Ethics, Rules of Conduct & Professionalism

Question 1

Why do you want to become a member of RICS?

Answer 1

Becoming a member of the Royal Institution of Chartered Surveyors (RICS) offers several advantages that can enhance both your career and professional standing:

Professional Recognition
Career Advancement
Networking Opportunities
Continuous Professional Development
Resources and Support
Global Reach
Ethical Standards
Influence in the Industry

Question 2

What is the role of RICS?

Answer 2

The Royal Institution of Chartered Surveyors (RICS) is a leading professional body for qualifications and standards in land, property, construction, and infrastructure. Founded in 1868, RICS plays a significant role in various aspects of the built and natural environment. Here’s a detailed look at its roles and responsibilities:

1. Setting Standards
2. Professional Qualification and Accreditation
3. Regulation and Compliance
4. Advocacy and Representation
5. Guidance and Resources
6. Promoting Best Practice
7. Education and Training

RICS’ work ensures that the industry operates with integrity, expertise, and a commitment to high standards, benefiting both practitioners and the broader public.

Question 3

What are the key functions of RICS?

Answer 3

RICS (Royal Institution of Chartered Surveyors) serves several key functions in the surveying profession, including:

Professional Standards
Education and Training.
Regulation
Advocacy
Research and Innovation
Networking Opportunities
Accreditation and Qualifications
Publications and Resources
Global Reach

Through these functions, RICS plays a vital role in enhancing the professionalism, integrity, and effectiveness of the surveying profession.

Question 4

What is a Royal Charter?

Answer 4

A Royal Charter is a formal document issued by the reigning monarch of the United Kingdom that grants certain rights, powers, or privileges to an organization or institution. In modern times, Royal Charters are less common but still significant. They are often used to bestow a high level of prestige or to formalize the status of organizations with a long history of public service or professional excellence.

Question 5

Who is the current RICS president?

Answer 5

Tina Paillet FRICS

Question 6

What do you understand by the term self-regulation?

Answer 6

Self-regulation refers to the process by which a professional or industry group manages and oversees its own activities, standards, and behaviour, rather than being regulated by external authorities or government agencies.

Question 7

40. Can you tell me what you understand by the principles of better regulation?

Answer 7

eP.A.C.T.T

Following the Carsberg Report. Purpose: members/firms can use 5 principles to decide how best to meet requirements of Rules of Conduct.

1. PROPORTIONALITY – making the penalty proportional to the breach
2. ACCOUNTABILITY – to all members and the public
3. CONSISTENCY – treating all members the sam, level playing field
4. TARGETING – targeted to be relevant and useful, but not prescriptive
5. TRANSPARENCY – to all members, clients and the public

Question 8

What is a Bye-Law?

Answer 8

The RICS Bye-Laws are a set of rules and regulations established by the Royal Institution of Chartered Surveyors (RICS) to govern its operations, membership, and the conduct of its members. These bye-laws form part of the institutional framework that ensures RICS operates effectively and maintains high standards of professionalism and ethics within the surveying and property sectors.

Question 9

Explain to me the new RICS Rules of Conduct - what do they replace?

Answer 9

The new RICS Rules of Conduct, which came into effect in 2023, replace the previous RICS Code of Conduct.

The updated Rules aim to enhance professional standards, accountability, and ethical behaviour among RICS members and firms. They are designed to ensure that professionals act with integrity and uphold the public interest.

Key Features
1. Clarity and Simplicity
2. Professionalism
3. Accountability
4. Sustainability and Ethical Practice
5. Guidance on Compliance
6. Adaptability

By replacing the previous Code of Conduct, the new Rules of Conduct aim to provide a more robust framework for ethical behaviour and professional integrity within the surveying profession. For detailed provisions, it’s best to refer directly to the RICS website or their official publications.

Question 10

Give an example of one of the RICS Bye-Laws.

Answer 10

BYE-LAW 2: MEMBERSHIP AND REGISTRATION - sets rules around classes, eligibility and process for membership.

I would refer to Royal Institution of Chartered Surveyors Bye-Laws (Updated February 2020) for an example.

Question 11

When do the Rules of Conduct take effect?

Answer 11

1 January 2023 (i.e. in place now)

Question 12

Who do the Rules of Conduct relate to?

Answer 12

The new RICS Rules of Conduct apply to:

1. RICS Members
2. RICS Firms
3. Trainees and Students

Overall, the Rules are designed to ensure that all individuals and firms associated with RICS maintain high standards of professionalism and integrity.

Question 13

What are the ethical principles that the Rules of Conduct are based on?

Answer 13

The RICS Rules of Conduct are based on several key ethical principles designed to guide members and firms in their professional practice. These principles include:

(ITCRSA)

1. Integrity: Members must act honestly and fairly, ensuring that their actions are consistent with the values of the profession.
2. Transparency: Members should be open and clear in their communications and dealings, fostering trust with clients, colleagues, and the public.
3. Competence: Members are expected to maintain their professional knowledge and skills, ensuring they are competent to provide the services they offer.
4. Respect: Treating clients, colleagues, and others with respect and courtesy is paramount, promoting a positive and professional working environment.
5. Sustainability: Members should consider the environmental and social impacts of their work, promoting sustainable practices within the profession.
6. Accountability: Members must take responsibility for their actions and decisions, being answerable to clients, colleagues, and the wider public.

These principles are designed to uphold the integrity of the surveying profession and ensure that RICS members contribute positively to society while maintaining high professional standards.

Question 14

What are the 5 Rules of Conduct?

Answer 14

The new RICS Rules of Conduct consist of five core rules that guide members and firms in their professional behaviour:

1. Act with Integrity: Members must always act honestly and fairly in their professional dealings, ensuring their actions align with the ethical standards of the profession.
2. Always Provide a High Standard of Service: Members are expected to maintain competence and deliver services to the highest standards, prioritizing the interests of clients and stakeholders.
3. Act in a Way that Promotes Trust in the Profession: Members should behave in a manner that fosters public confidence in the surveying profession, demonstrating professionalism and ethical conduct.
4. Treat Others with Respect: Members must engage with clients, colleagues, and others respectfully and courteously, promoting an inclusive and collaborative environment.
5. Take Responsibility: Members are accountable for their actions and decisions, ensuring that they comply with legal and regulatory requirements and the standards set by RICS.

These rules collectively reinforce the commitment to ethical practice, professionalism, and accountability within the surveying profession.

Question 15

Give an example behaviour for each.

Answer 15

1. Act with Integrity:
   Example: A surveyor discloses any potential conflicts of interest to their clients before entering into an agreement, ensuring that all parties are fully informed.
2. Always Provide a High Standard of Service:
   Example: A member consistently meets deadlines and follows up with clients to ensure they are satisfied with the services provided, actively seeking feedback to improve.
3. Act in a Way that Promotes Trust in the Profession:
   Example: A surveyor shares relevant industry knowledge and best practices with colleagues and clients, contributing to a culture of transparency and professionalism.
4. Treat Others with Respect:
   Example: A member listens attentively to a client’s concerns, responding thoughtfully and patiently, regardless of any differences in opinion.
5. Take Responsibility:
   Example: A firm conducts an internal review after identifying a mistake in a report, taking corrective action and communicating transparently with the affected clients about the steps being taken.

These behaviours exemplify how RICS members can embody the principles of the Rules of Conduct in their daily professional practices.

Question 16

49. What are the core professional obligations of firms and members to RICS?

Answer 16

The core professional obligations of firms and members to RICS include the following:

1. Compliance with Rules and Regulations
2. Professional Competence
3. Ethical Behaviour
4. Accountability
5. Respect for Clients and Colleagues
6. Safeguarding Client Money
7. Reporting Breaches
8. Promoting the Profession

These obligations are designed to uphold the highest standards of professionalism, ethics, and integrity within the surveying community, ensuring that RICS members and firms contribute positively to the industry and society.

The RICS Standards include various specific guidelines and frameworks, such as:

• RICS Global Professional Standards: These establish the framework for professional conduct and best practices for members worldwide.
• RICS Regulatory Framework: This outlines the obligations regarding compliance, accountability, and the handling of client money.

Question 17

What disciplinary procedures can the RICS impose?

Answer 17

RICS has a range of disciplinary procedures that it can impose on members and firms for breaches of the Rules of Conduct or other professional standards. These procedures typically include:

1. Investigation
2. Disciplinary Hearing
3. Sanctions
   o Reprimand: A formal warning about the conduct.
   o Fine: Financial penalties can be levied for serious breaches.
   o Suspension: Temporary suspension from RICS membership for a specified period.
   o Expulsion: Permanent removal from RICS membership for the most serious violations.
4. Right to Appeal
5. Public Disclosure

These procedures are designed to ensure that RICS members adhere to high professional standards and to maintain public trust in the profession. For the most accurate and detailed information, it’s best to consult RICS’s official guidelines.

Question 18

In what circumstances can RICS disciplinary procedures be imposed?

Answer 18

RICS disciplinary procedures can be imposed in various circumstances, typically related to breaches of the Rules of Conduct or other professional standards. Here are some key situations that may lead to disciplinary action:

1. Professional Misconduct
2. Failure to Comply with Regulations
3. Negligence
4. Mismanagement of Client Money
5. Failure to Maintain Competence
6. Breaches of Confidentiality
7. Inappropriate Behavior
8. Non-compliance with Reporting Obligations

In each case, RICS will investigate the circumstances surrounding the alleged breach, and disciplinary action will depend on the severity and nature of the misconduct.

Question 19

When did RICS last update their disciplinary panel rules?

Answer 19

RICS last updated its Disciplinary Panel Rules in 2022. These updates aimed to enhance the transparency, efficiency, and effectiveness of the disciplinary process.

Question 20

55. What money laundering regulations or legislation are you aware of?

Answer 20

In the UK, money laundering is regulated by several key pieces of legislation and frameworks. Here are the primary ones:

• Proceeds of Crime Act 2002 (POCA)
• Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
• The Criminal Finances Act 2017
• The Terrorism Act 2000
• The Financial Services and Markets Act 2000 (FSMA)
• The Sanctions and Anti-Money Laundering Act 2018
• Fifth Money Laundering Directive (5MLD)

These laws and regulations collectively provide a robust framework for detecting, preventing, and prosecuting money laundering and related financial crimes in the UK.

Question 21

What is a red flag of money laundering?

Answer 21

a) Unusual Transaction Patterns (e.g. Frequent large transactions)
b) Structuring or Smurfing (Breaking down large amounts of money into smaller transactions to avoid reporting thresholds or scrutiny.)
c) Inconsistent Information
d) High-Risk Jurisdictions: Transactions involving countries or jurisdictions known for high levels of corruption or inadequate anti-money laundering controls.
e) Unusual Account Activity (e.g. Sudden and unexplained increases in account activity)
f) Complex Ownership Structures: Use of complex or opaque ownership structures, such as shell companies, trusts, or other entities designed to obscure the true ownership of assets.
g) Unexplained Wealth: Individuals or entities showing significant wealth or spending patterns that are inconsistent with their known source of income or business activities.
h) Reluctance to Provide Information
i) Unusual Source of Funds
j) Large or frequent Overseas Transfers
k) Transactions Involving High-Value Items
l) Non-Resident or Offshore Accounts: Use of accounts held in countries with strong secrecy laws or where the customer is not a resident or has no clear reason for using that jurisdiction.

Question 22

What bribery legislation are you aware of?

Answer 22

In the UK, the primary legislation regarding bribery is the Bribery Act 2010.

Question 23

What is a bribe?

Answer 23

A bribe is a form of illicit payment or benefit given to someone in a position of authority or influence to persuade them to act in a way that is favourable to the briber, often in violation of their official duties or ethical standards. Examples can include monetary payments, gifts, hospitality.

Question 24

What are the penalties for accepting a bribe?

Answer 24

In the UK, the penalties for accepting a bribe under the Bribery Act 2010 can be significant. Here are the key consequences:

1. Criminal Penalties:
   o Imprisonment
   o Fines
2. Corporate Penalties:
   o If a company is found guilty of bribery (e.g., if an employee accepts a bribe in the course of their work), it can face unlimited fines as well.
   o Companies may also suffer reputational damage, loss of business, and exclusion from public contracts.
3. Civil Penalties:
   o In addition to criminal sanctions, individuals and companies may also face civil actions for damages from affected parties.
4. Disqualification:
   o Individuals convicted of bribery may face disqualification from acting as directors or holding certain positions within a company.
5. Asset Recovery:
   o The authorities can also seek to recover assets obtained through bribery.
6. Reporting Requirements:
   o Convictions may lead to mandatory reporting to professional bodies, affecting licenses and professional status.

The severity of penalties reflects the UK government’s commitment to combating corruption and promoting integrity in business practices.

Question 25

What are the penalties for being involved in money laundering?

Answer 25

Criminal Penalties:
Imprisonment: Individuals convicted of money laundering offences can face up to 14 years in prison.
o Fines: Courts can impose unlimited fines on individuals or companies found guilty of money laundering.

3. Confiscation Orders: The authorities can also pursue confiscation orders to recover any proceeds of crime, which can include any financial gain from money laundering activities.
4. Civil Penalties: In addition to criminal charges, individuals and businesses may face civil penalties from regulatory bodies.
5. Reputation Damage: Being involved in money laundering can lead to significant reputational damage, loss of business, and difficulties in obtaining financial services or contracts in the future.
6. Professional Consequences: For regulated professionals, such as solicitors or accountants, involvement in money laundering can result in disciplinary action, including the loss of licenses or membership in professional bodies.

Question 26

What constitutes an offence under the Bribery Act 2010?

Answer 26

Bribing Another Person
Being Bribed
Bribery of Foreign Public Officials
Failure to Prevent Bribery

Question 27

What constitutes an offence under the current money laundering regulations?

Answer 27

1. Concealing, Disguising, or Converting Criminal Property
2. Assisting Another Person to Retain Criminal Property
3. Acquiring, Using, or Possessing Criminal Property
4. Failure to Report
5. Tipping Off
6. Money Laundering

Question 28

How long should you keep anti money laundering records for?

Answer 28

Under UK anti-money laundering (AML) regulations, you are required to keep records for a minimum of five years from the date of the end of the business relationship or the date of the occasional transaction.

Question 29

What is Professional Indemnity Insurance (PII)?

Answer 29

Professional Indemnity Insurance (PII) covers you for civil liability claims arising from your work in private legal practice. These claims most commonly involve professional negligence.

Question 30

Can you tell me about the RICS requirements in relation to PII?

Answer 30

RICS (Royal Institution of Chartered Surveyors) has specific requirements regarding Professional Indemnity Insurance (PII) to ensure that members and firms are adequately protected against claims arising from their professional services.

1. Mandatory PII: RICS members and firms providing certain services are required to have professional indemnity insurance in place. This helps safeguard clients and the public against potential claims for negligence or professional misconduct.
2. Minimum Coverage: The insurance must meet minimum coverage limits specified by RICS. Typically, this includes a minimum of £1 million for each claim, although higher limits may be necessary depending on the nature of the services provided and the size of the firm.
3. Duration of Coverage: PII must be maintained for a specified period after ceasing practice, often up to six years, to cover claims arising from past work.
4. Notification of Claims: Members and firms are required to notify their insurer of any claims or circumstances that might lead to a claim as soon as they become aware of them.
5. Policy Details: Members must ensure that the PII policy is appropriate for their business activities and adequately covers the risks associated with their specific services.
6. Compliance with Regulations: Members must comply with all relevant regulations concerning PII, including those set out by RICS and other regulatory bodies.
7. Disclosure: Firms are expected to disclose their PII status to clients when required, ensuring transparency about their coverage.
   These requirements are designed to protect both RICS members and their clients, fostering trust and professionalism in the surveying industry. For the most current and specific details, it’s advisable to refer directly to RICS’s official guidelines and documentation.
   For more information, I would refer to the RICS Regulation ‘Professional Indemnity Insurance Requirements’ Version 9, February 2022.

