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MRICS > RICS Professionalism & Ethics > Flashcards

RICS Professionalism & Ethics Flashcards

1
Q

Who is the RICS President?

A

Anne Gray

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2
Q

Why do you want to become a member of RICS?

A

To enhance services to clients.

To fulfill our Comapny’s mission.

To feed the growth mindset I have been fostering in recent years

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3
Q

What are the key functions of RICS?

A
  1. Standard setting
  2. Framework for qualifications
  3. CPD Resources
  4. Professional regulation
  5. Research & Guidance
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4
Q

What is a Royal Charter?

A

Royal Charter: formal document from monarch

  1. Grants rights, recognition to organisations
  2. RICS: special status, recognition

3.Requires surveyors to maintain professional standards, public interest, ethical practices

Surveying profession focus

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5
Q

What do you understand by self regulation?

A

Self-regulation in RICS context:

  1. RICS sets own standards / ethics
  2. Monitors and enforces standards
  3. Investigates complaints, imposes disciplinary actions
  4. Promotes public trust, ensures quality
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6
Q

Can you tell me what you understand by the principles of better regulation?

A

Better regulation principles:

  1. Proportionality
  2. Transparency
  3. Accountability
  4. Consistency
  5. Targeted

RICS example: Focus on proportionality

Balances high-quality service with minimal burden

Promotes growth and competitiveness in surveying profession

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7
Q

What is a Bye-Law?

A

Rule or regulation established by
organisation or local authority to govern:

  • internal operations
  • members conduct

RICS examples:

Governance, membership, disciplinary procedures

Professional development requirements for surveyors

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8
Q

Give an example of one RICS Bye Law

A

Bye-law 5.2: Members must comply with RICS professional and ethical standards.

Ensuring surveyors maintain high-quality services and uphold the organization’s reputation.

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9
Q

What Money Laundering Regulations or legislation are you aware of?

A

UK Anti-Money Laundering Regulations:
Main laws:

  1. MLRs 2017
    (Money Laundering,
    Terrorist Financing
    and Transfer of Funds
    Regulations 2017)
  2. Sanctions & Money Layndering Act 2018
  3. Proceeds of crime act 2002
  4. Terrorism Act 2000

Supervisory body: FCA.
Key requirements: KYC, CDD, risk-based approach, and SARs.
Enforcement: Fines, imprisonment, and reputational damage.

RICS proffesional statement: Countering bribery and corruption, money laundering and terrorist financing -1st edition, February 2019

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10
Q

What is the Role of RICS?

A
  1. Benefit society through positive change
  2. Impact built and natural environments globally
  3. Advance surveying knowledge
  4. Promote the surveying profession
  5. Lead ethical, skilled surveyors and firms
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11
Q

Explain to me the new RICS Rules of Conduct - what do they replace?

A

They replace the former RICS Rules of Conduct for firms and for members, and the five global professional and ethical standards.

Simplified structure

Emphasis on:

  • Diversity & inclusion
  • Data & technology
  • Sustainability

Breaches: disciplinary action
Minor issues: self-corrective actions/improvements

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12
Q

On new Rules of Conduct:

When do they take effect?
Who do they relate to?

A

February 2022

Members and firms

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13
Q

What are the 6 ethical principles that the Rules of Conduct are based on?

A

1.Honesty
2. Integrity
3. Competence
4. Service
5. Respect
6. Responsibility

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14
Q

What are the 5 Rules of Conduct?

A

1.Honesty & integrity
2. Competence
3. Good Quality & Diligent service
4. Respect - Diversity & inclusion
5. Public interest

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15
Q

Give an example behaviour for each of the 5 rules

A
  1. Honesty and integrity:

Avoid misleading. For example budget analysis - setting out caveats.

  1. Professional competence: Maintain expertise through structured CPD and competent subcontracting.

Attending regular case law updates

  1. Diligent service: Work to agreed deadlines.
  2. Respect and inclusion: Ensure new roles are open to all in line with equality act
  3. Public interest: Publish complaints procedure and make it transparent - encourage referral to Ombudsman.
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16
Q

What are the core professional obligations of firms and members to RICS?

