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apc mandatories 2023 > Ethics, Rules of Conduct & Professionalism > Flashcards

Ethics, Rules of Conduct & Professionalism Flashcards

1
Q

What are the FIVE Rules of Conduct?

A
  1. Act with honesty, integrity and comply with professional obligations
  2. Maintain professional competence
  3. Provide good quality and diligent service
  4. Treat others with respect. Encourage diversity and inclusion
  5. Act in the public interest, prevent harm
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2
Q

When was the RICS founded?

A

1868, but wasn’t chartered until 1881 by the privy council

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2
Q

How many members does the RICS currently have?

A

137,500

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2
Q

What is a bye-law?

A

A rule set up by a compny to control the actions of its members.

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3
Q

What is a Conflict of Interest (COI)?

A

An existing relationship which impedes a professionals ability to provide impartial advice.

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4
Q

What are the SIX principles of the Bribery Act 2010?

A
  1. Proportionality
  2. Top Level Commitment
  3. Risk Assessment
  4. Due Diligence
  5. Communication (incl. training)
  6. Monitoring
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5
Q

Why do firms want to be accredited by the RICS?

A
  1. Confidence - monitored by the RICS
  2. Professionalism - clear, impartial, expert advice
  3. Security - recognised procedure including complaints handling procedures and PII cover
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6
Q

Why do YOU want to become a member of the RICS?

A

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)

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7
Q

What is an example of when YOU have acted honestly (Rule 1)

A

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.

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8
Q

What are the professional obligations the RICS members must adhere to?

A
  1. CPD - 20 hours per year (of which 10 must be formal)
  2. Co-operation with the RICS
  3. Promptly porivde all information requested
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9
Q

What are the core professional obligations that RICS firms must adhere to?

A
  • 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
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10
Q

What disciplinary procedures can the RICS impose?

A
  • Action by the Head of Regulation
  • Disciplinary Panel (can lead to expulsion)
  • Appeal Panel (consider whether or not the decision was fair)
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11
Q

What money laundering regulations are you aware of?

A

Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017

Proceeds of Crime Act 2002

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12
Q

What is money laundering?

A

Proceeds of criminal activities are disguised as legitimate assets (such as property).

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13
Q

What bribery legislation are you aware of?

A

Bribery Act 2010

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14
Q

What does the Equality Act 2010 do?

A

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.

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15
Q

What does the Proceeds of Crime Act 2002 do?

A

Sets out criminal offences to assist with the combatting of money laundering

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16
Q

What is a red flag of money laundering?

A
  • Transacting with unusual currencies
  • Urgency/speed of transaction
  • Inability/unwillingness to provide ID/CDD
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17
Q

What are the penalties for accepting a bribe?

A

Up to 10 years in prison and an unlimited fine

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18
Q

What are the four types fo bribery offence?

A
  • Making a bribe
  • Accpeting a bribe
  • Briding a Foreign Public Official
  • Failure to prevent a bribe
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19
Q

How would you carry out AML checks?

A

Request photographic ID and proof of address.

If for a company; identify company name, number, address and any director details

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20
Q

When would you carry out EDD (Enahnce Due Diligence)?

A
  • Client from high risk country
  • Client is a politically exposed person (PEP)
  • To request a source of wealth
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21
Q

What is PII?

A

Professional Indemnity Insurance.

Cover against negligence for surveyors, clients and other third parties

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22
Q

What is PII cover based on and what are the brackets?

A

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
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23
Q

What would you do if you recevied a complaint?

A
  • 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
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24
Q

What is the RICS Guidance on dealing with a COI?

A

RICS Global Professional Statement, Conflicts of Interest 2017

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25
Q

How would you identify/deal with a COI?

A
  • 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.
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26
Q

What are information barriers and what types are there?

A
  • Geographical (separate floors/offices)
  • Separate communication lines
  • Password protected documents
  • Keep a paper trail of COI check and consents.
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27
Q

What is the RICS Guidance note relating to Bribery, Corruption and Money Laundering?

A

RICS Professional Statement Countering Bribery, Corruption, Money Laundering & Terrorist Financing

  • includes guidance on gift policies, staff training and hospitality registers.
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28
Q

What is the RICS Guidance on handling client money?

A

RICS Professional Statement on Client Money Handling 2019

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29
Q

How do you handle client money?

A
  • 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
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30
Q

Can you tell me about any recent legislation regarding the future of the RICS?

A

The Bichard Review;
- June 2022
- Seeks to clarify the purpose of the RICS and set out recommendations

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31
Q

What are the two types of client account?

A
  • Discretionary - individual clients
  • Pooled - multiple clients with sub-compartments
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32
Q

What is whistleblowing?

