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APC > Mandatory/Ethics > Flashcards

Mandatory/Ethics Flashcards

1
Q

When was RICS founded and given royal charter?

A

Founded 1868, royal charter from privy council 1881.

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2
Q
  1. Who is RICS president/president elect and CEO?
A

Tina Pillet

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3
Q
  1. What are the four levels of membership?
A

FRICS/MRICS/ASSOCIATE RICS/ Trainee

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4
Q
  1. How does one become FRICS?
A

5 yrs @MRICS, technical/academic achievement/ leadership role and raising profile of RICS.

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5
Q
  1. What is the Governance Structure of the RICS?
A

Privity Council (Grants and awards Royal Charter)Governing Council (Management and Strategy of the RICS) Then: Regulatory board, Audit committee and Management board

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6
Q
  1. What are benefits of RICS membership?
A

SMKRN- Status, market advantage, knowledge, recognition, network (130,000+members)

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7
Q
  1. What RICS material might I come across?
A

International standards (mandatory ie,IPMS), Professional statements (man, CofI, S/C ) Practice Statements (man, expert witness), Guidance notes (voluntary, surveying safely), Code of Practice (says in doc, measuring practice)

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8
Q
  1. What changes were made to the rule of conduct?
A

Before February 2022, members were guided by rules of conduct for firms/members and the global professional and ethical standards. Replaced with Rules of Conduct (oct 2021) but effective 1st Feb 2022.

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9
Q
  1. Why was it replaced?
A

To provide simpler, clear example and focus on diversity inclusion and sustainability.

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10
Q
  1. What is the content of the Rules of Conduct?
A

Quite simple, contents and intro/ Rules 1-5 and then appendix A.

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11
Q

What are the 5 rules?

A

HCSRR- Honesty (act with integrity and comply with obligations under RICS) Competence, service (good quality and diligent), respect (eachother, diversity and inclusion), responsibility (not harming and maintain public confidence).

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12
Q
  1. What’s in appendix A?
A

These are professional obligations to the RICS for member and firms, IE. Must comply with CPD, cooperate with RICS (Members), CHP, PII, succession, cooperate, designate (logo) that they are regulated by RICS, and must report an matter under rules of registration for firms.

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13
Q

What are the rules of registration for firms?

A

25% RICS qualified principal to be eligible, and designate a responsible principal to be oversight and engage with RICS standards and regulation. Also use of RICS logo by regulated firms. (you must register if providing surveying services and 50% of firms principals are members).

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14
Q

What are RICS rules for complaints handling?

A

Must be written and approved by RICS, always inform PII insurer on receipt of claim, CHP must be served with terms of business, must keep complaints log and must have RICS approved ADR .

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15
Q
  1. Can you talk me through Workman’s complaints handling procedure
A

On receipt of a complaint I would make my superior aware, partner in charge, provide details of complaint handling officer as person to be contacted, inform PII insurer and acknowledge complaint within 7 days, investigated in 28 days. If not happy it can be referred to an independent body. We use RICS approved CEDR Centre for Effective Dispute Resolution (also the Property Redress Scheme and RICS dispute resolution service).

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16
Q
  1. Can you explain what a bribe is?
A

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

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17
Q
  1. What legislation relates to bribes?
A

Bribery Act 2010, Proceeds of Crime Act 2002

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18
Q
  1. What are the 4 offences under the briber act? To
A

To give a bribe, to take a bribe, to bribe a foreign official and no preventing a known bribe.

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19
Q
  1. What are the principles of the Bribery Act?
A

Proportionality, top level commitment, risk assessment, due diligence, communication, monitoring and review.

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20
Q
  1. What are the penalties for an individual who accepts or offers and bribe?
A

Max penalty of 10 years imprisonment and or an unlimited fine, policed by the serious Fraud Office,

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21
Q
  1. Can you give an example of a step which may be put in place to manage a conflict?
A

Information/ethical barrier, may include passwords, keeping surveyors separate etc

22
Q
  1. What’s is statutory compliance for firms?
A

Anything laid down in law/ statute, ie. Compliance to Equality Act 2010, Bribery Act 2010, financial compliance, Money Laundering Regulations 2017 (having a officer), H&S compliance (under at work act 1974), Data protection Act (register for GDPR), Inform HMRC for tax/VAT registration, employment law compliance (living wage, gender pay gap), Insurance compliance

23
Q
  1. Can you run through the steps you’d take if you were starting a new practice and you wanted to be regulated by the RICS?
A

Inform RICS - Firms detail form/ Appoint a contact officer / Register with RICS for regulation/ Arrange PII/ Money handling procedure/ Register for VRS if undertaking red book vals/ Gain approval for complaints handling procedure/ set up complaints log/ appoint complaints handling officer/ obtain logo kit from RICS / Plan for succession or future if sole practitioner / ensure CPD is logged / Set up staff training plan/ RICS annual return

24
Q
  1. What is PII?
A

Professional indemnity insurance, protects surveyors, client, third parties from negligence claims when duty of care breached and leads to damages. RICS PII requirements 2019, must be a policy underwritten by RICS approved insurer.