A
  1. Follow Rules of Conduct
  2. Complete CPD
  3. Maintain PII
  4. Handle complaints effectively
  5. Comply with sole principal requirements
    6.Cooperate with RICS regulations
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17
Q

What disciplinary procedures can the RICS impose?

A
  1. Warning or reprimand
  2. Undertakings
  3. Fines
  4. Conditions on membership
  5. Referral to disciplinary panel
  6. Suspension or expulsion
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18
Q

In what circumstances can disciplinary procedures be imposed?

A

If members or firms:

  1. Breach RICS Rules of Conduct
  2. Fail professional obligations
  3. Display unethical behavior
  4. Violate laws or regulations
  5. Show incompetence or negligence
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19
Q

Who did you vote for in the RICS Governing Council Elections? Why?

A

Jonathan Milner MRICS - Residential Seat

Why?

Clearer statement & clearer vision than the 1 other candidate

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20
Q

What bribery legislation are you aware of?

A

The Bribery Act 2010

Consolidated previous legislation

  1. Offering, promising, or giving a bribe (active bribery)
  2. Requesting, agreeing to receive, or accepting a bribe (passive bribery)
  3. Bribing a foreign public official
  4. Failure of commercial organisations to prevent bribery by persons associated with them
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21
Q

What are the penalties for accepting a bribe?

A
  1. For conviction in a Magistrates’ Court: A maximum sentence of up to 12 months imprisonment, and a fine
  2. For conviction on indictment in a Crown Court: A maximum sentence of up to 10 years imprisonment, and/or an unlimited fine.

For commercial organisations found guilty of failing to prevent bribery, the penalties can include an unlimited fine.

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22
Q

What is a bribe?

A

Financial or other advantage offered, promised, or given to another person

with intention of inducing or rewarding that person to improperly perform a relevant function

or to reward them for having already done so.

(Bribery Act, 2010)

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23
Q

What are the penalties for being involved in money laundering?

A

Various fines for failing to comply with regulations - and up to 14 years prison for serious offences

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24
Q

What constitutes an offence under the current money laundering regulations?

A
  1. Concealing origin of criminal proceeds
  2. Using criminal funds to purchase assets
  3. Failing to report suspicious activity
  4. Neglecting to implement appropriate customer due diligence measures
  5. Failing to establish and maintain adequate systems and controls
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25
Q

How long must you keep money laundering records for?

A

5 years beginning from:

the date a business relationship ends
the date a transaction is completed

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26
Q

What is PII Insurance

A
  • PII protects professionals from liability for losses arising from their services or advice
  • It covers legal fees and damages if a client sues for negligence, errors, or omissions
  • Without PII, professionals may be personally liable for damages, which could be financially devastating
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27
Q

Can you tell me about the RICS requirements in relation to PII?

A

Members to have PI with minimum indemnity of £250,000

The coverage must include:

  • Breach of professional duty
    negligence
  • errors and omissions,
  • must be in force at all times.
  • Failure to comply can result in disciplinary
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28
Q

What is a PII aggregation clause?

A

Combines multiple claims arising from a single event, related events, or a common event

Protects insurers and simplifies claims

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29
Q

What does ‘claims made’ mean in terms of PII?

A

Coverage provided for claims made and reported during the policy period.

Policy in force when claim is made and reported provides coverage.

Incident must have occurred after the policy’s retroactive date.

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30
Q

Is a PII excess usually paid for per claim?

A

Yes, a PII excess (also known as a deductible) is usually paid per claim.

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31
Q

In a negligence claim, what would help to show that you acted with consideration and due process?

A
  1. Compliance with RICS standards and guidelines.
  2. Detailed documentation and record-keeping.
  3. Clear communication with clients.
  4. Regular professional development and training.
  5. Proper risk management and quality assurance procedures.
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32
Q

Can good record keeping help to provide a defence in a PII claim?

A

Yes, good record keeping can help provide a defense in a Professional Indemnity Insurance (PII) claim by showcasing adherence to professional standards, clear communication, and appropriate decision-making, which can support your case during investigation and resolution.

But is not an indemnity alone.

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33
Q

If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?

A

First be sure you are competent - then:

  1. Review your current PII policy to ensure the additional services are covered.
  2. Contact your insurance provider or broker to discuss the new services and potential risks.
  3. Amend or extend your PII coverage to include the additional services, if necessary.
  4. Obtain written confirmation of the updated coverage from your insurer
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34
Q

What is run off cover?

A

Run-off Cover:

  1. PII protection for claims arising after ceasing practice or retiring.
  2. Covers services rendered during active policy period.
  3. Ensures continued protection against late-reported claims.
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35
Q

What RICS requirements are there relating to run off cover?

A

RICS requires that its regulated firms maintain run-off cover for a minimum of six years after ceasing practice or business.

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36
Q

What changes did RICS recently make to the Minimum Approved PII Wording?

A

Secured new insurance terms, providing greater fire safety cover for PII and launched new guidance on Risk, Liability and Insurance.

Under the new rules insurers are not permitted without specific dispensation to exclude fire safety claims on a property four storeys or less

Fire safety coverage must be provided as a minimum on an aggregate, defence cost inclusive basis.

This will allow more chartered surveying firms to obtain improved fire safety cover in their PII.

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37
Q

What precedent has caselaw set in terms of keeping adequate site notes (and therefore providing a defence in a PII claim)?

A

Hart v Large

the main scholary article on topic suggests record keeping could have helped.

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38
Q

Would a dictated report avoid the need to have any written site notes?

A

No - will be good together with site notes but not enough on it’s own

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39
Q

Explain PII requirements relating to fire safety cover

A

Insurers are not permitted without specific dispensation to exclude fire safety claims on a property four storeys or less

Fire safety coverage must be provided, as a minimum, on:

An aggregate, defence cost inclusive basis.

RICS is engaging very closely with listed insurers to improve fire safety cover

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40
Q

Explain PII requirements relating to cyber cover.

A

Cyber Cover:

Traditional PII policies have limited cyber coverage for:

Data breaches
Cyber-attacks
Security incidents
Consequences:
Financial losses
Reputational damage
Legal liabilities

Consider dedicated cyber insurance policy
Covers data breaches, cyber extortion, etc.
Includes business interruption & regulatory costs

41
Q

How long can a PII claim arise after the work is undertaken?

A

PII claims: usually within 6 years

Can vary

“Long-tail” claims: up to 12 years (latent defects)

42
Q

What is the Assigned Risks Pool (ARP)?

A

The ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of the RICS.

The ARP is collectively underwritten by all RICS Listed Insurers and managed on behalf of insurers and the RICS by Miller Insurance Services LLP.

43
Q

Who might need to access the ARP?

A

Those unable to easily get PII for a variety of reasons such as high risk practice

44
Q

Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance (1st Edition). April 2021

A
  1. Published April 2021
  2. Assists members, clients in understanding the main risks and liabilities associated with surveying.
  3. It guides members in the negotiation of equitable contracts with clients and the avoidance of major risks
  4. Helps maintain professional standards to minimize the chance of negligence.
  5. Requires Professional Indemnity Insurance (PII) to protect against claims arising from professional services.
  6. Utilize risk management strategies
  7. Consider obtaining dedicated cyber insurance policies
45
Q

Explain when you might agree a liability cap.

A

Residential mortgage valuation example
Low fees, but high potential liability
Surveyor charges £500 for valuation
Liability cap agreed: 10 times the fee
Maximum financial exposure capped at £5,000
Manages financial risks for surveyor
Provides clarity on compensation limitations for client

46
Q

How would you set out third party reliance in Terms of Engagement?

A

Include a clear statement: Specify that the report or services provided are intended solely for the named client and not for any third parties.

Limit third-party reliance:

Obtain written consent:

Define third-party responsibilities:

Include disclaimer:

Consider liability cap:

47
Q

What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?

A
  1. Scope of Services
  2. Liability Limitations:
  3. Third-Party Reliance:
48
Q

What is an annual return?

A

A snapshot of certain company information at the anniversary of the limited company’s incorporation.

It is a separate document from a company’s annual accounts.

The information is filed with Companies House and made publicly available, to allow anyone to verify the details and legitimacy of the company.

49
Q

Tell me what you understand about Complaints Handling Procedures
(CHP).