Question 31

What is a PII aggregation clause?

Answer 31

A PII aggregation clause (Professional Indemnity Insurance aggregation clause) is a provision in an insurance policy that determines how multiple claims arising from the same incident or series of related incidents are treated in terms of coverage limits.

Question 32

What does ‘claims made’ mean in terms of PII?

Answer 32

In the context of Professional Indemnity Insurance (PII), the term “claims made” refers to a specific type of coverage that responds to claims when they are made, rather than when the event giving rise to the claim occurred.

Claims-made coverage is essential for professionals to be aware of, as it directly impacts how and when they are protected against potential claims related to their professional activities.

Question 33

Is a PII excess usually paid for per claim?

Answer 33

Yes, a Professional Indemnity Insurance (PII) excess (also known as a deductible) is typically paid per claim. Understanding the excess structure is important for effective financial planning and risk management within a professional practice.

Question 34

In a negligence claim, what would help to show that you acted with consideration and due process?

Answer 34

1. Documentation of Procedures
2. Adherence to Industry Standards
3. Risk Assessments
4. Client Communication
5. Consultation with Experts
6. Training and Qualifications
7. Client Feedback
8. Incident Response Plans
9. Post-Project Review

By providing thorough evidence in these areas, you can help demonstrate that you acted with due diligence and consideration, potentially mitigating liability in a negligence claim.

Question 35

Can good record keeping help to provide a defence in a PII claim?

Answer 35

Yes, good record keeping can significantly help provide a defence in a Professional Indemnity Insurance (PII) claim, for example:

1. Documentation of Actions
2. Evidence of Compliance
3. Communication Records
4. Risk Management
5. Client Instructions
6. Resolution of Issues
7. Training and Qualifications
8. Post-Project Reviews

Question 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?

Answer 36

1. Review Your Current Policy
2. Notify Your Insurer
3. Consider Additional Coverage
4. Assess Risk
5. Client Communication (Clearly communicate to the client that the services you are providing are outside your usual scope. Ensure they understand the implications and manage their expectations regarding the level of expertise.)
6. Obtain Consent
7. Document Everything
8. Consult with Professionals

Question 37

What is run off cover?

Answer 37

Run-off cover is insurance for claims made against a law firm after it has stopped doing business.

Question 38

What RICS requirements are there relating to run off cover?

Answer 38

1. Definition: Run-off cover is insurance that protects against claims made after a professional has ceased trading or retired. It ensures that past clients can still make claims for work done while the professional was active.
2. Mandatory Requirement: RICS members are required to maintain adequate professional indemnity insurance (PII), which includes provisions for run-off cover if they stop practicing.
3. Duration of Cover: Typically, RICS recommends that run-off cover should last for a minimum of six years after ceasing practice. This aligns with the typical limitation period for claims related to professional negligence.
4. Proportionality: The amount of run-off cover required should be proportionate to the nature and scale of the practice. This means that smaller firms may not need the same level of cover as larger ones.
5. Communication: RICS members should inform clients about the availability of run-off cover and the duration of such coverage, ensuring transparency regarding their insurance provisions.
6. Compliance: Adhering to these requirements is essential for maintaining RICS membership and upholding professional standards within the industry.

Question 39

What changes did RICS recently make to the Minimum Approved PII Wording?

Answer 39

As of 1 April 2021 RICS new Minimum Policy Wording and insurance rules for professional indemnity insurance (PII) are in effect, which will allow more chartered surveying firms to obtain improved fire safety cover in their PII.

Question 40

Would a dictated report avoid the need to have any written site notes?

Answer 40

No - while a dictated report is useful, it should be supplemented with written site notes to provide a complete and reliable record of your work. This approach enhances both the quality of the reporting and the protection against potential claims.

Question 41

Explain PII requirements relating to fire safety cover and cyber cover.

Answer 41

Professional Indemnity Insurance (PII) requirements for fire safety cover and cyber cover are increasingly important due to the evolving nature of risks in these areas.

For both fire safety cover and cyber cover, professionals should:

• Review their PII policy to ensure these areas are adequately covered.
• Stay informed about industry standards and regulatory requirements.
• Maintain comprehensive records and documentation related to both fire safety practices and cybersecurity measures.

Being proactive in these areas can help mitigate risks and ensure compliance while protecting against potential claims.

Question 42

How long can a PII claim arise after the work is undertaken?

Answer 42

While the general limitation period for bringing a claim is six years, the specifics can vary based on policy terms and individual circumstances. Always consult your policy documents and consider seeking legal advice for precise guidance.

Question 43

What is the Assigned Risks Pool (ARP)?

Answer 43

The Assigned Risks Pool (ARP) is a mechanism designed to provide access to professional indemnity insurance for firms that may struggle to obtain coverage through conventional markets.

Question 44

Who might need to access the ARP?

Answer 44

The Assigned Risks Pool (ARP) is a mechanism designed to provide access to professional indemnity insurance for firms that may struggle to obtain coverage through conventional markets.

Question 45

Explain your understanding of the RICS Professional Standard Risk, Liability and Insurance (1st Edition).

Answer 45

The RICS Professional Standard Risk, Liability and Insurance (1st Edition) provides guidelines for professionals in the real estate and construction sectors regarding the management of risk, understanding liabilities, and ensuring appropriate insurance coverage.

Question 46

Explain when you might agree a liability cap.

Answer 46

Agreeing to a liability cap is a common practice in professional services contracts to manage risk and exposure. Example scenarios:
1. Client Negotiations
2. Project Scope and Complexity
3. Limited Insurance Coverage
4. Long-Term Relationships
5. Regulatory Compliance
6. Market Practice
7. Clarity and Certainty
8. Small or Medium-Sized Projects

Question 47

How would set out third party reliance in Terms of Engagement?

Answer 47

Setting out third-party reliance in your Terms of Engagement is important to clarify the extent to which third parties can depend on your work or advice. Components of terms should include:
- Definition of Third Parties
- Limitation of Liability
- No Warranty for Third Parties
- Indemnity Clause
- Client Acknowledgement
- Governing Law and Dispute Resolution

Question 48

What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?

Answer 48

1) Scope of Work - clearly define the scope of work to be provided
2) Liability - understand the extent of your liability for services rendered, including potential claims arising from negligence or omissions.
3) Indemnity - understand the obligations to compensate another party for certain losses or damages.

Question 49

What is an annual return?

Answer 49

An annual return is a periodic report that companies and other entities are required to submit to a regulatory body or authority, providing updated information about their activities, financial status, and other relevant details. For example – An Annual Confirmation Statement is a report that companies must file with Companies House to confirm that the information held about the company is accurate and up-to-date. Annual Tax Returns are

Question 50

Tell me what you understand about Complaints Handling Procedures (CHP).

Answer 50

Complaints Handling Procedures (CHP) are structured processes that organizations implement to address and resolve complaints from customers, clients, or stakeholders. Key components:

1. Accessibility for all users.
2. Clear Guidelines
3. Acknowledge and Record
4. Investigation
5. Response and Resolution
6. Feedback Mechanism (on the complaints process itself)
7. Continuous Improvement
8. Training
9. Confidentiality (handling complaints with confidentiality and sensitivity is crucial to maintain trust.)

Effective CHPs not only resolve individual complaints but also enhance customer satisfaction, improve services, and foster a culture of accountability and responsiveness within organizations.

Question 51

What is a phoenix firm?

Answer 51

A “phoenix firm” refers to a company that is essentially the reincarnation of a previous business that has been closed down, often to evade debts or legal obligations.

Question 52

Explain the potential implications of the Hart v Large case.

