behaviour for staff and provide training
3. encourage transparency
4. set up a gifts register
5. keep up to date with legislation
70
describe the contents of Cluttons' anti-bribery procedures and gift register requirements
71
What assistance does the RICS offer for members who are facing ethical issues?
The RICS regulation confidential hotline
72
what do the rics bye laws state about confidentiality?
client confidentiality must be maintained for all client affairs, including historic information.
73
what were bichard's 7 key recommendations in june 2022?
1. a renewed and increased focus on the public interest remit of the rics, including amending the royal charter and creating a public interest panel to advise the governing council.
2. maintaining self-regulation, through greater independence for regulatory functions
3. increased focus on diversity and inclusion across the profession and within rics governance
4. empowering and enabling members through greater support for regional boards, alongside increased member engagement with renewed focus for younger members
5. undertaking an independent review of rics governance and effectiveness at delivering against its charter for the public advantage every 5 years
6. a new simplified, clear, accountable governance structure
7. showing greater leadership on issues that matter most to society, such as sustainability and climate change
74
when a conflict arises between the interests of two or more clients of a firm, you must always undertake the 3 step process. describe step 2 out of 3
set out in writing as soon and clearly as possible to disclose the nature of conflict and how your firm intends to deal with the conflict. ensure that both parties can make their own decision and inform them to seek independent advice if needed. request written confirmation from both clients of their informed consent that your firm can act in accordance with provisions of procedure proposed.
75
what may failure to undertake appropriate cpd result in?
sanctions such as a fixed penalty and disciplinary panel action resulting in expulsion
76
what 3 mandatory professional obligations set out in Appendix A of the rules of conduct must RICS members comply with?
1. comply with the cpd requirements set by rics
2. cooperate with the rics
3. promptly provide all information reasonably requested by the standards and regulation board, or those exercising delegated authority on its behalf
77
name the three benefits of being an rics regulated firm ? (CPS)
1. confidence - for clients as regulated firms are monitored by rics regulation
2. professionalism - firms will have to provide clear, impartial and expert advice
3. security - firms have to have a recognised complaints procedure, access to free independent redress and PII cover
78
talk through the guidance for fee negotiations
1. firms should avoid price fixing, aggressive fee cutting or collusion with competitors
2. fees should be market-based and agreed on an adhoc basis with clients
3. healthy competition is encouraged but aggressive fee cutting is not allowed
4. you can enter into further fee negotiations with a prospective client, after you have submitted your initial fee proposal, having regard to the above so long as you act in a professional manner
5. you may wish to vary your proposed level of service when renegotiating your initial fee proposal but beware of still being able to provide a high standard of service
6. you must be completely transparent with clients and customers so they understand you may be in receipt of, or offering, a referral fee and state so in terms of engagement if applicable
79
will every shortcoming on behalf of a member or firm give rise to disciplinary proceedings?
not necessarily. however, a failure to follow any rics guidance will be considered by the rics when examining the behaviour of a member or firm. a member or firm will need to justify the steps they took
80
how is the importance of complying with client money requirements underpinned in the rules of conduct?
"firms keep client money safe and have appropriate accounting controls"
81
What are member's 4 requirements regarding cpd?
1. minimum of 20 hours per year
2. of 20 at least 10 must be formal
3. must maintain understanding of rules of conduct during 3 year period (ethics exam)
4. must record cpd using RICS CPD management system on rics website
82
what are the 6 areas of information required in an annual return?
1. type of business and staffing details
2. statutory regulated activities - such as for financial activities
3. nature of clients
4. complaints handling procedure details and records
5. professional indemnity insurance details
6. whether the firm holds clients' money
83
who is the bribery act policed by?
serious fraud office
84
describe rule 4 from the 5 rules of conduct
members and firms must treat others with respect and encourage diversity and inclusion
85
what does the rics provide in instances when an rics regulated firm cannot repay client's money?
clients money protection scheme provides last resort protection
86
with regards to disciplinary procedures, describe regulatory compliance orders and situations they would be used?
it is a written document which states the terms upon which the member or firm must take or abstain from taking certain actions in a specified time period, and an agreement to pay a fine. they would be used for low level breaches of the rules, such as for some minor breaches which could be easily corrected. they may cover issues such as non-compliance with rics rules, including failure to undertake appropriate cpd. failure to undertake appropriate cpd may result
87
give reasons why it may be appropriate to decline an instruction (5)
1. you are not competent to undertake the work
2. you do not have sufficient facts on the issue
3. client will not sign ToE or complete AML checks
4. a professional indemnity insurance liability cap cannot be agreed
5. potential client is included in the uk government's sanctions list
88
Talk through stage two (ADR - 3rd Party Res) procedure for handling complaints
if complainant not happy with review then the name of chosen redress mechanism must be shared with complainant
89
with regards to disciplinary procedures, describe action by a regulatory tribunal disciplinary panel and situations they would be used?