A
  1. Complaints log
  2. ADR part of process
  3. Publish it
  4. Never discourage escalation to ADR
50
Q

When and how can the RICS be involved in a complaint about a firm or member?

A
  1. Failure to utilise a complaints handling procedure
  2. Failure to disclose a conflict of interest
  3. Misuse of clients’ money
  4. Failure to answer correspondence
  5. Working with a conviction of a criminal office
    • Informal resolution: The RICS may act as a mediator to help resolve the complaint informally between the parties involved.
    • Regulatory action: If the complaint involves a serious breach of the RICS Rules of Conduct, the RICS may initiate regulatory action against the firm or member. This can result in disciplinary action or sanctions, such as fines or revocation of membership.
51
Q

Can you tell me about the CPD requirements for members of RICS? Why is CPD important?

A

All members must undertake a minimum of 20 hours CPD each calendar year (January to December).

Of the 20 hours at least 10 hours must be formal CPD

Important for maintaining competence and trust in profession

52
Q

Tell me about the RICS’ guidance on dealing with Conflicts of Interest.

A
  1. A conflict of interest can occur when a firm or member’s personal interests, loyalties, or relationships conflict with their professional duties
  2. Members and firms have a duty to disclose and manage conflicts of interest. This includes identifying conflicts, assessing the risk of harm to the client
  3. Members and firms should have policies and procedures in place to identify, manage, and disclose conflicts of interest.
  4. Professional judgment: Members and firms should use professional judgment to determine the appropriate course
  5. Independence: Members and firms should maintain their independence and objectivity when dealing with conflicts of interest.

Overall, the RICS’ guidance on dealing with Conflicts of Interest is intended to ensure that members and firms act with integrity and maintain the trust of their clients and the public.

53
Q

What is double dipping (dual agency)?

A

Double dipping, also known as dual agency, is a situation in real estate where an agent represents both the buyer and the seller in the same transaction, potentially earning commissions from both sides. This can create a conflict of interest, and to avoid it, many recommend separate agents or only representing one party.

54
Q

Why is double dipping (dual agency) an unacceptable practice?

A

One agent cannot represent the material interests of both seller and buyer

55
Q

How would you close down a regulated firm?

A
  1. Agree on a closure date
  2. Seek advice if the firm is insolvent
  3. Inform staff and clients
  4. Deal with outstanding money in client accounts
    5.Notify PI insurer for run-off cover
  5. Arrange files
  6. Notify former clients to return any leases or other original documents being held for them
    8.Inform RICS and fill in the firm deregistration form
  7. Set up a notification system for anyone trying to contact the firm after closure
  8. Contact other relevant parties such as insurance providers, accountants, and the Information Commissioner.
56
Q

What can you tell me about RICS guidance relating to bribery, corruption or money laundering?

A

RICS guidance: “Countering Bribery and Corruption, Money Laundering and Terrorist Financing” professional statement - Feb 2019

Status - Mandatory for RICS members

Covers risk assessment, policies, procedures, staff training, customer due diligence, and reporting
Emphasizes risk-based approach
Non-compliance may result in disciplinary action or sanctions

57
Q

What are some of the key principles of RICS guidance relating to bribery, corruption or money laundering?

A

According to RICS guidance members and firms must:

  1. Do a suitable risk assessment of their activities
  2. Put in place anti bribery, corruption and money laundering policies and processes

Example: Gifts policy, ID checks for new clients

  1. Carry out training of staff
  2. Encourage vigilance
58
Q

What must/should firms/members do to comply with the money laundering/corruption bribery guidance?

A

Must do:

  1. Comply with RICS professional statement on countering bribery, corruption, money laundering, and terrorist financing
  2. Conduct risk assessments for bribery, corruption, and money laundering
  3. Implement policies and procedures to mitigate identified risks
  4. Perform customer due diligence (CDD)
  5. Train staff on recognizing and reporting signs of bribery, corruption, and money laundering
  6. Report suspicious transactions or activities to relevant authorities

Should do:

  1. Appoint a compliance and ethics champion
  2. Establish a code of behavior for ethical conduct
  3. Regularly review and update risk assessments and policies
  4. Use a risk-based approach for applying enhanced or simplified due diligence
  5. Refresh customer due diligence periodically
  6. Share best practices and experiences within the firm
59
Q

What are the current RICS rules for registration of firms?

