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APC > Mandatory > Flashcards

Mandatory Flashcards

1
Q

What is the Structure of the RICS?

A
  1. Governing Council
  2. Boards and Committees - such as Management Board, Standards and Regulations Board and the Audit Committee
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2
Q

What does the Governing Council do?

A

They set out global strategy and ensure RICS fulfils royal charter obligations

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3
Q

What is the role of the management board?

A

They inform and oversee RICS affairs and report directly to the governing council

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4
Q

What is the role of the RICS?

A

The role of the RICS is to promote and enforce professional qualifications and standards in the development and management of land, real estate, construction and infrastructure

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5
Q

When was the RICS founded?

A

The RICS was founded on 15th June 1868

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6
Q

When was the RICS incorporated by Royal Charter?

A

The RICS was incorporated by Royal Charter on the 26th August 1881

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7
Q

What is a Royal Charter and how does it influence the RICS?

A

A royal charter is an instrument of incorporation, granted by the Monarch

A Royal charter gives independent legal personality on an organisation and reflects the high status of the body

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8
Q

What are the Rules of Conduct?

A

1) Members and Firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS

2) Members and Firms must maintain their professional competence and ensure that services are provided by competent individuals who have necessary expertise.

3) Members and Firms must provide a good quality and diligent service

4) Members and Firms must treat others with respect and encourage diversity and inclusion

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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9
Q

What are examples of the Five Rules of Conduct?

A

1)
- Members and firms must not mislead anyone by their actions
- Members and Firms must not take unfair advantage of others
- Members and Firms must be transparent and open with fees

2)
- Members and Firms must only undertake work they are competent to complete
- Members and Firms should supervise employees to ensure they have the necessary knowledge, skills and resources to complete work competently
- Members and Firms must comply with RICS CPD requirements

3)
- Members and Firms understand clients needs and objectives before accepting professional work
- Members and Firms need to inform clients they are regulated by the RICS
- Members and Firms should undertake work in a timely manner

4)
- Members and Firms should respect the rights of others
- Members and Firms should not bully or harass anyone
- Members and Firms should not should not discriminate anyone on improper grounds such as race, religion, sex

5)
- Members and Firms should respond to complaints promptly, openly and professionally
- Members and Firms should manage their finances professionally
- Members and Firms should take appropriate action when the rules of conduct have been breached, including reporting the breach to RICS

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10
Q

What are the Five Global and Ethical Standards?

A

Integrity - Act with Integrity
Service - Always provide a high standard of service
Trust - Act in a way that promotes trust in the profession
Respect - Treat others with Respect
Responsibility - Take Responsibility

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11
Q

What legislation is important in the work you undertake?

A

In that section I was referring to the Bribery Act 2010.

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12
Q

What are the offences under the Bribery Act?

A
  • offering a bribe
  • receiving a bribe
  • bribery of foreign public officials
  • failure to prevent a bribe
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13
Q

What are the penalties under the Bribery Act?

A

maximum of 10 years imprisonment and unlimited fines

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14
Q

What are the differing categories of RICS professional content?

A

International Standards
RICS Professional Statement
RICS Guidance Note
RICS code of practice
RICS Jurisdiction Guide

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15
Q

Give me an example of RICS professional Content?

A

RICS Professional Statement - Conflicts of Interest 2017
RICS Guidance Note - Surveying Safely 2018

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16
Q

What is the Levitt Review?

A

The Levitt Review was commissioned after governance scandal within the RICS. The Review was independent and recommended:
- To clarify the purpose of the RICS, including its responsibility to act for the public advantage.

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17
Q

What is the Bichard Review?

A

The Bichard Review followed the Levitt Review, it made some key recommendations when published in June 2022, which RICS has agreed to adopt all of. These were:
- increased focus on diversity and inclusion
- a new simplified and clear governance structure
- show greater leadership on matters such as sustainability and climate change

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18
Q

What are the benefits of being a RICS member?

A

Status - professional credentials provide unrivalled confidence
Market Advantage - RICS status gives you a competitive advantage
Knowledge sharing - International practice standards, professional guidance, CPD & knowledge sharing
Network - Access to 134,000 professionals worldwide

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19
Q

What are the benefits for Firms registering with RICS?

A

C - Confidence - clients will be more confident in instructing firms registered by RICS due to requirements.
P - Professionalism - firms will have to provide clear impartial and expert advice
S - Security - firms need a complaints procedure, free indpendent redress scheme, PII cover

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20
Q

When must Firms register with the RICS?

A
  • Any firms providing surveying advice must register with the RICS if 50% of principals are RICS members, if 25% then they can apply.
  • principals are directors, partners or anyone who can act without supervision in a firm.
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21
Q

You set up a firm and register it with the RICS, what do you need to do?

