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Ethan APC Summary of Experience Mock Questions > Ethics - Summary of Experience > Flashcards

Ethics - Summary of Experience Flashcards

1
Q

What are the RICS Rules of Conduct?

A

1) Honesty, integrity and professional obligations
2) Maintaining and acting within competence
3) Providing good quality service
4) Respect and encouraging diversity and inclusion
5) Public interest, responsibility and public confidence

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2
Q

What are the aims of the updated RICS Rules of Conduct?

A
  • Simpler structure
  • Provide clear examples
  • Focus on respect, diversity and inclusion
  • Respond to evolving technology
  • Tackling global challenges
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3
Q

What is Rule 1? Any examples?

A

Members and firms must be honest, act with integrity and comply with their professional obligations to RICS

Example
- Don’t take advantage of others
- Act to prevent others being misled about their professional opinion

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4
Q

What is Rule 2? Any examples?

A

Members and firms must maintain their professional competence and ensure services are provided by competent individuals who have necessary expertise

Example
- Members only undertake work that they have the skills, knowledge and resources to carry out competently
- Undertaking sufficient CPD yearly

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5
Q

What is Rule 3? Any examples?

A

Members must provide good quality and diligent service

Example
- Members must understand clients needs and objectives before accepting professional work
- Must communicate with clients in a way they can understand

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6
Q

What is Rule 4? Any examples?

A

Members and firms must treat others with respect and encourage diversity and inclusion

Example
- Must respect rights of others with courtesy
- Do not bully, victimize or harass
- Work cooperatively with others

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7
Q

What is Rule 5? Any examples?

A

Members and firms must act in public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession

Example
- Respond to complaints promptly, openly and professionally
- Do not dissuade complaints from approaching an ADR, RICS or other regulatory board

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8
Q

What is RICS Conflicts of Interest?

A

Provides clear rules for RICS members and regulated firms to identify and manage potential conflicts of interest (effective 01/01/2018)

  • Informed consent must only be sought when all parties agree that proceeding is in the interest of all parties
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9
Q

What is the purpose of Professional Indemnity Insurance (PII)?

A

Protects firms against claims for loss or damage made by clients/third parties as a result of impact of negligent services/advice that has been provided

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10
Q

What are the three Conflicts of Interest?

A

Party - Relating to work on same or related instruction for two different parties

Own - Personal conflict

Confidential information conflict - relating to work between 2 parties which is confidential

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11
Q

What is a party conflict?

A

Conflict related to work on same or related instruction for two different parties (e.g. acting on behalf of seller and buyer)

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12
Q

What us a confidential information conflict?

A

A conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member to another client to keep the same information confidential

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13
Q

What is an own interest conflict?

A

A situation in which the duty to act in the interests of a Client in a professional assignment conflicts with the interests of that same RICS member / firm

e.g. client instruct you to review a property they want to purchase but you are also looking to buy it

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14
Q

What is the RICS guidance on Conflicts of Interest?

A

RICS professional standard: Conflicts of Interest, 2017
- Effective 01/01/2018
- Changed from professional statement in July 2024

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15
Q

What are the 4 offences under the Bribery Act?

A
  • Bribing another person
  • Being bribed
  • Bribing a foreign public official
  • Failure of commericla organisations to prevent bribery
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16
Q

What PII cover is required?

A
  • Up to £100k turnover - £250k minimum
  • £100k-£200k turnover - £500k minimum
  • £200k + turnover - £1,000,000 minimum
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17
Q

What is a bribe?

A

The offer, promise, receiving, requesting or accepting of an advantage as a reward for an action that is illegal, unethical or a breach of trust

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18
Q

What are the principles under the bribery act?

A

1) Proportionality - Consider value of each persons human rights
2) Top Level Commitment
3) Risk Assessment
4) Due Diligence
5) Communication
6) Monitoring & Review

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19
Q

What is law under the money laundering regulations 2019?

A

Sets out obligations of private sector firms and aims to stop criminals using professional services to launder money

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20
Q

What were the updates made under the 2019 money laundering regulations?

A

Came into effect on 10/01/2020
- Align UK regulation with international standards through the financial action task force
- Strengthened controls over staff training on AML procedures
- Increased powers for financial conduct authority to enforce compliance and impose penalties

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21
Q

What did you learn in the RICS professionalism module?

A
  • Importance of ethics within the profession
  • the different RICS rules of conduct and importance of remaining integral as a member and on a firm wide basis
  • Remaining open throughout the profession
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22
Q

What insurances are required when setting up a RICS regulated business?

A
  • PII
  • Public liability insurance
  • Building insurance
  • Employer liability cover
  • Directors and officers cover
  • Contents insurance
  • Business interruption insurance
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23
Q

How do you set up your own RICS regulated business? What do you need?

A
  • Notify RICS / register using the form
  • Ensure you qualify for registration
  • Correct insurances
  • Client money handling procedures
  • Complaints handling procedure
  • Locum agreement
  • Conflicts of interest procedure
  • Ensure statutory compliance
  • Need to state on literature regulated by RICS
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24
Q

Which rule of conduct relates to integrity?

A

Rule 1

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25
Q

What are the considerations within the RICS ethics decision tree?

A
  • Legality of action under law
  • Does it comply with RICS rules and professional standards
  • Is it consistent with public interest
  • Is it consistent with Rules of Conduct
  • What are the consequences of your actions
  • Seek guidance if unsure
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26
Q

Which ethical principles are the RICS rules of conduct based upon?

A
  • Honesty
  • Integrity
  • Competence
  • Service
  • Respect
  • Responsibility
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27
Q

What are the penalties of money laundering?

A
  • Large unlimited fine
  • Up to 5 years in Jail for tipping off
  • Up to 14 years in Jail for assisting
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28
Q

What are the penalties of being involved in bribery?

A
  • Policed by Serious Fraud Police
  • Maximum penalty of 10 years imprisonment
  • Unlimited fine
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29
Q

What is your firms policy regarding bribery and corruption?

A
  • Undertake customer due diligence
  • Bound by laws of Bribery Act 2010
  • Take zero tolerance approach to Bribery/corruption
  • Committed to acting professionally, fairly and with integrity
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30
Q

How do I ensure compliance with my firms policy regarding bribery and corruption?

A
  • Understand laws relating to Bribery Act 2010
  • Regularly read and understand the policy - outlines prohibited behaviours and consequences of non-compliance
  • Conduct due diligence on third parties (suppliers/agents/contractors)
  • Keep records of business dealings that may be scrutinized under the laws/firm policy
  • Undertake regular training
  • Report any suspicious activity to partner

ONLY ACCEPT GIFTS WHEN RECEIVED OPENLY AND TRANSPARENTLY LOGGING ON GIFT REGISTER - NEVER ACCEPT CASH OR EQUIVALENT

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31
Q

What is the latest RICS guidance regarding client money handling?

A

RICS Professional standard, Client Money Handling, 1st Edition, October 2019

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32
Q

What rule does the 2023 Christmas Gift relate to?

A

Rule 1

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33
Q

What is a general complaints handling procedure?

A

The right for an individual/firm to complain about the services a company may offer, and the strategy that a firm employ to deal with these complaints

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34
Q

What does your firms specific conflict of interest check consist of?

A

All new instructions require a conflict of interest check before accepting

Anyone who encounters conflict must declare to partner in charge and advisory board
- Immediate disclose to all parties
- Withdraw from situation until resolved /considered
- Monitor conflict and update database

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35
Q

Who is the current RICS president and CEO?

A

CEO: Justin Young
President: Tina Paillet

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36
Q

When was RICS founded?

A

1868

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37
Q

What are the 3 main roles of RICS?

A
  • To maintain the highest standards of education and training
  • To protect consumers through the strict regulation of professional standards
  • To be the leading source of information and advice on land and property
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38
Q

What are the benefits of being a member of RICS?

A
  • Status
  • Recognition
  • Market advantage
  • Knowledge
    -Networking
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39
Q

What is the benefit of being a RICS regulated firm?

A
  • Confidence - from clients
  • Professionalism
  • Security
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40
Q

Conflict avoidance v Conflict management

A

Conflict avoidance
- Turning down an instruction due to a conflict

Conflict management
- Instruction accepted and steps taken to manage conflict e.g. through an information barrier

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41
Q

What happens if you receive confidential information in error?

A
  • Notify sender immediately
  • Delete the information
  • Document the incident
  • Do not use the information
  • Report to partner
  • Discuss the matter in confidence
  • Comply with GDPR regulation
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42
Q

What do firms need to be sent to RICS annually?

A

RICS Annual return (provides info on firms structure/activities/compliance with RICS regulations)

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43
Q

How can negligence be avoided?

A

By having PII cover

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44
Q

How would you close a RICS regulated business?

A
  • Agree closure date
  • Inform RICS of closure
  • Inform Client and handover arrangements are made with a new firm
  • Return client monies to their own accounts
  • Notify PII insurers and arrange run-off cover for at least 6 years
  • Retain copies of client files and records for at least 6 years
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45
Q

How would a money laundering check be undertaken? What is required?

A

Anti money laundering check (AML)
- Verifying personal/business details
- Checking customer against sanction list
- Determine the source of funds/wealth

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46
Q

When are AML checks carried out?

A
  • For new clients and existing (ongoing monitoring)
  • For new tenants + assignments
  • When money laundering is suspected
  • When regulations change
  • Before conducting a transaction
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47
Q

How can money laundering be suspected?

A
  • Party has criminal associations
  • Secretive about funds
  • Party resides in a high risk country
  • If transaction loss making
  • Company uses multiple accounts
  • No obvious commercial purpose to transactions
  • Avoiding personal contact
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48
Q

Are you aware of any RICS mandatory regulations relating to bribery/corruption/money laundering?

A

RICS Professional Standard (Bribery, Corruption, Money Laundering and Terrorist Financing) 1st ed Feb 2019 - Effective September 2019 (Proff standard in July 2023)

  • Outlines requirements to comply with local laws
  • Must report suspicious activity
  • Must not accept/offer bribes
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49
Q

When would RICS get involved in a complaint?

A
  • Member fails to respond or prevents party gaining access to redress mechanism
  • If RICS receive several complaints from a member/firm
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50
Q

What is your firms specific policy on conflicts of interest?

A
  • Don’t accept instruction where known conflict of interest exists unless approval has been given
  • Property by property basis
  • Have a conflict of interest check procedure
  • If COI arises - immediate disclosure, withdraw till resolved, monitor conflict + updated database
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51
Q

What is Workman’s purchasing policy?

A
  • Only use workman’s approved contractors
  • Min 3 quotes for works above £5k, 2 between £1.5k and £5k
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52
Q

Talk me through a conflicts of interest check you have undertaken?

A
  • New property - checked TRAMPS (our PM system) to see if there was any record
  • There was not, so it was acceptable to assume to prior involvement
  • Confirmed to client that the instruction could be accepted
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53
Q

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

A

I want to achieve a gold standard in my profession and be able to give back to the industry by educating and training aspiring surveyors

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54
Q

What is a bye-law?

A

A rule made by a company or society to control the actions of its members

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55
Q

What disciplinary and regulatory sanctions can RICS impose?

A
  • Serve a fixed penalty notice
  • Make a regulatory compliance order
  • CPD sanction
  • Refer matter to Disciplinary Panel - consider expulsion
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56
Q

What approved ADR is available to firms?

A
  • Adjudication
  • Mediation
  • Arbitration
  • Expert determination
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57
Q

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

A

20 hours per year, 10 hours formal

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58
Q

Why is CPD important?

A

It helps bridge any gaps in knowledge and keeps you up to date with industry changes

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59
Q

When does a firm have to register for regulation? What are the benefits of regulation?

A

If you are a firm that offers surveying services to third parties and where 50% or more of principals are RICS members

Benefits
- Confidence - from clients
- Professionalism
- Security

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60
Q

What is a locum and who might need one?

A

Locum is another professional who agrees to step in when you are unable to work

e.g. Sole practitioner or firm with sole principle

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61
Q

What do the RICS rules of conduct say about client money?

A
  • Firms keep client money safe and have appropriate accounting controls
  • Members not misuse client money
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62
Q

Explain your understanding of the RICS scheme rules relating to client money protection

A

The main purpose of the scheme:

  • Allow RICS registered firms to offer Client money protection
  • Compensate Clients for failing to account for Client money to the person entitled to it
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63
Q

What does client money include?

A

Money of any currency (cash, cheque etc) that:
- A firm holds or receives on behalf of another person
- Is not immediately due and payable on demand to the firm for its own account
E.g: Rent and service charge monies

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64
Q

What are the 6 values of RICS?

A
  • Honesty
  • Integrity
  • Competence
  • Service
  • Respect
  • Responsibility
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65
Q

What is the RICS Royal Charter?

A

Passed in 1881 by Queen Victoria (privy council), establishing the independent legal identity of the RICS
- Requires RICS to promote the usefulness of the profession for the public advantage in the UK and rest of world

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66
Q

What is client respect?

A

Involved treating clients with professionalism, honesty, and fairness, while prioritizing their needs, privacy and interests

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67
Q

What do you understand professionalism to be?

A

Upholding the highest ethical standards whilst demonstrating competence and an adherence to standards whilst maintaining confidentiality and continuous improvement

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68
Q

Tell me about RICS Professional Standard: Complaints Handling?

A

Became professional standard in October 2023

1) Initial resolution - address internally first (internal procedure)
2) Formal complaint - if unresolved escalate to RICS - Formal process
3) Investigation - RICS investigate assessing adherence to professional standards and rules
4) Resolution - RICS provides a decision or recommendation to resolve complaint
5) Appeal - Parties may appeal to RICS or legal channels if dissatisfied

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69
Q

When did RICS Complaints handling come into effect?

A

July 2016

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70
Q

How do you ensure confidence in your ability?

A
  • Adhere to RICS standards, ethical guidelines and conduct
  • Undertake CPD
  • Seek feedback from clients, colleagues
  • Engage in networking
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71
Q

How did you log the gift on Workman’s gift register?

A

It is a system to log gifts received in accordance with RICS guidance
- Provide info on goods - when received, who by, value etc

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72
Q

What is the RICS motto?

A

There is measure in all things

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73
Q

What is the address of RICS?

A

125 Great George Street, Parliament Square, London

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74
Q

What is Lionheart?

A

Charity set up for RICS members, for RICS members. Provides advice and suppport on matters including:
- Well-being and mental health
- Financial support
- Illness & legal advice

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75
Q

What is Modus and Matrix?

A

Modus - RICS publication (Magazine)
Matrix - Division for young surveyors - provides events, networking, seminars etc

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76
Q

How much is RICS membership?

A

£462 for first 2 years, £558 afterwards

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77
Q

What is the role of the Standards and Regulation Board?

A

Responsible for the Strategy, Policy, Operation and admissions into the profession

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78
Q

What is the role of the Governing Council?

A

Governing body, which is responsible for approving global strategy and vision and are governed by constitutional documents such as the royal charter, bye laws, regulations and standing orders

79
Q

What is the role of the Audit Committee?

A

Maintain the effectiveness and integrity of RICS functions

80
Q

What is the role of the managing board?

A

Directs RICS affairs under delegated authority from the governing council

81
Q

How would you become a RICS Fellow?

A

Provide Evidence of:
- 5+ years at MRICS
- leadership role
- professional and technical achievement
- raising the profile of the RICS
- Portfolio of professional achievement to support application and CPD record

82
Q

What was the Bichard review?

A

An independent review of RICS purpose, governance and strategy, commissioned by the RICS Governing Council
- Focus on D&I, self regulation, clear accountable governance structure

83
Q

What is a bye-law?

A

Regulation made by an organisation (RICS last updated theirs in Feb 2021)

84
Q

What were the key changes made to the latest rules of conduct (2022)?

A
  • Provide a simpler structure
  • Give clear examples
  • Focus on respect, diversity and inclusion
  • Responding to and understanding evolving technology
  • Emphasizing the role of members expertise in tackling global challenges
85
Q

Can you provide a time when you promoted trust in the profession?

A

At Wooburn Industrial Estate - Was recommended a contractor that wasn’t on the safe contractor list and had quoted a cheaper price for works. Took the more expensive quote on.

86
Q

What is the key role of the RICS?

A
  • Promote and enforce the highest professional standards and qualifications in the development and management of property, real estate and the enviro
  • Be accountable to members and the public
  • Involved in policy influence and political engagement
87
Q

What are the mandatory professional obligations for members?

A

Contained within the appendix of the rules of conduct- additional requirements for firms and members
- Cooperate with the RICS
- Comply with CPD requirements
- Provide info to the standards and regulation board in a reasonable timeframe when requested

88
Q

What is the ethics decision tree?

A
  • Provides framework for questions members should ask themselves when faced with a potential unethical scenario
  • Considers legality of actions and consistency with the rules of conduct
89
Q

What are the Mandatory Professional obligations for firms?

A
  • Must Cooperate with the RICS
  • Must Publish a complaints handling procedure approved by the RICS and maintain a complaints log
  • Must Ensure all previous and current professional work is covered by professional indemnity insurance cover that meets RICS approved standards
  • Sole principal - must make arrangements for work to continue in case of incapactiation to do work
  • Must provide info provided by regulations and stadnard board
  • Must Display in business literature they are regulated by RICS
  • Must report to RICS any matter that are required to report under rules of registration of firms
90
Q

How is a disciplinary procedure triggered?

A
  • Complaint made to the RICS
  • Allegation made by a client or third party
    Information obtained by or provided to the RICS
91
Q

What is the RICS disciplinary procedure?

A
  • Receipt of complaint
  • Investigation by RICS
  • Serving of the penalty - e.g. fixed notice, regulatory compliance order
92
Q

What disciplinary procedures can the RICS impose?

A
  • Serve a fixed penalty notice (fine for minor breach)
  • Make a regulatory compliance order
  • CPD sanction
  • Refer matter to disciplinary panel - Consider expulsion
93
Q

What disciplinary/regulatory sanctions can the RICS impose?

A
  • Caution
  • Reprimand
  • Fine
  • Conditions
  • Expulsion
94
Q

What actions are taken by the regulations tribunal?

A

Procedure for more serious breaches - Impose penalties when referred to by the head of regulation
- Fine
- Expulsion
- Publication of results
- Regulatory compliance order

95
Q

What penalties are available to the regulatory tribunal?

A
  • Regulatory Compliance Order - Unlimited fine per breach
  • Impose conditions on future RICS registration
  • Expulsion
  • Publication of results
  • Large fines
96
Q

Where are the outcomes of disciplinary proceedings published?

A

RICS disciplinary, registration and appeal panel rules (October 2019)
- Modus and RICS website

97
Q

What are the levels of action within Disciplinary Panel rules?

A

1) Investigation on receipt of info
2) Decision to realistic prospect
3) If realistic prospect - disciplinary procedure

98
Q

What are the key requirements of fee negotiations?

A
  • No price fixing, aggressive fee cutting or collusion
  • Fees market based
  • Agreed on an ad-hoc basis
  • Competition encouraged, but fee cutting avoided
99
Q

How do you act in a way promoting trust in the profession?

A

By following the rules of conduct in my professional and personal life

100
Q

What publication does the RICS publish in relation to social media?

A

The Use of Social Media: Guidance for RICS Members (2016)
- Standards of communication should also be upheld on social media
- Will be investigated if social media post if it is discriminatory, abusive etc

100
Q

What are the RICS Core materials made up of?

A
  • International Standards
    -Professional Statements
  • Practice Statements
  • Guidance Notes
  • Codes of Practice
101
Q

When may it be appropriate to turn down an instruction?

A
  • Not competent
  • Lack of information
  • Client wont sign Terms of Engagement
  • Client is on the UK Gov sanctions list
  • Conflict of interest
  • Advice is for a friend or a pro-bono basis and PII wont cover such work
102
Q

When will the RICS become involved in a complaint?

A
  • Member fails to respond or prevents party gaining access to redress mechanism
  • If RICS receive several complaints from a member/firm
103
Q

What is formal CPD?

A

Structured training with clear outcomes and objectives - e.g. seminar, training course

104
Q

What is informal CPD?

A

Self based learning relevant to a specific role

105
Q

How can you decide if CPD is formal or informal?

A

RICS CPD decision tree

106
Q

When may a claim for damages arise?

A

When duty of care exists to client or third party and this is breached

107
Q

What actions would you take to reduce the risk of negligence?

A
  • Understand clients aims and objectives in TOE
  • Ensure you are competent to take on instruction
  • Undertake work in accordance with RICS Standards and Guidance Notes
108
Q

What are the minimum indemnity limits for firms

A
  • Turnover less than £100,000 —> Min £250,000 cover per claim
  • Turnover £100,001 - £200,000 —> Min £500,000 cover per claim
  • Turnover £200,001 + —> Min £1million cover per claim
109
Q

What is excess and why do policies have it?

A

Amount of uninsured money associated with a claim - to prevent fraudulent claims

110
Q

What is run-off cover?

A

Cover in place to ensure work is covered once a firm ceases trading
- Required for 6 years
- If unable to get run-off cover, can apply for cover from RICS run off pool
- RICS recommends 15 years

111
Q

What RICS Guidance Relates to Handling Clients Money?

A

RICS Professional Standard: Client Money Handling, 1st Edition, October 2019

112
Q

What are the key requirements for Handling Client Money according to RICS client protection?

A
  • Money must be held in authorised bank
  • Account must be independent / easily identifiable
  • Client must be provided with details
  • Confirm in writing that moneys will not be combined/transferred
  • Keep records
  • all interest paid to client
  • funds deposited within 3 days of receipt
  • Draw down schedule to be agreed
  • Only client moneys to be held - if mixed monies, release immediately
113
Q

What is an instance where I have handled client money?

A
  • Quarterly rent and service charge payments
  • Paid into distinguishable client account with client name in details
  • Once received, payments transferred to account of client choice
    -Client kept updated throughout process - provide high standard service
114
Q

When are firms eligible for RICS registration?

A
  • Provide surveying service to public
  • Over 25% principles are RICS members
115
Q

Who is a responsible person?

A

Person responsible for ensuring RICS standards are applied, upheld and supported

116
Q

What is included in statutory compliance for starting a new firm?

A
  • Declare Business name
  • Register with HMRC for VAT registration
  • Ensure compliance with employment law - working hours, living wage etc
  • Ensure insurance compliance - public/employer liability
  • Compliance with Equalities Act (2010)
  • Compliance with H&S at Work Act (1974)
  • Disability Discrimination Compliance
117
Q

Who does the Bribery Act apply to?

A
  • UK citizens, residents and companies established under UK law
  • Companies doing business in the UK
  • Firms whose staff are committing bribery
118
Q

How do I ensure I comply with Bribery legislation?

A
  • Comply with internal policy
  • Never accept cash or equivalent
  • Registering gifts / hospitality on e-register to ensure transparency
119
Q

What is money laundering?

A

When proceeds of criminal activity are disguised as a legitimate asset

120
Q

What are key provisions of the Bribery/Money Laundering regulations?

A
  • Have money laundering/terrorist financing risk assessment
  • Provide staff training
  • Ensure appropriate implemention and record keeping of policies and procedures
  • Comply with new customer due diligence requirements
121
Q

What are requirements for firms in money laundering and terrorist financing?

A
  • Monitor client relationship
  • Senior staff must take responsibility for compliance
  • Systems and training to comply with laws
  • Verify identity of client and customers
  • Report suspicions to relevant authorities
  • Review risks that business relationships present
122
Q

What due diligence should be undertaken to prevent money laundering?

A

1) Customer:
- Identify client and their identity - name company number etc
- Obtain info on purpose and nature of business relationship

2) Enhance:
- Additional info for business involving someone from high risk country or politically
exposed person
- Additional evidence and monitoring

123
Q

What is a politically exposed person?

A

Someone with a prominent public function - higher risk of corruption

e.g. government officials

124
Q

What are the key offences under the proceeds of crime act (2002)?

A
  • Concealing criminal property
  • Acquisition, use possession of criminal property
  • Arrangements - Entering into an arrangement with person involved in criminal property
125
Q

What does part 1 of the Professional Statement on bribery, money laundering and terrorist financing cover?

A

Mandatory Requirements:

Bribery
- Not to offer/accept anything that could be considered a bribe
- Have procedures that comply with law
- Report suspicions to relevant authorities
Money Laundering / Terrorist Financing:
- Not be complicit in or facilitate either
- Have systems in place to comply with law
- Verify clients be relevant ID checks

126
Q

What is key guidance in the Bribery/Money Laundering Professional Standard?

A
  • Publish code of behaviour
  • Provide staff training
  • Set up a gifts register
  • Keep up to date with legislation
127
Q

What is modern slavery?

A

Illegal exploitation of others for personal or commercial gain

128
Q

What legislation is there on Modern Slavery?

A

Modern Slavery Act 2015

129
Q

What is a safe contractor list?

A

Accreditation ensuring competent services in terms of quality and H+S

130
Q

What are some client money protection schemes?

A
  • Client money protect
  • Money shield
  • Propertymark

Certificate can be displayed in office or website

131
Q

What is terrorist financing?

A
  • Collection of funds for terrorist purposes / providing financial support to those operating in terrorism
132
Q

What are requirements for RICS rules for use of logo and designation by firms? When did these change?

A
  • Not to alter RICS logo
  • Not to use logo in manner which may bring profession into dispute

Changed in 2022 regulation document

133
Q

Tell me about your understanding of your firms process for escalating a complaint to ADR

A

If the complaint cannot be resolved by a member of staff in the first instance, the complaint should be written to the Group Company Secretary, who will confirm receipt within 7 days and a final response within 28 days.

The complaint can be escalated to the Property Redress Scheme for consumers or the Centre for Effective Dispute Resolution for Clients.

134
Q

What is the RICS client money protection scheme?

A

Used for claims from RICS clients as a last resort when RICS registered firm is unable to repay client money
- Limit of £10.3m for surveying per annum and £50k per claim

135
Q

What is a regulatory compliance order?

A
  • Penalty served for smaller scale breach
  • Provides restrictions on a member from particular actions for a certain time period, along with usually a £2k fine
136
Q

What are the other aspects of the PS statement on Conflicts of Interest?

A
  • All conflicts must be managed in accordance with the PS
  • Every RICS firms must have effective systems and controls appropriate to the size of the business to ensure compliance
  • All firms must keep a record showing compliance with the statement
137
Q

What is set out in the Limitations Act (1980)?

A

Limitation on period for negligence:
- Contract - 6 years from negligence Act
- Tort - 6 years from date claimant suffered loss

S14A = Can be 15 years if claimant only had “knowledge” to bring claim within last 3 years

138
Q

What does the term fully retroactive mean?

A

Insurance in place at time of claim responsible for the claim, not insurance in place at time of negligence - policies cover past work

139
Q

Who is a responsible person?

A

Person responsible for ensuring RICS professional technical and ethical standards are applied, upheld and supported

140
Q

How is money laundering reported?

A

Submitting a Suspicious Activity Report to National Crime Agency through AML officer

141
Q

What is an example of a RICS bye-law?

A

2 - Membership
3 - Designations - Who can use initials (MRICS ETC)
4 - Contributions to Funds
5 - Conduct - Conduct yourself in a way benefitting to the RICS

142
Q

What information is provided in an annual return?

A
  • Firm details - address, VAT reg, services provided
  • Designation details
  • Offices
  • Principles details
  • RICS member employees
  • Contact officers
  • General info
143
Q

What money laundering legislation / regulations are you aware of?

A
  • Money Laundering Regulations 2019
  • Proceeds of Crime Act 2002
  • RICS professional standard: Countering bribery, corruption, money laundering and terrorist financing 2019
144
Q

What are the 7 professional obligations of firms to RICS?

A

Found in appendix A - Rules of Conduct
1) CHP
2) Ensure adequate PII cover
3) Arrangements if inability to work (sole practicioner) - Locum
4) Provide information if requested
5) Display they are regulated by RICS
6) Cooperate with RICS
7) Report to RICS any require matters under rules for registration of firms

145
Q

What guidance does RICS professional standard on Complaints Handling (2016) provide for complaints handling procedures?

A
  • Must be fit for purpose
  • Must be available to clients on request
  • Must be regularly reviewed and updated
  • Agreed with PI broker
  • Must have a 3rd Party redress scheme
  • Have complaints handling log
  • Complaints must be reviewed by senior member or complaints handler
146
Q

What is a margin of error?

A

Permissible range allowed by courts in respect if valuation laid out by Singer & Friedlander v JD.Wood, margin of error can be +/- 15% for commercial props.

147
Q

What are the minimum levels of uninsured excess for PII?

A
  • Turnover of £10m or less = greater of 2.5% of sum insured or £10k
  • Over £10m turnover = 2.5% of sum insured
148
Q

What challenges do you see the RICS facing in the next few years?

A
  • Sustainability - EPCs, net zero
  • Implementing tech but keeping info safe
  • Retail sector staying competitive
  • Changes in office model post COVID
149
Q

Who is the chair of the regulations and standards board?

A

Nigel Clarke

150
Q

What was clarified within the RICS professional standard (2023 update) Conflicts of Interest in comparison to the old professional statement?

A
  • Competing bidders
  • Effective date/transition
  • Conflicts arising during professional assignments
  • Passing confidential information to insurers and legal advisors
151
Q

Where do new firms go to get indemnity cover?

A

RICS indemnity cover webpage - Approved forms

152
Q

Why did you raffle off the Christmas Gift from 2023 if you believe it could have amounted to a bribe?

A

I did this in line with my company policy.

153
Q

What is competency?

A

The ability to do something successfully or efficiently

154
Q

Are the Money Laundering Regulations 2019 or an earlier date?

A

No, updates were made to the regulations in 2019, the original regulation was made in 2017

155
Q

What are the principles of ML and your process?

A
  • Due diligence- pre- instruction checks and monitoring high risk clients. Review sanctions list.
  • Written policy- must have a written process for addressing AML. Identify PEP’s.
  • Know your Client- verify the identy, meeting in person/ passports
  • Report Red Flags- you must report it to the OFSI.
  • Comply with local legislation- must comply with local requirements
156
Q

How do you onboard a client?

A
  • Competency & Conflict of Interest
  • KYC and AML checks
  • Outline the Terms of Engagement to avoid misunderstandings (Scope of work)
  • Handover with the previous agent.
157
Q

Can you give me a conflict of interest that you can manage?

A

International firm acting on both sides
- In different offices
- Ensured informed consent - both parties consent
- Must be both a physical and information barrier (encrypted and password protected files)

158
Q

What is OFSI?

A

The Office of Financial Sanctions Information
- Works to improve understanding, implementation and enforcement of financial sanctions in the United Kingdom.

159
Q

What is IEQM?

A

Inclusive Employer Quality Mark 2016 - Benchmark for inclusion and diversity and based on 6 principles:
- Leadership and vision
- Recruitment
- Staff retention
- Staff development
- Staff engagement
- Continuous improvement

160
Q

What are the key requirements of Professional Indemnity Insurance?

A
  • Fully retroactive
  • Underwritten by RICS listed insurers
  • Cover all past and present employees work
  • Comply with max level of uninsured excess
161
Q

Can you explain the RICS decision tree?

A

Way for surveyors to confirm the correct course of action when facing ethical dilemmas.

162
Q

What will affect the ability to accept a gift or not?

A
  • What is the value
  • Who is the gift for?
  • Is the gift reasonable and proportionate
  • Does the gift have a genuine business purpose
  • When is the gift given? In relation to tenders?
  • How easy is it to decline there and then?
163
Q

What is the assigned risks pool?

A

In place for firms who are unable to obtain PII
- Firm will be taking action to rectify the issues that have led it to being declined PII
- Firms must be regulated by RICS for a minimum of 12 months

164
Q

What is a RICS professional standard?

A

Sets requirements or expectations for RICS members and regulated firms about how they provide services or the outcomes of their actions.

165
Q

What is a RICS guidance note?

A

Set best practice guidance that surveyors should follow, however it is up to the individual surveyor to decide upon.

166
Q

What are the four levels of RICS membership?

A
  • FRICS, MRICS, ASSOCRICS, TRAINEE
167
Q

What RICS material might I come across?

A
  • International standards (mandatory ie,IPMS),
  • Professional Statements (man, CofI, S/C )
  • Practice Statements (man, expert witness)
  • Guidance notes (voluntary, surveying safely)
  • Code of Practice (says in doc, measuring practice)
168
Q

What is Appendix A rules of conduct?

A

Obligations for members and firms

169
Q

What is your firms PII?

A

This depends on the instruction and what is negotiated in the PMA
- For small clients, liability is usually capped at £5m
- For larger clients, liability is usually capped at £30m

170
Q

What would I find in a general terms of engagement?

A
  • Client agreement
  • Fee basis
  • Payment of expenses and their calcs
  • Copy of CHP on request
171
Q

Can a client go back after signing a TOE?

A

Yes the Consumer Rights Act 2015 allows a cooling off period of 14 days.

172
Q

What did the Rules of Conduct replace?

A

Members previously guided by:
- Rules of Conduct for Firms/Members
- Global Professional and Ethical Standards

173
Q

What are RICS disciplinary procedures?

A

Action by head of regulation
- Fixed penalty notice
- Regulary compliance order
- CPD sanctions
- Refer to disciplinary/regulatory tribunal

Regulatory tribunal
- Fine
- Regulatory compliance order
- Explusion
- Publication of results

Appeal Panel
- Can review and amend the punishment

174
Q

Do you know of any RICS guidance on Insurance Liability?

A

RICS Practice Information: Risk, Liability and Insurance, 1st Edition, 2021

  • RICS Recommends use of liability caps (A contractual agreement that a client can only make a claim up to the amount agreed)
  • Insurers must provide cover on fire safety claims on buildings of 4 storeys or less
175
Q

What is the governing structure of RICS?

A

Governing council in charge - Three boards report to it:

1) Regulatory board
2) Audit committee
3) The management board

176
Q

What are the four principles of IEQM?

A
  • bias awareness
  • Embracing cultural competence
  • Acknowledging privilege
  • Leading with empathy
177
Q

Principles of better regulation?

A
  • Proportionality
  • Accountability
  • Consistency
  • Targeting
  • Transparency
178
Q

Who is an advocate?

A

An individual who actively supports and promotes interest of another person/business (They are independent and have obligations to client, court and legal profession)

179
Q

What is the impact of labours budget on the property industry?

A
  • Increased national insurance =
  • Increase in minimum wage = Higher costs for companies and potential increases in material costs + build costs for residual
  • Stamp duty increases for second homes from 3-5%
  • £5bn pledge for housing and green energy infrastructure investment - drive to sustainability
180
Q

How do you report money laundering?

A

Money Laundering Reporting Officer (Compliance officer) would report to national crime agency

181
Q

Which company members do you need to check on an AML check?

A

Directors who hold more than 25% share within the company

182
Q

How do you recognise unconscious bias?

A
  • Education and training
  • Putting myself in the shoes of others and empathise with their situation
183
Q

What is unconscious bias?

A

A prejudice or stereotype individuals hold about certain groups of people that they aren’t consciously aware of having.

184
Q

What is another example of Rule 1?

A

Being transparent on fees with clients/tenants

185
Q

Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2022 (UPDATES?)

A
  • Takes into account Crypto assets
  • Need for risk assessment, staff training, record keeping, AML checks, appropriate internal control
186
Q

What percentage of disciplinary and appeal panel are made of lay members?

A

50% (Lay member = someone who has never been a surveyor)

187
Q

Did you contact the client to confirm acceptance of the Christmas 2023 gift?

A

I confirmed receipt, noting that I couldn’t accept due to my company policy and that this would be raffled off (money from tickets gone to charity)

188
Q

What are the three sections of RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing (2019)

A

Mandatory requirements
Guidance
Supplementary requirements

189
Q

When was the Money Laundering, Terrorist Financing & Transfer of Funds Regulations (2017) last updated

A

2024 to reflect changes in higher risk countries

190
Q

What are the RICS Rules for the Registration of Firms (2022)

I.e. when do firms have to register, or when are they eligible to register

A

Required to register if
- The firm provides surveying services to the public and at
least 50% of the firms principles are RICS members
Eligible to register if
- The firm provides surveying services to the public and at
least 25% of the firms principles are RICS member

191
Q

What are the mandatory requirements of client money handling?

A
  • Not to hold office money in account - unless in receipt of mixed monies
  • All accounts include client in the name
  • Ensure money is immediately available to client
  • Only withdraw with written consent from client
  • Confirm account operating conditions with bank
  • When client requests money, make sure firm and client can access it
  • Ensure client money account contains no other funds - funds withdrawn in error are replaced
  • Confirm client money to be held in a client account - firm has exclusive control over
192
Q

What is the RICS requirement for run off cover once firms closes?

A

At least £1 million of aggregate cover for at least six years

193
Q

What happens if you have surplus money in client account?

A

If after 6 years no one has been claimed, and EVERY EFFORT has been made to identify the claimant it can be donated to registered client

If not go to Lionheart

Charity to provide indemnity if claimant comes forward at later date

Ethan APC Summary of Experience Mock Questions (17 decks)

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