When did these last change?

A

RICS Registration Rules Summary - last changed: Feb 2022

  1. Rules apply to firms needing or eligible for RICS regulation
  2. Firms must register if providing surveying services, operating in regulated areas, and at least 50% of principals are RICS members
  3. Firms are eligible to register if providing surveying services and at least 25% of principals are RICS members
  4. Registration process includes providing required information, agreeing to share information, and accepting RICS’ decision
  5. Firms must appoint a Responsible Principal to ensure regulatory compliance
  6. Registered firms must follow RICS’ Rules of Conduct, Charter, and Bye-Laws, and inform RICS of disciplinary findings or material changes
60
Q

What is a phoenix firm?

A
  • A company emerging from a previously dissolved or liquidated firm
  • Often has the same or similar management and ownership structure
  • Created to avoid debts or obligations of the original company
  • Can undermine the integrity of the profession and harm the reputation of RICS and its members
61
Q

What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?

A

Summary of RICS logo and ‘Regulated by RICS’ designation usage rules:

  1. RICS logo can be used by Members and Registered Firms only.
  2. ‘Regulated by RICS’ designation is exclusive to Registered Firms.
  3. Compliance with RICS guidelines and obligations is mandatory.
  4. Logo and designation must not be altered or misused.
  5. Firms must display the designation on business literature and communications.
  6. Sole practitioners can use the ‘chartered surveyor’ designation.
  7. Partnerships and companies can use the designation under specific conditions.
62
Q

Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.

A

Sole practitioners can use

Regulated companies can use if board is 50% or more MRICS or above, subject to further conditions, including:

Written agreement around code of conduct
Can only be in trading name

63
Q

What must be included in ToE relating to firm regulation?

A
  1. Statement indicating the firm is regulated by RICS for surveying services.
  2. Name, job title, and contact details of the Responsible Principal.
64
Q

What must be included in ToE relating to firm regulation?

A
  1. Statement indicating the firm is regulated by RICS for surveying services.

2.Name, job title, and contact details of the responsible principle

65
Q

What is a locum and who might need one?

A

Locum:
- A temporary professional who fulfills duties and responsibilities of another professional during their absence (e.g., vacation, leave)
- Commonly used by sole practitioner professiinals - surveyors, doctors

66
Q

How could a sole trader set up their CHP using a locum?

A

Identify suitable locum
Establish a written agreement
Update CHP with locum’s role
Train the locum on CHP
Inform clients and stakeholders
Monitor and review locum’s performance

67
Q

What RICS guidance relates to handling client money?

A

Client Money Handling Prof. Statement

Effective from 1 January 2020

68
Q

Explain your understanding of the RICS Scheme Rules relating to client money protection.

A
  1. Last resort protection for client money where firm can’t pay.
  2. General client money protection, covering money held by firms undertaking any surveying activities (Client Money Protection for Surveying Services); and

3.. residential agency activity in England protection, covering areas under the Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 (Client Money Protection for Residential Agents).

69
Q

What are the main client money protection schemes available to firms?

A
  1. RICS Client Money Protection Scheme
  2. Propertymark CMP Scheme
  3. UKALA CMP Scheme
70
Q

When were the main money protection schemes last updated?
What is the current compensation limit?

A
  1. RICS Client Money Protection Scheme - 25 June 2020

£50,000

  1. Propertymark CMP Scheme
  2. UKALA CMP Scheme
71
Q

What is the RICS money protection scheme claim limit?

A

£50,000

72
Q

What does the annual regulatory review fee relate to?

A
  1. Mandatory
  2. Covers monitoring, supervision, and regulation
  3. Ensures compliance with professional standards and rules
73
Q

What might client money include?

A
  1. Rent payments
  2. Tenancy deposits
  3. Service charge funds
  4. Sale proceeds
  5. Purchase deposits
74
Q

How does client money differ to office money?

A

Back:
Client Money:
1. Funds held on behalf of clients
2. Examples: rent payments, tenancy deposits, service charges

Office Money:
1. Funds belonging to the firm
2. Examples: fees, commissions, operational expenses

75
Q

What are some of the key principles of the RICS Professional Statement relating to client money protection?

