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RICS APC AB > Level 3 - Conduct rules, ethics and professional practice > Flashcards

Level 3 - Conduct rules, ethics and professional practice Flashcards

1
Q

What are the are RICS rules of conduct for members?

ECS CPD SIC

A

Part 1: General

Sets out Interpretation and how RICS can communicate with members.

Part 2: Standards

E. Ethical behaviour
C. Competence
S. Service

CPD. Continuing professional development

S. Solvency
I. Information to RICS
C. Cooperation

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2
Q

What are the rules of conduct for firms?

PCS CPD CCP

A

Part 1: General

Sets out definitions only for regulated firms.

Part 2: Conduct of business

P. Professional behaviour
C. Competence
S. Service

CPD. Training and continuing professional development

C. Complaints handling procedure
C. Clients money
P. Professional indemnity insurance (PII)

Part 3: Firm Administration

Advertising
Solvency
Arrangements (death or illness of sole practitioner)
Use RICS designation
Information
Co-operation

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3
Q

Why do you want to be a surveyor?

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

What are the benefits of being a member of the RICS?

SRMKN

A

Status

Recognition

Market advantage

Knowledge

Network

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4
Q

What are the RICS 5 Core Values?

A

Act with INTEGRITY

Always provide a high standard of SERVICE

Act in a way that promotes TRUST in the industry

Always treat others with RESPECT

Take RESPONSIBILITY

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5
Q

What are the principals of RICS Regulation for Members and Firms?

PACTT

A
  1. Proportionality
  2. Accountability
  3. Consistency
  4. Targeting
  5. Transparency
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6
Q

What are the International Ethics Standards, 2016?

A
  1. Accountability
  2. Confidentiality
  3. Conflicts
  4. Financial responsibility
  5. Integrity
  6. Lawfulness
  7. Reflection
  8. Standard of service
  9. Transparency
  10. Trust
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7
Q

What are the Rules of Conduct, 2007 (amended 2017)?

A

Introduced following the Carlsberg Report

2 separate documents for members and firms

Set out standards of professional conduct

Follow a risk based approach and target serious breaches

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8
Q

What disciplinary procedures are there for breaching the rules of conduct for members and firms?

A

Three levels:

  1. Action by head of regulation
  2. Disciplinary panel (a hearing)
  3. Appeal panel
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9
Q

How can a disciplinary procedure triggered?

A

By someone complaining to the RICS

An allegation by a client or a third party

As a result of information received or established by the RICS

NOTE: Not all shortcomings will give rise to disciplinary action. However failure to follow our RICS guidance will be considered.

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10
Q

What are the three most common breaches of the Rules of Conduct?

A

Rule 3: Breaches of professional behaviour

Rule 6: CPD

Rule 8: Protecting clients money

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11
Q

What actions can the RICS head of regulation take?

A

Formal investigation

Possible actions:

Fixed Penalty Notice (supply of info to RICS)

Consent Order (Minor breaches)
- states terms member/firm must take in a specified time period.
- up to £2000 fine

Refer matter to Disciplinary Panel

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12
Q

What actions can the RICS Disciplinary Panel take?

A

More serious breaches
Panel usually sits in public (50% lay members)

Penalties:

Consent order
Unlimited fine (proportionate to offence)
Impose conditions on RICS registration
Expulsion
Publication of results required

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13
Q

What does the RICS appeal panel do?

A

Consider member/firm’s appeal

Review decision based on previous and new evidence

50% of panel must be lay members

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14
Q

What RICS guidance notes are you aware of?

A

Complaints handling 2016

Conflicts of Interest 2018

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15
Q

What is the bribery act 2010?

What principles is it based on?

A

Came into force – 1 July 2011

To reduce bribery in business in the UK and abroad.

Failing to prevent bribery is a criminal offence.

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

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16
Q

Under the bribery act 2010 what are the offences?

A

Four offences:

  1. Bribing
  2. Receiving a bribe
  3. Bribing foreign public official
  4. Failing to prevent bribery
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17
Q

What constitutes bribery?

A

A bribe can be the giving, offering, promising or receiving of an advantage in return for an action.

Hospitality that is not reasonable and proportionate can be classified as bribery.

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18
Q

Are company is responsible for employees corrupt acts?

A

Yes, unless adequate policies and procedures are in place to combat bribery.

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19
Q

What is the maximum amount of cash that can be received as a payment?

A

€10,000 (reduced from €15,000 in June 2017)

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20
Q

Who polices the bribery act 2010?

A

The serious fraud office

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21
Q

What is the penalties for breaching the bribery act 2010?

A

For individuals: Maximum penalty is 10 years imprisonment and/or an unlimited fine.

