Ethics (Submission)

Question 1

Why did you decline the invitation to lunch after your viewing in East Bergholt?

Answer 1

Because this was an ongoing instruction and therefore could have been seen as a bribe.

Question 2

What could be the penalties for receiving a bribe in accordance with the Bribery Act (2010) and who is it policed by?

Answer 2

Policed by the Serious Fraud Office and 10 years imprisonment and an unlimited fine.

Question 3

What are the four offences under the Bribery Act (2010)?

Answer 3

1. Bribing
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent bribery.

Question 4

Can you name some of the principles under the Bribery Act (2010)?

Answer 4

PTRDCM

1. Proportionality
2. Top-level commitment
3. Risk assessment
4. Due diligence
5. Communication
6. Monitoring and review.

Question 5

In regards to the site in Humber Doucy you were selling, what would you do if you were to receive an offer after the bid deadline?

Answer 5

Under the Estate Agents Act (1979) I have a legal obligation to tell the client about offers received. It would then come down to what my client decides to do in terms of accepting the higher offer or continuing with the existing purchaser. There has been no exchange of contracts and therefore my client would have every right to change their decision. This would be called gazumping.

Question 6

What are some other principles under the Estate Agency Act (1979) other than informing clients of offers received?

Answer 6

1. Clarity of terms of agency (s.18)
2. Honesty and accuracy
3. Agreement and liability for costs
4. Openness regarding personal interests (s.21)
5. Absence of discrimination
6. Keep clients money seperate

Question 7

What caveat do you typically include to protect yourself on your marketing particulars?

Answer 7

I would usually state that any areas, measurements or distances are approximate and that the text, photographs and plans are for guidance only.

I would also note that we have not tested any of the services and that purchasers must satisfy themselves by inspection.

I would also state that we assume no responsibility for any statement that may be made in the particulars and that the particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

Question 8

What are the regulations for Anti Money Laundering in the UK?

Answer 8

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) (2019)

Question 9

Referring to the example of you pitching for an agency instruction in Mistley - what was the result/ the client’s response to your advice regarding the Misrepresentation Act (1967)?

Answer 9

Their response was understanding but we, unfortunately, did not win the instruction on this occasion.

Question 10

What could be the impact of Misrepresentation?

Answer 10

The risk of a false statement could induce a party to purchase and the vendor and/or agent can be sued for damages.

The Hedley Byrne & Co Ltd v Heller & Partners (1964) case relates to the liability to negligent statements.

Question 11

What are the 3 tests to decide agents’ liability for negligent statements?

Answer 11

Hedley Byrne & Co Ltd v Heller & Partners (1964)

The case created the three tests:

1. Foreseeability
2. Proximity
3. Fairness

Misrepresentation can be fraudulent, negligent or innocent.

Question 12

In regards to your agency instruction in Chigwell, why could you not commence marketing until the compliance checks were complete?

Answer 12

Because if the AML checks had come back with a negative response then we would not be able to act for the client and I would have to decline the instruction.

Question 13

What would you do if you identify suspicious activity with your client in regards to AML?

Answer 13

I would first speak to my manager and seek out their advice on the matter.

If we both believed there was a sufficient concern then I would notify my firm’s money laundering officer - Christine Cox.

A Suspicious Activity Report (SAR) is then filled in and sent to the National Crime Agency.

Question 14

What are the penalties under the Money Laundering, Terrorist Financing and Transfer of Funds Regulation (2019)?

Answer 14

Max. 14 years imprisonment and/or unlimited fine for ASSISTING with money laundering.

Max. 5 years imprisonment and/or unlimited fine for TIPPING OFF or FAILING TO REPORT SUSPICION.

Question 15

What do the Proceeds of Crime Act (2002) do?

Answer 15

Provides powers for enforcement authorities in the UK to recover money or assets deemed to be proceeds of crime.

Question 16

What are the three main areas of offence under the Proceeds of Crime Act (2008)?

Answer 16

1. Concealing criminal activity.
2. Arrangements.
3. Acquisition use and possession.

Question 17

Can you name some of the countries on the government High-Risk Third Countries list produced by HM Treasury?

Answer 17

Iran
Syria
Barbados
Cayman Islands
United Arab Emirates

Question 18

Who is your firm’s money laundering officer?

Answer 18

Christine Cox

Question 19

What would you do if your client is a match on the sanctions list?

Answer 19

Inform the Office of Financial Sanctions Implementation (OFSI).

Question 19

Who regulates the Money Laundering Regulations in the UK?

Answer 19

National Crime Agency.

Question 20

What is a Bribe?

Answer 20

It is the offering, receiving, giving or accepting something of value.

Question 21

What PII cover do companies need?

Answer 21

Based on company turnover:

up to £100k = £250k minimum cover
£100k-£200k = £500K minimum cover
+£200k = £1m minimum cover

Question 22

What are the recent changes in regard to PII cover?

Answer 22

This is to do with the amount of uninsured excess. Also based on a firm’s revenue:

Up to £10m revenue = max. 2.5% of the sum insured or £10k (greater of the two)

+ £10m