Answer 52

The Hart v. Large case is significant in the context of professional indemnity insurance (PII) and negligence law, particularly for surveyors and other professionals. Here are some potential implications of the case:

1. Clarification of Duty of Care
2. Insurance Coverage
3. Contractual Obligations
4. Client Expectations
5. Risk Management Practices
6. Professional Development and Training
7. Impact on Future Litigation

Overall, the implications of the Hart v. Large case are likely to resonate across the professional landscape, affecting how duties of care are interpreted and enforced in various professional settings.

Question 53

Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge.

Answer 53

I would explain to my client that the instruction or request fell outside of my area of knowledge or expertise and I would advise my client to seek advice from a practitioner with the appropriate expertise in the field, discipline or market. I might then reflect on whether this is an area of further development for me within my CPD plan.

Question 54

How do you ensure you comply with your firm’s bribery and gifts policy?

Answer 54

Our standing orders are clear that officers must comply with the Lambeth Code of Conduct and must not invite or accept any gift or reward in respect of the award or performance of any contract. High standards of conduct are obligatory. Findings of corrupt behaviour in Council officers may lead to dismissal.

If any hospitality is offered, I clear with my line manager before accepting and put a declaration on our gift register.

Question 55

Tell me about an instance of when you have handled client’s money.

Answer 55

I have limited experience, although in past roles I have requested cheques from clients that were submitted to local planning authorities for application and pre-application fees.

Question 56

How would you keep client’s money securely and safely held?

Answer 56

I would refer to the RICS Professional Standard ‘Client Money Handling – 1st Edition 2019’ for further information on how to do this.

Key principles to follow:

1) Ensure client money kept in a designated client account, separate from firm funds.
2) Ensure adequate records maintained
3) Regular reconciliations to ensure records match bank statements and identify discrepancies
4) Ensure internal safeguarding controls (around access for example)
5) Ensure compliance with regulations (e.g. around Anti Money Laundering)
6) Consider Insurance and Indemnity Requirements
7) Good client communication

Question 57

Tell me about how you would handle a client complaint.

Answer 57

1. Acknowledgment
2. Investigation
3. Communication
4. Resolution
5. Documentation
6. Learning Opportunity
7. Escalation Process
8. Follow-Up

By following these guidelines, RICS members can handle complaints effectively, maintain client trust, and enhance overall service quality. For detailed procedures, it’s advisable to consult RICS’s official materials.

Question 58

Tell me about a conflict of interest check you have carried out.

Answer 58

As a consultant in Lichfields and GVA (Avison Young), I undertook conflict of interest checks as a matter of course when taking new instructions from clients.

For example, I once had to take an instruction from a house builder client where the instruction involved promotion of a site for housing in Bristol. I first checked a register of active instructions in our firm to identify any potential conflicts. When I found none, I sent an email to all users in the company explaining who my client was, what the instruction was in broad (including the location) and asked for colleagues to alert me if they considered a potential conflict of interest. I was alerted to another instruction for a brownfield site in the same authority. I discussed with a colleague and we judged that there was unlikely to be a conflict due to the nature of each site and instruction. For final confirmation, I advised my client of the existing instruction and sought their confirmation that they were content with us to proceed. Also sought confirmation from the client of the original instruction.

Question 59

If you identified a potential or actual conflict of interest, how could you handle this?

Answer 59

RICS provides clear guidance on managing conflicts of interest to ensure ethical practice and maintain client trust. Here are the key points:

1. Identification
2. Disclosure
3. Client Consent
4. Separate Representation
5. Review and Monitor
6. Policies and Procedures
7. Documentation
8. Seek Guidance (If unsure about how to handle a specific conflict)

If I was unsure I would refer to the RICS Professional Standard ‘Conflicts of Interest’ (March 2017)

Question 60

Networking event – why did you decline the invitation?

Answer 60

Whilst I considered the contact to be a beneficial one to have made, I felt uncomfortable with the context and proposition:

• It was made without knowledge of any of my colleagues or superiors.
• The value of the meal was not inconsiderable.
• There was no prior or formalised relationship between this individual and their organisation and my own.
• I was aware that I may be encouraged to divulge business information about my client that was commercially or politically sensitive.

I considered that it may compromise my own integrity, represent a conflict of interest and if there was any later formal engagement between our organisations. I considered that to accept the hospitality and divulge my organisation’s views on development sites would not uphold the RICS Rules of Conduct – to act with integrity and to act in a way that promotes trust in the profession. My decision to decline aligned with these principles and also demonstrated that I am able to take responsibility for my actions.

Question 61

How did you record your decision? What principles did you apply?

Answer 61

I wrote back to the contact to politely decline, so there was a formal written record. I also informed my line manager and made a record in our gift and hospitality register.

I considered that this would not uphold the RICS Rules of Conduct around integrity and to promote trust in the profession.

Question 62

How did you still pursue a business relationship in an appropriate context?

Answer 62

I extended an invitation to setup a meeting with senior officers within a workplace setting where there was greater transparency and more formality and professionalism to the conversation.

Question 63

How have you promoted ED&I in your organisation?

Answer 63

LGBT Staff Forum.
Participated in Anti Racism seminars.
RTPI Explore Programme and Emerging Talent Programme
Procurement using EDI objectives and scoring.

Question 64

Why is this important to you?

Answer 64

I myself identify from a minority group and have faced discrimination in the workplace.
I represent a highly diverse community.
It enables all voices to be heard.
Diversity of talent and thought.
Lambeth - Borough of Equity and Justice

Question 65

What would you do if you were asked by a client to reduce a fee proposal to win new work?

Answer 65

I would consider how this contract were being tendered and whether it was appropriate to engage in such a discussion.

If I was comfortable that such a negotiation was appropriate, I might consider if there were any potential efficiencies in the time assumed, resources, or if I could meet their requirements more efficiently in a way that would allow me to reduce the price.

I would have regard to my organisation’s business plan and goals (e.g. around fee ratios).

If not, I may seek to identify areas where the brief could be descoped in order to reduce costs. If none of this was possible I would stand by the proposal as it was originally proposed.

Question 66

What would you do if you became suspicious that a client was involved in terrorist activities?

Answer 66

1. Do Not Confront the Client
2. Gather Information
3. Follow Internal Procedures
4. File a Suspicious Activity Report (SAR) to the National Crime Agency (NCA)
5. Maintain Confidentiality
6. Cooperate with Authorities
7. Review Your Compliance Measures
8. Seek Legal Advice

By taking these steps, you can responsibly address your concerns while complying with the necessary legal requirements.

Question 67

OAJ – how did you act with integrity?

Answer 67

Example given – project partner requested we make a site available for decant. From a narrow view this was in the interest of the project (providing a convenient site to facilitate development) and in the interest of our partner.

I was aware the site carried risks and constraints – which would particularly potentially compromise my client’s integrity / reputation in the community. I was clear to outline those to my client so they were fully aware.

Question 68

OAJ - Why was it important to present a balanced view?

Answer 68

Proceeding with this site would have presented risks to my client:

• Reputational risk in the community of displacing children’s services and the environmental impact
• Alienation of a leaseholder and service delivery partner.
• Planning risk given unaddressed constraints of the site and measures needed to make it useable
• Additional cost on a project which was already viability challenged.

It was important to ensure that my client had a balanced understanding of the risks, along with the advantages (which were primarily to the project delivery and our project partner’s operation), along with highlighting reasonable alternatives which could be pursued (e.g. a vacant nearby school).

Question 69

Can you tell me about the CPD requirements for members of RICS?

Answer 69

20 hours CPD each year, including a mix of formal and informal learning (minimum 10 hours formal).

Question 70

Why is CPD important?

Answer 70

1. Maintaining Competence
2. Enhancing Skills
3. Adapting to Change
4. Meeting Regulatory Requirements
5. Increasing Professional Confidence
6. Networking Opportunities
7. Career Advancement
8. Quality of Service
9. Reflective Practice
10. Lifelong Learning

Question 71

Can you tell me about the CPD requirements for members of RICS?

Answer 71

20 hours CPD each year, including a mix of formal and informal learning (minimum 10 hours formal).

