Ethics, Rules of Conduct & Professionalism Flashcards
1
Q
Why do you want to become a member of RICS?
A
Status, Recognition, Market Advantage, Knowledge, Network
2
Q
What is the role of RICS?
(3 roles)
A
The RICS has 3 main roles:
* Maintain the highest standards of education & training.
* Protect consumers through strict regulation of professional standards.
* To be the leading source of information & independent advice on land, property, construction and associated environmental issues.
3
Q
What are the key functions of RICS?
(Qualifications & Standards)
A
To promote & enforce the highest professional qualifications & standards in the development & management of land, real estate, construction, and infrastructure.
4
Q
What is a Royal Charter?
A
An instrument of incorporation, granted by The King, which confers independent legal personality on an organization & defined its objectives, constitution and powers to govern its own affairs.
5
Q
Who is the current RICS president?
A
Ann Gray FRICS
6
Q
Who is the CEO of the RICS?
A
Justin Young
7
Q
What do you understand by the term self-regulation?
A
Regulating itself without intervention from external bodies.
8
Q
Can you tell me what you understand by the principles of better regulation?
(5 principles) - ‘offside’
T
T
C
A
P
A
5 principles; Transparency, targeting, consistency, accountability, and proportionality
9
Q
What is a Bye-Law?
Give an example of one of the RICS Bye-Laws.
A
Rules or laws established by an organization as to regulate itself.
- ‘Client confidentiality must be maintained for all client affairs’
10
Q
Explain to me the new RICS Rules of Conduct - what do they replace?
When do they take effect?
Who do they relate to?
A
New rules effective from Feb 2022 on a global basis & replace previous (2007) rules of Conduct for Members & Firms and the 5 Global Professional & Ethical Standards
2nd Feb 2022
Members & Firms
11
Q
What are the 6 ethical principles that the Rules of Conduct are based on?
A
1.Honesty, 2. Integrity, 3. Competence, 4. Service, 5. Respect, 6. Responsibility
12
Q
What are the 5 Rules of Conduct?
A
- Members & firms must be honest, act with integrity and comply with their personal obligations, including obligations to RICS.
- Members & firms must maintain their professional competency & ensure that their services are provided by competent individuals who have the necessary expertise.
- Members & firms must provide good quality & diligent service.
- Members & firms must treat each other with respect & encourage diversity and inclusion.
- Members & firms must act in the public interest, take responsibility for their actions and act to prevent harm & maintain public confidence in their profession.
13
Q
What are the 5 Rules of Conduct.
A
- Members & firms must be honest, act with integrity & comply with their personal obligations, including obligations to the RICS.
- Members & firms must maintain their professional competency and ensure that services are provided by competent individuals who have the necessary expertise.
- Members & firms must provide good-quality & diligent service.
- Members & firms must treat others with respect & encourage diversity & inclusion.
- Members & firms must act in the public interest, take responsibility for their actions and act to prevent harm & maintain public confidence in their profession.
14
Q
What are the core professional obligations of firms and members to RICS?
A
RICS members must:
1. Comply with CPD requirements
2. Cooperate with RICS
3. Promptly provide all information reasonably requested by the Standards & Regulation Board, or those exercising delegated authority on its behalf
RICS-regulated firms must:
1. Publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
2. Ensure all previous & current professional work is covered by adequate and appropriate professional indemnity cover that meets the standard approved by RICS.
3. All firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
4. Cooperate with the RICS
5. Promptly provide all information reasonably requested by the Standards & Regulation Board, or those exercising delegated authority on its behalf.
6. Display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
7. Report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
15
Q
What disciplinary procedures can the RICS impose?
A
Regulatory Compliance Orders (RCO)
Regulatory Tribunal against Regulated Members (Disciplinary Panel or Single Member of the Regulatory Tribunal)
16
Q
In what circumstances can disciplinary procedures be imposed?
A
- Fixed Penalty – breach of rules relating to the supply of information to the RICS by firms & members.
