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APC Flashcards > Mandatory > Flashcards

Mandatory Flashcards

1
Q

What are the five Global Professional and Ethical Standards 2015?

A
  1. Always provide a High Standard of Service = have a professional responsibility to provide client with the best possible advice
  2. Act in a way that promotes Trust in the profession = act in a way that positively promotes you individually and the profession
  3. Act with Integrity = be honest and straightforward in all you do
  4. Treat others with Respect = treat everyone with courtesy and respect cultural differences
  5. Take Responsibility = be accountable for your actions
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2
Q

What are the 5 principles of better RICS regulation?

A

P.A.C.T.T
Following the Carsberg Report. Purpose: members/firms can use 5 principles to decide how best to meet requirements of Rules of Conduct.
1. PROPORTIONALITY – making the penalty proportional to the breach
2. ACCOUNTABILITY – to all members and the public
3. CONSISTENCY – treating all members the sam, level playing field
4. TARGETING – targeted to be relevant and useful, but not prescriptive
5. TRANSPARENCY – to all members, clients and the public

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3
Q

Which elements comprise Part 1 General (for Firms)

A

Interpretation - Providing a surveying service to the public and contact officer (the main liaison point between the Firm and RICS)
Communication - various mediums

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4
Q

Name elements of Part 2 - Rules of Conduct? (Personal & Professional For members) ECS CPD SIC

A

9 Rules for Members:
PART I:
1. Interpretation of ‘Member’
2. Communication – i.e. post, e-mail etc
PART II
3. Ethical Behaviour – act at all times with integrity and avoid conflicts of interest
4. Competence – carry out professional work with due skill, care and diligence and with regard for technical standards (i.e. not following MANDATORY STANDARDS is a disciplinary offence)
5. Service - carry out professional work in a timely manner, with proper regard for standards of service/customer care
6. Continuing Professional Development (CPD) – comply with RICS requirements in respect of CPD
7. Solvency – ensure that personal and professional finances are managed appropriately
8. Information to the RICS – submit in a timely manner such information as required
9. Co-operation - fully co-operate with RICS staff and any person appointed by Regulatory Board

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5
Q

Explain your company’s complaints handling process?

A

Carefully record all complaints or potential complaints
at the earliest opportunity and ensure that they are
appropriately allocated. Establish and adhere to a review process to ensure effective management of the issue from receipt to resolution.

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6
Q

What is the purpose of the RICS professional statement - Countering bribery, corruption, money laundering and terrorist financing?

A

It outlines the mandatory requirements and the supporting good practice for anti-bribery and corruption and for anti-money laundering and terrorist financing. Specifically, the responsibilities as a firm and a member.

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7
Q

What is the purpose of the Consumer Protection from Unfair Trading Regulations 2008?

A

To protect consumers from unfair or misleading trading practices and ban misleading omissions and aggressive sales tactics.

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8
Q

What is the role of the RICS Surveying Safely 2018?

A

An overview of best practice for surveyors, including corporate and personal responsibilities relating to health & safety. I understand that each individual assumes individual behavioural responsibility for their own, their colleagues’ and others’ health and safety while at work.

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9
Q

What is the Health & Safety at Work Act 1974?

A

It places a duty on employers to ensure that health, safety and wellbeing of employees and other affected persons is not at risk, so far as is reasonably practicable.

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10
Q

What is the CSCS?

A

The Construction Skills Certification scheme. It outlines that individuals working on construction sites have the appropriate training and qualifications for the job they do on site.

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11
Q

How does the RICS discipline members?

A
  • When an allegation is received, the RICS Head of Regulation will make a formal investigation.
  • Inform the person the allegation is made against in writing, who can write a response within 28 days
    FOUR Actions upon completion;
  • Serve a fixed penalty notice.
  • Make a Regulatory Compliance Order
  • CPD Sactions
  • Refer the matter to the Disciplinary panel for consideration (50% of the panel = lay members)
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12
Q

What is a Regulatory Compliance order?

A

An order used for low level breaches of the Rules, such as minor breaches. The compliance order is a written document which states the terms that the member of firm must take in a specified time period.

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13
Q

Does the RICS publish any guidance on the Disciplinary Measures?

A

Yes, there is a large section on the RICS website

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14
Q

What RICS initiatives do you know of?

A

• PRME – Whereby the RICS is part of the UN backed Principles for Responsible Management Eduction.
• New Arbitration Service Launched.
• Lionheart / Futures Programme / RICS Future Insights / APC Matrics

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15
Q

Can you tell me more about the New Arbitration Service?

A

• Brought in due to a decline in the use of Arbitration due its slowness.
• Arbitrators are supervised to ensure they use the powers given to them under the Arbitration Act 1996 to robustly manage costs.
• Will be faster and cheaper than courts.
• Will be better than adjudication, as it will be more detailed when looking at an issue, resulting in judgements that are commercially sensible.

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16
Q

What issues do you know about that the RICS are looking into?

A

• The rising prices of housing in relation to the lack of supply and over demand. Further to this, house building is driving the current construction industry boom.
Grenfell tower

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17
Q

Who is the president of the RICS?

A

Timothy Neal FRICS

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18
Q

What current themes does Timothy Neals promote?

A

The need for sustainable transformation in the built environment. All this must be underpinned by respected international standards, trusted data and leading professional development.

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19
Q

What is the Royal Charter?

A

Awarded in 1881, initially granted by Privy Council, to maintain and promote the usefulness of the profession for the public advantage.

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20
Q

How many Countries and how many Members does the RICS operate in and have?

A
  • RICS operates in 150 countries.


* RICS has 130,000 members

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21
Q

Where is the RICS Head Quarters?

A

Great George Street, Parliament Square, London

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22
Q

What would you say the RICS is?

A

One of the most highly respected, high profile international institutions that offers advise on property, construction, Land, project management, dispute resolution and environmental issues to the client and the public and private sectors.

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23
Q

What are the 3 main roles of the RICS?

A
  1. To maintain the highest standards of education and training
  2. To protect consumers and businesses through strict regulation of the profession
  3. To be the leading source of information and independent advice on land, property, construction and associated environmental issues.
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24
Q

How many professional groups are there?

A

17

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25
Q

Can you name some of the professional groups?

A

• Quantity Surveying and Construction.
• Project Management.
• Building Surveying.
• Planning and Development
• Commercial Property
Residential
• Dispute Resolution.

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26
Q

What are the duties of these professional groups?

A

• To provide best practice guidance.
• To set standards for professional competence.
• To provide training, CPD and network opportunities.
• Promote and Represent.
• To undertake research to improve the profession.

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27
Q

What are the three market sectors covered by the RICS?

A

• Land.
• Property.
• Construction.

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28
Q

What is the Governing Structure for the RICS?

A 
GOVERNING COUNCIL (sets top-level strategy, chaired by RICS President Tim Neal) 33 members / meet three times a year
Underpinned by boards and committees, including regional boards and specialist boards. Management Board, Regulatory Board and Audit Committee report to Governing Council
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29
Q

can you describe the RICS governing structure to me?

A

Privy Council – grants and awards Royal Charter
Governing Council - 33 members
Below this is the Regulatory Board, Management Board and various committees.
Below the Management board there are 3 sub-boards, being: Finance Committee, Remuneration Committee and World Regional Boards and Market Advisory Panels.

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30
Q

What is the RICS Matrics?

A

• A division of the RICS dedicated to student surveyor training.
• Produces a network of Charity and Networking events.
• Promotes seminars and lectures.

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31
Q

What is the Carsberg Report?

A

• A report undertaken in 2005 as a result of members general dissatisfaction with the RICS’ internal Regulatory procedures.

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32
Q

What Help Sheets does the RICS publish?

A 
Helpsheets on:
CPD.
Complaints Handling Procedure.
Handling Clients Money.
PII Requirements.
Rules of Conduct
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33
Q

How many levels of RICS membership are there and what are they?

A

• Trainee.
• Associate.
• Member.
• Fellow.

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34
Q

How do you become a fellow?

A

Provide:

  • Evidence of 4 Fellowship characteristics (5+ years MRICS, leadership role, raising profile of RICS, technical achievement, professional achievement)
  • Portfolio of professional achievement
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35
Q

What is the APC?

A

• The Assessment of Professional Competence is a period of structured training followed by a Final Assessment Interview.

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36
Q

What different routes can you take to APC?

A

• Graduate Route 1 which requires:
o An accredited degree.
o Plus 2 years industry experience.
o And diary.


• Graduate Route 2 which requires:
o An accredited degree.
o 5 years industry experience.
o 1 year diary.


• Graduate Route 3 which requires:
o An Accredited degree.
o 10 years industry experience.
o Submission.


• Academic route which requires:
o Portfolio.
o 3000 word submission.
o Continued Professional Development.
o Final Assessment Interview.

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37
Q

What is Lionheart?

A

A benevolent fund dedicted to providing support and financial aid to current and past members and their families.

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38
Q

If you become qualified, how will you become involved with the RICS?

A

• I will attend RICS events.

• Become and APC supervisor.

• Respond to Surveys and Consultations.

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39
Q

Why do you want to achieve MRICS / benefits of being an RICS member?

A

It is the “gold-standard”
Market advantage – RICS status = competitive advantage
Professional recognition and standards – promotion of professional excellence
Knowledge - standards, guidance and training
Status – credentials provide client confidence
Network – access to worldwide professional network

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40
Q

What is the ‘Red Book’?

A

Practice guidance for Valuation Surveyors.

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41
Q

What is the RICS UK Structure

A

4 National Associations
10 regional boards
Local Associations

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42
Q

RICS Chief Executive Office?

A

Dr Sean Thompkins

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43
Q

RICS 2015 - Act with Integrity example

A

I ensured I kept both purchasers and my client up to date and informed throughout negotiations.

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44
Q

RICS 2015 - Always provide a high standard of service example

A

I ensured I met my clients objectives of completing sales in a timely manner. I achieved this by sourcing all relevant information from buyers immediately and also having regular contact with lawyers to assist with the legal formalities.

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45
Q

RICS 2015 - Act in a Way that promotes the profession

A

I ensured I arrived to viewings, site inspections and handovers on time and that I arranged the appointments well in advance.

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46
Q

RICS 2015 - Treat others with respect

A

I ensured I informed the residents at Marmalade Lane of any viewings to respect their privacy.

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47
Q

RICS 2015 - Take Responsibilty

A

On one occasion during a handover, the completed property was in an unsuitable condition. I acknowledged the purchasers disappointment and therefore took action. I recorded the defects and informed the client to organise for the issues to be remediated.

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48
Q

Three benefits of RICS regulation for Firms

A

C.P.S
Confidence – for clients as firm regulated by RICS
Professionalism – firms will have to provide clear, impartial and expert advice and follow RICS guidance
Security – firms have to have a recognised complaints handling procedure, access to free independent redress, PII cover, handle clients money

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49
Q

Information required by RICS for registration (firms)

A
  1. Type of business and staffing details
  2. Statutory regulated activities
  3. Nature of clients
  4. Complaints Handling procedure
  5. PII details
  6. Whether the firm holds clients money
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50
Q

Rules of Conduct for firms?

A

9 Common Rules (Members), 6 EXTRA for Firms:
Part I
1. Definition of ‘Firm’
2. Communication
Part II Conduct of Business (PCS CPD CCI):
3. Professional Behaviour – act at all times with integrity, avoid conflicts of interest and actions/situations that are inconsistent with its professional obligations
4. Competence – carry out professional work with due skill, care and diligence with proper regard for technical standards
5. Service – carry out professional work with expedition and property regard for standards of service/customer care
6. Training and Continuing Professional Development (CPD) – necessary procedures in place to ensure staff are properly trained and competent
7. Complaints Handling – operate a complaints handling procedure and maintain complaints log – procedure must include an alternative dispute resolution mechanism that is approved by regulatory board
8. Client’s Money – preserve the security of client’s money entrusted to its care in the course of its business/practice
9. Professional indemnity insurance – ensure that all previous/current professional work is covered by adequate and appropriate PII cover which meets standards approved by regulatory board
Part III Form Administration
10. Advertising – promote services in truthful and responsible manner
11. Solvency – ensure all finances managed appropriately
12. Arrangements to cover incapacity/death of sole practitioner
13. Use of designations – must display on business lit a designation to denote it is RICS regulated (in accordance with RICS policy)
14. Information to RICS
15. Cooperation

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51
Q

RICS Firm administration

A
  1. Advertising
  2. Solvency
  3. Arrangements to cover the incapacity/death of sole prac
  4. Use of designations
  5. Information to RICS
  6. Co-operation
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52
Q

What happens if you do not comply with the Rules of Conduct?

A

Disciplinary action.
Self-regulation by RICS.
PACTT.

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53
Q

What RICS guidance relates to gifts and inducements?

A

Countering bribery and corruption, money laundering and terrorist financing, February 2019

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54
Q

What legislation relates to gifts and inducements?

A

Bribery Act 2010

Proceeds of Crime Act 2002

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55
Q

What is a bribe?

A

Bribe = something given/promised in expectation of a change in behaviour.

56
Q

What is the Bribery Act 2010?

A

The Act aims to reduce bribery in business in the UK. New corporate criminal offence of failing to prevent bribery; a company will be responsible for employee corrupt acts if they cannot show adequate policies/procedures.

57
Q

What is RICS Regulatory Tribunal?

A

The Regulatory Tribunal is independent from RICS and the regulatory department. It provides the profession with an effective, fair and independent judicial body.

58
Q

Once qualified, what are the requirements regarding Continuing Professional Development (CPD)?

A

Members = min. 20 hours CPD per annum
Min. 10 hours should comprise formal
Ethics CPD every 3 years
1 Jan – 31 Dec, must log by 31 Jan on RICS website

Failure to comply = disciplinary action (Rules of Conduct Members - Rule 6

59
Q

What is a conflict?

A

When are firm or individual’s impartiality is threatened due to a conflict of interest. Types of interest are financial, personal, commercial relationships, acting on both side of a transaction, acting for two clients on the same side of a transaction (i.e. submitting two bids)

60
Q

What guidance is there to deal with a conflict of interest?

A

UK and Global Professional Statements (Mandatory for Firms and Members).
- Conflicts of interest, 1st edition, March 2017 (became effective 1st Jan 2018)
Links to Rule 3 Ethical/Professional behaviour (act w/ integrity and avoid conflicts of interest).

61
Q

Global: Conflicts of interest, 1st edition, March 2017 (became effective 1st Jan 2018)

A

In three parts:
- Part 1: Mandatory rules for COI and definitions
- Part 2: Principles as to how to apply the PS
- Part 3: Guidance on how to meet the obligations set out in Part 1
General Principles (Part 1):
- Member/Firm must not advise or represent a client a Conflict of Interest or a significant risk of a Conflict of Interest;
- Unless those affected have provided their Informed Consent
- Must identify and manage Conflicts of Interest
- Must keep records of the decisions made in relation to whether to accept COIs, Informed Consent, preventing COIs arising (to show compliance)

62
Q

How to handle a conflict on interest

A

Step one- Conflict avoidance (consider the conflict, is it irrosolveable or can it be managed.
Step two - Written advice to both parties
- Disclose nature of the conflict, set out your proposals to deal with conflict (info barrier)
- Be as clear as you can, ensure that both parties make own decision (seek independence advice)
- Request written confirmation from both clients (informed consent)
Step three - Conflict management - setting up the info barriers in accordance with the provisions agreed with both clients.

63
Q

What is an effective information barrier?

A
  • reasonable steps to operate effective barrier, robust enough no information passing between two parties.
  • surveyors acting on two side must be different/ seperate building or floor.
  • all info securely stored
  • keep a clear audit trail of the conflict check process (written & oral) firms compliance officer must oversee all actions.
64
Q

What is incremental advice?

A

Advice given

65
Q

Why is it important that members are solvent?

A

Members must ensure their personal and professional finances are managed appropriately. As a member of RICS you represent the organisation and insolvency would have a negative impact on you and the profession.

66
Q

Where would you find RICS disciplinary action?

A

Publicatoin of the results can be found in RICS Modus magazine, on the RICS website and in the local newspaper local to where the firm or member is based.

67
Q

Name three RICS core materials you use?

A

RICS Valuation - Global Standards, 2019 (effective 31st Jan 2020)
Property Measurement 2nd edition, 2018
UK Residential Real Estate Agency, 2017

68
Q

What would you include in TOEs for an agency instruction?

A
  • Agency basis
  • Agency rights
  • Proposed fee
  • Marketing costs & disbursements
  • Confirmation of no conflict of interest
  • Money Laundering regulation requirements
  • Complaints handling procedure
  • Timescale for the payment
69
Q

Would you commence an instruction prior to signed TOEs?

A

I would advise the client I can not begin the work until signed terms of engagement. I may conduct some preliminary due diligence, however, I wouldn’t advise or give a recommendation to the client.

70
Q

What is the process when undertaking AML checks?

A

Customer DD - Private Individual - I would gather proof of ID (passport or driving license) and proof of address (utility bill dated within 3 months). Both these documents would be signed and dated. I would ensure I have documents for each purchaser.
Private Limited business - obtain company name, number & office address, establish beneficiaries (25% stake), ID required for all directors.

71
Q

How would you go about giving advice to a friend?

A

Things to consider
Competence - do you have the SUK to help.
Interest - you have a personal interest - manage this interest
Terms of engagement - important to establish a contract before giving advice (as you have no PII cover).

72
Q

What PII cover does your firm have? & What are the minimum requirements for RICS regulated firm?

A

A liability shall be limited to the lower of:

(a) 33% of the Value (as defined below) of the Property stated in our Report; and
(b) £75M.

Mimimum Requirements based on turnover;
£100,000 or less = £250,000 cover each claim
£100,001 to £200,000 = £500,000 cover each claim
£200,001 and above = £1,000,000 for each claim.

73
Q

What is the requirement with run-off cover?

A

Adequate and appropriate run-off cover is required following the close of trading.
Consumer claims - minimum of £1,000,000 of aggregate cover over a minimum of six years.
Commercial claims - Adequate and appropriate for six years. RICS recommends 15 years.

74
Q

Explain the importance of Handling clients money?

A

A requirement through Rules of Conduct for firms. Firm shall preserve the security of clients money entrusted to its care.
Prof statement - Client Money Handling 1st edit 2019, in effect Jan20.

75
Q

Six main areas of good practice for Handling Clients Money 2019.

A
  1. Holding Client Money
  2. Providing information to clients
  3. Reciepts of client money
  4. Payments from Client accounts
  5. Accouting records and controls
  6. Compliance
76
Q

When starting a new practice, what should you do?

A
  • Inform RICS; Firm Detail Form
  • Register for RICS regulation by the Regulatory Board
  • Arrange PII and provide certificate to RICS
  • Register with the VRS
  • CHP, get RICS approval
  • Set up complaints log
  • Appoint CHO
  • Obtain a logo kit
77
Q

What is the process when resolving a dispute?

A
  1. Negotiotion - coming to a resolution themselves
  2. Mediation - 3rd party intervention, does not bind the parties.
  3. Adjuditive process - outcome determined by 3rd party, such as litigation and arbitration
78
Q

What is Mediation?

A

A neutral mediator who facilitates conversations
A confidential and informal process
Mediator has no decision-making authority and cannot impose resolution
RICS guidance - Mediation 2014

79
Q

What is arbitration?

A

An arbitrator appointed as a quasi-judicial role in accordance Arbitration act 1996.

  • Parties bound by decision.
  • Cannout be sued for negligence
  • Offers a fast, cost effective and confidential solution to a dispute.
  • Surveyors can act as an arbitrator having passed CIA exams.
80
Q

What is Alternative dispute resolution? & advantages?

A

Dispute resolution process that fall outside the scope of COURT LITIGATION.

  • Speed - less time that court hearing
  • Informality - outside a court
  • Opportunity to negotiate
  • Confidentiality
  • Decision can be made by surveyor not a judge
81
Q

How do RICS regulate and promote best practice?

A
  • RICS regulate is self-regulatory.

- PACTT.

82
Q

How do the 5 ethical standards and bye laws link?

A

Direct link to the BYE LAWS is Bye-Law 5 (Conduct), requires members to conduct themselves in manner befitting membership of RICS.

83
Q

What happens if you deviate from 5 ethical standards?

A

Deviation = RICS disciplinary action

84
Q

What is the ethical decision tree?

A

It is a Yes/No flowchart that helps to determine whether to proceed when faced with an ethical grey area.
Starts with:
• Do you have sufficient facts?
• Is it legal?
• Is it in line with RICS global professional and ethical standards?

85
Q

What else is available to you when facing an ethical dilemma apart from ethical decision tree?

A

Detailed case studies on RICS website. RICS confidential hotline to discuss ethical issues.

86
Q

What is the difference between the Rules of Conduct and Ethical Standards?

A

Rules – clear and instructional

Standards – are a framework to apply to different situations

87
Q

What is the link between the Ethical Standards and the Rules of Conduct?

A

• Direct link to Rules of Conduct is Rule 3 (Members & Firms), requires members to act with integrity and avoid conflicts of interest.

88
Q

What are your internal policies on gifts/inducements?

A

Can give/receive gifts of a nominal value, as long as the intent behind the gift cannot be misconstrued.
Ask yourself if it is appropriate and proportionate?
The permitted allowance is £100. Anything above that must be immediately declared to the Compliance Officer who will decide if it appropriate (disciplinary action if not disclosed, could be criminal offence). Employees required to keep a record of gifts - gift register.

89
Q

What is the difference between formal and informal CPD?

A

FORMAL: includes all forms of structured learning that has clear learning objectives and outcomes
INFORMAL: includes any self managed learning that is relevant or related to your professional role

90
Q

Marmalade Lane, agency

What steps did you take to check for Conflicts of Interest?

A

I used our internal conflict check database. Checked:
- Property address
- Client’s name
Printed the results page, Job Director signed, dated and held on the Job File.
Even though no conflict, I included a statement in both the Terms of Engagement.

91
Q

What would you have done if the conflict was flagged?

A

Contact the Fee earner of the conflicting instruction; see if there is a resolution. (e.g. Info Barrier)
I would disclose any previous or current involvement with the parties or the property to be valued to the client:
• Within the past 24 months for other purposes

92
Q

What is Informed Consent?

A

Consent to proceed where a conflict exists (after all facts have been disclosed to them) by the affected parties. It must be received in writing. It should only be sought if surveyor thinks that best interests of the affected parties will be served in proceeding. Must be willingly given with knowledge of all the facts

93
Q

When can you seek an Informed Consent?

A

When the RICS member or regulated firm is satisfied that proceeding despite a Conflict of Interest is:

(a) in the interests of all of those who are or may be affected
(b) is not prohibited by law,
(c) the conflict will not prevent the member or regulated firm from providing competent and diligent advice to those affected.

94
Q

What is an Information Barrier?

A

Barrier between two parties acting for the same client.

  • Must be robust
  • Must take reasonable steps to make effective
  • Surveyors on each side must be different and physically separated
  • Information securely stored
  • Keep an audit trail of the conflict identification and management process
  • specific arrangements made with the client to manage a potential conflict must be recorded in the Terms of Engagement and referred to in the valuation report
95
Q

Marmalade Lane, Cambridge (Agency)

How does this example fit into Ethics (standards & rules)?

A

It demonstrates a time when my actions have followed the Ethical Standards. It showed:
- Service: I had a responsibility to provide my client with the best possible professional advice based on a reasoned process to evaluate market value for each unit. I carried this out to the best of my ability and achieved the proposed valued.
- Trust: I acted in a way that promotes Trust and transparency in the profession, I knew I had duty of care to my client and therefore didn’t disclose previous offers to prospective purchasers.
- Integrity: I was honest and straightforward in advising the client of my opinion of value and didn’t bend to client pressure.
- Respect - I notified the residents of Marmalade Lane prior to conducting viewings to respect their privacy.
Demonstrated following Rules of Conduct for Members:
- Rule 3; act ethically

96
Q

What is the background of the RICS?

A

Royal Institution of Chartered Surveyors. Est Modus in rebus – there is measure in all things (MOTTO)
Founded in 1868 by John Clutton
Approx. 130,000 members internationally
4 levels of membership – FRICS, MRICS, AssocRICS and Trainee/Student
Current President: Tim Neal
Next President (President Elect): Kath Fontana
UK CEO: Sean Thompkins
Has a Royal Charter, granted by Privy Council in 1881
Self-regulatory

97
Q

What is the RICS Constitution?

A

 ROYAL CHARTER
 10 BYE-LAWS (ratified by Privy Council, high-level enabling principles)
 10 REGULATIONS (approved by Governing Council, detailed)
 RULES OF CONDUCT (Members and Firms)

98
Q

What is the hierarchy of RICS documents?

A
  1. RICS Rules of Conduct
  2. International standards
  3. RICS Professional Statements
  4. RICS Guidance Note
  5. RICS Code of Practice
  6. RICS Jurisdiction Guide
99
Q

What is a firm?

A

A corporate body or sole practitioner practice
Eligible to register if more than 25% RICS Members
Required to register if more than 50% RICS Members.
* if NO RICS members in the firm, firm cannot register

100
Q

What are the 3 levels of disciplinary action by the RICS?

A
  1. Action by Head of Regulation – first step
  2. Disciplinary Panel
  3. Appeal Panel
101
Q

What actions are available to the Head of Regulation should they consider disciplinary action appropriate?

A

First, they carry out an initial investigation.

  1. Serve a Fixed Penalty notice
  2. Make a Regulatory Compliance Order – a document setting out various terms the member/firm is to comply with (e.g. undergo training, stop ding certain types of work)
  3. CPD Sanctions
  4. Refer the matter to Disciplinary Panel hearing if ‘Realistic test’ is satisfied and that hearing in public interest. Used for more serious breaches.
102
Q

What penalties are available by the Disciplinary Panel?

A
  1. Issue a Regulatory Compliance Order
  2. Impose an unlimited fine per breach – must be proportionate to offence
  3. Impose conditions upon future continued RICS registration
  4. Expulsion from membership or remove a firm
  5. Require publication of results of hearing in RICS Modus, RICS website and local newspaper
103
Q

What is the Appeal Panel?

A

Review a member/firm’s appeal against review of a decision at Disciplinary Panel. 50% of membership of this panel are lay members (not RICS)

104
Q

What is the RICS’s policy regarding fee negotiations?

A

Fees should be market based and agreed on ad-hoc basis with clients – aggressive fee cutting is not allowed; should not be seen to be undercutting another firm. NO price fixing.
Can enter into further fee negotiations n professional manner – but should reconsider scope of service.
Referral fees should be considered in context of Bribery Act.

105
Q

Under what scenarios may you have to decline an instruction?

A
  • You are not competent to undertake the work – outside your limitations
  • The proposed client won’t sign your terms of engagement or complete money laundering checks
  • There is a conflict of interest or personal interest
  • Advice if for a friend or pro bono and your PII will not cover work carried out on a personal basis
106
Q

What are the Bribery Act 2010’s principles?

A

Based on SIX PRINCIPLES (DR PT MC):

  1. Due diligence
  2. Risk assessment
  3. Proportionality
  4. Top level commitment
  5. Monitoring and review
  6. Communication
107
Q

What are the offences and penalties under the Bribery Act 2010?

A

The FOUR OFFENCES are:
1. Giving a bribe
2. Taking a bribe
3. Bribing foreign public officials
4. Failure of an organisation to prevent bribery
Penalties (from the Director of the Serious Fraud Office):
- INDIVIDUALS: Max. 10 years imprisonment and/or unlimited fine
- COMPANIES: Unlimited fine

108
Q

What is the Proceeds of Crime Act 2002?

A

Allows recovery of money and other assets deemed to be the proceeds of crime in civil and criminal proceedings

109
Q

What is money laundering?

A

When proceeds of criminal activity are disguised or converted, then used for legitimate purposes.

110
Q

What is the legislation relating to money laundering and what are its provisions?

A

Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (Amended 2020)
Provisions:
- Required to do written money laundering and terrorist financing risk assessment for firm
- Implement systems, policies and control
- Provide staff training
- Comply with new due diligence requirements
- Ensure record keeping
- Confirm identity of purchaser and source of funds before contracts exchanged
Limit of 10,000 Euro acceptance of cash
Must have a Money Laundering Officer at a firm

111
Q

What are the requirements of the Money Laundering Regs 2017 for due diligence?

A

The Regulations identify 3 levels of DD:

  • CUSTOMER (identify client, beneficial owner – using passport, drivers licence – business – using company number, registered office. Obtain funding info for the purpose of the instruction)
  • ENHANCED (additional checks for Politically Exposed Person, their family/associates, people from High Risk Third Countries)
  • SIMPLIFIED (only appropriate where low risk of ML)
112
Q

What are the penalties for non-compliance with the Money Laundering Regs 2017?

A

Found to have assisted money laundering – up to 14 years in prison and/or an unlimited fine
Found to have tipped of a person about an investigation – up to 5 years and/or an unlimited fine

113
Q

Who do you have a duty of care to? Case law?

A

Clients and third parties, using ‘reasonable care and skill’. If duty is breached, a negligence claim can arise. If a loss is sufferance due to negligence, they may be able to sue for damages.
Scullion vs. RBS 2011. Valuers do not owe a duty of care to buy-to-let borrowers in secured lending instructions for a lender.

114
Q

What is the permissible valuation margin for error?

A

+/- 5% for residential, +/- 10% for one-off commercial, +/- 15% if there are exceptional features.

115
Q

What are the timeframes for making a negligence claim?

A

Under the Limitation Act 1980, 6 years

116
Q

What is PII?

A

Professional Indemnity Insurance. Protects surveyors, clients and third parties from negligence claims when they arise. It is mandatory for surveyors to have adequate insurance

117
Q

What RICS guidance is there on PII? What are the cover requirements?

A

Required under Rule 9 – Rules for firms.
Professional Indemnity Insurance Requirements 2019, effective 2 July 2019.
Policies must be underwritten by an insurer.
Min. cover requirements are based on turnover of the preceding year:
(double, double plus. Double, double double)
£100k or less £250,000
£100,001-£200,000 £500,000
£200,001 and above £1m

118
Q

What are the PII requirements?

A
  • Certificate must be sent to RICS annually
  • Adequate run-off cover required for after ceasing trading; £1m for min. 6 years
  • If you can’t get run-off cover, apply for coverage from RICS uninsured risk pool
  • Additional PII needed for pro-bono work
119
Q

What is good practice for holding client money? What is the RICS Guidance?

A

What is good practice for holding client money? What is the RICS Guidance?
Rule 8, Rules for Firms
- Obligation to keep accurate records
- Keep client accounts separately
- Word ‘client’ must be in the account name
- Client able to have the monies on demand
- Regular bank reconciliation
*NEW REQUIREMENT: publish procedures for handling Client Money on their website
RICS Client’s money: General advice for firms 2011
RICS Client Money Protection 2019

120
Q

What do you need to do when closing a practice?

A
  • Inform RICS
  • Inform client and return any monies held
  • Inform insurers and procure PII run-off cover
  • Retin client files for min. 6 years
121
Q

What guidance is there for the use of designations?

A

Guidance for personal use and firms use 2019.
Only firms can use the ‘Regulated by RICS version’
Cannot place designation inside a box, distort it, at the top of letterhead, change the colour.

122
Q

What are the Red Flags relating to money laundering?

A

Secretive or evasive about who they are
Refuses to provide property information
Avoids personal contact without good reason
The source of funds are unusual; e.g. large cash payments
Won’t sign TOEs
Have criminal associations.

123
Q

What are the THREE types of conflicts?

A
  1. A PARTY conflict; same or related instruction for 2 parties
  2. An OWN INTEREST conflict; personal interests
  3. A CONFIDENTIAL INFORMATION conflict; work between 2 parties that is confidential
124
Q

What are the key requirements of Part 1 in the RICS PS on Bribery & ML?

A

That RICS Regulated forms must:
- Have procedures in place to comply with the law
- Report any suspicions
- Retain records
BRIBERY:
- Not accept anything that could be a bribe
MONEY LAUNDERING & TERRORIST FINANCING:
- Not facilitate ML & TF or be complicit
- Take appropriate measures to check the client’s identity with basic ID checks
- Use third party reliance for checks only

125
Q

What is the guidance in Part 2 in the RICS PS on Bribery & ML?

A
  • Provide staff training
  • Have a written policy in place for Bribery and ML
  • Senior management take control of procedures
  • Set up a gifts register
  • Keep up to date with legislation
126
Q

What does the supplementary guidance in Part 3 of the RICS PS on Bribery & ML include?

A

Establishing the 3 ‘W’s – WHO are you acting for, and WHAT and WHY are you being asked to do – to assess risk to the business.
Dealing with Politically Exposed Persons
The need to identify the beneficial owner of a company

127
Q

What are the changes to the rules relating to registration of firms?

A

New guidance has been published ‘Guidance on the new Rules for the registration of firms and Rules for the use the RICS logo and designations by firms’, effective 1 April 2020.

  1. At least 25% of principals in firm must be RICS-qualified; if currently Registered and >25% may still be Regulated at Head of Regulation’s discretion.
  2. If more than 50% - REQUIRED be Regulated
  3. Need to designate a Responsible Principal to ensure RICS compliance of Firm.
128
Q

What are the changes to the rules for the use of the RICS logo and designations?

A

New guidance has been published ‘Guidance on the new Rules for the registration of firms and Rules for the use the RICS logo and designations by firms’, effective 1 April 2020.

  1. The use of the logo has been restricted to member and Regulated firms only.
  2. Regulated firms must now include prescribed text in TOEs explaining what it means to be regulated.
  3. Requirements for how the ‘regulated by RICS’ designation have been tightened.
129
Q

What are the changes to the RICS Governing Council?

A
  • Smaller Governing Council
  • With more global representatives
  • Amends to Royal Charter and Bye-Laws
130
Q

What is the RICS doing to address diversity and inclusion?

A

RICS are a professional body that promote equality, diversity and inclusion

  • Introduced the RICS Inclusive Employer Quality Mark
  • Celebrate of Pride and Black History month
131
Q

What is negligence?

A

Breach of a duty of care which results in damage.

132
Q

What are the new logo-use rules? When do they come into effect?

A

April 2020.

  • re-structured to enhance simplicity and readability
  • restricting the use of RICS logo to regulated firms only
  • restricting the use of the designation “Chartered Surveyors” by firms to the trading name only;
  • added a requirement that Regulated Firms must include a prescribed text in the terms of engagement issued to clients in respect of its surveying services to explain what being regulated by RICS means
133
Q

What do good negotiation skills entail?

A
  • Agreeing your client objectives prior to negotiations
  • Detailed research and SWOT analysis
  • Deciding what points you can give on and what points are non-negotiable
  • Understanding the other party’s position
  • Considering the method of communication
  • Develop a collaborative approach (rapport)
  • Maintain communication always
134
Q

If you cant undertake ID checks for some reason what do you do?

A

Savills employee in another office or certified externally (by a solicitor, or accountant for example),

135
Q

Throughout your training, have you managed a conflict?

A

I acted for a vendor who worked in my office. I ensured that all marketing clearly outlined that the property was owned by a Savills member of staff. All information and offers were dealt with in accordance with EAA79.

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