Mandatory - Ethics, Rules of Conduct, Professionalism Flashcards
1
Q
When was RICS founded?
A
1868
2
Q
When did RICS get its Royal Charter?
A
1881
3
Q
What is the benefit of the royal charter?
A
Promotes the usefulness of the profession for the public advantage
4
Q
Who is the president for 2022 and 2023?
A
Clement Lau 2022 and Anne Gray 2023
5
Q
Who is the CEO?
A
Justin Young, previously Richard Collins INTERM CEO
6
Q
What is the RICS motto?
A
Modus est rebus
There is measure in all things
7
Q
What are the 4 levels of membership
A
FRICS
MRICS
AssocRICS
Student/Trainee
8
Q
What do you need to become a Fellow?
A
4 of:
- 5yrs + of being MRICS
- A leadership role
- Professional/Technical achievement
- Academic Achievement
- Raising the profile of RICS
9
Q
What is the main governance structure of RICS?
A
Run by Governing Council
17 specialist groups each with its own board.
10
Q
What are the key UK Structures of RICS
A
4 national associations
10 Regional boards
Local Associations
11
Q
What are the three main roles of RICS?
A
- Maintain high standards of education and training
- Protect consumers through regulation of professional statements
- To be leading source of information and advice on land, property, construction and associated environmental issues
12
Q
What are the 5 main benefits of being a member of RICS?
A
- Status
- Recognition
- Market Advantage
- Knowledge
- Network
13
Q
What are the requirements for registering a firm with RICS?
A
- Company Office
- Contact Officer
- 25 % of principals RICS members
- Date firm established
- CHP in place
- PII in place
- Surveying services provided
- Other bits required e.g. VAT registration
14
Q
When are firms required to register with RICS?
A
- More than 50% of principals are members
- Provide surveying services to the public
- Firm is operating in Regulated A
15
Q
When are firms eligible to register?
A
- At least 25% of principals are members
- Firm provides surveying services to the public
16
Q
What are the principles for better regulation?
A
PACTT
Proportionality
Accountability
Consistency
Transparency
Targeting (serious breaches)
17
Q
What are the 5 rules for all in the new RICS Rules of Conduct?
A
- Honesty, Integrity, Comply with all obligations
- Maintain professional competence
- Provide good quality and diligent service
- Treat others with respect
- Act in the public interest, take responsibility for their actions and act to prevent harm.
18
Q
What is the hierarchy of RICS documents? What rule number is it?
A
- International Standards
- Global Professional Statements
- UK Professional Statements
- Guidance notes
- Codes of Practice
19
Q
What are the rules around Complaints Handling? What rule number is it?
A
- Must have a complaints handling procedure
- Must include a redress system
- Must have complaints handling officer and complaints handling log
- Free of charge to individual complainant
- Sole traders can’t deal with the complaint themselves
20
Q
What is the RICS Document that covers Complaints Handling?
A
RICS Guidance Note- Complaints Handling
21
Q
What is Fisher Germans Complaints Handling procedure.
A
- All complaints referred to Compliance Director
- Formal response in writing within 7 days
- Within 20 days we will provide outcome of investigation into the complaint
- If the complaint is still unresolved we will inform on progress of complaint
- If there is no response within 8 weeks they will be referred to property redress scheme or centre for effective dispute resolution
22
Q
What are the rules around CPD?
A
MRICS - 20 hrs a year -10 must be formal
Grads - 48 hrs a year - 24 must be formal
23
Q
What are the rules on handling client money?
A
- Must keep client money in a seperate named account
- Must be able to identify client
- Money held in separate client accounts must have control by competent staff
- RICS Client Money Protection takes place from 1st April 2019 dealing with regulated firms that deal with surveying or agency services
24
Q
What is a locum agreement? What rule is it?
A
Sole practitioners need cover in case of long term absence from illness, death, long term holidays more than 1 month, unseen events etc.
25
What is the process for Disciplinary Procedures?
3 levels of action
1. Action by Head of regulation
2. Disciplinary Action
3. Appeal Panel
26
What actions can be given by the Head of Regulation of RICS?