- Regulatory Compliance Order – Low level breaches which can be easily corrected.
- Single member of the Regulatory Tribunal – Member does not admit but case does not warrant a hearing.
- Disciplinary Panel drawn from the Independent Regulatory Tribunal – Most serious breaches where the Head of Regulation considers a hearing is required.
17
Q
When did RICS last update their disciplinary panel rules?
A
2 March 2020
18
Q
What are the different levels of action within the disciplinary procedures?
A
- Serve a fixed penalty notice
- Make a Regulatory Compliance Order (RCO) – Fine & publication
- Referred to a single member of the Regulatory Tribunal
- Refer the matter to the Disciplinary Panel for consideration under the discipline rules. Outcome from the hearing include; Compliance Order, Fine in proportion to offence, conditions upon future membership, expulsion, require publication of hearing into RICS Modus magazine, website or local newspaper where firm is based.
19
Q
What do you understand by the term professional practice?
A
The conduct & work of someone from a professional profession.
20
Q
What money laundering regulations or legislation are you aware of?
A
- Money Laundering, Terrorist Financing and Transfer of Funds Regulations, 2017 – as amended 2022
21
Q
What is a red flag of money laundering?
A
- Inability or unwillingness of parties to provide identity documents.
- Changes to parties involved in transactions.
- Unusual transaction features, such as unexpected urgency required by parties, potential loss-making or an unusual transaction for a client.
- Payment of fees, purchase or rental monies in unusual currencies.
22
Q
What bribery legislation are you aware of?
A
Bribery Act 2010 and Proceeds of Crime Act 2002
23
Q
What is a bribe?
A
Giving, offering, promising or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust.
24
Q
What are the penalties for accepting a bribe?
A
Bribery Act is policed by the Serious Fraud Office - Maximum of 10 years imprisonment and or an unlimited fine for individuals; companies face an unlimited fine.
25
What are the penalties for being involved in money laundering?
* Maximum 14 years in prison and/or unlimited fine for assisting.
* Maximum 5 years in prison and/or unlimited fine for tipping off a person by informing them that they are under suspicion for money laundering or for failing to report suspicion.
26
What constitutes an offence under the Bribery Act 2010?
* Bribing
* Receiving a bribe
* Bribing a foreign public official; and
* Failing to prevent bribery.
27
What constitutes an offence under the current money laundering regulations?
In the proceeds of crime act
* Concealing criminal property: if a person conceals, disguises, converts or transfers criminal property.
* Arrangements: if a person enters into or becomes concerned in an arrangement which they know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person.
* Acquisition use and possession: if a person acquire, uses, or has possession of criminal property.
28
How long should you keep anti money laundering records for?
Minimum of 5 yrs.
29
What is Professional Indemnity Insurance (PII)?
Protects against claims for loss or damage made by clients or third parties as a result of negligent services you provided or negligent advice you offered.
30
Can you tell me about the RICS requirements in relation to PII?
It is mandatory. All members must insure that an adequate and appropriate level of insurance is in place for each instruction.
All policies must be underwritten by an RICS approved insurer.
based on turnover as to the minimum level of indemnity required for each & every claim.
£100,000 or less = £250k
£100,001 to £200k = £500k
£200,001 and above = £1m
The maximum level of uninsured excess required by RICS is:
Liability of up to £500k = The greater of 2.5% of the sum insured or £10k
Liability of over £500k = 2.5% of the sum insured.
31
What is a PII aggregation clause?
Where a number of claims arise from the same originating source or cause, such as a repeated error or omission, then all claims will be treated as one, attracting only one limit of indemnity, which may be insufficient.
32
What does ‘claims made’ mean in terms of PII?
The policy covers claims that are first made against the insured during the period of insurance regardless of when the negligent act occurred.
33
Is a PII excess usually paid for per claim?
Yes
34
In a negligence claim, what would help to show that you acted with consideration and due process?
Having undertaken the work in accordance with the relevant RICS Standards & Guidelines.
Making detailed file notes and taking photographs.