For companies: An unlimited fine

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22
Q

Give me a recent example of when the bribery act 2010 has been breached?

A

2016 – Sweett Group

Serious fraud office successfully prosecuted Sweett Group for there subsidiary company offering a bribe to win business.

Fined £1.4 million

RICS find company £125,000

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23
Q

What are your firms procedures with regards to bribery?

A

My firms procedures include:

Whistleblowing procedures

Training is provided during induction for new employees with employees receiving regular updates and training and being asked to formally accept compliance every year.

We also have a compliance register to fill out on a monthly basis which requires employees to fill out a gifts register.

We also have Gifts/hospitality policies.

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24
Q

Have you received the gift?

What do you consider when excepting a gift?

A

I always consider the bribery act 2010 and my firms procedures and gifts policy.

Is it reasonable and proportionate?

What are the circumstances?

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25
Q

As a member of the RICS how many hours CPD would you have to undertake?

A

20 hours of which at least 10 must be for me

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26
Q

What would you say is the benefit of appointing a chartered surveyor as opposed to a non-chartered surveyor?

A

You are appointing a qualified professional.

Chartered surveyors are regulated.

Confidence of competence

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27
Q

Who runs the RICS?

A

It is a members institution run by the members for the members.

There is a Governing Council who run the RICS on behalf of the members.

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28
Q

What are the punishments for a surveyor if they breach regulation?

(Follow up question: can you appeal?)

A

Expulsion

Consent order

Fixed penalties

Appeal Panel can review and change decisions.
(Made up of 50% lay members)

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29
Q

Why is it important that a surveyor remain solvent?

A

Firstly, it’s regulation.

On top of this, one needs to manage their own finances before being trusted with others.

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30
Q

What professional groups are there in the RICS?

(Hint: there are 17!)

A

Commercial surveyor

Quantity surveyor

Building surveyor

Project management

Residential surveyor

Valuation

Environmental surveyor

Facilities management

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31
Q

How often does a member need to undertake the ethics assessment?

A

Every three years

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32
Q

When must CPD be recorded by?

A

31st December

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33
Q

What constitutes formal CPD?

A

If there is a formal learning structure.

If there is a learning objective and outcome.

i.e. Seminars

RICS decision tree!!

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34
Q

Why is it important to include a complaint handling procedure in your terms of engagement?

A

It is a requirement of the RICS.

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35
Q

Tell me about your company’s complaints handling procedure.

A

There is a designated complaints handling officer.

The first step is to see if the complaint can be dealt with by whoever receives a complaint.

If the complaint cannot be resolved then a formal complaint must be made in writing.

If the complaint can still not be resolved then it would go to a third party dispute resolution.

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36
Q

Provide me with an example of when you have shown integrity.

A

THINK OF SOMETHING.

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37
Q

Tell me about a time when you have provided a high standard of service.

A

THINK OF SOMETHING

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38
Q

Give me an example of when you promoted trust.

A

THINK OF SOMETHING

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39
Q

Tell me about a time when you have treated others with respect.

A

I make sure to treat everyone with respect every day whenever I engage with anyone.

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40
Q

When you have taken responsibility for your actions.

A

I always take responsibility for anything I do or any advice I give within my role.

THINK OF SOMETHING

41
Q

What is your firms professional indemnity insurance cover?

A

£5 million

42
Q

How do you work out the appropriate level of professional indemnity insurance?

A

It is based on the turnover of a firm.

43
Q

What do the RICS state are the minimum levels of professional indemnity insurance cover?

A

It is based on the level of turnover of a company.

Up to £100,000 – min £250,000 cover

£100,000-£200,000 – min £500,000 cover

Above £200,000 – min £1 million cover

44
Q

Would you accept a gift?

A

That would depend on the circumstances in which the gift was given and whether it was proportionate and suitable.

I would always acknowledge the bribery act 2010, and deem whether the gift could be a bribe or could be seen as a bribe.

If the gift was suitable and not a bribe, then I would accept it making sure to follow my company’s gift policy and log it in the gifts register.

45
Q

What does a non disclosure agreement entail?

A

Yes, what’s this is not legally required it makes good business sense to sign and NDA.

An NDA is a confidentiality agreement between parties which prohibits anyone from disclosing information.

Typically they last for 3 to 5 years however, this will vary on a case by case basis.

An NDA allows for a party to sue another party if they are in breach.

46
Q

What is the objective of the RICS?

A

To maintain and promote the usefulness of the profession for the public advantage.

47
Q

What is one of the RICS byelaws?

A

Conduct

48
Q

What are the four levels of RICS membership?

A

FRICS

MRICS

AssocRICS

Trainee/student

49
Q

When was the RICS founded?