1. Fixed penalty notice (used only relation to supply of information)
2. Consent Order (minor breaches) - written document giving time period to stop an action
3. CPD Sanctions
4. Disciplinary Panel
27
What's the disciplinary Panel and what penalties can they impose?
- 50% of members are not RICS members
Penalties include:
- consent order
- unlimited fine (must be proportionate)
- conditions on future RICS membership
- expulsion
- publication of results of hearing
28
Whats the appeal panel
- Shall consider an appeal against a decision relating to disciplinary procedure
- Can consider new information
- 50% of panel are lay members
29
What is Money Laundering?
The concealment of the origins of illegally obtained money
30
What are the Money Laundering Regulations 2017?
Requires firms to undertake more stringent DD processes. e.g.
- stringent ID check
- cannot accept cash payments above EUR 10,000
- must have MLO
- Must perform AML checks on clients
31
What did the MLR 2019 do?
Added a number of other sections into the scope of MLR 2017:
| - Letting agency now in scope (where agreements have a monthly rent larger than EUR 10,000)
32
What is a bribe?
Something given in expectation of a change in behaviour
33
What are the offences under the Bribery Act 2010?
States offences of bribery:
- Giving a bribe
- Taking a bribe
- Bribing an official
- Bribing a foreign official
- Section 7: not having systems in place to prevent bribary
34
What are the key principles in the Bribery Act 2010?
- Due diligence
- Risk Assessment
- Proportionality (MOST IMPROTANT_
- Top level commitment
- Monitoring and Review
- Communication
35
What are the penalties under the Bribery Act 2010?
Individual: unlimited fine + up to 10yrs in prison
Firm: unlimited fine
36
What is the RICS note on conflicts of interest?
RICS Conflict of Interest Professional Statement Global 2016
37
What does the RICS Conflict of Interest Professional Statement Global 2016 provide?
An overarching obligation to members and firms to act with integrity and avoid conflicts of interest and avoid actions or situations that are inconsistent with its professional obligations.
38
What is the structure of the RICS Conflict of Interest Professional Statement Global March 2017
3 parts:
1. Professional Statement on Conflict of Interest and Confidentiality
2. Principles of how to apply professional statement
3. Supplementary notes and guidance on how to apply rules
39
What are the PII thresholds?
Turnover less than £100,000 = £250,000
Turnover between £100,001 - £200,000 = £500,000
Turnover more than £200,001 = £1,000,000
40
What are 3 benefits of RICS regulation for firms?
Confidence (for clients)
Professionalism
Security (PII cover, Complaints Handling)
41
What are principals in RICS regulation rules?
Sole practitioners
Directors
Partners
Board members
Anyone with equivalent status to the above
42
What’s a Responsible Principal?
Each firm must nominate one person who is obliged to ensure all reasonable steps are taken and systems in place to ensure compliance with regulatory and RICS requirements.
43
What are the 6 pieces of information required for RICS regulation as an annual return?
1. Type of business and staffing details
2. Statutory regulated activities (e.g. financial services)
3. Nature of clients
4. Complaints Handling Procedure details and records
5. Professional Indemnity Insurance details
6. Whether the firm holds client’s money
44
What are some reasons it might be appropriate to decline an instruction?
1. You are not competent
2. You do not have sufficient facts
3. The client will not sign TOE or AML checks
4. Conflict of Interest
5. PII cap cannot be agreed
6. Advice is pro bono and your PII does not cover this
7. Client is in UK government sanctions list
45
What are 3 steps you must follow when agreeing ToE?
1. Check Competence
2. Check Conflicts of Interest
3. Confirm TOE and get written approval before you start work
46
What is the RICS document on Conflicts of Interest?
RICS Global Professional Statement on Conflicts of Interest 2017
47
What are the three types of conflicts of interest as defined in RICS Global Professional Statement on Conflicts of Interest 2017?
Party Conflict - work on same instruction for 2 parties
Own Interest Conflict - relating to personal interest
Confidential Information Conflict - work which is confidential
48
What is the three step process you must follow when handling a Conflict of interest?