Cap the professional liability excess on your PII policy in the Terms of Engagement
35
Can good record keeping help to provide a defence in a PII claim?
Yes – take detailed notes & photographs.
36
If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?
Cap the professional liability excess in the Terms of Engagement
37
What is run off cover?
A professional indemnity insurance for claims made against a firm after it has stopped doing business.
38
What RICS requirements are there relating to run off cover?
For consumer claims: A minimum of £1,000,000 of aggregate cover over a minimum of 6 years
For commercial claims: Firms must consider what is adequate and appropriate for at least 6 years. The RICS recommends longer as claims can be made up to 15 years after work is undertaken.
Firms unable to obtain run off cover will be able to apply for run-off coverage to the RICS Run-off Pool.
39
Explain PII requirements relating to fire safety cover and cyber cover.
Fire: The minimum terms now state any exclusions from PII 'will not apply to professional work relating to buildings of 4 stories or under'
Cyber: The minimum claims now exclude claims from Cyber Acts
40
How long can a PII claim arise after the work is undertaken?
Clients – 6 years
15 years if there was damage that was hidden which they could not reasonably be expected to have discovered at the time.
41
What is the Assigned Risks Pool (ARP)?
Who might need to access the ARP?
A market facility open to all RICS accredited firms who are unable to obtain PII.
If a firm is unable to obtain terms in the insurance market.
42
Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance (1st Edition) 2021.
Fire
3rd party
Liability caps
* RICS have secured new insurance terms, lifting the 12-month fire safety exclusion form PII.
* Insurers must now provide cover for fire safety claims on a property of 5 story’s or less.
* RICS recommends the use of liability caps to manage risks associated with professional work.
* RICS advises parties to be aware of third-party reliance and make it clear that advice can only be relied upon by the client named in the terms of engagement.
43
What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?
* The scope of the work
* The basis on which the fee shall be calculated.
* The liability cap
44
What is an annual return?
(6 areas)
Six areas of an annual return:
* Type of business and staffing details
* Statutory regulated activities – such as for financial services
* Nature of clients
* Complaints handling procedure details and records
* Professional indemnity insurance details
* Whether the firm holds clients’ money
45
Tell me what you understand about Complaints Handling Procedures (CHP).
* A firms written CHP must be approved by the RICS
* Always notify PII insurers if there is a complaint that could lead to negligence
* A firms CHP should be issued at the same time as a firms Terms of Business
* A complaints log must be maintained to show details, progress and outcomes
* Firms must include a Alternative Disputes Resolution (ADR) mechanism in their complaints handling procedure
2 stages of handling a complaint; In house & ADR – Third Party Resolution
46
When and how can the RICS be involved in a complaint about a firm or member?
If a member fails to respond to a complaint or prevents the party gaining access to an independent redress mechanism.
47
Can you tell me about the CPD requirements for members of RICS?
Minimum of 20 hours p.a. Of this 10 must be formal
All members must maintain a relevant & current understanding of the RICS rules of conduct during a rolling 3-year period
All members must record their CPD online on the RICS website.
48
Why is CPD important?
Helps avoid negligence.
It is a mandatory professional obligation by the RICS
49
Tell me about the RICS’ guidance on dealing with Conflicts of Interest.
Undertake the 3 step process:
* Conflict avoidance – decide if appropriate
* Written advice to both parties – assuming you wish to proceed inform client A & B of the following 3 points; Disclose the nature of the conflict the circumstances and how the firm intends to deal with the conflict, be clear and ensure parties make their own decisions, request written conformation of the clients informed consent
50
What is double dipping (dual agency)?
Where an agent has a contractual relationship with both the seller and buyer at the same time.
51
Why is double dipping (dual agency) an unacceptable practice?
Unethical. Conflict of interest between both parties.
52
How would you close down a regulated firm?
Follow the closing down checklist:
* Agree closure date.
* Is the firm insolvent? Seek advice.
* Inform staff and take steps to make them redundant.
* Inform the clients.
