RICS and Statutory documents in Subs Flashcards
what are the Rules of Conduct 2021
- honesty and integrity
- competence
- high quality diligent service
- treat others with respect and encourage diversity and inclusion
- take responsibility, act to prevent harm and maintain public confidence in the profession
What does the Bribery Act 2010 state?
- acts to prevent / reduce Bribery
- criminal offence
- companies are responsible for their employees’ corrupt acts
- hospitality is not prohibited by the act - must be proportionate and reasonable
- companies must meet criteria to prove they have taken steps to prevent bribery - identify the potential risks, staff training, provision pf clear policies and regular reviews
- offences: bribing, accepting a bribe, bribing a foreign public official, failing to prevent bribery
6 principles:
1. proportionality
2. top level commitment
3. risk assessment
4. due diligence
5. communication
6. monitor and review
what are the penalties under the Bribery Act 2010
10 years imprisonment and or unlimited fine - policed by the serious fraud office
what does conflicts of Interest 2017 say?
- must not advise or represent a client where doing do would involve a conflict of interest other than those who are or may be affected have provided their informed consent
- Informed consent should be only sought where it is in the interests of all parties
- RICS firms must have effective systems in place
- keep records
what does the Misrepresentation Act 1967
- Civil offence
- covers misinformation/false information for precontractual enquiries by the vendor or their agent to the proposed purchaser
- freehold or leasehold transactions
- sued for financial damages and or contract rescinded
what does the consumer protecting from unfair trading regulations 2008 state?
- covers the whole agency sales and lettings process
- criminal offence not treating customers fairly and/or providing misleading marketing information
- duty of care to not just clients but also all interested parties
- unlimited fine or prison for 2 years
- policed by the Trading Standards Office of the local authority
main principles
- apply to all lettings and sales
- agents must declare everything known about the property good or bad
- agents must not exert pressure on buyers
- if info is discovered during agency process this information should be passed on
- full due diligence is required for new instructions
- must be validated by the client
- disclaimers do not apply - this is criminal offence
What does Surveying Safely 2019 state?
- good practice principals for management of health and safety for firms and members
structure:
1. personal responsibilities for RICS members and firms
2. assessing hazards and risks
3. workplace health and safety
4. occupational hygiene and health
5. visiting premises and sites
6. fire safety
7. residential property surveying
8. procurement and management of contractors
Key areas
- safe person concept - behavioural responsibility for their own, their colleagues and others H&S while at work
- competent staff
- safe work equipment
- safe systems at work
- advice on health and wellbeing
- PPE
- loan working
what is covered in the Health and Safety at Work Act 1974?
duty to employer to ensure H&S and wellbeing
policed by the HSE - criminal offence - fines or imprisonment
must undertake, record and regularly undertake risk assessment
must report injuries
what are the UK Generally Accepted accounting principles
consists of a common set of accounting rules, requirements and practices issued by the Financial Accounting Standards Board (FASB) and Government Accounting Standards Board (GASB)
- sets out to standardise financial statements
- this is mainly used in the US
what are the International Financial reporting standards and what is IFRS 16
Accounting rules for public companies with goal of making financial statements consistent, transparent, and easily comparable around the world.
Issued by the International Accounting Standards Board
IFRS 16 is lease accounting standard - full cost of leases have to be accounted for on a balance sheet
an occupiers obligation to pay rent has to be recognized as a liability though sc payments would be accounted for separately
What does the UK General Data Protection Regulation 2016 and Data Protection Act 2018 include?
this is covered by the Data Protection Act 2018
it encourages people to know what and how their personal data is being used
principle of data accountability - organizations have to prove to the ICO how they comply with regulations
it sets out the rights to individuals data:
rights to access
rights to object
rights to rectification
rights to be informed
rights to portability
rights to restrict processing
rights to automating decision making
principles:
must use data for necessary purposes
processed lawfully, fairly and transparently
must keep up to date and accurate
appropriate security
sets out data controller and data processor
data controller is the person who decides how and why personal data is used and is directly responsible for GDPR
fines up to 4% if global turnover or £17.5 million whichever is the greater
Policed by the ICO
what is contained in the Equality Act 2010
equality act acts to prevent discrimination
real estate industry traditionally suffered from lack of diversity
embrace the 9 protected characteristics:
- gender
- sex
- sexual orientation
- age
- disability
- race
- religion
- marriage
- pregnancy
what does Property Measurement 2018 include
in the process of being updated after IMPS All Buildings has been released
lays out the application of the standard
technical definitions
IMPS Office
IMPS resi
What is the Valuation - Global Standards 2021 ?
- it is a framework for valuers to follow when undertaking valuations
- aims to provide consistency and transparency in the vals process
- structure
Intro
glossary
PS ( professional standards)
VPS (valuation technical and professional standards)
VPGA ( Valuation practice guidance applications)
IVS International Valuation Standards
Recent updates
- need for compliance with the Red Book - not use Partial or quasi or non red book
- In VPGA 1 valuation for financial reporting purposes - reference to IFRS 13 and 16 - 16 being that leases should be accounted for as a liability in a balance sheet and 13 is fair value measurement - defines fair value
- reference to use profits method for trading properties
- increased focus on sustainability and ESG in definitions, VPS 2 and 3, VPGA 2, and IVS
What is VPGA 2 of the Valuations Global Standards 2021
Secured Lending Valuations
- gives examples of conflicts of interest
- previous involvement is defined as the last 2 years but can be longer
- Up the valuer to make the ultimate decision on whether to act
- sets out reporting procedures
some extra reporting points:
- whether the valuation is suitable for mortgage purposes
- comment on ESG and sustainability
- and difference in value between the reported value and the special assumption
- valuation methodology
- disclosure of any involvement identified in TOE
- comment on any environmental considerations