1. Conflict Avoidance - can you take the instruction without causing a conflict of interest
2. Written Advice to both parties
- Disclose nature of conflict, circumstances and
other relevant facts
- State how you intend to avoid the conflict (ie.
information barrier)
- Be as clear as you can so both parties can make decision
- Request written confirmation from both parties of their informed consent
Conflict Management - set up information barrier
49
What is the key message in RICS Global Professional Statement on Conflicts of Interest 2017?
A member must not advise or represent a client where doing so would involve a conflict of interest or a significant risk of a conflict of interest other than when those involved have provided their informed consent.
50
When don’t you need your clients approval when dealing with confidential information?
For statutory reasons e.g. HMRC or the Police
51
How long should old files be held before being disposed of?
6 years
52
What is the RICS Guidance on Complaint Handling?
RICS Guidance Note on Complaints Handling 2016
53
Does a written complaint handling procedure need to be approved by RICS?
YES
54
What should you remember about Complaints Handling Procedure?
- Written CHP must be approved by RICS
- Notify PII insurers when there is a complaint
- Details of CHP should be issued to client at same
time as TOB
- A complaints log must be maintained
- Firms must include an ADR in their CHP
55
What are the maximum levels of uninsured excess required by RICS?
Liability up to £250,000 = greater of 2.5% of the sum insured or £10,000
Liability over £500,000 = 2.5% of the sum insured
56
What are the rules on PII run-off cover?
For Consumer Claims
- A minimum of £1m of aggeregate cover over a
minimum of 6 years
For Commercial Claims:
- More lengthy cover up to 15 yrs after work was taken
57
What note sets out areas of good practice regarding Clients Money? What are the areas of good practice?
RICS Professional Statement ‘Client Money Handling’ 2019
Holding Client Money
Providing information to clients
Receipts of client money
Payment from client accounts
Accounting records and controls
Compliance
58
What are some key rules on Clients money?
- Client accounts must be kept seperately and identifiable
- The word client is on the bank account and cheque book
- Client should have monies on demand
- Bank reconciliations performed at least monthly
- Accurate records kept with running balance
- Annual audit obligations
- Signatories must be agreed with authorised staff and 2 signatures required
- Need to have procedures on website
59
What scheme does RICS run to protect client’s money?
Clients’ Money Protection Scheme
Last resort protection in instances where a RICS Regulated firm is unable to repay a client’s money
60
What schemes do RICS have to help members/firms with PII?
RICS Run-off Pool - firms unable to claim run-off cover
RICS Assigned Risk Pool - at cost for members who cant arrange cover
RICS Low Earners Scheme - for retired/part time members
Members Support Service for members facing claims carried out by an employer now in administration
61
What does the Rules of Conduct require in respect of Clients Money?
A firm shall preserve the security of client’s money entrusted to its care in the course of its practice or business.
62
What are the roles of RICS?
Global leading professional body promoting the highest standards in the property industry
63
What are the roles of RICS?
Global leading professional body promoting the highest standards in the property industry
Gold standard of professional regulation
64
Give some parts of RICS Structure
Governing council
executive team
regulatory board
management board
presidential team
65
what are the 5 principles of better regulation
transparent
proportional
accountable
consistent
targeted
66
In relation to PII what is the minimum limit of indemnity for turnover under £100,000?
£250,000
67
How many years after an instruction has been completed can a PII claim be made?
15 years
68
What type of cover would you need to cover a claim brought after a firm or member ceases to trade?
Run off cover
69
When did the Bribery Act 2010 come into force
1st July 2011
70
What is the name of the RICS guidance on bribery and money laundering and when is it effective from?
Professional Statement - Countering bribery and corruption, money laundering and terrorist financing, effective 1 September 2019
71
When did the new RICS Rules of Conduct take effect?
1st February 2022
72
How many new Rules of Conduct are there?
5
73
What are the 5 rules of conduct
1. must be honest, act with integrity and comply with their
professional obligations
2. maintain their professional competence
3. provide good-quality and diligent service
4. treat others with respect and encourage diversity and
inclusion
5. act in the public interest, take responsibility for their
actions and act to prevent harm and maintain public confidence in the profession