* Deal with outstanding client money in accordance with the Client Money Handling professional statement
* Notify Professional Indemnity Insurers and arrange run-off cover.
* Make arrangements for digital files.
* Notify clients for whom you are holding documents.
* Confidentially destroy documents you do not need to keep.
* Inform RICS to de-register your firm.
* When closed ensure anyone trying to contact you will be notified and consider who else should be contacted.
53
What can you tell me about RICS Professional Statement relating to bribery, corruption or money laundering?
(3 Parts)
RICS Professional Statement: Countering bribery, corruption, money laundering & terrorist financing 2019'
Divided into 3 parts
1. Mandatory requirements
Bribery & Corruption - RICS Regulated forms must;
* Not offer or accept anything that could be considered a bribe.
* Have procedures in place to comply with the law.
* Report suspicion to the relevant authority
* Act with due diligence to perform written evaluations of the risk the firm faces.
* Retain records to show the firm has met the requirements of this Professional Statement
Money Laundering & Terrorist Financing (ML & TF) - RICS Regulated forms must;
* Not facilitate or be complicit in ML & TF
* Have a system in place to comply with the laws
* Report suspicion
* Evaluate & review risks presented to the firm
* Use third party reliance for checks only when confidence in the quality of info from third party.
* Take appropriate measures to understand the client and purpose of instruction
* Verify the client by undertaking basic ID checks
* Retain records to show the firm has met the requirements of this Professional Statement
2. Guidance setting out good practice for the above (gifts register, written policy & transparency)
3. Supplementary guidance on some of the concepts set out in part 1 & 2 (Risk based approach, 3 W;s; who, what, why, and dealing with PEP’s)
54
What must/should firms/members do to comply with the RICS guidance relating to bribery, corruption or money laundering?
* Written policy in place of the procedures.
* Publish a code of behavior for staff and encourage guidance.
* Encourage transparency.
* Set up a gift register.
* Keep up to date with the legislation.
55
What are the current RICS rules for registration of firms?
When did these last change?
There must be a RICS member at the firm to register.
Firms must annually make a return confirming their compliance with their obligations.
RICS ‘Rules for the regulation of firms’ 2019 (effective 1st April 2022) state:
* If 50% of principals of a UK firm which provides surveying services are RICS members then it has to be regulated, and if at least 25% it can apply to be regulated, must be providing surveying services to to the public , acting in regulated area A (UK)
* Principals are sole practitioners, directors, partners or board members or someone who is able to act autonomously / without supervision.
* Each firm must nominate a ‘Responsible Principal’ who is obliged to ensure all steps are taken and systems in place to comply
New rules became effective from 1st April 2022
56
Who is a ‘qualified member’ of RICS?
Someone who has completed their Chartered qualification.
Need relevant experience & a RICS accredited degree or 5 years relevant experience and a bachelor’s degree
57
What is a phoenix firm?
A successful commercial entity which has emerged through the collapse of another through insolvency.
58
When must a firm register for regulation?
If 50% of Principals are RICS members
59
What are the registration eligibility criteria for the RICS?
* Must offer services in surveying disciplines.
*. Operate in area A (uk)
* 50% of principles or more then a firm is obliged
* Have at least 25% of principals who are qualified RICS members.
* Observe & comply with RICS Rules if Conduct for Firms, including working to RICS standards.
60
Who is a Responsible Principal?
A nominated principal who is obliged to ensure all reasonable steps are taken and systems are in place to ensure compliance with regulatory and RICS requirements, including to report to the RICS as required.
61
What happens if a firm cannot comply with the RICS eligibility criteria?
Disputes are heard by the RICS Standards & Regulation Board
62
What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?
When did these rules last change?
- Comply with the Standards & Regulation Board’s Policy Statement and RICS branding guidelines for members & Registered Firms.
- Comply with the rules of conduct, rules for the registration of firms and these rules.
- Act in accordance with the obligations set out in RICS’ Royal Charter & Bye Laws
- Not alter the RICS logo or RICS Registered Firm Designation without permission.