A
  • Nominate a Responsible Principal
  • Firm Detail Form
  • Take out appropriate PII Cover and send to RICS
  • Type of business and staffing details (CPD)
  • Details of complaints handling procedure and records
  • Whether the firm holds clients money
  • Request a logo pack from the RICS and ensure correct use of the logo
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22
Q

What are the mandatory professional obligations for members?

A
  • CPD - comply with RICS CPD requirements
  • Cooperation - cooperate with RICS
  • Provide - when requested provide information requested by the Standards and Regualtion Board
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23
Q

What are the mandatory professional obligations for firms?

A
  • Complaints - publish a complaints handling procedure, maintain complaints handling log
  • PII - ensure all work past and present is appropriately covered
  • Sole Principal - if acting as a sole practitioner ensure that arrangements are in place for professional work to continue in the event of their death or inability to work
  • Cooperation - cooperate with RICS
  • Provide - when requested provide information requested by the Standards and Regulation Board
  • Logo - display regulated by RICS on business literature
  • Report - annually report to RICS any matters required
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24
Q

What are the CPD requirements for the RICS?

A

Members - 20 hours per year, 10 of which being formal - to be completed by 31st December and lodged by 31 Jan

Unqualified Members - 48 hours in each year up to assessment, half of which is formal

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25
Q

What is formal CPD?

A

Any form of structured learning that has clear learning objectives and outcomes. Webinar

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26
Q

What is informal CPD?

A

Any self managed learning that is relevant to your professional role, farmers weekly

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27
Q

What is a conflict of Interest?

A

Something that could be viewed as impeding on your ability to provide impartial advice

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28
Q

What is PII Cover?

A

Professional Indemnity Insurance

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29
Q

What is the purpose of PII Cover?

A
  • Firm - if a firm faces a claim it is protected from financial loss it cannot meet from its own resources
  • Member - protects the member of a firm against the consequences of its liability to pay damages to third parties for breaches of professional duty
  • Clients - ensures that the firms clients do not suffer from financial loss, which the firm cannot meet
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30
Q

What are the minimum levels of indemnity cover?

A

£100,000 or less TO - £250,000 Indemnity
£100,000 - £200,000 - £500,000 Indemnity
£200,000 and above - £1,000,000 indemnity

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31
Q

What is uninsured excess?

A

The part of each claim that the firm must pay itself

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32
Q

What are the maximum levels of uninsured excess?

A

Limit of Indemnity - to £500,000 - £10,000 or 2.5% of sum insured
Limit of indemnity - over £500,000 - 2.5% of sum insured

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33
Q

What do you understand by first loss?

A

First loss provides cover for less than the total value of the items to be insured, and provides cover for the first loss on the assumption a total loss is unlikely

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34
Q

What is fully retroactive cover?

A

fully retroactive cover means it covers the period prior to the period of insurance. This may be up to a certain date, or fully retroactive and covering all former work

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35
Q

Who can insure a RICS firm?

A

Insurance needs to be taken out with a listed insurer - a list of these is provided by the RICS and available on the website

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36
Q

What is run off cover?

A

This is retroactive cover following a business ceasing trading

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37
Q

What is the requirement for run off cover?

A

£1,000,000 for a period of 6 years following a firm stopping trading

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38
Q

What if a firm is unable to insure following ceasing trading?

A

Firms that are unable to insure will be able to apply for coverage to the run off pool

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39
Q

What is an example of a conflict of interest?

A

Acting on both sides of a transaction
A personal Interest

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40
Q

What is conflict avoidance?

A

Not accepting the instruction

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41
Q

What is conflict management?

A

When you accept an instruction, but agree steps be put in place to manage the conflict. Such as information barrier with the written agreement of all parties

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42
Q

What is the RICS policy on Conflicts of Interest?

A

The RICS Global Professinoal Statement on Conflicts of Interest 2017, effective from 1st January 2018

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43
Q

What does the RICS professional statement on Conflicts of Interest say?

A
  • members must not advise where there is a conflict of interest or significant risk of a conflict of interest, except where all those affected have provided their informed consent
  • informed consent can only be used where the member is satisfied that proceeding despite the conflict is in the best interest of those affected
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44
Q

What are the types of conflict of interest?

A

Party Conflict - relating to work on the same or related instruction for two different parties
Own Interest Conflict - relating to a personal Interest
Confidential Information Conflict - relating to work between two parties that is confidential

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45
Q

What is informed consent?

A

Written consent signed by the client, setting out the conflict of interest transparently

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46
Q

How would you hand a conflict of interest?

A

1) Firstly - Conflict Avoidance - is my ability to act impartially compromised? if so I would have to decline the instruction. If the conflict can be managed I can accept but subject to informed consent
2) Secondly - Informed Consent - I would write to the parties as soon as possible, setting out the conflict clearly, and requesting written confirmation of their consent for me to act.
3) Finally - Conflict Management - I would then setup a information barrier to manage the conflict.

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47
Q

What is an information barrier?

A
  • A way of managing a conflict of interest by stopping sensitive information passing between parties concerned
  • needs to be robust
  • surveyors must be different, preferably in two separate offices
  • secure storage of files
  • firms compliance officer must be aware of this and oversee all actions
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48
Q

Can you act for both the buyer and the seller?

A

No, the RICS professional Statement: Conflicts of Interest - UK commercial property Market Investment agency 2017 prohibits this.

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49
Q

What is appointment on an exclusive and non-exclusive basis?

A

Exclusive - if the instruction is on an exclusive basis then other prospective clients must be informed that the agent cannot act on their behalf
Non-Exclusive - if the instruction is on a non-exclusive basis then the agent can can act for other prospective clients by obtaining informed consent from the client and implementing the information barriers
- Typically applies when making introductions on an investment opportunity

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50
Q

What is incremental advice?

A

Where the agent is approached to provide advice by another party that is incremental to an existing instruction.
example. acting for seller then approached by purchaser to value the property

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51
Q

If you have a personal interest conflict what should you do?

A

This is dealt with in s.21 of the Estate Agents Act 1979. If there is a personal interest then this needs to be disclosed to the purchaser or seller.

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52
Q

What is your firms gift policy?

A
  • £50 - anything over the value of £50 should be agreed in writing with my line manager.
  • Only gift per financial year
  • £500 - anything over £500 needs to be lodged on my firms gift register and agreed in writing by my department head
  • £2000 - anything over £2000 needs to be lodged on my firms gift register and agreed in writing by a sub-divisional head
  • £4000 - anything over £4000 needs to be lodged on my firms gift register and agreed in writing by a divisional head
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53
Q

Who is the RICS President?

A

Clement Lau

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54
Q

Who is the RICS President Elect?

A

Ann Gray

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55
Q

Who is the RICS CEO?

A

Richard Collins

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56
Q

Who is chair of the RICS Governing Council?

A

Clement Lau

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57
Q

What do you understand by the RICS Ethics Decision Tree?

A

The Ethics Decsion Tree provides framework and questions which members should ask themselves when facing a situation which may be seen as unethical

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58
Q

What other RICS tools could you use if you are unsure about an Ethical Issue?

A

I could ring the RICS Regulation Confidential Hotline for advice where I am unsure how to proceed

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59
Q

What are the Disciplinary Measures within the RICS?

A

There are three levels of disciplinary action, which are:
1) Action by Head of Regulation
2) Regulatory Tribunal
3) Appeal Panel

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60
Q

What happens if there is disciplinary action required by the Head of Regualtion?

A

This is the first step and involves a formal investigation by the Head of Regulation of the RICS.

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61
Q

After an investigation by the Head of Regulation what disciplinary action can they take?

A

1) Serve a Fixed Penalty Notice
2) Make a Regulatory Compliance Order
3) Refer the matter to the Regulatory Tribunal for consideration
4) Refer the matter to the Disciplinary Panel

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62
Q

What is a typical Fixed Penalty Order by the RICS?

A

Typically this consists of a fine or caution. Breach of CPD requirements could give rise to this with a £150 fine if it is 28 days delayed.

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63
Q

What is a Regulatory Compliance Order?

A

A regulatory compliance order arises after a low level Breach of the Rules of Conduct. It is a written document stating what needs to be done to correct the matter an in a given time period, and details of the fine (up to £2,000)

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64
Q

Please describe the process for Action by a Regulatory Tribunal Disciplinary Panel?

A

The head of regulation can refer the matter to the regulatory tribunal disciplinary panel. This is for more serious breaches of the Rules of conduct. They will issues a penalty which could include:
1) Issue a Regulatory Compliance Order
2) Impose an unlimited amount of fine per breach, proportionate to offence
3) Expulsion of RICS member
4) Publicise the details of the offence in Modus, and local newspaper

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65
Q

What can a member/firm do if they don’t agree with the decision of a disciplinary action?

A

There is the option to appeal a disciplinary decision. There is an appeal panel which deals with such matters

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66
Q

What are the RICS rules regarding Social Media?

A

The RICS provides guidance in the Use of Social Media: Guidance for RICS members, 2021

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67
Q

What do the Rules on social media say?

A

It reminds members that the Rules of Conduct apply and do not change because they are using social media. It also lays out when the RICS may investigate members use of social media. Such as posts that are Discriminatory or Abusive

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68
Q

What are examples of RICS core material?

A

International Standards - RICS Valuation - Global Standards 2021 (effective 31 Jan 2022)
Professional Statements - RICS Professional Statement on Conflicts of Interest 2017
Guidance Notes - RICS Guidance Note - Surveying Safely 2018

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69
Q

What is the current Bank of England Base Rate?

A

3.00%

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70
Q

Who is the Secretary of State for Agriculture?

A

Therese Coffey

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71
Q

You are asked by a colleague to lower your fee to win an instruction, what do you do?

A

I would evaluate if was able to provide a high standard of service by lowering the fee.

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72
Q

How do you set an appropriate fee?

A

Fees should be market based and should be appropriate to the level of work required

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73
Q

What are types of fee proposal you have come across?

A

A percentage of earnings basis - maybe 10% of rent roll
A time basis with a cap
A percentage of project cost basis - maybe 10% of project, should it be over a certain amount
A percentage of the sale price for transactional work - maybe 1.5%

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74
Q

You are asked to set a minimum commission rate by a competitor for the benefit of both of you, what do you do?

A

I would decline this proposal as it is price fixing and is a breach of competition law, and could result in prosecution by the Competition and Markets Authority

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75
Q

What are the fines for breaching competition law?

A

You can be fined up to 10% of annual worldwide turnover, with possible imprisonment also

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76
Q

How do you deal with referral fees?

A

If we have received a referral or offering a referral it is important to be completely transparent with clients, so they are aware of the referral. I would state these in the terms of engagements.

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77
Q

What is a referral fee?

A

A referral fee is a fee for referring work to a particular department. This is typically on a percentage of fee basis.

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78
Q

What do you need to consider when referring a job?

A

It is important that the referral is not constituted as a bribe. The Bribery Act doesn’t make referral fees illegal however it is important the client is aware of the situation

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79
Q

What is in a typical terms of Engagement?

A

Typically a letter form - detailing main options of the instruction, which are:
Details of the client
Services provided
Term of the appointment
Fees and Fee scale
Further services offered and how these will be charged
Billing arrangements
Any conflicts of interest, or a statement that there are no perceived conflicts
Complaints handling procedure
acceptance by the client - space for signing

80
Q

What must you do prior to accepting an instruction?

A

1) Check you are professionally competent for the works
2) Check there are no Conflicts of Interest
3) Confirm Terms of Engagement in writing and ensure these are signed before starting the work

81
Q

What is the Consumer Rights Act?

A

The Consumer Rights Act 2015 puts in place certain rights in order to protect consumers.

82
Q

What does the Consumer Rights Act provide?

A
  • There is a 14 day cooling off period where a client can pull out of a contract
  • Letting agents must publicise fees in their premises
  • Services are to be undertaken in a reasonable time
83
Q

What pieces of legislation govern particulars and Estate Agents?

A

The Estate Agents Act 1979

84
Q

What does the Estate Agents Act 1979 briefly provide?

A
  • It covers agents who deal with the purchase and sale of freehold and leasehold property
  • Provides duties that estate agents owe to clients, such as passing on offers
  • Need to declare personal interests to clients
85
Q

Why might you decline a piece of work?

A
  • Competence - If I am not competent for the work
  • Facts - I do not have and am unable to obtain all the facts
  • The client won’t send through signed terms of engagement or complete AML checks
  • There is a conflict of interest
  • Would it be ethical to undertake the work
86
Q

What are the rules of confidentiality?

A

The RICS bye laws state that ‘client confidentiality must be maintained for all client affairs’

87
Q

A third party has requested access to your files , what do you do?

A

I would request what the purpose is and then gain my clients approval prior to proceeding. This may be overridden in certain circumstances such as police warrant

88
Q

How long should siles be held for clients?

A

a period of 6 years before disposal

89
Q

What happens if you accidentally send/receive an email containing sensitive information about a client?

A
  • I would advise the sender that this has been received in error, and ask that they notify their client
  • I would dispose of the email securely
  • I would contact my firms compliance officer - Philip Gardiner
  • Inform the ICO (information commissioners office) within 72 hours of the breach
90
Q

What is the RICS policy on complaints handling?

A

The RICS guidance note on Complaints Handling 2016

91
Q

What does the complaints handling guidance note say?

A
  • A firms written complaints handling procedure must be approved by RICS
  • details of the complaints handling procedure should be sent to the client with the terms of business
  • upon receiving a complaint PII insurers should be notified as soon as possible
  • A complaints log must be maintained
  • Firms must include an RICS approved alternative dispute resolution mechanism in the complaints handling procedure
92
Q

What is your firms complaints handling procedure?

A
  • Upon receiving a complaint I would issue the complaint lodger with my firms Complaints Handling Procedure
  • They would then need to write a written complaint to my firms Complaint Handling Officer (Regan Sampy)
  • Once received this will be acknowledged within 7 days of receipt
  • This will be investigated and outcome sent to you within 28 days, to let you know the actions to be undertaken
  • If the complaint lodger is still not satisfied they can apply to the property redress scheme for third party review of the case.
93
Q

Who can submit a complaint to you?

A

Anyone that you owe a duty of care to

94
Q

How long after a period can a negligence claim be made?

A

This is set out in the Limitation Act 1980. It is generally 6 years from the date of the negligent act.

95
Q

When might a claim be made over 6 years from a negligent act?

A

The Limitation Act 1980 provides for a 15 year longstop, after which claims cannot be made. A claim can be made between 6 and 15 years if you discover at a later stage of the negligence. In such an instance you have three years to make a claim.

96
Q

How do you avoid a negligence claim?

A

Clearly understand clients objectives, and confirm instructions precisely in the terms of engagement
Ensure you are competent to undertake the works
Act in accordance with the relevant RICS standards and guidance notes
Make detailed file notes and take pictures
Undertake CPD and keep up to date with relevant legislation and market knowledge
Agree a capped Professional Liability Excess

97
Q

What are forms of clients money?

A

Clients money might include rents, deposits, money into and out of accounts for payment of invoices,

98
Q

What is the RICS guidance on clients money handling?

A

the RICS Professional Statement ‘Client Money Handling’ 2019

99
Q

What are the areas of good practice set out by the clients money handling professional statement?

A

1) Holding Client Money
2) Providing Information to Clients
3) Receipts of Client Money
4) Payments from Client Accounts
5) Accounting Records and COntrols
6) Compliance

100
Q

What are the rules when holding clients money?

A
  • Clients money must be kept in a client account which is clearly identifiable
  • The words Clients Money Account is on the bank account and cheque book
  • The client must be able to have their monies on demand
  • Payment of interest is agreed with a client and accounts must be kept in credit
  • Bank accounts need to be reconciled at least once per month
  • Accurate accounts are kept with running balance available
  • Firms handling clients money need to display their procedures on their website
101
Q

What is the Clients Money Protection Scheme?

A

This a scheme which acts as a last resort in instances where an RICS regulated firm is unable to repay clients money

102
Q

What are the RICS rules for starting a new practice?

A

1) Inform RICS by filling out a ‘Firm Detail Form’
2) Appoint a responsible Principal for all RICS communication
3) Register with the RICS for regulation by the Regulatory Board
4) Arrange Professional Indemnity Insurance and send details to RICS
5) Set up procedures for Clients Money Handling, including a protection scheme
6) Register for the RICS Valuer Registration Scheme if undertaking Red Book valuations
7) Obtain RICS approval for your complaints handling procedure
8) Set up a complaints log
9) Appoint a complaints handling officer
10) Request and use a logo kit for all practice material

103
Q

What is the Valuer Registration Scheme?

A

It is a quality assurance mechanism that monitors all registered valuers to ensure they compliance with the Red Book

104
Q

What does a registered firm need to do at the end of each year?

A

complete and submit the annual return

105
Q

What are the statutory compliance a firm needs to follow when starting a new firm?

A

1) Requirement to disclose business name
2) Compliance with discrimination compliance and Equality Act 2010
3) Compliance with Bribery Act 2010
4) Health and Safety Compliance - Health and Safety Act 1974
5) Inform HMRC for VAT and Tax registration (VAT registration threshold - £85,000 turnover)
6) Ensure compliance with employment law (national living wage, pensions, working hours)
7) Ensure compliance with insurance - employment and public liability

106
Q

What is the minimum wage?

A

£9.50 per hour for anyone over 23.

107
Q

What is the difference between national minimum wage and national living wage?

A

The minimum wage is dependent on your age, and the national living wage is for everyone over 23.

108
Q

What do you need to do if you close a practice?

A

1) Inform the RICS of your closure
2) Ensure clients are informed at the earliest opportunity and hand over arrangements are in place
3) Return monies to clients
4) Inform insurers and put in place run off cover
5) Retain a copy of the client files and records for a minimum of 6 years

109
Q

What is the Bribery Act 2010?

A

The Bribery Act 2010 puts in place legislation to reduce bribery in Business in UK and abroad

110
Q

What is a bribe?

A

A bribe is giving, offering, promising or receiving an advantage such as payment, gift or service for an action which is illegal or a breach of trust

111
Q

What are the Six principles of the Bribery Act 2010?

A

1) Proportionality
2) Top Level Commitment
3) Risk Assessment
4) Due Diligence
5) Communication
6) Monitoring and Reviewing

112
Q

What is the purpose of the six principles?

A

This is guidance for commercial organisations when putting in place procedures to prevent bribery

113
Q

Who is responsible for compliance with the Bribery Act?

A

Companies and Employees, although companies are liable unless they can show they have adequate procedures in place

114
Q

Who polices Bribery?

A

The Serious Fraud Office

115
Q

What are the penalties under the Bribery Act?

A

Maximum penalty of 10 years in prison and an unlimited fine

116
Q

What is Money Laundering?

A

Money laundering is when proceeds of criminal activities are disguised or converted and then realised as legitimate assets

117
Q

What legislation covers Money Laundering?

A

The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (amended in 2019)

118
Q

What do the money laundering regulations say?

A

1) There is a requirement to have a written money laundering and terrorist financing risk assessment
2) Adopt appropriate internal controls
3) Provide staff training
4) Comply with new customer due diligence requirements
5) Comply with requirements under politically exposed persons (PEPS)
6) Ensure record keeping
7) AML checks must be undertaken to confirm the identity of the proposed purchaser of a property and check the source of funds

119
Q

What did the 2019 money laundering regualtions amendment change?

A
  • required all letting agents to register with HMRC if they let property for more than Euro 10,000 per month
120
Q

What is CDD and EDD?

A

CDD is Consumer Due Diligence
EDD is Enhanced Due Diligence

121
Q

When does EDD need to be undertaken?

A

Enhanced Due Diligence needs to be undertaken if red flags occur

122
Q

What are common red flags?

A
  • inability or unwillingness for parties to provide identity documents
  • changes to parties involved in transactions
  • unusual features such as unexpected urgency
  • unusual currencies
123
Q

What does the Proceeds of Crime Act do?

A

The proceeds of crime act 2002 gives power to enforcement authorities to recover money/other assets which are deemed to be proceeds of crime

124
Q

What are the three main areas of offence under the proceeds of crime act?

A

1) Concealing criminal property
2) Arrangements with criminal property
3) Acquisition of criminal property

125
Q

What are the RICS rules on money laundering?

A

The RICS professional statement - Countering bribery, corruption, money laundering and terrorist financing 2019

126
Q

What does the RICS professional statement - Countering bribery, corruption, money laundering and terrorist financing 2019, say?

A

It is split into three parts:
1) Mandatory requirements - e.g. have procedures in place
2) Guidance on good practice - e.g. have a gifts register
3) Supplementary guidance - e.g. - three W’s - Who, What, Why???

127
Q

What are the general principles of the legal system?

A
  • There is criminal and civil law within the country
  • There are differing forms of courts, for type of offences and severity - Supreme Court, Upper Tribunal, Lands Tribunal, Crown Court, Couinty Courts
  • Law is set by both legislation and common law
128
Q

How else do you identify conflicts of interest, other than through emails?

A
  • Word of mouth
  • locate situations where conflicts might arise, act accordingly
129
Q

What gift did you receive from the contractor at Christmas?

A

This was two bottles of wine

130
Q

Was the Christmas gift appropriate?

A

It was below my firms limit on needing to seek approval, however I still assessed whether it was appropriate
I discussed the matter with my colleague and we deemed the level was appropriate. This was because it was not of significant value, and it wasn’t in line with any instructions or open bids for works that were ongoing

131
Q

Please can you give me an example of when you asked for advice before proceeding from a senior colleague?

A

When I assess rent reviews I confer with my line manager who has more experience in the local areas to make sure we are in agreement

132
Q

What is a hazard?

A

Something that could potentially cause harm

133
Q

What is a Risk?

A

The chance of something coming into contact with a Hazard

134
Q

Why do you undertake a risk assessment for the works, is this not the responsibility of the contractor?

A

We undertake a Risk assessment which provides guidance but the contractor need to undertake their own assessment of risks as well. Our risk assessment includes matters such as have we checked insurance, so is not intended for risk assessment for the whole works but guidance

135
Q

What is the difference between capital and revenue expenditure?

A

Capital expenditure is generally an improvement to a property whereas revenue expenditure is generally costs associated in day-to-day management such as repairs

136
Q

How is capital and revenue expenditure treated in accounts?

A

Revenue expenditure can be deducted from profits for a property let business, whereas capital expenditure is not. Capital expenditure needs to be taken into account if the property is sold and can reduce CGT bill.

137
Q

What are early warning systems?

A

This is a mechanism for recognising and resolving a dispute quicker - such as early communication which may be written into a contract

138
Q

Please can you tell me more about the dispute regarding the parking licence?

A

The client had a car park and we let out 8 spaces on annual licences
One parking space was required for an ingoing tenant and therefore we terminated a licence to make way for this.
The licensee was not happy with this outcome and wanted this decision to be reversed. I laid out the facts and pointed to the fact that the licence was never intended to be in perpetuity. Referring him to the councils parking permit scheme.

139
Q

What is the definition of sustainability?

A

Meeting the needs of the presents without compromising the ability of future generations to meet their own needs

140
Q

How can EPC’s be improved?

A

First look at the EPC - what are the recommendations
Then important to look at the easy wins - loft insulation to 300mm, wall insulation, low energy lighting

141
Q

Describe the CDD process?

A

1) Identify the client - ID & proof of address
2) verify the clients identity
3) Make reasonable endeavours to identify the beneficial owners
4) Details of company or trust document
5) what is the purpose of the business relationship

142
Q

What is needed for EDD process?

A

EDD requires you to undertake CDD but also additional checks and also more frequent monitoring (every year)

143
Q

Can you accept cash into your account?

A

My firms policy is that we do not accept cash.

144
Q

Who is your firms Money Laundering Handling Officer?

A

Regan Sampy

145
Q

What are the penalties for non compliance with money laundering?

A

14 years prison sentence & unlimited fine for assisting in money laundering
5 years prison sentence & unlimited fine for tipping off someone under suspicion of money laundering

146
Q

What RICS guidance is there on health and safety?

A

RICS guidance note ‘Surveying Safely’ 2018

147
Q

What does RICS surveying safely say?

A

It sets out details such as:
1) Personal responsibilities for RICS members and firms
2) Assessing Hazards and risks
3) Fire Safety
4) Visiting Premises and Sites

148
Q

What legislation governs health and safety?

A

The Health and Safety at Work Act 1974

149
Q

Who polices the health and safety at work act?

A

the Health and Safety Executive

150
Q

Who’s duty is health and safety?

A

It is both employer and employees responsibility.
Employers need to ensure: so far as reasonably practicable the health and safety and welfare of employees whilst at work
Employees shouldn’t undertake anything to jeopardise their health and safety at work

151
Q

When does an organisation need a health and safety risk assessment?

A

When it employs more than 5 staff

152
Q

What is a risk assessment?

A

An outline of all the potential hazards. identification of the people at risk. evaluate the risk. record the findings. review regularly. advise those affected of the outcome of the risk assessment and measures in place to reduce that risk

153
Q

What is a method statement?

A

A document that details the way in which a work task is to be completed and approved to be undertaken

154
Q

What would you expect to see in a health and safety policy document?

A
  • policy
  • roles
  • risk assessment
  • planning & implementation
155
Q

What does RIDDOR stand for?

A

Reporting on Injuries, Diseases, Dangerous Occurrences Regulations 1995

156
Q

When is an incident notifiable under RIDDOR?

A
  • Death
  • Certain gas incidents
  • A reportable injury such as fractures
157
Q

What are the timeframes for reporting injuries under RIDDOR?

A

If a worker is away from work for over 7 days, and it must be reported within 15 days of the accident

158
Q

What are the RIDDOR rules and accident books?

A

Accident books need to be kept for accidents resulting in someone off for 3 days, and kept for a minimum of 3 years

159
Q

Are you aware of recent legislation concerning fire safety and buildings?

A

The Hackitt Review 2018, brought in after Grenfell disaster the Fire Safety Act 2021 came into effect. Includes an assessment of the External Wall Systems
Also the Building Safety Act 2022 - which made it illegal for combustible cladding on buildings over 18 metres

160
Q

Do you have a duty for someone visiting a property you own?

A

Yes, the occupiers liability act 1957 puts a duty of care on occupiers of property which have third part lawful visitors

161
Q

Do you have a duty for someone trespassing over your property?

A

Yes, the occupiers liability act 1984 puts a duty of care on occupiers to ensure trespassers aren’t at risk of harm on the premises

162
Q

What are the types of Asbestos?

A
  • Brown (Amosite)
  • Blue (Crocidolite)
  • White (Chrysotile)
163
Q

When is asbestos dangerous?

A

Asbestos that is undamaged and undisturbed is not dangerous, but when disturbed it releases small toxic fibres which can cause serious illness

164
Q

What legislation governs Asbestos?

A

The Control of Asbestos Regulations 2012

165
Q

Who is responsible for managing asbestos?

A

The regualtions identifies two separate obligations - The duty holder and employer

166
Q

What would you do if your clients building had asbestos?

A
  • ensure there is no immediate risk, no works being undertaken etc. If there is I would instruct them to stop immediately
  • Then I would assess where the asbestos is, and a management plan by instructing a licenced management survey. If this had not already been undertaken
  • Make the plan available to all relevant parties and review regularly
167
Q

What is licenced and non licenced asbestos work?

A

Licenced asbestos work is higher risk work, this needs to be completed by a licenced asbestos contractor.
Non licenced asbestos work is lower risk, removing in tack fibre cement sheeting
Licenced work is notifiable to HSE and non licenced work is only sometimes notifiable

168
Q

What are the types of Asbestos Survey?

A
  • Asbestos management surveys
  • Asbestos refurbishment or demolition surveys
169
Q

What are good negotiation skills?

A
  • Agreeing strategy in line with client objectives
  • Detailed research and preparation
  • What points are non negotiable and what can we give on
  • maintaining communication
170
Q

What would you expect to see in a set of company accounts?

A
  • Chairman’s statement
  • Independent auditors report
  • Income statement
  • Statement of Financial Position
171
Q

What does IFRS stand for?

A

International Financial Reporting Standards

172
Q

How do you avoid a conflict?

A
  • carry out a good service
  • ensure good communication
  • be transparent about the circumstances
  • manage expectations
173
Q

What are the measures for dispute resolution?

A
  • Negotiation
  • Mediation
  • Third Party Review
174
Q

What is Mediation?

A
  • Where a third party mediator assists in discussion between both parties to explore whether a solution can be found
  • The mediator has no decision making authority
175
Q

What is Arbitration?

A
  • Where a third party arbitrator is appointed, by agreement between both parties and the decision is binding
  • arbitrators cannot be sued for negligence
  • Chartered Institute of Arbitrators Exams
176
Q

What is the difference between and arbitrator and expert witness?

A

Arbitrators can only use the facts of the case and not their expert knowledge.
Expert witnesses can draw on experience and knowledge as well as facts

177
Q

How do you ensure that data is secure?

A
  • Password Protection
  • Anti-Viral Software Protection
  • Authorised Access to certain files
  • Regular back ups off site
178
Q

What laws govern GDPR?

A

The UK General Data Protection Regulation and Data Protection Act 2018

179
Q

What do GDPR do?

A

It gives people the right to be informed about how their personal information is used

180
Q

What are the rights under GDPR?

A
  • Right to be informed
  • Right of access
  • Right for rectification
  • Right to erasure
  • Right to restrict processing
  • Right to data portability
  • Right to Object
  • Rights to automated decision making and profiling
181
Q

How do you comply with GDPR when dealing with mailing lists?

A

we obtain client permission prior to sending correspondence by email or post

182
Q

What training have you had on GDPR?

A

As part of our residential day one training, it included a session on how to store data for clients, and also compliance with marketing and data

183
Q

What are the principles of UK GDPR?

A
  • data should be processed lawfully, fairly and in a transparent manner
  • data should be collected for a specific purpose
  • data should be relevant to the purpose it is being collected for
  • data should be accurate
  • data should be stored correctly and under password correction
184
Q

What is unconscious bias?

A

pre-determined beliefs that mean we make judgements or decisions on the basis of our prior experience

185
Q

How is the RICS improving diversity and inclusion?

A
  • The RICS has signed a memorandum of understanding which requires it to determine reasons behind poor performance in this area, and ways to improve this
  • The Bichard Review recommended the establishment of a Diversity and Inclusion Board
  • They are committed to diversity in conference speakers
186
Q

What does the Equality Act replace?

A

It consolidates previous legislation - such as the Race Relations Act 1976

187
Q

What is illegal under the Equality Act?

A

1) Direct Discrimination
2) Indirect Discrimination
3) Harassment
4) Victimization

188
Q

What do you understand by ‘Net Zero’?

A

This is the UK governments approach to achieve net zero carbon emissions by 2050, with an interim target of 78 % reduction by 2030

189
Q

When does a commercial building not need an EPC?

A
  • if it is less than 50 square metres
  • let for a term of less than 6 months
  • if it has a heating or cooling source
190
Q

What is the penalty for not showing an EPC at marketing?

A

Residential - £200
Commercial - max penalty of 12.5% of RV (£500 min £5,000 max)

191
Q

What are the epc regualtions?

A

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015

192
Q

What is the non compliance penalty for letting a property without an EPC?

A

Commercial -
less than 3 months - £5,000 (10% of RV if greater up to £50,000)
more than 3 months - £10,000 (20% of RV if greater up to £150,000)
Residential -
less than 3 months - £2,000
more than 3 months - £4,000
(max £5,000 per property)

193
Q

How does your firm operate sustainably ?

A
  • Paperless office
  • We are part of a Energy Savings Opportunity Scheme (ESOS) which requires energy consumption audit
194
Q

What is CCL?

A

Climate Change Levy - it is a tax on energy delivered to non domestic users

195
Q

What is a KPI?

A

Key Performance Indicator

APC (10 decks)

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