Ethics, Rules of Conduct & Professionalism Flashcards
What are the FIVE Rules of Conduct?
- Act with honesty, integrity and comply with professional obligations
- Maintain professional competence
- Provide good quality and diligent service
- Treat others with respect. Encourage diversity and inclusion
- Act in the public interest, prevent harm
When was the RICS founded?
1868, but wasn’t chartered until 1881 by the privy council
How many members does the RICS currently have?
137,500
What is a bye-law?
A rule set up by a compny to control the actions of its members.
What is a Conflict of Interest (COI)?
An existing relationship which impedes a professionals ability to provide impartial advice.
What are the SIX principles of the Bribery Act 2010?
- Proportionality
- Top Level Commitment
- Risk Assessment
- Due Diligence
- Communication (incl. training)
- Monitoring
Why do firms want to be accredited by the RICS?
- Confidence - monitored by the RICS
- Professionalism - clear, impartial, expert advice
- Security - recognised procedure including complaints handling procedures and PII cover
Why do YOU want to become a member of the RICS?
Being a member of the RICS would enable me to have a MARKET ADVANTAGE over my non-member counterparts, as well getting access to a wide NETWORK of other professionals with extensive KNOWLEDGE.
(Also STATUS and RECOGNITION)
What is an example of when YOU have acted honestly (Rule 1)
A client was hoping to let out their property but it was found not to be up to standard. I advised what works would need to be undertaken in order to put the property to the open market.
What are the professional obligations the RICS members must adhere to?
- CPD - 20 hours per year (of which 10 must be formal)
- Co-operation with the RICS
- Promptly porivde all information requested
What are the core professional obligations that RICS firms must adhere to?
- A complaints handling procedure
- PII Cover
- Future arrangements for the sole practitioner
- Co-operate with the RICS
- Promptly provide all information requested
- Business literature/RICS stationary/RICS logo on display
- Report all matters to the RICS
What disciplinary procedures can the RICS impose?
- Action by the Head of Regulation
- Disciplinary Panel (can lead to expulsion)
- Appeal Panel (consider whether or not the decision was fair)
What money laundering regulations are you aware of?
Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
Proceeds of Crime Act 2002
What is money laundering?
Proceeds of criminal activities are disguised as legitimate assets (such as property).
What bribery legislation are you aware of?
Bribery Act 2010
What does the Equality Act 2010 do?
Consolidates the Disability Act 1995 and the Discrimination Act of 2005 to provide simple and easy to follow stucture aiming to eliminate discrimination in business.
What does the Proceeds of Crime Act 2002 do?
Sets out criminal offences to assist with the combatting of money laundering
What is a red flag of money laundering?
- Transacting with unusual currencies
- Urgency/speed of transaction
- Inability/unwillingness to provide ID/CDD
What are the penalties for accepting a bribe?
Up to 10 years in prison and an unlimited fine
What are the four types fo bribery offence?
- Making a bribe
- Accpeting a bribe
- Briding a Foreign Public Official
- Failure to prevent a bribe
How would you carry out AML checks?
Request photographic ID and proof of address.
If for a company; identify company name, number, address and any director details
When would you carry out EDD (Enahnce Due Diligence)?
- Client from high risk country
- Client is a politically exposed person (PEP)
- To request a source of wealth
What is PII?
Professional Indemnity Insurance.
Cover against negligence for surveyors, clients and other third parties
What is PII cover based on and what are the brackets?
Based on annual turnover.
- Less than £100,000 = £250,000 of cover
- Between £100,000-£200,000 = £500,000 of cover
- More than £200,000 = £1,000,000 of cover
What would you do if you recevied a complaint?
- Sincerely apologise
- Inform them of my company’s complaints handlind procedure;
1. Ask for the complaint in writing
2. Ackowledge receipt within 3 days
3. Pass up to Complaints Handling Officer, who must investigate and respond within 15 days.
4. If still dissatisfied, pass to Director, who must investigate and respond within 15 days.
5. If still dissatisfied, contact the Property Ombudsman
What is the RICS Guidance on dealing with a COI?
RICS Global Professional Statement, Conflicts of Interest 2017
How would you identify/deal with a COI?
- Submit all information to the firm to check any exisiting relationships.
- If COI is found, make a judgement.
- If deciding to proceed, inform all parties concerned and request written informed consent and set up appropriate information barriers.
What are information barriers and what types are there?
- Geographical (separate floors/offices)
- Separate communication lines
- Password protected documents
- Keep a paper trail of COI check and consents.
What is the RICS Guidance note relating to Bribery, Corruption and Money Laundering?
RICS Professional Statement Countering Bribery, Corruption, Money Laundering & Terrorist Financing
- includes guidance on gift policies, staff training and hospitality registers.
What is the RICS Guidance on handling client money?
RICS Professional Statement on Client Money Handling 2019
How do you handle client money?
- Keep in separate account
- Label with ‘CLIENT’ and their name/address/company
- Annual Audits
- Regular reporting (monthly statements)
- Two person authorisation
- Access available to client upon request
- Never be overdrawn
Can you tell me about any recent legislation regarding the future of the RICS?
The Bichard Review;
- June 2022
- Seeks to clarify the purpose of the RICS and set out recommendations
What are the two types of client account?
- Discretionary - individual clients
- Pooled - multiple clients with sub-compartments
What is whistleblowing?
When an employee raises concerns in an anonymous way, usually related to wrong-doing
What is the sanctions list?
A list provided by the government to highlight individuals/firms/countries that may have been involved in illegal activity
Outline your firms gift-policy.
Samuel & Son has a limit of £50 of value in order to accept gifts. Gifts must be registered, and we are not allowed to accept cash/money vouchers.
What do you include on the gift register?
Name, reason for the gift, value, if it was accepted, date, description of the item
What would you do if something was outside your scope of competence?
Turn down the instruction and refer to a competent colleague with relevant experience.