A

When an employee raises concerns in an anonymous way, usually related to wrong-doing

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33
Q

What is the sanctions list?

A

A list provided by the government to highlight individuals/firms/countries that may have been involved in illegal activity

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34
Q

Outline your firms gift-policy.

A

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.

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35
Q

What do you include on the gift register?

A

Name, reason for the gift, value, if it was accepted, date, description of the item

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36
Q

What would you do if something was outside your scope of competence?

A

Turn down the instruction and refer to a competent colleague with relevant experience.

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37
Q

Give an example of when you have acted with integrity.

A

When I was asked for planning advice - I advised on the need to instruct a specialist.

38
Q

When have you provided a high level of service?

A

When sending out regular updates to landowners regarding their managed property

39
Q

When must a firm register with the RICS?

A

When 50% or more of principles (directors/partners) are members of the RICS

(Can also register at 25%)

40
Q

What are the three money laundering offences?

A
  1. Concealing criminal property
  2. Arrangements
  3. Acquiring use and possession
41
Q

What are the different types of RICS Legislation?

A
  1. International Standards
  2. Professional Statements
  3. Guidance Notes
  4. Codes of Practice
  5. Jursidicion Guides
42
Q

What legislation are you aware of relating to equality & inclusion?

A

The Equality Act 2010

43
Q

What did the Equality Act 2010 replace?

A

The Disability Act 1995 and the Discrimination Act 2005

44
Q

What are the nine protected characteristics?

A
  1. Race
  2. Religion
  3. Disability
  4. Gender/Sex
  5. Sexual Orientation
  6. Maternity
  7. Marriage/Civil Partnership
  8. Gender Reassignment
  9. Age
45
Q

What are the two main legislation relating to data?

A

GDPR 2018
Data Protection Act 2018

46
Q

What are the 8 individual rights under GDPR?

A

A right to…
1. Access
2. Erasure
3. Be informed
4. Rectification (correcting own data)
5. Restrict processing
6. Data portability (use it for yourself)
7. Object
8. Automated decision making & profiling

47
Q

Who is the current CEO and president?

A

CEO - Justin Young
President - Ann Gray

48
Q

What is the role of the RICS?

A
  • Promote high standards & high professional qualifications
  • Protect consumers through regulations
  • Leading source of information and independent advice
49
Q

What are the three types of COI?

A
  • Party Conflict
  • Personal Conflict
  • Confidential Information Conflict
50
Q

What is the three step process to take when a COI arises?

A
  1. Conflict Avoidance
  2. Written Advice
  3. Conflict Management
51
Q

What is conflict avoidance?

A

When an irresolvable conflict compromises impartiality and must therefore be avoided.

52
Q

What is written advice?

A

If the parties wish to continue, advice must be provided;
- Disclose all facts including the conflict and a plan to manage it
- Ensure that the parties come to their own decision
- Written informed consent must be provided

53
Q

What is conflict management?

A

Use of information or ethical barriers to prevent information passing between parties

54
Q

What would you do if you were in a pub & a friend asked you for a quick estimation of their property’s value?

A

Politely explain that I cannot provide any work/advice without signed Terms of Engagement (because PII cover would not be valid for a claim for negligence without signed T of Es)

55
Q

What are the RICS bye-laws on confidentiality?

A

Confidentiality must be maintained for all client affairs, including historic information and information provided prior to instruction.

Files must be held for a minimum of six years and destroyed securely.

56
Q

Why are you breaching professional competence when someone asks you to carry out a valuation in insert location?

A

I am not a registered valuer

57
Q

How would you go about setting up your own practice?

A
  • Appoint responsible principle
  • Do statory regulated activites
  • State nanature of clients
  • Arrange complaints handling procedure details and records
  • Arrange PII Cover
  • Set up client money handling protocol
  • State whether the firm holds client money
58
Q

How would you close down a practice?

A
  • Inform RICS
  • Ensure clients are aware ASAP
  • Return all monies to clients
  • Inform insurers and produce PII run off cover for a minimum 6 years
59
Q

What is a sanction?

A

Fine or restriction on a person or cpmany, pplied to legal entities and countries

60
Q

Who are the client accounts regulated by?

A

FCA (Finanical Conducts Authority)

Ensures that accounts are separate and specific from my company’s

61
Q

Define unconcious bias.

A

Thoughts/beliefs from previous experiences, that you might not be aware of, that could lead to unethical decisions.

62
Q

What is the RICS Guidance on Social Media?

A

Use of Social Media Guidance for RICS Members 2021.

