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Ethics SoE > Level 1 > Flashcards

Level 1 Flashcards

1
Q

What are the changes to the Rules of Conduct?

A

Effective Feb 2022
Rules now apply to both members and firms
Simple structure and clear examples for behaviours
12 supporting case studies

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2
Q

What are the 5 Rules of Conduct

A
  1. Honesty, integrity and comply with obligations
  2. Professional competency and service
  3. Good-quality and Diligent service
  4. Respect and encourage DEI
  5. Act in public interest
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3
Q

Why did RICS introduce new Rules of Conduct?

A

Simpler structure
Clear examples
DEI Focus
Understanding evolving Technologies
Tackling Global challenges (ESG)

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4
Q

What is the Role of the RICS?

A

Promote and enforce highest professional qualifications and standards in development and management of land and property

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5
Q

What are the 3 main roles of RICS?

A
  1. Maintain highest standards of education and training
  2. Protect consumers
  3. leading source of information and independent advice
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6
Q

What is the background of the RICS?

A

Founded - 1868
Royal charter by Privy Council - 1881
RICS Regulation and Bye-laws set out the governance

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7
Q

What are the membership levels?

A

FRICS
MRICS
AssocRICS
Trainee

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8
Q

How do you become FRICS?

A

5+ years MRICS
Leadership role
Professional / technical achievements
Academic achievement
Raising profile of RICS
Professional portfolio including CPD

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9
Q

What is the RICS Structure?

A

Governing Council
RICS Board
- Management Board
- Audit Committee
Standards and Regulation Board

17 specialist professional groups

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10
Q

-Who is the RICS CEO and President

A

CEO - Justin Young
President - Anne Grey

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11
Q

Are you aware of any RICS Reviews?

A

Bichard Review 2022

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12
Q

What are the 7 key areas of the Bichard Review?

A
  1. Focus on public interest
  2. Self-regulation, through greater independence
  3. Focus on DEI
  4. Greater support for regional boards and young members
  5. Indpenedent review of RICS governance - once every 5 years for effective Charter
  6. Sustainability and Climate Change
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13
Q

What is the RICS Decision Tree?

A

Framework of questions to ask when faced with unethical decision
Consistency with Rules of Conduct
Clear reasoning before acting

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14
Q

What are the key stages of the RICS Decision Tree?

A

Sufficient faces
Legality
In line with Rules of Conduct
Consulted appropriate people or colleagues
Clear reasoning
Content for public

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15
Q

Is there further support for ethical decisions?

A

RICS Regulation Confidential Hotline
Ethical Decision Tree

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16
Q

What is the key AML regulation?

A

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, 2017 (as amended in 2022)

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17
Q

What is the RICS information on AML?

A

RICS Professional Statement: Countering Bribery, corruption, money laundering and terrorist financing, 2019

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18
Q

What AML checks do C&W have in place?

A

In line with regulations
DD checks - Customer and Enhanced
Red Flags
Written money laundering and terrorist financing risk assessment
Staff training

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19
Q

What is Customer and Enhanced DD?

A

Customer - Identify and verify client, identify beneficiary, Intended nature of business and funding
Enhanced - Additional measures for ‘high risk third country’ and PEP

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20
Q

What are the penalties for AML?

A

14 years prison and unlimited fine for assisting in Money Laundering
5 years or unlimited fine for tipping off

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21
Q

What does the RICS Professional Standard for AML say?

A

Mandatory, globally applicable requirements for RICS members
3 parts:
1. Mandatory requirements for anti-bribery, corruption, ML and terrorist financing
2. Guidance on setting out good practices
3. Supplementary guidance in Part 1 & 2

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22
Q

What is in Part 1 of PS AML?

A

Bribery and Corruption
- procedures that comply with law, report suspicion, DD and retain records
ML and TF
- not facilitate or be complicit, systems in place, report suspicion, use third party reliance for checks, verify client

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23
Q

What is in Part 2 of PS AML?

A

Practical Guidance
- written policy, code of behaviour, staff training, gifts register, up to date with legislation

24
Q

What is in Part 3 of PS AML?

A

Supplementary guidance
- Risk-based approach - who, what why
- PEP
- Identify beneficiary

25
Q

Can you give me another example of acting ethically?

A

Agency role
Being offered a bottle of wine at Christmas by a client
I accepted, having regarding to C&W Bribery policy, but understand when I am prohibited in accepted something

26
Q

Can you explain what C&W Bribery Policy is?

A

No written consent for Maximum £350 in hospitality / £150 gifts but must be according to the FIT test
Must report all gifts to line manager to be recorded on gifts register
Outlines bottles of wine can be acceptable gifts

27
Q

What are the 6 principles of the Bribery Act 2010

A
  1. Proportionality
  2. Top level commitment
  3. Risk assessment
  4. Due diligence
  5. Communication
  6. Monitoring and review
28
Q

What are the RICS Rules for Regulation of Firms? (%)

A

50% principle are MRICS - Must be regulated
at least 25% - Can be regulated

29
Q

What is a Responsible Principle?

A

Ensure all reasonable steps taken and systems to ensure compliance with regulation

30
Q

What is the information required by RICS for Registration?