- Not use the logo in a manner that could have an adverse impact upon its status as a registered trademark.
- Not use the logo in a manner that could bring the profession into disrepute.
- Not use the chartered surveyor designation in a manner that could have adverse impact on its status as a registered trademark.
Only RICS members and registered firms can use the logo. There is a requirement that Regulated Firms must include a prescribed text in terms of engagement to explain what being regulated by the RICS means.
- A firm registered for regulation must display the ‘Regulated by RICS’ designation in a manner clearly visible to both potential and existing clients of the firm and must appear on the following: The firm’s letterhead, website terms of engagement & externally facing info on the firms’ formal complaints handling process.
The above rules came into effect in April 2020.
v.7 came into force in 2022
63
Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.
- 50% of partners or directors are chartered members
- No partner or director has been expelled and not subsequently re-admitted.
- The chartered surveyor designation is only used in the business’ trading name and not feature in the business’ corporation name.
- The firm is registered for regulation with the RICS, if it has its principal office in the UK
- For firms whose principal office is not in the UK there is an agreement between the partners that any surveying services are carried out in accordance with the Rukes of Conduct, with a copy of the agreement to be supplied to the RICS on demand.
- Each individual partner or director who is a chartered member uses the appropriate designatory initials when they conduct the business of the partnership or company.
64
What must be included in ToE relating to firm regulation?
There is a requirement that Regulated Firms must include a prescribed text in terms of engagement to explain what being regulated by the RICS means.
65
What is a locum and who might need one?
Someone who can stand in for another surveyor if they cannot work. A sole practitioner may need one.
66
How could a sole trader set up their CHP using a locum?
They must nominate a surveyor in another firm to act as their CHO.
67
What RICS guidance relates to handling client money?
When was this last updated?
RICS professional statement - ‘Client Money Handling’ 1st edition 2019 (effective Jan 2020)
2019
68
What do the RICS Rules of Conduct say about client money?
“Firms keep client money safe and have appropriate accounting controls”
In other words
A firm shall preserve the security of clients' money entrusted to its care in the course of its practice or business
69
Explain your understanding of the RICS Scheme Rules relating to client money protection.
What are the main schemes available to firms?
Clients’ Money Protection Scheme- last resort where RICS regulated firms are unable to pay client money. The scheme is in 2 parts:
1. “Client Money Protection for Surveying Services” – covering money held by firms for services.
2. “Client Money Protection for Residential Agents” – Residential agency protection covering Client Money Protection Schemes for Property Agents Regulation 2018
70
What is the current compensation limit to the Clients’ Money Protection Scheme?
When was the change?
£50,000 per claim
£10.3m cap on liability of the scheme as a whole in respect of any single Financial Year
June 2020
71
What does the annual regulatory review fee relate to?
All regulated firms who hold clients’ money pay a regulatory review fee on an annual basis. The income covers the cost of the client money regulatory review visit program.
72
What might client money include?
How does this differ to office money?
Money of any currency which a firm holds on behalf of a client, or which a firm treat as client money in accordance with the client money rules.
Money of any currency which belongs wholly to the RICS-regulated firm or its principals.
e.g. rents or service charge, interest credited to a client account.
73
What are some of the key principles of the RICS Professional Statement relating to client money protection?
* Clients’ accounts must be kept separate & clearly identifiable.
* The word ‘client’ is on the bank account & cheque book.
* A client must be able to have their monies on demand.
* Payments of interest are agreed with a client and accounts must be kept in credit.
* Regular bank reconciliation checking that payments received are transferred to the bank account & expenditure records are checked at least monthly.
* Accurate records are kept with a running balance available.
* Annual audit & reporting obligations by certified accountant employed by the RICS are met.
* Money can only be withdrawn from a client account if properly required.
* If cash receipts are made to settle transactions, make sure your records show all cash transactions.
* Signatories must be agreed with authorized staff and two signatures should be required.
* A discrete account is for a single named client account only.