procedure used for more serious breaches of conduct. the head of regulation can consider that a hearing is required under the discipline rules. the membership of a disciplinary panel includes non-rics members. the (five) penalties available to a regulatory tribunal disciplinary panel include:
a) issue a regulatory compliance order
b) impose an unlimited amount of fine per breach but it must be proportionate to the offence
c) impose conditions upon future continued rics registration
d) expulsion from membership or remove a firm
e) require publication of the results of the hearing in an rics modus magazine, on the rics website and in the local newspaper where the firm or member is based
90
what are the 4 levels of membership
frics, mrics, assocrics and trainee
91
how do you become a fellow?
evidence achievement of 4 fellowship characteristics
1. 5 or more years at mrics,
2. leadership role,
3. professional/technical achievement
4. academic achievement
*a portfolio of professional achievement to support the application is required to include your CPD record
92
define conflict of interest
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
93
describe the rics professional statement: conflicts of interest - uk commercial property market investment agency (2017)
it states how dual agency should never be undertaken by an rics member. it also talks about incremental advice and how members should only provide incremental advice if consent is given and an information barrier is in place before providing any incremental advice to the prospective buyer
94
when will the rics become involved in a complaint?
if a member fails to respond to the claimant or prevents them from gaining access to third party redress mechanism
95
What is the key guidance note on complaints handling procedures?
RICS guidance note on complaints handling (2016)
96
what is formal cpd?
structured learning that has clear learning objectives
97
how long should old files be held for in regards to confidentiality?
minimum of 6 years before being destroyed securely
98
what 5 points do the rics state as the rationale for developing new rules of conduct?
1. simpler structure - making it easier for rics members and firms to understand their rules, providing more confidence for clients and the public
2. clear examples - support members professional judgement, so each rule is illustrated with examples of how members and firms can behave to comply with the rule.
3. focusing on respect, diversity and inclusion - whether it is encouraging diversity and inclusion, or tackling modern slavery, respect and courtesy underpin all professional ethics
4. understanding evolving technology - the rules highlight the importance of understanding the evolving use of data and technology and the associated benefits and risks
5. tackling global challenges - the rules show that ethical practice by rics members and firms has an important role when it comes to global challenges, including creating sustainable development and tackling climate change
99
Give an example of where you have seen a conflict of interest managed in your firm.
100
when closing a practice, how do you ensure that you are rics compliant?
1. inform the rics
2. ensure clients are informed and hand over arrangements made to new firm
3. return any monies held in client account
4. inform insurers and procure professional indemnity insurance run-off cover for minimum of 6 years from expiry of policy in force at time of closure
5. retain a copy of client files and records for minimum 6 years
101
When did the 5 rules of conduct become effective globally and what have they replaced?
2nd February 2022 and they replaced the previous rules of conduct for members and firms and the 5 global professional and ethical standards
102
describe rule 5 from the 5 rules of conduct
members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in their profession
103
define conflict management
when the instruction is accepted and steps are put in place to manage the conflict, such as an information / ethical barrier with the written agreement of all parties
104
describe part 3 of the rics professional statement - countering bribery, corruption, money laundering and terrorist financing (2019)
part 3 = supplementary guidance
- establish risk-based approach (3 Ws)
- Who you act for
- What are you doing
- Why you are being asked to do something
- dealing with PEPs
- identify beneficial owners
105
give 3 examples where the rics is unlikely to investigate social media posts
1. been critical of an organisation, its policies and performance, rather than of individuals
2. used professional and respectful language
3. they have been removed if requested to do so
106
what are the 3 types of conflicts of interest defined in the rics global professional statement on conflicts of interest (2017)?
1. a party conflict relating to work on the same or related instructions for the two different parties
2. an own interest conflict relating to a personal interest
3. a confidential information conflict relating to work between two parties that is confidential
107
what are the rules that came in April 2020 regarding regulated firms? (3 rules)
1. there is a restriction to the use of the designation 'chartered surveyors' by firms to the trading name only.
2. only rics members and registered firms can use the logo
3. there will be a requirement that regulated firms must include a prescribed text in terms of engagement to explain what being regulated by the rics means
108
what are the three steps to follow before beginning an instruction?
1. check professionally competent
2. no conflicts of interest or personal interests
3. confirm terms of engagement in writing and get written approval from the client
109
for agency work - what legislation do you need to comply with before beginning an instruction?
need to comply with section 18 of the estate agents act 1979 and money laundering checks (money laundering regulations, 2017)
110
define rics guidance notes
provided by the rics to promote good practice. rics strongly recommends that you have regard to the contents of any relevant guidance notes where applicable.