Question 72

88. Why is CPD important?

Answer 72

1. Maintaining Competence
2. Enhancing Skills
3. Adapting to Change
4. Meeting Regulatory Requirements
5. Increasing Professional Confidence
6. Networking Opportunities
7. Career Advancement
8. Quality of Service
9. Reflective Practice
10. Lifelong Learning

Question 73

When and how can the RICS be involved in a complaint about a firm or member?

Answer 73

The Royal Institution of Chartered Surveyors (RICS) can be involved in a complaint about a firm or member when the issue relates to professional conduct, standards, or ethical behavior.
When to Involve RICS:
1. Professional Standards: If you believe a member or firm has violated RICS’ professional standards or codes of conduct.
2. Ethical Concerns: Issues involving unethical behavior, dishonesty, or failure to act in clients’ best interests.
3. Service Issues: Complaints about poor service or negligence that have not been satisfactorily resolved directly with the firm or member.

Question 74

Tell me about the RICS’ guidance on dealing with Conflicts of Interest.

Answer 74

This is set out in RICS Professional Standard ‘Conflicts of Interest’ (March 2017).

Key principles:
1) Understanding conflict of interest
2) Identifying potential conflicts
3) Disclosure of potential conflict
4) Informed consent
5) Managing conflicts
6) Documentation
7) Review and Monitor
8) Ethical Considerations.

Question 75

What is double dipping (dual agency)?

Answer 75

Double dipping, often referred to as dual agency, occurs in real estate transactions when a single agent or brokerage represents both the buyer and the seller in the same transaction.

Question 76

Why is double dipping (dual agency) an unacceptable practice?

Answer 76

This situation can lead to potential conflicts of interest and ethical concerns, as the agent may have divided loyalties between both parties.

Question 77

How would you close down a regulated firm?

Answer 77

Closing down a regulated firm involves several important steps to ensure compliance with legal and professional standards
1. Review Legal and Regulatory Obligations
2. Notify Stakeholders
3. Client Care
4. Financial Considerations
5. Dissolution Process
6. Record Keeping
7. Post-Closure Considerations

Question 78

What can you tell me about RICS guidance relating to bribery, corruption or money laundering?

Answer 78

This is set out in the RICS Professional Standard – Countering Bribery, Corruption, Money Laundering and Terrorist Financing – 1st Edition – Feb 2019.

Question 79

What status does RICS guidance relating to bribery, corruption or money laundering hold?

Answer 79

Professional Standard (i.e. sets out the minimum level of competence and ethical behaviour expected from RICS members and firms).

Question 80

What are some of the key principles of RICS guidance relating to bribery, corruption or money laundering?

Answer 80

1. Commitment to Integrity:
   * RICS emphasizes the importance of integrity and ethical conduct in all professional dealings. Members are expected to act honestly and transparently, avoiding any actions that could be perceived as corrupt or unethical.
2. Bribery and Corruption:
   * Definition: RICS defines bribery and corruption broadly, encompassing any inducement or advantage offered to influence the actions of an official or other person in a position of authority.
   * Zero Tolerance: The institution adopts a zero-tolerance approach to bribery and corruption, urging members to avoid any involvement in such activities and to report any suspicions or instances.
3. Legal Framework:
   * Members are expected to comply with relevant laws and regulations regarding bribery and corruption, such as the UK Bribery Act 2010 and other local legislation applicable in their jurisdictions.
4. Money Laundering:
   * Understanding Money Laundering: RICS provides guidance on recognizing the signs of money laundering and the obligations of members to prevent it.
   * Know Your Client (KYC): Members are advised to conduct due diligence to understand their clients and the source of their funds, ensuring compliance with anti-money laundering (AML) regulations.
   * Reporting Suspicion: Members must report any suspicious activity or transactions to the relevant authorities, in line with the legal requirements.
5. Training and Awareness:
   * RICS encourages ongoing training and awareness programs to help members identify and manage risks related to bribery, corruption, and money laundering.
6. Internal Controls and Policies:
   * Firms are advised to implement robust internal controls and compliance policies that promote ethical behavior and help prevent incidents of bribery and corruption.
   * Regular audits and reviews of compliance processes are recommended to ensure adherence to best practices.
7. Consequences of Non-Compliance:
   * RICS outlines potential consequences for members involved in bribery, corruption, or money laundering, which can include disciplinary action, loss of membership, and legal repercussions.

Question 81

What must/should firms/members do to comply with RICS guidance relating to bribery, corruption or money laundering?

Answer 81

1.Understand Relevant Legislation:
* Familiarize yourself with laws governing bribery and corruption, such as the UK Bribery Act 2010, and any applicable local laws. Understanding these regulations is crucial for compliance.
2. Implement Anti-Bribery Policies:
* Develop and enforce a clear anti-bribery policy that outlines the firm’s stance against bribery and corruption. This policy should be communicated to all employees and stakeholders.
3. Training and Awareness:
* Conduct regular training sessions for all staff on anti-bribery policies, identifying bribery risks, and understanding the implications of engaging in bribery. Ensuring that everyone understands the policy is vital.
4. Risk Assessment:
* Perform regular risk assessments to identify areas where bribery could occur. This includes evaluating relationships with clients, suppliers, and other stakeholders.
5. Due Diligence:
* Implement thorough due diligence procedures when engaging with clients, third parties, or suppliers. This includes assessing their reputation and business practices to mitigate bribery risks.
6. Clear Reporting Mechanisms:
* Establish clear procedures for reporting suspicions of bribery or corruption. Encourage a culture where employees feel safe to report concerns without fear of retaliation.
7. Monitoring and Audit:
* Regularly monitor and audit compliance with the anti-bribery policy. This includes reviewing financial transactions and business practices to ensure adherence to the policy.
8. Maintain Accurate Records:
* Keep detailed and accurate records of all transactions, contracts, and interactions with clients and third parties. This transparency helps in detecting and preventing bribery.
9. Promote a Culture of Integrity:
* Foster a workplace culture that prioritizes ethical behavior and integrity. Leadership should model these values and make it clear that bribery will not be tolerated.
10. Respond to Incidents:
* Develop a clear plan for responding to any incidents of bribery or suspected bribery. This includes investigation procedures and potential disciplinary actions for involved employees.

Question 82

What are the current RICS rules for registration of firms?

When did these last change?

Answer 82

RICS Regulation - Rules for the Registration of Firms (version 7 - effective February 2022)

Question 83

What were the key changes to RICS Rules for Registration of Firms?

Answer 83

1. Enhanced Compliance Requirements:
   * Firms are now required to demonstrate a more robust commitment to compliance with RICS standards, including ethical practices and governance.
2. Professional Indemnity Insurance:
   * Updates clarified the requirements for professional indemnity insurance, including minimum coverage levels and the need for firms to provide evidence of appropriate insurance at the time of registration and renewal.
3. Quality Assurance and Monitoring:
   * RICS introduced stricter quality assurance measures, including periodic reviews of registered firms to ensure ongoing compliance with regulations.
4. Governance and Management:
   * Emphasis on the need for firms to have clear governance structures and policies in place, ensuring that key personnel are RICS members and that there is accountability in decision-making processes.
5. Record Keeping:
   * Firms must maintain detailed records of their operations and compliance activities, ensuring that documentation is readily available for RICS audits or reviews.
6. Changes in Registration Process:
   * The registration process may have been streamlined, with updated application forms and guidelines to facilitate compliance and improve clarity for firms applying for registration.
7. Disciplinary Procedures:
   * Clarifications regarding the disciplinary process for firms that fail to comply with registration requirements, including potential sanctions or removal from the register.
8. Focus on Ethics and Integrity:
   * A stronger emphasis on ethical behavior, with guidance provided on managing conflicts of interest, bribery, and corruption, ensuring that firms uphold the integrity of the profession.

Question 84

Who is a ‘qualified member’ of RICS?

Answer 84

Chartered Surveyor (MRICS)
Fellow (FRICS)

Question 85

When must a firm register for regulation?