  • High standards of professional behaviours expected from Members
  • Likely to investigate social media posts about discrimination, dishonesty and abusive behaviour
63
Q

What are the levels of membership

A

FRICS - Fellow
MRICS - Member
AssocRICS - Associate
Trainee/Student

64
Q

Why do the RICS have regulations and bye-laws?

A

To set out the governance of the institution.

65
Q

What is the goverenance structure?

A
  • RICS is bounded by Royal Charter
  • Managed by governing council (21 members) who are responsible for management and strategic direction of the RICS
  • Chaired by the president (Ann Gray)
66
Q

What is the RICS Global Governance Structure?

A
  • 17 specialiseed groups
  • Current CEO = Justin Young (June 23)
  • Current President = Ann Gray (Jan. 23)
67
Q

What is the RICS UK Structure?

A
  • 4 National Associations
  • 10 Regional Boards
  • Local Associations
68
Q

Would you accept a gift of a) £30, b) over £50?

A

a) If not cash or money voucher, yes I would accept but would report
b) no, Samuel & Son do not accept gifts over £50

69
Q

When/why were the Rules of Conduct updated?

A

2021, to provide simple and clear structure and set out example behaviours to each rule.

70
Q

Why was the Bichard Review commissioned?

A

To clarify the purposes of the RICS, including its responsiblity to act in the public advantage?

71
Q

When would a disciplinary be triggered?

A
  • Complaint made to the RICS
  • Allegation by clients/3rd party
  • Information recevied by the RICS eg. not doing CPD
72
Q

What is the guidance note on complaint handling?

A

RICS Guidance Note on Complaints Handling 2016

73
Q

What can create a negligence claim?

A

Breach of duty of care resulting in loss or damages

74
Q

How can you prevent negligence?

A
  • Understand client objectives
  • Ensure competence
  • Undertake the work in line with any RICS Guidance Notes and Standards
  • Keeps detailed files and photographs
75
Q

What is the minimum level of runoff cover?

A

£1,000,000 for six years

76
Q

What is runoff cover?

A

Cover for negligence once you have ceased trading

77
Q

What happens if you cannot afford runoff cover?

A

Apply to the RICS assigned risk pool

78
Q

What is the process of CDD?

A

Verify identity with two forms of evidence;
1. Photographic ID
2. Proof of Address

Send to a compliance officer to check and further verify

79
Q

Why must RICS members remain solvent?

A

So that they can’t be susceptible to bribery and taking client money

80
Q

What are ethics?

A

Moral principles that givern someones’s behaviour

81
Q

What is a bribe?

A

A gift/incentive that may affect someone’s professional judgement

82
Q

Give some examples of unethical behaviour.

A
  • Accepting bribes
  • Money laundering
  • Proceeding with an instruction despite a COI
  • Acting outside of your competence
  • Providing dishonest information
83
Q

What are the penalities for Money Laundering?

A

Up to 14 years in prison and an unlimited fine.

84
Q

Can you work for free?

A

Yes, this is called pro-bono.

Must have signed Terms of Engagement

85
Q

How would you agree a fee?

A

Ensure that it was in line with the market and be transparent and honest

86
Q

How do you become a fellow of the RICS (FRICS)?

A

Be an MRICS for more than 5 years, be in a leadership role, make a profesional or techincal acheivement and make an academic acheivment

87
Q

What is your firm’s PII cover?

A

This is confidential, but it is less than £5,000,000

88
Q

When was the Bichard Review commissioned and by whom?

A

June 2021 by Alison Levitt KC

89
Q

What did the Bichard Review recommend?

A

36 recommendations in seven key areas including;
- Renewed and increased focus on the public interest
- Increased focus on diversity
- Simplifying clear and accountable structure

90
Q

What was the result of the April 2023 elections?

A

Recruitment of Panel Chairs in Diversity, Equality & Inclusion, and Sustainability

91
Q

What is the RICS motto?

A

“Est modus in rebus” (which translates into English as: “There is measure in all things”)

92
Q

What is client money?

A

Any money received and held by a firm that does not solely belong to it, such as;

  • Tenant deposits,
  • Rent
  • Service charges
  • Interest (if aplicable)
  • Arbitration fees
  • Advance fee payments
  • Contractors pay
  • Sale proceeds
93
Q

What does the Standards and Regulations Board (SRB) do?

A

Create Rules and Policy in regard to:
- Registration of Members and Firms on regulatory schemes
- Regulatory Support (including regulatory schemes)
- Investigation and Disciplinary Process
- Readmission following disciplinary expulsion

94
Q

Max level of uninsured excess

A

Turnover less than £10m, must be 2.5% of insured sum OR £10,000 (which is greater)

More than £10m, no limit set

apc mandatories 2023 (12 decks)

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