A
  1. Segregation of client and office money
  2. Use of designated client accounts
  3. Regular reconciliations and record-keeping
  4. Timely distribution of funds
  5. Client money protection scheme participation
  6. Transparent client communication
  7. Compliance and training for staff
76
Q

Explain the key themes from the RICS Futures 2020 Report.

A
  1. Urbanization and demographics: With rapid urbanization and changing demographics, surveyors must adapt to
  2. Climate change and resource scarcity: Surveyors play a crucial role in promoting sustainable practices
  3. Technology and data revolution: Surveyors must embrace emerging technologies
  4. Globalization and economic shift: Surveyors need to navigate global economic shifts
  5. Evolving role of the surveyor: Surveyors must adapt their skills, expand their expertise, and engage in CPD
  6. Collaboration and partnerships: Surveyors should collaborate with diverse stakeholders, form strategic partnerships
  7. Regulation, ethics, and trust: Surveyors must uphold high ethical standards, maintain trust, and adhere to robust regulatory frameworks
77
Q

Explain the potential implications of the Hart v Large case.

A
  1. Reinforces duty of care towards clients
  2. Importance of clear scope of work and level of service
  3. Diligence in identifying and reporting defects
  4. Awareness of professional liability
  5. Emphasis on continuous professional development (CPD)
  6. More of a need to recommend further investigations
78
Q

Explain your understanding of precedent set in Burgess v Lejonvarn.

A
  1. Professional duty of care can exist without a formal contract or charging a fee
  2. Professionals can be held liable for negligence in their professional capacity, regardless of informality
  3. Emphasizes the importance of maintaining high professional standards in all situations
79
Q

What do RICS set out as good practice for the use of social media in their Regulation document (June 2021)?

A

RICS is unlikely to start investigations about social media posts that:

  • are critical of an organisation or its policies and performance, rather than individuals
  • use professional and respectful language
  • are removed if a member receives a request to do so

Basically, uphold RICS professional standards even from a personal perspective

80
Q

Explain your understanding of the RICS Levitt review.

A
  • There have been problems with RICS in terms of governance
  • Review et up re. concerns about lack of transparency over finances + dismissal of non execs
  • Concluded a power struggle had developed in governance which compromised RICS
  • Recommended “wide-ranging examination of purpose, governance” by external reviewer
  • Accepted in full by RICS
  • Led to Bichard review
81
Q

What is whistleblowing?

A
  • Protected by law under the Public Interest Disclosure Act 1998.
  • Provides legal protections for employees who disclose information about wrongdoing within their organizations.
  • Applies to a wide range of workers
  • Protects whistleblowers from retaliation or dismissal for making a protected disclosure in good faith.
82
Q

What does good governance mean to you?

A

Good governance, to me, means that those conducting the management and leadership of an organisation should lead by example.

In RICS context:

Uphold and be seen to uphold the RICS Rules of conduct

83
Q

Explain what the Pandora Papers are and the ethical issues raised within them.

A
  • Massive leak of financial documents revealing offshore holdings of wealthy individuals
  • Raises ethical issues around tax avoidance, conflicts of interest, transparency, accountability, and professional ethics
  • Highlights need for greater transparency and accountability in global financial system
  • Sparks debate about role of wealthy and powerful in shaping global economy and pressure on governments to address financial wrongdoing.
84
Q

Explain what you understand by the RICS Bichard Review.

A
  • External review conducted as an outcome of the Levitt Review
  • Set up to review the purpose and governance of RICS - March 2021
  • RICS endorses recommendations
  • 36 recommendations made, including
85
Q

Explain some of the recommendations of the Bichard Review.

A
  1. Renewed focus on public interest remit
  2. Maintaining self-regulation through greater independence of regulatory function
  3. Increased focus on diversity
86
Q

How will Bichard recommendations be implemented by RICS?

A

3 phases

  1. Transitioning responsibilities from chair of governing council to president + new chair of board + consultation on changes made
  2. Phase 2 would focus on creating a new RICS board
  3. Phase 3 the establishment of 5 key committees
87
Q

How do professional integrity and professional ethics differ?