Answer 85

1) When offering regulated services
2) If using RICS branding
3) If employing RICS members
4) If a partnership or corporate entity offering surveying or related services
5) If a firm undergoes significant changes (e.g. mergers, acquisitions) it must register or re-register as necessary.

Question 86

What are the registration eligibility criteria?

Answer 86

Professional Qualification:
* At least one individual within the firm must hold a relevant professional qualification recognized by RICS, such as Chartered Surveyor (MRICS) status.
2. Relevant Experience:
* The firm must demonstrate that it has the necessary expertise and experience in the services it provides, which should align with RICS standards.
3. Compliance with RICS Standards:
* Firms must agree to comply with RICS regulations, including ethical standards, professional conduct, and operational guidelines.
4. Professional Indemnity Insurance:
* The firm must maintain adequate professional indemnity insurance coverage, meeting RICS minimum requirements to protect against potential claims.
5. Governance and Management:
* The firm should have a clear governance structure in place, with designated responsible individuals for compliance with RICS regulations and standards.
6. Continuing Professional Development (CPD):
* The firm must ensure that its members engage in ongoing CPD to maintain their professional skills and knowledge.
7. Financial Stability:
* The firm may need to demonstrate financial stability and sound business practices to ensure it can operate effectively and sustainably.
8. No History of Disciplinary Action:
* The firm and its key personnel should not have any recent history of serious disciplinary action by RICS or other relevant professional bodies.

Question 87

Who is a Responsible Principal?

Answer 87

A Responsible Principal in the context of RICS refers to an individual within a firm who holds a key leadership position and is accountable for ensuring that the firm complies with RICS standards, regulations, and ethical guidelines.

Question 88

105. What happens if a firm cannot comply with the eligibility criteria?

Answer 88

If a firm cannot comply with the eligibility criteria set by RICS for registration, several consequences may arise:
1. Ineligibility for Registration:
* The firm will be deemed ineligible to register with RICS, which means it cannot claim RICS membership or use RICS branding.
2. Loss of Client Trust:
* Inability to meet RICS standards may affect the firm’s reputation and credibility, leading to a potential loss of client trust and business opportunities.
3. Recommendations for Improvement:
* RICS may provide feedback or recommendations for the firm to improve its practices or address the areas of non-compliance, although this is not guaranteed.
4. Prohibition from Providing Certain Services:
* The firm may be restricted from offering regulated services that require RICS registration, limiting its operational capabilities.
5. Legal and Financial Implications:
* Non-compliance with RICS standards may have legal or financial consequences, particularly if it leads to claims from clients or regulatory bodies.
6. Disciplinary Action:
* If a firm is already registered and fails to maintain compliance, it may face disciplinary action from RICS, which could include sanctions, fines, or removal from the register.
7. Consultation for Alternatives:
* The firm may need to consult with RICS or legal advisors to explore alternative routes for compliance or to consider restructuring to meet the criteria.

Question 89

What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?

When did these rules around use of the RICS logo last change?

Answer 89

Only firms that are registered and regulated by RICS are permitted to use the RICS logo and the “Regulated by RICS” designation. This ensures that only compliant firms benefit from the RICS brand.

February 2022

Question 90

What were the last changes made around use of the RICS logo?

Answer 90

This update included clarifications on the conditions for usage, eligibility requirements, and compliance expectations. For the most accurate and detailed information, including any specific changes made during that update, it is advisable to refer to RICS official communications or their website.

Question 91

Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.

Answer 91

The Royal Institution of Chartered Surveyors (RICS) regulates the use of the designation “Chartered Surveyors” by firms in a few ways:
* Firm designation: Firms can only use the designation “Chartered Surveyors” in their trading name.
* RICS logo: Only RICS-regulated firms can use the RICS logo. RICS-qualified professionals can also use the logo on certain materials.
* Registered Firm designation: Firms can use a branded version of the Registered Firm designation that includes the RICS logo and the words “Regulated By RICS”.
* Company name: When a designation is used with a company’s trading name, the company’s registered corporate name must be included on all public displays, electronic communications, and stationery.
* Partner or director initials: Each chartered member partner or director must use the appropriate designatory initials when conducting business for the company or partnership.
To be regulated by the RICS, a firm must:
* Provide professional surveying services to other clients or establishments
* Have at least 25% of their principals be qualified RICS professionals
* Agree to abide by the RICS code of conduct and regulations

Question 92

What must be included in ToE relating to firm regulation?

Answer 92

1. Scope of Services
2. Regulatory Status
3. Responsibilities of the Firm
4. Client Responsibilities
5. Fees and Payment Terms
6. Professional Indemnity Insurance
7. Dispute Resolution
8. Confidentiality and Data Protection
9. Termination Conditions
10. Governing Law

Question 93

What is a locum and who might need one?

Answer 93

A locum is a professional, often a surveyor or other qualified practitioner, who temporarily fills in for another individual who is absent, typically due to illness, maternity leave, or other reasons. Locums can be hired to maintain continuity of service and ensure that client needs are met without interruption.

Question 94

How could a sole trader set up their CHP using a locum?

Answer 94

Setting Up a Client Handling Process (CHP) Using a Locum as a Sole Trader:
1. Identify Needs: Determine where a locum’s expertise is required (e.g., client management, project support).
2. Define Scope: Outline specific tasks and responsibilities for the locum.
3. Select a Locum: Choose a qualified professional with relevant experience.
4. Draft an Agreement: Create a contract detailing work scope, duration, compensation, and confidentiality.
5. Establish Communication: Set up regular check-ins and information-sharing channels.
6. Implement Systems: Use client management tools to provide access to necessary documents and projects.
7. Training: Brief the locum on your processes, values, and client expectations.
8. Monitor Performance: Regularly review the locum’s work and provide feedback.
9. Maintain Client Relationships: Communicate with clients about the temporary arrangement to ensure continuity.
10. Review and Adjust: After the engagement, gather feedback and refine processes for future use.

Question 95

What RICS guidance relates to handling client money?

When was this last updated?

Answer 95

RICS Professional Standard ‘Client Money Handling – 1st Edition 2019’

October 2019

Question 96

What do the RICS Rules of Conduct say about client money?

Answer 96

1. Segregation:
   Client money must be kept separate from the firm’s own funds.
2. Use of Designated Accounts:
   Funds must be held in a designated client bank account.
3. Written Agreements:
   A written agreement should specify the terms under which client money is held.
4. Record Keeping:
   Accurate records of all client transactions must be maintained.
5. Reconciliation:
   Regular reconciliation of client account balances is required.
6. Withdrawal Protocols:
   Clear procedures must be followed for withdrawing client funds.
7. Compliance with Legislation:
   Firms must comply with all relevant laws and regulations concerning client money.
8. Transparency:
   Firms must be transparent with clients about how their money is managed.

Question 97

Explain your understanding of the RICS Scheme Rules relating to client money protection.

Answer 97

1. Client Money Segregation:
   o Client money must be kept separate from the firm’s own funds to prevent misuse.
2. Designated Client Accounts:
   o Funds must be held in specific bank accounts designated solely for client money.
3. Protection of Client Funds:
   o Firms must implement measures to protect client funds from loss, including adequate insurance.
4. Written Client Agreements:
   o Clear written agreements should outline the terms and conditions under which client money is held.
5. Accurate Record Keeping:
   o Firms must maintain detailed and accurate records of all client transactions and balances.
6. Regular Reconciliation:
   o Regular reconciliations must be conducted to ensure the accuracy of client account balances.
7. Withdrawal Procedures:
   o Clear procedures must be established for the withdrawal of client funds, ensuring proper authorization.
8. Transparency and Disclosure:
   o Firms should provide clients with transparent information about how their money is handled.
9. Compliance and Monitoring:
   o Ongoing compliance with the rules must be monitored, and any breaches must be addressed promptly.

Conclusion
These rules are designed to ensure the security and proper management of client money, fostering trust and accountability within the profession.

Question 98

What are the main schemes available to firms? When were these last updated?