* RICS Regulatory Review Visits of inspection can be undertaken by RICS usually on a routine 3 yearly basis by an accountant employed by the RICS.
* All firms handling client money need to display their procedures document on their website (residential agencies also need to show their certificate in their premises)
74
Explain the key themes from the RICS Futures 2020 Report.
Stewardship of the built & natural environment.
The unprecedented urbanization, disruptions of big data and technology as well as the climate crisis.
75
Explain the potential implications of the Hart v Large case.
(relevant for valuation)
Professional Consultants Certificates (PCC) should be obtained from the vendors if a property has been recently refurbished. This provides the client protection against concealed defects.
RICS Home Survey States – a RICS member must recommend further investigations ‘if they have a suspicion that a visible defect may affect other concealed BC elements’
* Normally damages are applied as in Watts v Morrow. Providing damages to be assessed on the difference between the surveyor’s valuation and the value of the property in its actual condition.
* Hart V Large argues that damages should be assessed on a basis of the difference between his valuation and the value of the property with the defects that could have been identified but were missed.
* This is based on the argument damages should not reflect the cost of repair, unless MR Large (surveyor) provided a warranty as to the condition of the property (which he did not).
76
Explain your understanding of precedent set in Burgess v Lejonvarn.
Professionals providing a professional service pro bono and without a contract owe a duty of care in tort to act with reasonable care and skill. However, they are not under a duty to advise or give warnings, and nor are they liable for work they do not do.
77
What do RICS set out as good practice for the use of social media in their Regulation document (June 2021)?
RICS is unlikely to investigate:
* Posts that are critical of an organization or its policies & performance, rather than individuals
* Posts that use professional & respectful language
* Posts that are removed in a member receives a request to do so.
78
Explain your understanding of the RICS Levitt review.
2021 review. RICS commissioned Lord Bichard to undertake a further review.
Alison Levitt QC has been appointed to conduct an independent review to investigate press articles that alleged following a RICS commissioned Treasury Management audit in 2018 the RICS ‘tried to suppress a critical internal report into its finances in 2018/2019 and then unfairly dealt with those who sought to explore the issue’
79
What is whistleblowing?
Someone who reveals information about activity within an organization that is deemed illegal, immoral, illicit, unsafe or fraudulent.
80
What does good governance mean to you?
That processes & institutions produce results that meet the needs of society.
81
What are the key values of the interim Governing Council statement relating to ethics, behavior and culture?
Integrity, Transparency, Inclusion, Collaboration, Advocacy and Passion
82
Explain what the Pandora Papers are and the ethical issues raised within them.
A release of c12m leaked documents in 2021 revealing hidden & sometimes unethical or corrupt dealings of the global wealthy & elite including politicians, world leaders, celebs and billionaires.
83
Explain what you understand by the RICS Bichard Review.
An independent review commissioned by the RICS Governing Council to review the Institution’s purpose, governance & strategy.
84
Explain some of the recommendations of the Bichard Review.
36 recommendations in 7 key areas
* A renewed & increased focus on the public interest remit of RICS, including amending the Royal Charter and creating a public interest panel to advise Governing Council.
* Maintaining self-regulation, through greater independence for regulatory functions
* Increased focus on diversity & inclusion
* A new simplified, clear, accountable governance structure
* Showing greater leadership on the issues that matter most to society such as sustainability and climate change
85
How will the Bichard Review recommendations be implemented by RICS?
Through a roadmap with various milestones starting in Q4 2022 and ending Q4 2023.
86
How do professional integrity and professional ethics differ?
Professional integrity is the professional that consistently practices within the guidelines under a code of ethics. Ethics are principles that guide behavior.
87
What is modern slavery and how would you identify red flags of it?
When an individual is exploited by others, for personal or commercial gain. Including slavery, servitude, human trafficking and forced labor.
Red flags: Under the control of someone else, can’t move around freely.
88
Explain the implications of the Sanctions and Anti-Money Laundering Act 2018.
An act of Parliament allowing the UK to impose economic and other sanctions, and money laundering & terrorist financing regulations, following exit from the EU.