A

1868

50
Q

What are the international ethics standards?

(There are 10)

A

Accountability
Confidentiality
Conflict-of-interest
Financial responsibility
Integrity
Lawfulness
Reflection
Standard of service
Transparency
Trust

51
Q

Why were the rules of conduct introduced?

(Follow up - what is the Carsberg Report?)

A

It was introduced following the Carsberg report.

The Carsberg report was written by the head of the OFT as a way to stop the loop holes that were available for members and firms.

52
Q

What are the benefits of regulation?

A

Confidence (regulated)

Professionalism (qualified expert advice)

Security (CHP & PII)

53
Q

What information is required by the RICS for regulation?

A

Details of business

Nature of clients

Complaints handling procedure

PII details

If firm holds clients money

Statutory regulated activities

54
Q

What RICS disciplinary procedures are you aware of?

A

Action by head of regulation

Disciplinary panel

Appeal panel

55
Q

What codes of practice are you aware of?

A

Code of measuring practice (6th addition)

Replace by RICS property measurement 2nd edition, January 2018 - includes office sand residential following new IPMS

56
Q

What international standards are you aware of?

A

IPMS

57
Q

What professional statements are you aware of?

A

RICS conflicts of interest UK commercial property market investment agency 2017.

58
Q

Can you tell me any RICS material which governs ethical behaviour?

A

The RICS global professional and ethical standards, 2015

59
Q

Who was the Royal Charter granted by?

A

The privy council

60
Q

Is there any RICS material which sets out standards of professional conduct and practice?

A

The RICS rules of conduct, 2007 (amended 2017)

61
Q

Are you aware of any international material on ethical behaviour?

A

The international ethical standards, 2016

62
Q

Are you aware of any RICS international standards?

A

International property measurement standards, 2015

63
Q

Are you aware of any RICS professional statements?

A

RICS property measurement, 2015

RICS conflicts of interest, UK commercial property market investment agency, 2017

RICS conflicts of interest, 2017

UK commercial real estate agency, 2016

RICS Real Estate agency and commercial brokerage, 2014

64
Q

Are you aware of any RICS information papers?

A

Valuation information paper 12

Covering the valuation of the development land.

65
Q

Are you aware of any RICS guidance notes?

A

Surveying safely, 2011

66
Q

Who is the current president of the RICS?

A

John Hughes FRICS

67
Q

Who is the President elect of the RICS?

A

Chris Brooke FRICS

68
Q

Are you aware of anything that the RICS are undertaking as part of the 150 year anniversary?

A

They are partnering with LandAid to raise £2.25m for the provision of 150 beds for young homeless people by December 2018.

69
Q

Who governs the RICS?

A

The governing Council

70
Q

What do the governing Council do?

A

They run the RICS and provide management and strategic direction.

71
Q

What is the governance structure of the RICS?

A

The Privy Council awarded the RICS its Royal Charter.

The Governing Council run the RICS.

The regulatory board, the audit committee and the management board report to the governing Council.

17 specialist professional groups.

72
Q

What are the individual rights under GDPR?

A

right to be INFORMED
right of ACCESS
right of RECTIFICATION

right to RESTRICT processing
right to ERASIA
right to DATA portability
right to OBJECT

right to not to be subject the AUTOMATED decision making

73
Q

What would you do if you could not procure professional indemnity insurance?

A

You would apply to the RICS to seek PII through the Assigned Risks Pool.

74
Q

What insurance would you set up if you started a new practice?

A

PII

Public Liability Insurance

Employer Liability Insurance

Contents insurance

75
Q

Other than Japanese Knotweed, what other invasive plants are you aware of?

A

Hogweed

Himalayan Balsam

76
Q

What does the front cover of the red book look like?

A

It is red and has part of a globe showing which looks to be made of buildings.

77
Q

What does the front cover of the U.K. Commercial Real Estate Agency PS look like?

A

It has some purple colouring and has lots of blocks which could be deemed to be buildings.

78
Q

What is a conflict of interest?

A

A conflict of interest arises when an individual’s impartiality is at risk of being jeopardised.

For example when an agent acts for clients with competing interests or when an agent has a personal interest which conflicts with their clients.

79
Q

How would you identify a conflict of interest?

A

Before accepting any instruction, I always follow my company’s guidelines for identifying conflicts of interest. I would first send an email to all my colleagues to ask if there were any conflicts. I would seek to have this confirmed verbally and in writing.

My company also has weekly team meetings when discuss potential conflicts on any new work.

80
Q

How would you deal with a conflict of interest?

