Lists Flashcards
what are the 6 main areas of good practice set out in the professional statement client money handling 1st edition 2019?
- Holding client money
- providing information to clients
- Receipts of client money
- payments from client accounts
- accounting records and controls
- compliance.
What are the current minimum requirements based on turnover for PI insurance?
turnover £100,000 or less = £250,000 for each claim
turnover £100,001 to £200,000 = £500,000 for each claim
Turnover £200,000 and above = £1,000,000 for each claim
What are the two stages in the minimum procedure for handling a complaint?
Stage 1 - In House - details of the CHP should be issued whenever the firm recieves a complaint from someone they owe a duty of care.
Stage 2 - ADR - If the complainant is not happy with the review the CHP involves using an independent redress scheme
What are the three types of conflict of interest defined?
- party conflict - relating to work on the same or related instructions for two different parties.
- own interest conflict - relating to a personal interest.
- Confidential information conflict - relating to working between two parties that is confidential.
what reasons are there for declining an instruction?
- you are not competent to undertake the work
- you do not have sufficient facts.
- the proposed client will not sign your terms of engagement and or complete AML checks.
- There is a conflict of interest.
- A professional indemnity cap cannot be agreed upon.
- The advice is for a friend and on a pro bono basis which is not covered by your professional indemnity insurance.
- the potential client is included in the government sanctions list.
- Would you be content for your actions to be made public?
What are the three steps to follow regarding terms of engagement? CIT
- Check professionally competent
- No conflicts of interest or personal interest.
- Confirm Terms of engagement in writing and get written approval from the client before you start to work on the instruction.
What are the Five Rules of conduct?
1 - Members and firms must be honest, act with integrity and comply with their personal obligations and those to the RICS
2 - Members and firms must maintain their professional competency and ensure that services are provided by competent individuals
3 - Members and firms must provide good quality diligent services
4 - members and firms must treat others with respect and encourage inclusion and diversity
5 - Members and firms must act in the public interest, take responsibility for their actions and prevent harm maintaining public confidence.
What are the 6 areas of information required for registration
1 - The type of Business and staffing details
2 - Statutory regulated activities - such as financial services
3 - Nature of Clients
4 - Complaints handling procedure details and records
5 - Professional indemnity insurance details
6 - Whether the firm holds client money
What are the 6 principles of the Bribery Act?
1 -Proportionality
2 -Top level Commitment
3 - Risk Assessment
4 - Due diligence
5 - Communication
6 - monitor and review
What are the 4 offenses under the Bribery act
1 - Bribing
2 - receiving a bribe
3 - Bribing a foreign official
4 - Failing to prevent a bribe
What is Customer Due diligence?
1 - Identify and verify the client - passport, driving licence
2- Make reasonable endeavors to identify the beneficial owners of the client
3 - For a company its name, company number and registered office address
4 - names of the directors
5 - obtain information on the purpose and intended nature of their business relationship and proposed funding arrangements
What are the key provisions of Money laundering terrorist financing and transfer of funds regulations 2017 amended 2019
- Requirement to have written money laundering and terrorist financing risk assessments.
- Implement systems, and policies to address money laundering and terrorist financing.
- Adopt appropriate internal controls
- provide staff training
- comply with new customers’ enhanced and simplified due diligence
- comply with the requirements relating to PEPs
- Ensure appropriate record keeping
- AML checks must be undertaken to confirm the identity of the proposed purchaser and check the source of funds.
- To include additional high-risk factors when assessing the need for enhanced due diligence
What are red flags associated with potential money laundering
- inability or unwillingness of parties to provide identity documents.
- Change of parties involved in transactions.
- unusual transaction features suh as unexpected urgency required by parties or potential loss making
- payment of fees, purchase or rental monies in unusual currencies.
What are the three main offenses of the crime act 2002?
- concealing criminal property. - person conceals and disguises transfers of criminal property.
- arrangements - person enters into or becomes concerned in an arrangement which they know or suspect
- acquisition use or possession - person acquires or uses the criminal property.
8 individual rights under GDPR
- Right to be informed
- Right of access.
- Right to rectification
- Right to erasure
- Right to strict processing
- right to data portability
- right to Object
- rights to automated decision-making and profiling