A

Professional Integrity:

  • Quality of being honest, trustworthy, and reliable
  • Essential for maintaining trust and confidence

Professional Ethics:

  • Set of moral principles and values
  • Provide framework for decision-making
  • Essential for maintaining public trust
  • Defined by RICS’ code of conduct
88
Q

What is modern slavery and how would you identify red flags of it?

A
  • Coercion or control used to exploit individuals for labour, services, or commercial sex.
  • Human rights violation and a crime
  • Businesses have a responsibility to prevent modern slavery

Red flags include:

  • Below-market level tender prices
  • Poor reputational visibility
  • Lack of trade body membership
  • Poor living conditions
89
Q

Explain the implications of the Sanctions and Anti-Money Laundering Act 2018.

A

Gives UK authorities more power to impose sanctions and target money laundering.

  • It imposes stricter requirements on financial institutions.
  • Requires greater transparency around beneficial ownership.
  • Allows UK to impose its own sanctions.
  • Businesses must comply with the new obligations imposed by the Act.
90
Q

What is the sanctions list and why should you be aware of it?

A

The Sanctions List is a list of individuals, groups, and entities subject to sanctions or restrictions.

Being aware of the Sanctions List is important as failure to comply can result in legal and reputational risks, and engaging with sanctioned individuals or entities can negatively impact future business.

91
Q

Why was the Register of Overseas Entities introduced?

A
  • improve transparency around ownership of UK property by overseas entities.
  • combat money laundering
92
Q

What are the six RICS values published as a result of the Levitt review?

A

1.Honesty
2. Integrity
3. Competence
4. Service
5. Respect
6. Responsibility

93
Q

Explain the impact of the Economic Crime (Transparency and
Enforcement) Act 2022.

A

-Includes a beneficial ownership register,

  • strengthened unexplained wealth orders
  • Made changes to UK sanctions.
  • Companies House to undergo reforms to improve the quality of info
  • Solicitors must declare in public records who ultimately benefits from property ownership.
94
Q

How do you ensure that you comply with bribery legislation?

A
  1. anti-bribery policy.
  2. due diligence on individuals and organizations.
  3. Provide training and awareness.
  4. Implement internal controls to prevent bribery.
  5. Regularly review and assess effectiveness.
  6. Encourage reporting
95
Q

How do you ensure you comply with money laundering regulations?

A
  1. Anti-money laundering policy.
  2. Conduct customer due diligence.
  3. Monitor for suspicious activity.
  4. Provide training and awareness.
  5. Implement internal controls to prevent money laundering.
  6. Maintain records of due diligence, monitoring, and reports.
96
Q

Tell me about your understanding of your firm’s process for escalating a complaint to Alternative Dispute Resolution (ADR).

A

Common occurrence for service charge disputes

Firm open to mediation and see this as sensible step when working with debt recovery firms - will naturally happen pre-court - senior manager and PM always present

97
Q

Tell me about a conflict of interest check you have carried out.

A

Freeholder wished to invite us to tender - we consulted portfolio list and noted there was a conflict with a client in dispute with them

Politely declined the request to tender

98
Q

What are the main types of RICS conflicts of interest?

A
  1. Own Interest Conflict: Exists when personal interests of individuals involved in a matter create conflicts, such as commission or success-based remuneration.
  2. Party Conflict: Occurs when duties owed to different clients or parties conflict, such as in expert witness roles or impartiality in appointments.
  3. Firm Party Conflict: Arises when a single regulated firm accepts multiple professional assignments with conflicting clients’ interests.
  4. Multi-disciplinary Firm Conflict: Involves a regulated firm providing different services with conflicting duties in related transactions.
99
Q

If you were to set up in practice on your own, tell me about the types of insurance you would need.

A

We already have set up:

  1. Professional Indemnity Insurance (PII):
  2. Public Liability Insurance: Covers injury or damage claims from third parties.
  3. Employers’ Liability Insurance: Required if hiring employees, covers work-related injuries/illnesses.
  4. Office Insurance: Safeguards office premises, equipment, and contents.
  5. Cyber Liability Insurance: Shields against data breaches and cyber-attacks.
  6. Directors and Officers Insurance (D&O): Protects directors/officers from personal liability claims.

MRICS (14 decks)

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