Answer 98

1. Client Money Protection Scheme (CMPS):
   Protects client funds in the event of misappropriation by ensuring compensation for clients.
2. Client Accounts:
   Firms must maintain designated bank accounts solely for client money, ensuring segregation from firm funds.
3. Trust Accounts:
   Used for holding client funds securely, often governed by specific legal and regulatory requirements.
4. Escrow Accounts:
   Funds held by a third party until specific conditions are met, commonly used in transactions involving property or significant contracts.
5. Professional Indemnity Insurance (PII):
   While not a direct money handling scheme, PII protects firms against claims arising from the mishandling of client money.
6. Accounting and Record-Keeping Systems:
   Implementation of robust financial management systems to track and reconcile client transactions accurately.
7. Regular Audits and Compliance Checks:
   Conducting internal or external audits to ensure compliance with regulations related to client money handling.

February 2022

Question 99

What is the current compensation limit in respect of client money?

Answer 99

As of the latest updates, the current compensation limit under the RICS Client Money Protection Scheme is £500,000 per client. This means that in the event of misappropriation of client funds, clients can claim compensation up to this amount.

Question 100

What does the annual regulatory review fee relate to?

Answer 100

The annual regulatory review fee relates to the ongoing oversight and compliance of firms registered with RICS. Here are the key aspects:
1. Regulatory Oversight:
o The fee supports RICS’s role in monitoring firms to ensure they adhere to professional standards and regulations.
2. Compliance Checks:
o It covers the costs associated with conducting compliance checks and reviews of firms’ practices and procedures.
3. Professional Development:
o The fee may also contribute to RICS initiatives for training and professional development, ensuring members stay updated with best practices.
4. Client Money Protection:
o Part of the fee helps fund the Client Money Protection Scheme, which safeguards client funds.
5. Administrative Costs:
o It covers administrative costs related to maintaining the regulatory framework and supporting registered firms.

Question 101

What might client money include? How does this differ to office money?

Answer 101

Retainers, Deposits, Advance Payments, Trust Funds, Escrow Funds, Client Fees, Receipts from Sales, Insurance Proceeds.

Office Money: Funds that belong to the firm, used for operational expenses like salaries, rent, and utilities.

Question 102

Explain the key themes from the RICS Futures 2020 Report.

Answer 102

Key Themes from the RICS Futures 2020 Report
1. Technological Innovation:
o Emphasis on the integration of new technologies, such as digital tools and data analytics, to enhance efficiency and decision-making in the built environment.
2. Sustainability:
o A strong focus on sustainable practices, encouraging firms to adopt environmentally friendly methods and contribute to climate resilience.
3. Changing Workforce Dynamics:
o Recognition of evolving workforce trends, including remote working, diversity, and the need for continuous professional development.
4. Client Expectations:
o Increasing demand for transparency, collaboration, and enhanced client experiences, necessitating a shift in how services are delivered.
5. Regulatory Environment:
o The need for firms to adapt to changing regulations and standards, ensuring compliance and risk management.
6. Data-Driven Decision Making:
o Highlighting the importance of data collection and analysis in informing strategic decisions and improving service delivery.
7. Globalization:
o Understanding the impact of global trends and markets on local practices, promoting a more interconnected approach to the profession.
8. Business Resilience:
o Encouraging firms to build resilience against market fluctuations and unforeseen challenges, such as economic downturns or global crises.
Conclusion
The RICS Futures 2020 Report outlines the importance of innovation, sustainability, and adaptability in shaping the future of the surveying profession, emphasizing the need for firms to evolve in response to these key themes.

Question 103

Explain your understanding of precedent set in Burgess v Lejonvarn.

Answer 103

Understanding of Precedent Set in Burgess v Lejonvarn
Case Summary: Burgess v Lejonvarn (2017) involved a dispute over the duties of a party providing professional advice without a formal contract. The case centered around a claim for professional negligence after the claimant (Burgess) alleged that the defendant (Lejonvarn), an architect, failed to provide adequate advice regarding a property renovation project.
Key Points of Precedent:
1. Duty of Care:
o The case established that a duty of care can arise even in the absence of a formal contract. If a party provides advice or services that another party relies upon, a duty of care may exist.
2. Non-Contractual Relationships:
o The ruling highlighted that professional relationships do not always need a written contract to impose legal obligations, especially when one party reasonably relies on the expertise of another.
3. Standard of Care:
o The judgment reinforced the idea that professionals are expected to act with a certain standard of care. Failure to meet this standard can lead to liability for negligence.
4. Reliance on Advice:
o It was emphasized that if a party relies on the advice given, this reliance can create an expectation that the advice will be competent and appropriate.
5. Implications for Professionals:
o The case serves as a cautionary tale for professionals, particularly in design and consultancy roles, to ensure clarity in their communications and to manage clients’ expectations.
Conclusion
Burgess v Lejonvarn sets a significant precedent regarding the duty of care in non-contractual relationships, emphasizing that professionals may be liable for negligence if their advice is relied upon, even without a formal contract. This case underlines the importance of clear communication and the need for professionals to uphold a standard of care in their dealings.

Question 104

What do RICS set out as good practice for the use of social media in their Regulation document (June 2021)?

Answer 104

RICS Good Practice for the Use of Social Media (Regulation Document, June 2021)
1. Professionalism:
o Maintain a professional tone and demeanor in all communications. Avoid posting content that could be seen as unprofessional or damaging to the profession.
2. Confidentiality:
o Respect client confidentiality and do not disclose sensitive information without consent.
3. Accuracy:
o Ensure that any information shared is accurate and truthful. Avoid spreading misinformation or unverified claims.
4. Respect and Courtesy:
o Engage respectfully with others, avoiding personal attacks or negative comments about colleagues, clients, or competitors.
5. Compliance with Regulations:
o Adhere to all relevant laws, regulations, and RICS standards while using social media.
6. Promotion of Services:
o When promoting services, be transparent and avoid misleading claims. Ensure that any promotional content complies with advertising standards.
7. Engagement:
o Use social media as a tool for constructive engagement, networking, and sharing knowledge within the professional community.
8. Personal vs. Professional Accounts:
o Be mindful of the distinction between personal and professional accounts. Consider the implications of posts made from personal accounts as they can still reflect on professional reputation.
Conclusion
These guidelines emphasize the importance of professionalism, accuracy, and compliance in using social media, ensuring that RICS members uphold the integrity of the profession while engaging in online platforms.

Question 105

127. Explain your understanding of the RICS Levitt review.

Answer 105

The RICS Levitt Review, published in 2021, was an independent examination of the RICS governance and operational structure, initiated in response to concerns about the organization’s effectiveness and member engagement. Key findings included the need for improved transparency, accountability, and member involvement in decision-making processes. The review recommended reforms to enhance RICS’s credibility, adapt to industry changes, and better serve its members and the profession.

Question 106

What is whistleblowing?

Answer 106

Alerting authorities to wrong-doing or breaking the law – typically about a person or organisation.

Question 107

What does good governance mean to you?

Answer 107

Ensuring clarity of decision processes, ensuring the right people, teams and organisations are involved or consulted in that process, and ensuring it is streamlined.

Question 108

130. Explain what the Pandora Papers are and the ethical issues raised within them.

Answer 108

The Pandora Papers are a collection of leaked documents, published in October 2021, that reveal how wealthy individuals and public officials use offshore tax havens and shell companies to hide assets and evade taxes. Ethical issues include: tax evasion, transparency and accountability, wealth inequality, corruption and impact on developing countries.

Question 109

Explain what you understand by the RICS Bichard Review.

Answer 109

The Bichard Review, published in 2021, was an independent review commissioned by RICS to assess the organization’s governance, structure, and overall effectiveness in serving its members and the profession. Led by Sir Michael Bichard, the review aimed to identify areas for improvement in RICS’s operations.