25
Q
  1. Can you tell us what the current minimum requirements for Professional Indemnity insurance based on the turnover of the firm?
A

100k or less = 250,000/ 100,001 to 200, 000 = 500,000/ 200,001 + = 1,000,000, if new company estimate and adjust.

26
Q
  1. What’s your firms PII?
A

My firm has a policy to provide a minimum of £5,000,000 per instruction. Adjusted based on the nature of the instruction

27
Q
  1. Whats is a conflict of interest?
A

When independence and impartiality threatened by existence of conflict between two parties, can be party, personal or confidential information interest.

28
Q
  1. What document is relevant to CofI?
A

Global Professional Statement on Conflict of Interest 2017

29
Q
  1. What does this document say?
A

Mustn’t represent a client where doing so would constitute a CofI, other than when there is informed consent. Informed consent when it is in interest and given in writing when all facts laid out.

30
Q
  1. Whats the difference between conflict avoidance and conflict management?
A

In avoidance you would simply say no, management is where you say yes and have to manage the conflict.

31
Q
  1. Process when considering COFI?
A

Consider whether to proceed, if you do get written consent of both parties and clearly set out how I will be dealt with and then put information barriers in place.

32
Q
  1. Can you give an example of a conflict of interest managed by your firm
A

Yes, regarding the Croxley Park instruction I work on, workman act on behalf of Watford Borough Council and the head landlord. The partner in charge of the instruction and the teams that manage made the clients aware of the CofI and when it was approved to go ahead, it was ensured surveyors worked separately (different building, different support team and we have protected files).

33
Q
  1. How would you carry out a conflict of interest check?
A

I could check for client name/prop name in database and also send a company wide email

34
Q
  1. What should you do before undertaking an instruction?
A

Checked there are no personal/professional CofI, ensure competency and confirm TofE in writing.

35
Q
  1. Are there any requirements for CPD?
A

Yes 4 main requirements, must be 20 hours per year, 50% formal, maintain current understanding of ethics and must be logged on RICS management system.

36
Q
  1. Are there any obligations regarding handling client money?
A

Yes laid out in RICS Client Money: General Advice for Firms 2011. 3 areas of good practice to keep client accounts, ensure they are accurate and guidance on reporting.

37
Q
  1. Could you tell me more about this?
A

Client accounts should be separate and clearly identifiable, word ‘client’, agree payment of interest, regular reconciliation and checks monthly, annual audit and client access (only withdraw with client approval). Must display procedures on website

38
Q
  1. What about client confidentiality, must it always be kept?
A

Yes and get approval if any third party wants access (unless needed for police/HMRC investigation? All files held for 6 yrs, if you overhear info can’t use it, get an email you shouldn’t have- make sender and client aware of error and dispose of.

39
Q
  1. What does the RICS say about fee negotiation?
A

Encourage healthy competition but firms are to avoid aggressive fee cutting. Should be market based and agreed with client, stated in TofE.

40
Q
  1. What would I find in a terms of engagement?
A

Must state client agreement, fee basis, payment of expenses and how this is calculated, copy of CHP file on request.

41
Q
  1. When would you decline a clients instruction?
A

If I wasn’t competent, I don’t have sufficient information, client won’t sign TOFE, there’s a conflict, PII cap cant be agreed, client on government sanctions- Ask yourself if you would be happy for people to know about it.

42
Q
  1. Is a client able to go back after signing TofE
A

Yes the Consumer Rights Act 2015 allows a cooling off period of 14 days.

43
Q
  1. What is a margin of error?
A

Permissible range allowed by courts in respect if valuation laid out by Singer & Friedlander v JD.Wood, margin of error can be +/- 15% for commercial props.

44
Q
  1. What’s the Limitation Act 1980?
A

Limitation period for negligence claims , contract 6 yrs from act. Can be avoided by understanding client objectives, TofE, competency, detailed record and cpd.

45
Q
  1. What legislation is relevant to money laundering and what does it say?
A

Money Laundering, terrorist financing and transfer of funds regulations, 2017- make it’s a requirement to have risk assessments for ML/TF and systems to address it. Must carry out due diligence and keep records, AML checks etc, must have money laundering reporting officer

46
Q
  1. How would you report suspicions?
A

AML officer would produce an SAS (suspicious activity report) and send to national crime agency).

47
Q
  1. What is money laundering?
A

When criminal activity is disguised as a legit asset.

48
Q
  1. What checks could you do?
A

an AML check (Confirms identity of client), due diligence (new customer/enhanced/simplified).

49
Q
  1. What are some red flags?
A

Can’t identify client, withhold information, no registered address or information on funding sources, bank statements, sudden change in instruction.

50
Q
  1. RICS guidance on ML?
A

Professional statement on Countering bribery, corruption, ML and TF 2019- lays out requirements and guidance on best practice, covers what is requested under legislation.

APC (3 decks)

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