A

I would first consider whether the conflict should be avoided or whether it could be managed. If I deemed it should be avoided then I would politely decline the instruction. If I deemed it could be managed and it was in the interest of both parties to act, I would seek written informed consent from both parties to act and then set up appropriate information barriers as agreed with the clients.

81
Q

If you were acting for a client in a building and another tenants approached you to act, would you accept the instruction?

A

That would depend on the situation. If the conflict could be managed and I received written informed consent from both parties to act then I could proceed so long as appropriate information barriers were set up. If I felt the conflict should be avoided then I would decline the instruction.

82
Q

Would you accept an instruction if you had acted for another tenant in the building previously?

A

Yes I would as there is no conflict due to the other instruction having ended.

83
Q

What is required by the RICS to set up a new firm?

A

If I was setting up a new firm I would firstly inform the RICS and register for regulation, informing them on details of the business and any staffing details. I would then get approval of my complaints handling procedure and provide them with details of my PII and whether or not the company held clients money or had any registered valuers. I would set up a suitable staff training program an ensure compliance with all statutory regulations. If I was a sole practitioner I would set up a succession plan.

84
Q

What legislation would you have regard to when setting up a new firm?

A

I would have regard to all relevant legislation including but not limited to, the Bribary Act 2010, Money Laundering Regulations 2017, Consumer Protection Regulations 2008, Estate Agents Act 1979, Data Protection Regulations 1998 or GDPR 2016 and Health and Safety at work Act 1974.

85
Q

What does the Unfair Contract Terms Act 1977 say?

A

This is in place to limit avoidance of breaches of contract through disclaimers and exclusion clauses.

86
Q

What are the principals of GDPR?

A

Processed fairly, lawfully and transparently

Adequate, relevant and necessary.

Accurate and up to date

Kept no longer than necessary

Ensure security of data

Collected for specified, explicit and legitimate purposes.

87
Q

Who is GDPR policed by?

A

The Information Commissioners Office.

88
Q

Are you aware of anything the RICS are doing with regards to data protection?

A

They have announced they will be producing a Professional Statement on data protection.

89
Q

Are you aware of any potential changes regarding the RICS regulatory board?

A

They are looking to increase the RICS accountability for meeting RICS’ standards at senior levels in the firm it regulates.

90
Q

What was the last CPD you undertook?

What did you learn?

A

I attended a CPD seminar on Types of Air Conditioning.

91
Q

What are the key points of the Health and Safety at Work Act 1974?

A

It sets out duties for employers and employees amongst others with regards to health and safety.

How H and S should be managed and complying with regulation.

92
Q

Why might it be appropriate to decline an instruction?

A

Not competent

No Terms of Engagement

No Money Laundering checks

Conflict of interest

PII cap cannot be agreed

93
Q

What are the types of conflicts?

A

Party

Own interest

Confidential information

94
Q

Who is the current CEO of the RICS?

A

Dr Sean Thompkins

95
Q

What are the main roles of the RICS?

(Hint: Three main roles)

A
  1. To maintain the highest standards of education and training .
  2. To protect consumers through strict regulation and professional standards .
  3. To be the leading source of information and advice within the industry.
96
Q

What guidance does the RICS give on Conflicts of Interest?

A

RICS Conflicts of interest 1st edition, March 2017 (professional statement)

New mandatory statement took effect on 1st January 2018

A conflict of interest arises when a firm’s independence and impartiality is threatened due to the existence of a conflict between two clients.

It states that ‘a Member must not advise or represent a client where doing so would involve a conflict of interest or a significant risk of a conflict of interest, other than where all those who are, or may be affected have provided their informed consent’.

Informed consent may only be sought where the RICS member or regulated firm is satisfied that proceeding despite a conflict of interest is in the interests of all of those who are or may be affected and is not prohibited by law.

Know an example – financial interest, personal interest, commercial relationships, interest of you or your firm, acting on both sides of a transaction

  • All conflicted should be managed in accordance with the Statement

-Every RICS firm must have in place effective systems and controls appropriate to the size and complexity of their business to ensure full compliance

-Firms must keep records to show their compliance with the Statement

97
Q

What are the types of conflict in the RICS Conflict of Interest Guidance 2017?

A

Three types of conflict are defined:
1. Party Conflict - relating to work on the same or related instruction for two different parties

  1. Own Interest Conflict - relating to a personal interest
    ‘Confidential Information Conflict’
  2. Conflict avoidance v. conflict management and informed consent - relating to work between two parties which is confidential

Key questions –
How do you undertake a conflict of interest within your company?
How would you handle a conflict of interest?
What conflict management methods are you aware of?

98
Q

What is the reasonable test of bribery

A

Resonable
Proportionate
Opportune time

RICS APC AB (21 decks)

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