Mandatory Competencies Flashcards
Ethics, Professionalism and Rules of Conduct - Level 3 Client Care - Level 2 Communication and Negotiation - Level 2 Health and Safety - Level 2 Conflict avoidance, Management and Dispute Resolution Procedures - Level 1 Data Management - Level 1 Diversity, inclusion and teamworking - Level 1 Inclusive environments - Level 1 Sustainability - Level 1 Accounting Principles and Procedures - Level 1 Business Planning - Level 1
What would you do if a client walked into your office with £500 cash?
As per RICS ethical standards and anti-money laundering (AML) regulations, I would:
* Politely refuse the cash payment and explain that my firm does not accept cash above a certain threshold due to AML compliance.
What checks would be required?
- KYC (Know Your Client): Obtain proof of identity (passport, driving license) and proof of address (utility bill, bank statement).
- Source of Funds Verification: Ensure the money is legally obtained.
- AML Checks: Screen the client against sanctions lists, politically exposed persons (PEP) lists, and adverse media reports.
- Client Due Diligence (CDD): Assess the legitimacy of the transaction based on the fim’s risk-based approach.
- If suspicious, report the transaction to the firm’s Money Laundering Reporting Officer (MLRO) and consider submitting a Suspicious Activity Report (SAR) to the National Crime Agency (NCA).
What are the requirements for setting up your own firm?
- RICS Registration: Apply for RICS regulated firm status to operate within RICS professional standards.
- Professional Indemnity Insurance (PII): Ensure adequate PII cover as per RICS minimum requirements.
- Business Structure: Choose a legal structure (sole trader, partnership, or limited company).
- Compliance & Policies: Implement AML, GDPR, and complaints handling procedures.
- Accounting & Taxation: Register with HMRC, set up business accounts, and ensure compliance with VAT and corporate tax regulations.
Why is it important to identify unregistered landowners?
- To clarify land ownership before transactions, planning, or development.
- To reduce the risk of boundary disputes and legal challenges.
- To ensure the correct party is compensated for land acquisitions or rights-of-way.
- To comply with compulsory purchase processes when land assembly is required.
What are the risks to your client if these are not identified?
- Legal disputes delaying projects.
- Financial risk due to potential claims from rightful owners.
- Planning issues if land ownership is unclear.
- Compensation claims if incorrect parties are paid.
Describe an inclusive environment and its importance.
An inclusive environment is one that embraces diversity, ensuring that individuals from all backgrounds feel valued, respected, and have equal opportunities. In the context of RICS, fostering inclusivity promotes a collaborative workplace, enhances innovation, and reflects the diverse clientele and communities served. It aligns with ethical standards by promoting fairness and equality
Why is it imporant to have a diverse team?
A diverse team brings varied perspectives, experiences, and skills, leading to more innovative solutions and better decision-making. In the surveying profession, diversity enhances cultural competence, improves client relations, and reflects societal demographics, thereby strengthening the firm’s reputation and effectiveness.
What does sustainability mean to you?
To meet the needs of the present without compromising the ability of future generations to meet their own needs.
Definition of integrity
The act of being honest and having strong moral principles.
What are the 5 RICS Rules of Conduct?
- Act with integrity – Be honest, transparent, and avoid misleading actions.
- Always provide a high standard of service – Deliver competent and diligent service.
- Act in a way that promotes trust in the profession – Uphold public confidence in surveyors.
- Treat others with respect – Maintain professionalism with clients, colleagues, and the public.
- Take responsibility – Be accountable for your actions and decisions.
Why is professional integrity important in surveying?
Integrity is the foundation of trust between surveyors, clients, and the public. Surveyors handle sensitive financial transactions, property valuations, and legal matters. Acting with integrity ensures fair outcomes, compliance with RICS standards, and protects the profession’s reputation.
Can you give an example of how you apply ethical standards in your daily work?
Recently, a client asked me to slightly adjust a valuation to help them secure financing. I explained that as an RICS professional, I must provide an impartial and accurate valuation based on market evidence. By maintaining ethical standards, I protected both the client and my professional integrity.
What is a conflict of interest? How do you identify and manage it?
A conflict of interest arises when a surveyor’s personal or professional relationships could affect their impartiality. I identify conflicts by reviewing existing relationships before taking on work. If a conflict exists, I follow RICS guidance by disclosing it to all parties and either seeking informed consent or declining the instruction.
If a client offers you a significant gift, how would you respond?
I would politely decline and explain that accepting gifts could create a perception of bias, potentially breaching RICS ethical standards.
You are asked to value a property for a buyer, but you previously worked for the seller. What do you do?
This is a potential conflict of interest. I would disclose my prior involvement to both parties and seek their written consent to proceed. If impartiality could be questioned, I would decline the instruction to uphold professional integrity.
What steps should you take if you suspect bribery in a transaction?
I would document the concern, report it to my compliance officer or senior management, and follow my firm’s anti-bribery policy. If necessary, I would escalate the issue to relevant authorities, as required by the Bribery Act 2010.
Your employer pressures you to approve an incorrect valuation. How would you handle this?
I would remind them that RICS requires surveyors to provide unbiased and accurate valuations. If pressure persisted, I would refuse to sign off on the valuation and report the issue internally. If necessary, I would escalate it to RICS Regulation.
How does the Bribery Act 2010 apply to surveyors?
The Bribery Act 2010 makes it a criminal offence to offer, receive, or facilitate bribery. For surveyors, this means refusing financial incentives that could influence decisions, reporting bribery risks, and ensuring our firms have appropriate anti-bribery policies in place.
How do you ensure client confidentiality in your work?
I only share client information on a need-to-know basis, use secure storage systems, and comply with GDPR and company policies.
What would you do if a third party asks for confidential client information?
I would refuse to share any information without the client’s explicit written consent unless legally required, such as under a court order.
How does GDPR impact the way you handle client data?
GDPR requires surveyors to handle personal data securely, process it lawfully, and obtain client consent where necessary. I ensure compliance by using secure systems and only keeping data for as long as necessary.
What does “acting in the public interest” mean in practice?
It means prioritising ethical standards, health and safety, and transparency, even when it conflicts with client interests. For example, reporting unsafe building defects despite client objections.
If you suspect a colleague is acting unethically, what would you do?
I would raise my concerns directly with them first. If the issue persists, I would report it internally or escalate it to RICS Regulation, following the whistleblowing policy.
You identify a serious defect in a property, but your client asks you not to report it. What do you do?
I would explain that as an RICS professional, I have a duty to report material defects accurately. If the client insists, I would withdraw from the instruction rather than compromise my ethical obligations.