111
in relation to rics core material, define mandatory international standards.
an international high-level principle-based mandatory standard developed in collaboration with other relevant organisations
112
describe a recent disciplinary hearing
Mr Kitsul was expelled from the RICS as he was convicted of a criminal offence which could result in a custodial sentence
113
name 5 benefits of being an rics member.
1. status - your professional credentials provide unrivalled client confidence
2. recognition - promotion of your professional excellence to governments and markets
3. market advantage - rics status and standards gives you a competitive advantage
4. knowledge - international practice standards, guidance, CPD and knowledge sharing
5. network - access to 135,000 professionals worldwide
114
list 4 examples of a conflict of interest
1. financial interest
2. personal interest
3. commercial relationships
4. acting on both sides of a transaction
115
can you give 3 example behaviours from rule 4 of the rules of conduct? (respect)
1. Members and firms respect the rights of others and treat others with courtesy.
2. Members and firms treat everyone fairly and do not discriminate against anyone on any
improper grounds, including age, disability, gender reassignment, marriage or civil partnership, pregnancy or maternity, race, religion or belief, sex or sexual orientation.
3. Members and firms develop an inclusive culture in their workplaces, support equal access and opportunity for all, and identify and address unconscious bias.
116
when would you not need client approval for sharing their files/information with a third party?
when you are subject to a statutory duty overriding client's confidentiality rights, such as police or HMRC
117
give 6 reasons that would result in the rics likely investigating a social media post
1. discrimination
2. dishonesty
3. abusive behaviour
4. bullying
5. pattern of frequent of concerning communications
6. ignoring previous advice or warnings about concerns
118
can you give 3 example behaviours from rule 2 of the rules of conduct? (competence)
1. members and firms only undertake work that they have knowledge, skills and resources to carry out competently
2. members and firms check that subcontractors have the necessary knowledge, skills and resources to do their tasks competently
3. members and firms reflect on the work they have undertaken and its impacts, and consider how they might apply what they have learned to their future work.
119
when a conflict arises between the interests of two or more clients of a firm, you must always undertake the 3 step process. describe step 3 out of 3
once written consent has been received, set up an information barrier in accordance with the provisions agreed with both clients
120
In relation to disciplinary procedures, list 3 reasons why the RICS regulates the surveying profession?
1. protect the public
2. uphold public confidence in the profession
3. uphold professional standards
121
what are the 6 main areas of good practice as set out in the RICS professional statement 'client money handling' 1st ed (2019)?
1. holding client money
2. providing information to clients
3. receipts of client money
4. payments from client accounts
5. accounting records and controls
6. compliance
122
why did the rics commission lord bichard to undertake a further review following the levitt review?
to clarify the purpose of the rics (including its responsibility to act for public advantage, make recommendations on its governing structure to deliver that purpose and provide proposals for the incoming leadership and governing and governing body on the future culture and strategy of the institution.
123
in relation to conflicts of interest, when may informed consent be sought?
only where the rics member or regulated firm is satisfied that proceeding despite a conflict of interest is in the interests of all those who are or may be affected and is not prohibited by law. this also must be given
124
how can companies meet the criteria to prove they have procedures in place to prevent bribery? (4 points)
1. identification of risks
2. staff training
3. provision of clear policies
4. regular reviews
125
what needs to have occurred in order for a negligence claim to be made?
duty of care is breached - loss - damages
126
describe 3 key aspects of the rics global professional statement on conflicts of interest (2017)?
1. all conflicts must be managed in accordance with the professional statement
2. every rics firm must have in place effective systems and controls appropriate to the size and complexity of the business to ensure full compliance
3. all firms must keep records to show their compliance with the statement
127
what is the purpose of professional indemnity insurance?
protect clients, surveyors and third parties against negligence claims when there is a duty of care breached and a claim for damages arises
128
what 3 things must the terms of engagement include in writing?
1. the client's agreement to the proposed fee basis
2. payment of expenses (and how calculated)
3. a copy of the firm's complaints handling procedure is available upon request
129
how can companies meet the criteria to prove they have procedures in place to prevent bribery? (4 points)
1. identification of risks
2. staff training
3. provision of clear policies
4. regular reviews
130
why might the rics take disciplinary action regarding a social media post?
if they feel the post may damage public confidence or trust in the profession
131
list the key provisions of the money laundering, terrorist financing and transfer of funds regulations 2017 (amended 2019) for firms
1. must have written money laundering and terrorist financing risk assessment
2. implement systems and policies to address money laundering and terrorist financing risks
3. provide staff training
4. comply with requirements relating to politically exposed people (PEPs)
5. appropriate record keeping
6. AML checks undertaken to confirm identity of proposed purchaser of property and check purchaser's source of funds by vendor's agent