89
What is the Sanctions List and why should you be aware of it?
List if people, organizations, or governments that pose a high risk.
Important for AML
90
Why was the Register of Overseas Entities introduced?
Introduced on 1st August 2022. As part of the government’s strategy to tackle global economic crime. It requires overseas entities that own UK property or land to declare their beneficial owners or managing officers.
91
What are the six RICS values published as a result of the Levitt review?
(ITICAP)
Integrity, Transparency, Inclusion, Collaboration, Advocacy and Passion
92
Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022.
Allowed the government to move faster & harder when imposing sanctions. Created the Register of Overseas Entity to crack down on foreign criminals using the UK to property launder. Strengthens investigative powers under UWO (unexplained wealth orders). Includes measures for a beneficial ownership register of overseas entities owning property in the UK
93
How do you ensure that you comply with bribery legislation?
Ensure any gifts are entered into the gifts register.
Never offer or accept anything that could count as a bribe.
94
How do you ensure you comply with money laundering regulations?
Ensure that AML checks are carried out on clients.
I am aware of the red flags associated with money laundering (changes to parties, unwillingness to provide ID, unusual currencies, unusual transaction).
DTRE use Smart search AML software.
95
How do you ensure you comply with your firm’s bribery and gifts policy?
Ensure all gifts are entered in the gifts register and are below DTRE’s gifts & hospitality policy.
96
Tell me about an instance of when you have been offered a gift or hospitality by a client.
Offered wine at Chineham Business Park.
97
Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge.
Would decline the instruction or see if there was someone appropriate at DTRE to advise the client.
98
How would you keep client’s money securely and safely held?
Clearly identifiable. Have the word ‘client’ on the bank account or cheque book. Accurate record keeping.
99
Tell me about how you would handle a client complaint.
Issue DTRE’s complaints handling procedure. Ensure the procedure is quick & transparent. Share details of the Complaints Handling Officer in the first instance.
Ensure the complaint is acknowledged within 7 days & investigated in 28 days.
Notify PII as a complaint could lead to a case of negligence.
100
Tell me about your understanding of your firm's process for escalating a complaint to Alternative Dispute Resolution (ADR).
The name of appropriate redress mechanism must be provided. Use of the RICS dispute resolution service.
101
Tell me about a conflict of interest check you have carried out.
Drapers Yard. Send client and tenants around internally to check for any conflicts.
102
If you identified a potential or actual conflict of interest, how could you handle this?
Decline the instruction or manage the conflict and obtain informed consent.
103
Cheltenham – how did you carry out your pre-instruction checks?
Sent around the details of the client and the tenants to DTRE’s employees.
104
How do you formalise your instruction?
By sending DTRE’s terms of engagement including details on fees & complaints handling and ensuring it was signed by both parties.
105
Basingstoke – why did you accept the gift?
What principles did you apply?
It was below DTRE’s gift & hospitality procedure.
Proportionality.
106
How did you record your decision?
In DTRE’s gift register.
107
Did you keep the gift or did you share it with your team – why?
Kept the gift.
108
Give me an example of when you have acted with integrity?
Advising a client that an offer was not enough and they should not proceed
109
Tell me about when you have provided a high standard of service.
In all work, throughout the sale of The Florence Building.
110
Tell me about how you have promoted trust in the profession.
Using the gift register, acting with integrity.
111
Explain how you have taken responsibility in your current role.
Lead projects and liaised with clients directly.
112
Tell me about how you treat clients with respect.
Using appropriate langue at all times.
113
Tell me about how you treat other surveyors with respect.
Using appropriate langue at all times, listening and being inclusive to all.
114
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.
Inform the RICS by completing a Firm Details Form
Appoint a Responsible Person
Register with RICS for regulation
Arrange Professional Indemnity Insurance & send details to the RICS.
Set up Client Money Handling procedures
Set up a complaints log & CHO
Nominate a Locum in case of incapacitation.
Ensure completion of an online RICS annual return
115
If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.