132. Explain some of the recommendations of the Bichard Review.
     * Governance Structure:
     - The review highlighted the need for clearer governance and accountability mechanisms within RICS, recommending a re-evaluation of decision-making processes.
     * Member Engagement:
     - It emphasized the importance of enhancing member engagement and participation in governance, suggesting more inclusive practices.
     * Professional Standards:
     - The review called for a stronger focus on maintaining high professional standards and addressing issues related to competence and ethical conduct.
     * Transparency:
     - Recommendations included increasing transparency in RICS operations and decision-making to rebuild trust among members.
     * Strategic Direction:
     - The review encouraged RICS to develop a clear strategic direction that aligns with the evolving needs of the profession and the built environment.

How will these recommendations be implemented by RICS?

RICS aims to methodically implement the Bichard Review recommendations through structured reforms, enhanced engagement, and ongoing evaluation, ultimately strengthening the organization’s governance and service to its members.

Question 110

How do professional integrity and professional ethics differ?

Answer 110

Professional Integrity: Refers to the adherence to moral and ethical principles, showcasing honesty, reliability, and a commitment to doing the right thing in professional settings. This emphasises character and the consistency of one’s actions with their values and principles. It is subjective.
Professional Ethics: Refers to the formal rules and standards that govern the conduct of professionals within a specific field, often outlined in codes of conduct or guidelines. Centres on the established norms and expectations of behaviour within a profession, guiding how members should act in various situations.

Question 111

What is modern slavery and how would you identify red flags of it?

Answer 111

135. What is modern slavery and how would you identify red flags of it?

Modern slavery refers to the exploitation of individuals through coercion, deception, or abuse of power, where people are forced to work against their will in various forms. Red flags include:

• Inconsistent or Unusual Behavior:
• Individuals who seem fearful, anxious, or submissive may be under duress.
• Lack of Control:
• Workers who cannot leave their job, have no personal belongings, or lack control over their money.
• Poor Working Conditions:
• Evidence of unsafe or unhealthy working environments, excessive hours, or inadequate pay.
• Isolation:
• Workers who are isolated from family, friends, or community and have restricted communication.
• Signs of Abuse:
• Physical signs of abuse or neglect, including injuries or signs of malnutrition.
• Misleading Documentation:
• Inconsistencies in identification documents or lack of proper documentation.
• Excessive Dependence:
• Workers overly reliant on an employer or third party for basic needs (housing, food, transportation).
• Unusual Employment Practices:
• Practices such as recruitment through dubious methods, or workers being paid less than the minimum wage.

Question 112

What are the six RICS values published as a result of the Levitt review?

Answer 112

The six RICS values established as a result of the Levitt Review are:
1. Integrity: Upholding honesty and ethical standards in all professional dealings.
2. Respect: Valuing diversity and fostering an inclusive environment for all members and clients.
3. Collaboration: Working together across sectors and disciplines to achieve common goals.
4. Excellence: Striving for the highest standards in professional practice and continuous improvement.
5. Accountability: Taking responsibility for actions and decisions, and ensuring transparency in processes.
6. Sustainability: Committing to practices that promote environmental, social, and economic sustainability for future generations.
These values are intended to guide the behavior and decision-making of RICS members and reinforce the organization’s commitment to professionalism and ethical practice.

Question 113

How do you ensure that you comply with bribery legislation?

Answer 113

• Training and Education:
• Attend regular training sessions on the Bribery Act 2010 to understand what constitutes bribery and the implications of non-compliance.
• Clear Policies:
• Familiarize themselves with Lambeth Council’s anti-bribery policies and procedures, which outline acceptable behaviors and reporting protocols.
• Reporting Mechanisms:
• Use established channels to report any suspicious activity or concerns about bribery, ensuring confidentiality and protection from retaliation.
• Gifts and Hospitality Guidelines:
• Follow guidelines on accepting gifts and hospitality, ensuring they are reasonable, appropriate, and documented.
• Due Diligence:
• Conduct thorough due diligence when engaging with third parties, ensuring they comply with anti-bribery standards.
• Monitoring and Accountability:
• Participate in regular audits and reviews of compliance with anti-bribery policies and cooperate with investigations when necessary.
• Ethical Leadership:
• Promote a culture of integrity and ethical behavior, supported by leadership commitment to anti-bribery practices.
• Continuous Improvement:
• Stay updated on changes to legislation and best practices, adapting policies and training accordingly.

Question 114

How do you ensure you comply with money laundering regulations?

Answer 114

To ensure compliance with money laundering regulations in the UK, it’s essential to follow a structured approach:
1. Understand the Regulations: Familiarize yourself with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, as well as the Proceeds of Crime Act 2002.
2. Risk Assessment: Conduct a thorough risk assessment to identify potential money laundering risks associated with your business activities and clients.
3. Customer Due Diligence (CDD): Implement robust CDD procedures to verify the identities of your clients. This includes understanding their business, the nature of transactions, and monitoring for suspicious activity.
4. Ongoing Monitoring: Continuously monitor transactions and customer behavior for any signs of suspicious activity. This includes keeping records of transactions and updating client information regularly.
5. Reporting Suspicious Activity: Have a clear procedure in place for reporting any suspicious activity to the National Crime Agency (NCA) through a Suspicious Activity Report (SAR).
6. Training and Awareness: Provide regular training to staff about money laundering risks, regulations, and internal policies. This ensures everyone is aware of their responsibilities.
7. Record Keeping: Maintain detailed records of CDD, transactions, and any reports made to the NCA for at least five years, as required by law.
8. Internal Controls: Establish strong internal controls and procedures to mitigate risks and ensure compliance. This includes appointing a Money Laundering Reporting Officer (MLRO).
9. Regular Audits: Conduct regular internal audits and reviews of your compliance procedures to identify areas for improvement.
10. Stay Updated: Keep up to date with any changes in legislation or guidance from regulatory bodies, such as the Financial Conduct Authority (FCA) and HM Treasury.
By implementing these practices, you can better ensure compliance with UK money laundering regulations.

Question 115

Tell me about your understanding of your firm’s process for escalating a complaint to Alternative Dispute Resolution (ADR).

Answer 115

• Initial Complaint Handling:
• Reception: Complaints are received via designated channels (email, phone, in-person).
• Acknowledgment: The firm acknowledges receipt of the complaint within a specified timeframe (e.g., 5 working days).
• Investigation: A designated team member investigates the complaint, gathering relevant information and documentation.
• Internal Resolution Attempts:
• Discussion: The firm engages with the complainant to discuss the issue and explore potential resolutions.
• Response: A formal response is provided, outlining the findings and proposed resolutions.
• Escalation Criteria:
• If the complaint is not resolved satisfactorily, the complainant is informed about the escalation process to ADR.
• Clear criteria for escalation are outlined, including timelines and the nature of unresolved issues.
• Providing ADR Information:
• The firm provides the complainant with information about available ADR options, including details on the ADR provider, the process, and potential costs.
• The complainant is encouraged to consider ADR as a means to resolve the dispute amicably.
• Formal ADR Referral:
• If the complainant agrees, the firm prepares necessary documentation and formally refers the case to the chosen ADR provider.
• Both parties may be required to submit relevant information to the ADR provider.
• Engagement with ADR:
• The firm cooperates fully with the ADR process, attending meetings and providing requested information.
• Regular communication with the complainant is maintained throughout the ADR process to ensure transparency.
• Resolution and Follow-Up:
• Once the ADR process concludes, the firm implements any agreed-upon resolutions.
• The firm conducts a follow-up with the complainant to ensure satisfaction with the outcome and to gather feedback on the process.
• Review and Improvement:
• The firm reviews the complaint and ADR process to identify any patterns or areas for improvement.
• Lessons learned are used to enhance future complaint handling and to prevent similar issues.

Question 116

If you were to set up in practice on your own, tell me about the types of insurance you would need.

Answer 116

1. Professional Indemnity Insurance:
2. Public Liability Insurance:
3. Employers’ Liability Insurance:
4. Business Contents Insurance:
5. Professional Liability Insurance:
6. Cyber Liability Insurance:
7. Business Interruption Insurance:
8. Vehicle Insurance: