General RICS Flashcards

1
Q

Please list the Rules of Conduct for Members and Firms?

A

Rule 1 – Members and firms must be honest, act with integrity and ensure they comply with their professional obligations, including those with the RICS.
Rule 2 – Members and firms must maintain their professional competence and ensure that services are carried out by competent individuals with the necessary expertise.
Rule 3 – Members and firms must provide a good quality and diligent service
Rule 4 – Members and firms must treat others with respect and encourage diversity and inclusion
Rule 5 – Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

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2
Q

Can you provide example behaviours to comply with Rule 1?

A

Members and firms are open and transparent about their fees and services.

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3
Q

Can you provide example behaviours to comply with Rule 2?

A

Members and firms only undertake work that they have the knowledge, skills and resources to.

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4
Q

Can you provide example behaviours to comply with Rule 3?

A

Members and firms agree with clients the scope of the service to be provided and its limitations and timescales of the work.

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5
Q

Can you provide example behaviours to comply with Rule 4?

A

Members and firms do not bully, victimise, or harass anyone.

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6
Q

Can you provide examples behaviours to comply with Rule 5?

A

Members and firms respond to complaints made against them promptly and professionally.

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7
Q

Please can you list core professional obligations for members detailed in Rules of Conduct Appendix A?

A
  • Members must comply with the CPD requirements set by the RICS.
  • Members must cooperate with RICS.
  • Members must promptly provide all information reasonably requested by the Standards and Regulation Board.
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8
Q

Are you aware of any RICS regulation on the use of social media accounts?

A

Use of social media: guidance for RICS members. The overall message is that standards of members do not change because they are communicating through social media.

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9
Q

Please can you list core professional obligations for firms detailed in Rules of Conduct Appendix A?

A
  • Firms must publish a complaints handling procedure, which includes an alternative dispute resolution provider approved by RICS and a complaints log.
  • Firms must ensure that all previous and current work is covered by adequate and appropriate professional indemnity insurance.
  • Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their absence (locum).
  • Firms must cooperate with the RICS.
  • Firms must promptly provide information requested by the Standards and Regulation Board.
  • Firms must display their business literature, in accordance with RICS’ published policy.
  • Firms must report to RICS any matter that they are required to report under the Rules and Regulations for Firms.
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10
Q

Say you attend a work social event and witness two junior colleagues acting in a way which could bring your firm into disgrace. What would you do in this situation?

A

I would speak with them immediately and take steps to prevent reputational damage or embarrassment. I would then address their actions formally in working hours.

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11
Q

Why does RICS publish guidance notes and do Chartered Surveyors have to follow them?

A

If a surveyor faces a professional negligence claim or RICS regulatory or disciplinary proceedings, they will need to be able to evidence that they acted with reasonable competence. This can be achieved by complying with RICS guidance publications.

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12
Q

What is the ‘Black Book’?

A

The ‘Black Book’ is a collection of technical practice documents which covers all processes throughout the construction project life cycle. The document are essential development tools for junior professionals working through their APC.

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13
Q

Can you briefly explain the purpose of a Professional Standard document?

A

Mandatory requirements that surveyors must follow where the word ‘must’ is used. Nest practice that surveyors should follow where the word ‘should’ is used. Examples are “Rules of Conduct”, “Conflicts of Interest”, “Bribery, Corruption, Money Laundering and Terrorist Financing”, “Client Money documents”.

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14
Q

Can you briefly explain the purpose of a Practice Information document?

A

This is supplementary guidance to support surveyors. The guidance is not mandatory.

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15
Q

Can you explain how you act with integrity?

A

Being trustworthy in all that I do, being open and transparent in the way I work, Respecting confidential information, Not allowing bias through conflicts of interest.

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16
Q

Why must you act within your professional capabilities/competence?

A

To ensure I do not advise my clients incorrectly which could lead to a complaint or claim of negligence.

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17
Q

Can you explain how you take responsibility?

A

Be accountable for all my actions. Always act with skill, care, and diligence. Willing to challenge and issues.

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18
Q

How do you provide a high standard of service when executing your professional appointment?

A

I always ensure my client receive the best possible advice. Always acting within my scope. Ensuring project folders and well maintained and contain sufficient information upon client requests. Being transparent with my fees.

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19
Q

Can you explain how you promote trust in the profession?

A

Understanding how my actions will affect others. Fulfilling my professional obligations. Acting in a trustworthy manner in both my professional and private life.

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20
Q

Can you clarify what an individual should do to maintain a high ethical standard in their profession?

A

Maintain CPD. Follow advice given by professional bodies. Noting any unethical behaviour and reporting this. Help their organisation to develop ethical ways of working.

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21
Q

What sort of things can employers do to create an ethical environment for their staff?

A

Establish confidential procedures for ‘whistle blowing’. Include ethical evaluations in formal performance appraisals. Promoting CPD in the relevant area. Encouraging their staff to undertake the APC. Making employees undertake mandatory training in the area.

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22
Q

What is the difference between ethics and integrity?

A

Integrity is the internal quality of being honest and having strong morals. Ethics is more external and applies to an organisations rule, regulations, code of conduct that have been created to allow employees to work following moral principles.

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23
Q

Are you aware of any tools produced by RICS to help members make ethical decisions?

A

RICS have produced an ethics decision tree.

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24
Q

Are you aware of any rules associated with registering a firm with RICS?

A

Rules for the registration of firms.

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25
Q

When is a firm require to register for regulation?

A

A firm is required to register for regulation by the RICS if:
The firm provides surveying services to the public.
The firm is operating in Regulated Area A (UK).
At least 50% of the firm’s Principals are RICS members

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26
Q

In which circumstances are firms eligible to register for regulation?

A

A firm is eligible to register for regulation by RICS if;
The firm provides surveying services to the public
At least 25% of the firm’s Principals are RICS members

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27
Q

What is a locum?

A

A firm which has a sole principal must have in place appropriate arrangements in the event of that sole principal’s death, incapacity or other extended absence. A locum is effectively another professional who is appointed to ‘stand in’ for the surveyor.

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28
Q

Who can be a locum?

A

Typically, another Chartered Surveyor, although hey could also be a solicitor or accountant.

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29
Q

How does professional indemnity insurance relate to Locums?

A

Locums need to be covered for any undertaken whilst the sole practitioner is unavailable. This could be under their own cover, or under the firms PII policy.

30
Q

Can you accept a gift from your client or contractor?

A

I would not accept gifts, hospitality, or services, which might suggest an improper obligation. It is important to consider the timing of the gift, proportionality, and consideration to the impartiality of the gift.

31
Q

What things would you consider when assessing if a gift or hospitality is appropriate to accept?

A

The value of the gift, the timing of the gift i.e. am I in a tender review, who else has been offered the gift, is it in-line with the RICS Rules of Conduct, will the gift effect my ability to act impartially.

32
Q

What are the CPD requirements for members?

A

A minimum of 20 hours CPD per calendar year with a minimum of 10 hours formal CPD. Members must maintain their ethical standards i.e. the test every 3 years.

33
Q

Can you explain what a conflict of interest is?

A

A conflict of interest arises in a situation where there may be an actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment.

34
Q

Is the Conflicts of Interest, 1st edition, March 2017 a guidance note or professional standard?

A

Professional Standard.

35
Q

Can you name the 3 types of conflict outlined in the 2017 professional statement?

A

Party Conflict, Confidential Information Conflict, Own-interest Conflict

36
Q

What is Party conflict?

A

A situation where a firm / member is acting for clients with conflicting interests. I.e. competing supermarkets.

37
Q

What is Own Interest conflict?

A

A situation where a firm / members’ personal interests conflict with their clients. i.e. shares in a particular Main Contractor

38
Q

What is Confidential Information conflict?

A

Obligation to provide information to one party conflicts with confidential agreements of another.

39
Q

Can you provide working examples of a conflict, or potential conflict of interest?

A

Acting for both the developer and contractor on the same project.

40
Q

What is informed consent?

A

informed consent occurs when a party who might be adversely affected by a conflict of interest acknowledges the existence of that risk but still agrees to instruct an RICS-regulated firm or RICS member to proceed with the assignment.

41
Q

What action should someone take if a Conflict-of-Interest situation arises?

A

As soon as you become aware, disclose this to the client in writing and detail the nature of the conflict.

42
Q

You are instructed to work on a proposed development which would require the removal of a nature reserve. You have very strong views on protecting the environment. What should you do?

A

Ask myself the question – could I work on a project without bias and give the client proper and impartial advice? Notify the client in writing of a potential conflict of interest. I may need to respectfully decline the commission and offer somebody else in the business who could work on the development.

43
Q

What is a bribe?

A

A temptation or reward offered, promised, or provided to gain any commercial or personal advantage

44
Q

What is the Bribery Act 2010?

A

The Bribery Act covers criminal law relating to bribery. The Act contains four main bribery offences: Bribing another person, Being bribed, Bribing a foreign public official, Failure by a commercial organisation to prevent bribery.

45
Q

What are the 6 principles for implementing adequate procedures to prevent bribery, from the Bribery Act?

A

Proportionality – the action taken should be proportionate to the risk and size of the organisation.
Top level commitment – Those in senior positions are best placed to ensure the organisation conducts business without bribery.
Risk assessment – Many organisations will have little or no risk of bribery, but a risk assessment will show the nature or extent of exposure to bribery.
Due diligence – Due diligence procedures must be applied, taking a proportionate and risk-based approach, with regard to individuals who perform or will perform services on behalf of the organisation.
Communication – Employers will need to communicate their policies and procedures to staff and others who perform services, additional training may help raise awareness.
Monitoring and review – Organisations should monitor and review procedures designed to prevent bribery.

46
Q

What is your position for compliance with the Bribery Act 2010?

A

Mace has an anti-bribery and corruption policy which applies to me as an employee. I strictly follow the procedures. I would report any act of bribery to the National Crime Agency.

47
Q

What are the potential consequences for not adhering to the Bribery Act 2010?

A

Individuals can receive a jail sentence of up to 10 years. Reputation damage.

48
Q

What is money laundering?

A

Money laundering is the generic term used to describe the process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived from a legitimate source.

49
Q

How do you report suspicious money laundering?

A

Report to the National Crime Agency.

50
Q

A client asks you to take responsibility for making interim payments to the contractor. The client gives you half a million pounds in cash to make the payments. What would you do in this situation?

A

I would not accept the cash and encourage the client to place the funds into a bank account (the responsibility then rests with the bank). If I had concerns over the source of the cash I would report this to the National Crime Agency.

51
Q

What is corruption?

A

The abuse of entrusted power for private gain.

52
Q

What is a price fixing cartel?

A

A price fixing cartel is a collection of otherwise independent businesses or countries that act together as if they were a single producer

53
Q

What is terrorist financing?

A

The solicitation, collection, or provision of funds with the intention to support terrorist acts or organisations.

54
Q

What are the mandatory requirements for RICS members and firms in association with bribery, corruption, money laundering and terrorist financing?

A

Requirements are detailed in the professional standard Countering Bribery, Corruption, Money Laundering and Terrorist Financing.

55
Q

What is modern slavery?

A

The exploitation of people for personal and commercial gain.

56
Q

What is the relevant legislation to the modern slavery act?

A

Modern Slavery Act 2015.

57
Q

What is Professional Indemnity Insurance?

A

PII covers the policyholder for the costs of legal action made against them in respect of a professional negligence claim based on their professional advice or performance.

58
Q

Have the RICS published any information on PII requirements?

A

Yes, the Professional Indemnity Insurance requirements.

59
Q

What is the purpose of PII?

A

Ensures that if the victim faces a claim, it is protected against financial loss that it cannot meet from its own resources.

60
Q

What is the difference between ‘any one claim’ and ‘aggregate’ policies?

A

Any one claim provides cover up to the full limit for each individual claim made in the period of insurance, whereas aggregate provides cover up to the full limit for all claims made in the period of insurance.

61
Q

What is a fully retroactive policy?

A

PII policies work on a ‘claims made’ basis. This means the policy covers claims that are first made against the insured during the period of insurance regardless of when the negligent act occurred. If the retroactive date of the policy is stated as ‘none’ then the policy is fully retroactive and all former work carried out by the firm will be covered.

62
Q

What measures do you take to avoid PII claims?

A

Keep full and detailed recordings of meetings, record recommendations and advice given, follow RICS guidance and professional statements, follow RICS rules of conduct, avoid providing advice outside of my specialism.

63
Q

Tell me about Merrett vs Babb (2011)

A

Babb completed a valuation as an employee of a company. The valuations was later found to be negligent. The original company no longer existed and the PII cover had been cancelled. The court ruled that Merett could pursue the individual Babb for losses.

64
Q

What are the minimum limits of indemnity for regulated firms?

A
  1. Turnover in preceding year £100,000 vs £250,000 minimum limit of indemnity.
  2. Turnover in preceding year £100,001 to £200,000 vs. £500,000 minimum limit of indemnity.
    3.Turnover in preceding year £200,001 and above vs £1,000,000 minimum limit of indemnity.
65
Q

What is the maximum level of uninsured excess for regulated firms?

A
  1. Turnover in preceding year £10,0000,000 or less vs the greater of the 2.5% of the sum insured or £10,000.
  2. Turnover £10,000,001 and above vs. No limit set.
66
Q

If you make a mistake, what would your insurance company expect you to do next?

A

Notify them at the earliest opportunity, comply with any conditions and procedures set in the insurance policy, advise the client of the error, assess the level of mistake and take steps to correcting.

67
Q

Assuming you are MRICS… a friend asks for your help on a house extension, they ask for technical advice, for free, outside of business hours?

A

My firms’ PII would not cover me for private advice, I would therefore politely decline. I would also need to consider a potential conflict of interest.

68
Q

What is professional indemnity insurance run-off cover?

A

‘Run-off’ is a form of PII which covers the historic liabilities of a business after it ceases to trade.

69
Q

How long should run-off cover be in place?

A

RICS expect run-off cover to be maintained for a minimum period of six-years.

70
Q

What is the motto of the RICS?

A

Est modus in rebus - there is measure in all things

71
Q

What is the role of the Standards and Regulation Board?

A

Exclusive responsibility for exercising RICS’ regulatory functions including strategy, governance, policy and operations. It oversees the activities of RICS’ professional standards, entry and admission to the profession, education and qualification standards

72
Q

Can you give me an overview of RICS’ governance structure?

A

Under the Royal Charter, RICS’ governing body is the Governing Council, which is responsible for approving RICS strategy and vision. You then have the RICS board and the Standards and Regulation Board who sit under the Governing council.