A
  1. Type of Business and Staffing Details
    1. Name of Responsible Principal
    2. Statutory Regulated Activities - for financial services
    3. Nature of Clients
    4. Complaints Handling Procedure details and records
    5. Professional Indemnity Insurance details
  2. Whether the firm holds Client Money
31
Q

What are RICS Members mandatory obligations?

A

Comply with CPD
Cooperate with RICS
Promptly provide information required by Standards and Regs Board

32
Q

What are RICS Firms mandatory obligations?

A
  1. Publish CHP - includes ADR and maintain complaints log
  2. Ensure all current and previous work is covered by PII
  3. Arrangements for work to continue in event of incapacity (sole practice)
  4. Cooperate with RICS
  5. Promptly provide information required by Standards and Regs Board
  6. Business literature with RICS
  7. Report any RICS matter required to under Rules for Registration
33
Q

When is a Disciplinary Procedure triggered?

A

When a complaint to RICS, allegation by client or because information received by RICS

34
Q

What are 3 level of Disciplinary Action?

A
  1. Action by Head of Regulation
  2. Disciplinary Panel
  3. Appeal Panel
35
Q

What is the role of Head of Regulation investigation under Disciplinarys?

A

Formal investigation
Inititate one of four actions following investigations

36
Q

What are the four actions following Head of Regulation investigation?

A
  1. Fixed penalty notice
  2. Regulatory Compliance Order
  3. Refer matter to member of Regulatory Tribunal for Consideration
  4. Refer to Disciplinary Panel
37
Q

What is a Fixed Penalty Notice?

A

Breaches of Rules related to supply of information to RICS

Fine or Caution

38
Q

What is a Regulatory Compliance Order?

A

Low level breach
States terms upon which member or firm must take to desist from taking certain actions in specified period
non-compliance with RICS Rules (CPD)

Sanctions such as Fixed Penalty or Disciplinary panel

39
Q

What is Action by Disciplinary Panel?

A

More serious breaches of rules referred to panel
Penalties include: reprimanded, fines, condition upon future RICS Registration, Expulsion, Publication of results

40
Q

What is the Appeal Panel?

A

Considers an appeal against review of decision by other investigations
Has regard to all evidence and can vary penalty

41
Q

What is a Professional Standard?

A

Mandatory requirement for RICS members and followed in work

42
Q

What is a Practice Information?

A

Advice on carrying out best practice and knowlegde

43
Q

How would you negotiate a Fee?

A

Should be market-based and not price cutting
Reflective of service provided, time, complexity and seniority
Can enter into fee negotiations after initial proposal

44
Q

What must be stated in Terms of Engagement?

A

Client agreed to fee basis
Payment of Expenses
Copy of firms CHP
Confirmed in writing

45
Q

What are the 3 steps before undertaking instruction?

A

C - Competence
I - Independence
T - Terms of Engagement agreed before work

46
Q

When would you decline an instruction?

A
  1. You are not competent - outside limitations
  2. Do not have sufficient facts
  3. Proposed client will not sign terms of engagement or complete AML checked
  4. Conflict of interest
  5. Professional Indemnity Insurance liability cap cannot be agreed
  6. Advice is for a friend or pro-bono basis and PII wonts cover work carried out on personal basis
  7. Potential client is included in UK Governments sanction list
  8. Would you be content for actions to be made public
47
Q

What are the RICS Bye Laws?

A

Laws that client confidentiality must be maintained for all client affairs

48
Q

When should you dispose of client information?

A

Hold for a minimum of 6 years before destroying securely

49
Q

What would you do if you receive a complaint?

A

Try and resolve in first instance
Inform line manager
Inform PII providers
Inform CHO
If not happy - Independent redress scheme

50
Q

What are the two steps of CHP?

A

Step One:
- Details of CHP when received complaint
- Details of nominated CHO
- Complaint must be in writing
- Acknowledged within 7 days and investigated within 28 days

Step Two:
- if not happy - refer to Independent Redress Scheme
- Must name redress mechanism

51
Q

What are some Redress Mechanisms for Independent redress?

A

Centre for Dispute Resolution (CEDR)
Property Redress Scheme
RICS Dispute Resolution Scheme

52
Q

What are the four requirements for CPD?

A
  1. minimum 20 hours
  2. at least 10 formal
  3. Maintain understanding of Rules of Conduct
  4. Record CPD on RICS CPD Management System
53
Q

What are the 6 key points in the RICS PS Client Money Handling 2019?

A
  1. Holding client money
    1. Providing information to clients
    2. Receipts of client money
    3. Payments from client accounts
    4. Accounting records and controls
  2. Compliance
54
Q

What are some procedure’s of handling client money?

A
  • Client accounts must be kept separately & clearly identifiable
  • Word ‘client’ is on bank account
  • Client has money on demand
  • Payment of interest is agreed with client and accounts kept in credit
  • Accurate records are kept with a running balance available
  • Annual audit and reporting by accounting
  • Only withdrawn from client account if properly required
  • Cash records
  • Signatories agreed
  • RICS Regulatory Review Visits of inspection undertaken by RICS on routine 3 year basis
  • Firms must display procedures document on website
55
Q
A

Ethics SoE (5 decks)

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