Decline their offer. Report it to the Fraud & Corruption Reporting Line, CrimeStoppers.
116
What would you do if you were asked by a client to reduce a fee proposal to win new work?
I would refuse as fees should be market based and shouldn’t undercut other firms. I would potentially look to scope services provided & look to reduce this cost if the client wanted a lower fee overall.
117
What would you do if you became suspicious that a client was involved in money laundering?
I wouldn’t make them aware as this can be seen as ‘tipping off’ which is an offence. I would report them internally and escalate to a compliance officer.
118
What would you do if you became suspicious that a client was involved in terrorist activities?
Report them to the Police.
119
If you were to set up in practice on your own, tell me about the types of insurance you would need.
PII – to cover economic loss in case of negligence.
Employer’s liability insurance
120
Camden – how did you deal with the unrepresented tenant?
Acted ethically, making them aware of RICS code for leasing business premises 2020 and that they could be represented.
121
Which Rule of Conduct do you apply when notifying a unrepresented tenant they can be represented and why?
RICS code for leasing business premises 2020
122
Cheltenham – how did you advise within your scope of competence?
Why was this important to you?
Advised on disposal method.
Important not to act outside scope of competence as it can lead to errors / adverse outcomes.
123
Basingstoke – why did you not proceed without signed ToE?
As until these are signed the fee has not been approved and I would not have been formally instructed.
124
When was the RICS Founded?
1868
125
When was the RICS Royal Charter granted
1881
126
How many current members
over 130,000
127
What are the 4 levels of membership?
FRICS
MRICS
AssocRICS
Trainee / Student
128
What board / council runs the RICS
The Governing Council (over 20 members)
129
Who reports to the Governing Council?
The Standards & Regulation Board
130
Who do you report money laundering suspicions to?
to the National Crime Agency via a Suspicious Authority Report (SAR)
131
What do you do if there are discrepancies between a firms client information and that on companies house?
report it to companies house
132
When was the RICS founded
When was the RICS given royal charter
1868
1881
133
what are the 4 levels of membership
MRCIS
FRICS
AssocoRICS
Trainee / Student
134
What is the RICS Professional Statement for Conflicts of Interest
RICS Global Professional Statement on Conflicts of Interest 2017
RICS Professional Statement: 'Conflicts of Interest - UK Commercial Property Market Investment Agency 2017'
135
PII Minimum levels of indemnity.
What are the maximum levels of uninsured excess required:
Turnover in firms preceding year
£100K or less = £250k minimum level of indemnity
£100,001 - £200k = £500k
£200,001 + = £1m
Up to £10m of turnover in preceding year = greater of 2.5% of the sum insured or £10k
Over £10m = No set limit
136
Where does a firm go to seek PII if they cant get cover
To the RICS Assigned Risk Pool
137
Under the Limitation Act 1980 what are the limitation periods for;
Contract
Tort
Contract - 6 years from breach or 3 years from date of knowledge subject to the 15 year backstop
Tort - 6 yrs from the loss suffered.
138
What are the offences of bribery
1- Receiving a bribe
2 - Bribing
3 - bribing a foreign official
4 - failing to prevent bribery
139
Tell me about the Proceeds of Crime Act 2002
Provides powers for enforcement authorities in the UK to recover money & assets which are proceeds of crime.
Three main areas of offense are:
Concealing
Arrangement
Possession & Acquisition
140
What act covers the following three main areas of offense (Concealing, Arrangement, Possession & Acquisition)
Proceeds of Crime Act 2002
141
Tell me about the Economic Crime (Transparency & Enforcement) Act 2022
-Covers the beneficial ownership register of overseas entities owning property in the UK.
-Strengthens investigation powers regarding UWO (unexplained wealth orders)
- Allows easier prosecution of those involves in sanctions0busting inability or unwillingness of parties to provide ID.
142
What RICS statement splits bribery & ML into 3 parts
RICS professional statement: Countering bribery, corruption, money laundering & terrorist financing 2019.
