Ethics, Rules of Conduct & Professionalism Flashcards

Question

What are the penalties for being involved in money laundering?

Answer 1

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.

Answer 2

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

Answer 3

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

Answer 4

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.

Answer 5

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.

Answer 6

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.

Answer 7

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.

Answer 8

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.

Answer 9

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.

Answer 10

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.

Answer 11

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

Answer 12

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

Answer 13

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

Answer 14

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.

Answer 15

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.

Answer 16

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.

Answer 17

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.

Answer 18

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.

Answer 19

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.

Answer 20

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.

Answer 21

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.

Answer 22

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

Answer 23

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

Answer 24

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.

Answer 25

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

Answer 26

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.

Answer 27

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.

Answer 28

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.

Answer 29

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.

Answer 30

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.

Answer 31

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.

Answer 32

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

Answer 33

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.

Answer 34

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.

Answer 35

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)

Answer 36

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.

Answer 37

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.

Answer 38

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.

Answer 39

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

Answer 40

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

Answer 41

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.

Answer 42

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.

Answer 43

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.

Answer 44

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).

Answer 45

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

Answer 46

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

Answer 47

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

Answer 48

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

Answer 49

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.

Answer 50

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.

Answer 51

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.

Answer 52

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

Answer 53

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

Answer 54

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

Answer 55

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

Answer 56

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.

Answer 57

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.

Answer 58

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

Answer 59

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.

Answer 60

Chartered Surveyor (MRICS) Fellow (FRICS)

Answer 61

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.

Answer 62

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.

Answer 63

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.

Answer 64

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.

Answer 65

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

Answer 66

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.

Answer 67

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

Answer 68

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

Answer 69

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.

Answer 70

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.

Answer 71

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

Answer 72

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.

Answer 73

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.

Answer 74

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

Answer 75

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.

Answer 76

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.

Answer 77

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.

Answer 78

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.

Answer 79

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.

Answer 80

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.

Answer 81

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.

Answer 82

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

Answer 83

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

Answer 84

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.

Answer 85

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.

Answer 86

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.

Answer 87

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.

Answer 88

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.

Answer 89

- 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.

Answer 90

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.

Answer 91

* 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.

Answer 92

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: