Mandatory Competencies Flashcards
1
Q
What is a professional statement?
A
Document detailing mandatory requirements for RICS members and firms
2
Q
What are the three types of conflict and what do they involve?
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 which is confidential
3
Q
What is an information barrier?
A
Physical and or electronic separation of individuals within the same firm that prevents confidential information passing between them.
4
Q
How do you communicate effectively in a report relating to a complex issue?
A
Dependent on audience and level of knowledge. Use plain english in concise manner
5
Q
What is informed consent?
A
Consent given willingly by a party who may be affected by a conflict of interest
6
Q
What method of communication do you use when negotiating with an opposing party?
A
Email, phone calls, sometimes face to face meetings
7
Q
What communication method do you use with a new client?
A
Depends on client and method required but good to have audit trail so usually email or letter
8
Q
How do you ensure you communicate effectively?
A
I adjust my language based on the person I am communicating with. Visual aids such as plans and tables can also be effective communication. I listen and carry out research beforehand.
9
Q
What is a statement of profit and loss?
A
A financial statement that summarises income and expenditure over a specified period telling you how much profit or loss a business is making.
10
Q
how does the accruals concept work?
A
Income is recorded when earned not when received.
Expenses are recorded when incurred not when paid.
Taxes payable on all earned revenue.
11
Q
why adopt accrual accounting? List at least 3 advantages
A
More accurate picture of business performance
Must be used for regulatory filing that requires GAAP.
Suited for most businesses - Cash account generally for small businesses paying tax via owner personal tax returns.
12
Q
what is GAAP?
A
Generally accepted accounting principles.
Set standards on the details and legalities of business and corporate accounting.
13
Q
what is a balance sheet sometimes referred to as?
A
Statement of financial position
14
Q
what is a balance sheet?
A
a financial statement that reports a companies assets and liabilities at a specific point in time.
15
Q
What is VPGA 1?
A
Valuation for financial reporting
16
Q
Why are financial statements produced?
A
So investors can measure business performance
So management can review performance
Help companies make informed decisions
Legal requirement for public and private limited companies
Compare performance with others
17
Q
summarise the difference between the financial statements
A
Balance sheet is about the assets and liabilities the business has at a specific time.
Profit and loss account looks at the actual income and outgoings within the business
Cash flow statement looks at the actual cash that passes hands within the business.
18
Q
why is diversity in a team important?
A
Range of cultures and backgrounds can influence the ideas that can be shared, assist in communicating across different languages, and promotes inclusivity
19
Q
how does the structure in the VOA work?
A
Within my team we have:
Unit head
Team Leader
Lead Valuers
Valuer – my current level
Assistant valuers
20
Q
How does partnering and collaborative working affect a team?
A
Can facilitate new ideas
Increase efficiency
Spread work load
Increase teamwork and unity within team
Can increase quality of work
21
Q
what different roles does the agency have?
A
Mixture of Technical (valuers) and non-technical roles (admin)
22
Q
What is your role in training new staff
A
Share knowledge, best practice tips, offer advice
23
Q
What Internal diversity and inclusion polices do the VO adopt?
A
The Agency has senior diversity champions, who have an expert partner alongside them from the business representing the 10 different areas of Diversity and Inclusion.
Mentoring program where I mentored new starters and other apprentices to provide them with skills to do Job and also be successful in their apprenticeship.
24
Q
what is Supply chain management?
A
The handling of the entire production flow of a good or service.
25
Define what communication is
Exchanging of information by speaking, writing or other medium.
26
Views on emails
Need to take care when sending and opening emails
Can easily send sensitive information to incorrect party
Have the ability to create contracts and form written agreements
27
Tell me about what MEES are?
The Domestic Minimum Energy Efficiency Standard (MEES) Regulations set a minimum energy efficiency level for non- domestic and domestic rented properties.
The Minimum Energy Efficiency Standard Rating is E and above.
28
what guidance notes are there on sustainability?
Sustainability and ESG in commercial property valuation and strategic advice (effective 31 Jan 2022) 3rd edition
29
what do you know about EPC’s
Energy performance certificate
Required whenever property is built, sold or rented.
Contains info on:
Property’s energy use and typical costs
Recommendation of how to reduce energy use and save money
gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for 10 years.
30
what is BREEAM
Building Research Establishment Environmental Assessment Methodology
Launched in 1990, by the Building Research Establishment (BRE) it sets standards for the environmental performance of buildings through the design, specification, construction and operation phases and can be applied to new developments or refurbishment schemes.
Rating are outstanding, excellent, very good, good, pass, unclassified
31
why is sustainability important to valuers?
VPGA 8 Valuation of real property interest states that “While valuers should reflect markets, not lead them, they should be aware of sustainability features and the implications these could have on property values in the short, medium and longer term”
32
When reporting a valuation, how would you demonstrate you have considered
sustainability and ESG in your approach, calculations and commentary?
If sustainability and ESG factors are identified and recognised as having an impact on value, they should be reflected in valuation and reported as per VPS 3.
33
Tell me about your involvement with business planning
Meetings, surveys
34
What is a business plan and what are some typical things you’d find in a business plan?
Document setting out a business’s future objectives and strategies for achieving them.
Executive summary, vision and business, marketing, management, operations, financial forecasts
34
how can an up-to-date business plan help an organisation in the current economic climate?
It can help you identify where your business is now.
Determine in which direction you wish your business to grow.
Monitor whether you are achieving your business objectives.
35
What is a SWOT / PEST analysis?
Strengths, weaknesses, opportunities and threats
Political, Economic, Social, Technological
36
what is business continuity and why is it important?
Business continuity is about having a plan to deal with difficult situations, so your organisation can continue to function with as little disruption as possible.
37
Purpose of the Valuation office
We are the public sector’s property valuation experts and advisers, providing the valuations
needed to support local taxation and benefits. Our work underpins the funding of vital public services.
38
How does the VOA business model work?
The VOA is fully funded by the Agency’s sponsor department HMRC.
Our business rates and council tax valuations underpin around £60 billion of local Government taxation.
39
What performance targets do the VO have?
Check: 90% of check cases resolved within 3 months of receipt.
Challenge: all cases resolved within 18 months of receipt unless extension agreed.
Statutory Valuations: Clear all initial appraisals for HMRC within an average of 5 working days.
40
What is the definition of an inclusive environment
An inclusive environment is one which recognises and accommodates the differences in the way people use the built environment.
41
what should an inclusive environment create?
Buildings/spaces that can be used safely, easily and with dignity by all.
42
what should inclusive environments facilitate?
Dignified, equal and intuitive use by all.
43
What industry guidance are you aware of?
British Standard BS 8300 - provides guidance relating to the accessible and inclusive design of new public spaces.
National Planning Policy Framework (NPPF) - Section 8 of the latest NPPF relates to the provision of healthy, inclusive and safe places
44
what legislation contributes to creating inclusive environments?
Equality Act 2010
Section 20 states that disabled individuals should not face barriers to access premises.
45
what are the protected characteristics under the Equality Act 2010 (9)
Age
Gender
Race
Disability
Religion or belief
Sexual orientation
Gender reassignment
Marriage or civil partnerships
Pregnancy and maternity
46
What steps you must take when handling client’s money?
Clients must always have access to funds.
Client money must be kept separate and clearly identifiable.
Include ‘Client’ in account name
Interest on the account must be agreed with the client.
Maintain client ledger or running balance of any transactions.
Agree the terms and advise client on bank details.
Must not be overdrawn
47
What systems and procedures do you have in place to manage client care?
Briefing meetings to ensure all those involved understand the clients needs and goals.
Complaints handling procedure – on ToE
Good record keeping
good communication
Willing to adapt to clients needs and wants
48
What behaviours are appropriate to establish good client relationships?
Communication
Comprehensive Terms of Engagement
Avoid inappropriate behaviour
49
What is the VOA Complaints Handling Procedure?
VOA has Tier 1 (Business Stream); Tier 2 (Agency CIT); then as a govt body certain matters can be referred to an Ombudsman
50
What do you do to build a relationship with clients?
Deliver a good service
Deliver work on time
Be courteous and show an interest to get to know them
51
How does your good client care benefit HMRC?
Bringing income from local authorities and public sector bodies – in DVS
We bring in 60 billion pounds in Tax.
52
What is the relationship of HMRC and the VOA?
The VOA is an executive agency of HM Revenue & Customs and employs more than 3,600 staff.
We carry out valuations and property advice to support taxation and benefits to the government and local authorities in England, Wales and Scotland.
53
Drawbacks of producing financial accounts
Time consuming.
Competitors viewing your financial information.
54
What are the three main components of financial statements?
Cash flows
Profit and loss
Balance sheet
55
what is a statement of cash flows
Inputs and outputs in concrete cash within a stated period. The general template of a cash flow statement is as follows:
Cash Inflow - Cash Outflow + Opening Balance = Closing Balance.
56
what is a statement of profit and loss
Summary of a business’s income and expenditure.
Usually prepared on an annual basis, recorded on an accrual’s basis.
57
What are the 5 rules of conduct?
Be honest and act with integrity
Maintain professional competence
Provide a good quality, diligent service
Treat others with respect
Act in the public interest and take responsibility
58
What is the format of the annual 20 hours of CPD once qualified?
10 hours must be formal, other 10 can be informal or formal
59
Where can you find guidance on conflicts of interest?
RICS Professional Standard - conflicts of interest
60
How does the VOA check conflicts of interest?
DVS - Checks are undertaken prior to any work and recorded on case control document including competence to complete work. If conflicts are identified then the matter is escalated with line manager.
Other work streams still check for COIs but do not document where there isn't one only where there is and line manager informed.
61
What is rule 3 of the rules of conduct?
Provide a good quality and diligent service.
62
What is a bribe?
An offer to induce an action which is illegal, unethical or a breach of trust
63
What advice was given when you came across the CT banding where a colleague used internal information?
I advised the CT team leader that the colleague how broken the VOA code of conduct by gaining an advantage of using information not available to the public to try and reduce their CT band. The matter was consequently escalated.
64
What type of conflict of interest occurred when you were asked to value properties where a relative lived?
Own interest conflict
65
What advice did you give when you were asked to value properties where a relative lived?
I advised my line manager that by valuing these properties it could be seen as biased and directly providing my relative financial gain. I advised that the work should be allocated to another case worker, which it was
66
Who are the VOA's clients under CRAC 2005?
Ministry of Housing, Communities and Local Government.
Ratepayers/agents
67
What are terms of engagement and why are the useful?
TOE are a written agreement between member/client and identifies the scope of work.
Help to avoid misunderstandings with client and with complaints.
68
What are the time scales and requirements for a challenge case?
Need to be made 4 months after the date of a check. MCC challenges can be made 16 months after confirmation of check
Need to provide:
Proposed RV
Effective date
Supporting statement and evidence
Rent passing on the property
Grounds of challenge
69
What did you terms of engagement include whilst working on DVS?
As these were red book reports I followed VPS1 some examples include:
Identification of valuer
Basis of value
Valuation date
70
What were the next steps you told the client after the inspection?
Securely storing the information gathered on inspection
Using the information gathered to compile relevant comparable properties
using the comparables to value the property
Producing the report to send to the client
71
What are some forms of communication?
Email
phone
letter
oral
reports
72
What did the webinar on communication and negotiation include?
Some approaches of how to best communicate with agents and how to negotiate with them
73
What is an expert witness?
An expert in a certain field who provides the tribunal unbiased information (duty to tribunal)
74
What did you learn at the VOA VT training?
The difference between expert witness and advocate.
How to best present as expert witness using concise simple language that the panel understands.
75
How were you able to act as an expert witness and advocate?
RICS states this can only happen in limited circumstances where it is appropriate.
VTE accepts this to lower the burden on tax/ratepayers.
76
Why did you use email to communicate with the agent?
I used this as a starting point for negotiations also created a paper trail and I could document the agent had my evidence exchange for processing purposes.
77
What are some key points of good communication
Selected for the right purpose
Listening to the other side
Clear and concise language
78
What are the key points of the Health and Safety at Work Act etc. 1974
Provide a safe place of work
Provide safe equipment
Ensure staff are properly trained
Carry out risk assessments
Provide proper facilities
Appoint competent person to oversee health and safety
79
What does a risk assessment include?
1 - Identify the hazards
2 - Decide who might be harmed
3 - Evaluate the risks
4 - Record the findings and implement them
5 - Review the assessment
6 - Advise those affected
80
What is the companies act 2006?
legislation that governs companies in the UK in just about every way a company is managed, run and financed.
Requires companies to prepare annual financial accounts to either IFRS or GAAP.
81
Differences between GAAP and IFRS?
PLCs have to adopt IFRS
In the UK GAAP is more commonly adopted as it is more straightforward and is less comprehensive.
82
What is the VOA business plan?
Sets out three strategic objectives:
1. Provide trusted property valuations effectively
2. Deliver and excellent customer experience
3. Be a great place to work
83
What are some ways to ensure a conflict of interest doesn't happen?
Get informed consent
Information barrier
Do not accept instruction
84
What is the difference between an expert witness and advocate?
Expert witness has a duty to the tribunal
Advocate has a duty to their client
85
What is mediation?
- Conducted by neutral third party
- Discussions to help reach settlement
- Can be legally binding if documented
- Confidential and informal
86
What is Arbitration?
- Governed by Arbitration Act 1996
- Third party receives written representations
- Makes legally binding award
87
What is expert determination?
- Expert provides their opinion to conclude matter
- Expert can be liable for negligence
- Not legally binding
88
What does the RICS dispute resolution service (DRS) do?
- Provides a variety of third-party dispute resolvers
- For varying methods of dispute resolution
89
What is the Data Protection Act 2018?
UK's implementation of the General Data Protection Regulation (GDPR).
90
What is GDPR?
The General Data Protection Regulation (GDPR) is a European Union (EU) law that regulates how personal data is processed and transferred within the EU.
91
What is the freedom of information Act 2000?
Can request information from public bodies: government departments, local council, schools, public health services, police etc.
92
How do you direct requests for information?
If a request for information comes directly to me, I first see if it can be dealt with within the team under legislation.
If not, I forward the request on to the subject access request team and inform my line manager.
93
How would you deal with an FOI request?
Send it to the FOI inbox of the VOA. response required within 20 days.
94
What techniques do you or the VOA use to save data?
Electronic Data management system
Check Challenge Appeal portal has public and internal document sections
Save files on cloud based systems ensuring back up
Save files in restricted/password protected folders.
95
What are the seven principles of GDPR?
Fair, lawful and transparent processing
Purpose limitation
Data minimisation
Accuracy
Data retention periods
Data security
Accountability
96
What is rule 4 of the rules of conduct?
Treat others with respect
97
What is an inclusive environment?
an environment that recognises and accommodates differences in the way people use the built and natural environment.
98
What are some examples of reasonable adjustments under the equality act 2010?
Making physical changes such as ramps for wheelchairs users
Changing equipment such as special keyboard for people with arthritis
Changing information such as providing braille
99
What is ESG?
ESG stands for Environmental, Social, and Governance. It's a set of standards used to measure how a business impacts the environment and society, and how transparent and accountable it is.
100
How does the Brundtland report define sustainable development?
development that meets the needs of the present without compromising the ability of future generations to meet their own needs
101
If a relative asked you to value a property for lending purposes what would you do?
This is a conflict of interest and it could be seen as biased. This would go against rule 1 and 5 of the rules of conduct as it is not in the public interest and I would not act with integrity while undertaking the instruction. Therefore, I would decline the instruction.
102
Potential client asks you to value a property you have little to no experience of, what do you do?
In line with rule 2 services should be provided by competent individuals who have the necessary expertise. Therefore, I would either decline the instruction and suggest another firm who deals with these valuations or undertake the necessary training to become competent.
103
A client offers you wine after an instruction what do you do?
In VOA refuse the offer as in line with VOA procedures but inform my manager of the offer
Private practice it needs to be proportionate to the work undertaken in this case I could accept the offer and then also note it under the gifts register of the company.
104
Who is the current president of the RICS
Tina Paillet
105
Who is the CEO of the RICS?
Justin Young
106
What are the requirements for Professional Indemnity Insurance?
Depends on turnover:
Turnover of £100,000 or less - £250,000
Turnover between £100,001 to £200,000 - £500,000
Turnover above £200,001- £1,000,000
107
What are the requirements for run off cover?
£1,000,000 for 6 years.
108
What is the maximum fine for breaching GDPR?
The higher of £17.5m or 4% of annual turnover.
109
What are the 6 principles of the bribery act 2010?
Proportionate procedures
Top level commitment
Risk assessment
Due diligence
Communication
Monitoring and review
110
Is there an RICS document which covers complaints?
RICS professional standard - complaints handling
111
What is a Calderbank offer?
without prejudice settlement offer, save as to costs
112
What are the types of bribery under the bribery act 2010?
Direct bribery - bribing someone
passive bribery - accepting a bribe
Bribing a foreign public official
A corporate offence of failing to prevent bribery
113
Penalty of breaching the bribery act?
up to 10 years imprisonment or unlimited fine or both
114
What RICS document covers bribery and money laundering?
RICS Professional Standard Countering Bribery and Corruption, Money Laundering and Terrorist Financing 1st Edition 2019
115
What must firms do in regard to bribery and corruption?
- Not accept or offer a bribe
- Have plans to comply with local laws
- Report any activity which breaches laws
- Use due diligence to discover what threats the business might face
- Record information of how they have complied with the professional standard
116
What must members do in regard to bribery and corruption?
- Not accept or offer a bribe
- Ensure they have adequate knowledge
- Report any activity
117
What must firms do regarding Money laundering and terrorist financing?
- Not facilitate or be complicit in it
- Have systems and training in place
- Report any suspicions to relevant authorities
- Undertake risk assessments to identify potential threats
- Carry out appropriate checks on clients, including identity checks
- Record information of how they have complied with the professional standard
118
What must members do regarding Money laundering and terrorist financing?
- Not facilitate or be complicit in it
- Report any suspicions to relevant authorities
119
What should members and firms adopt to ensure they do not breach bribery and money laundering?
- Written policy
- Appropriate systems
- Gifts register
- Training
- Contactable compliance officer
120
What is the key points of Surveyors acting as Expert Witness?
- Provide unbiased product within expertise
- State main facts and assumptions the product is based upon
- Impartial and uninfluenced
Must state when acting as expert witness or advocate when acting as both in case
121
If you became a sole practicioner how would you calculate your fee basis?
Ad hoc basis based on market levels
122
What is the ethics decision tree?
a decision-making framework to deal with even the most testing of ethical dilemmas.
123
What are the five principles of better regulation?
Proportionality
Accountability
Consistency
Targeting
Transparency
124
What is the key case relating to PII?
Merrit v Babb (2001)
Highlights importance of run off cover - surveyor was sued for negligence after firm closed down.
125
What is the RICS moto?
Est Modus in Rebus - There is measure in all things.
126
How often do members need to undertake the ethics module?
Every 3 years
127
What are members professional obligations to RICS?
Comply with CPD requirements
Cooperate with RICS
Provide information requested by standards and regulation board
128
What are firms professional obligations to RICS?
1. publish CHP
2. PII cover
3. Appropriate arrangements for work in event of death or inability to do work
4. Cooperate with RICS
5. Provide information requested by standards and regulation board
6. Display RICS designation to show regulation
7. report any matter under the Rules for the registration of firms.
129
When are firms required to register with RICS?
When 50% or more are RICS members
Operate in UK
Provide surveying services to public
130
How do you register a firm with RICS?
1. Contact RICS and obtain company start up pack
2. Inform RICS and register for regulation
3. Appoint contact officer
4. Prepare CHP
5. Obtain PII
6. Abide by rules of conduct
7. Use RICS designation
131
What is the maximum uninsured excess that firms need to have with PII?
Limit of indemnity up to £500,000 = the greater of 2.5% of sum insured or £10,000
Over £500,000 2.5% of the sum insured
132
What are the RICS rules regarding a CHP?
Firms must operate a complaints log and have a handling officer
there needs to be a redress mechanism
Must have two stages (internal and third party)
Must be stated in TOE
If complaint received PII provider must be informed
133
What is the RICS professional statement that refers to client money?
RICS Professional Statement Client Money Handling
134
What is client money?
Any cash, cheque, draft or electronic transfer which an RICS regulated firm holds for or receives on behalf of another person.
135
What must firms do with holding client money?
Hold it in account which it has exclusive control.
Only hold client money
Account must include the word client with name of client.
Money is immediately available.
136
Does ESG effect value of property?
According to Knight Frank properties with BREEAM or NABERS ratings 8-18% higher sales prices than other properties
Rental values are seeing premiums of between 3 and 12% (Knight Frank but from 2021)
137
What is the hierarchy of control for dealing with risks?
- Eliminating
- Substituting
- Engineering controls
- Administrative control
- Using PPE
