Rules of conduct Flashcards
5 Rules of Conduct
1 - Members and firms must be honest and act with integrity
2 - must maintain professional competence and ensure services are carried out by individuals with the correct competence
3 - provide good quality service
4 - must treat others with respect and encourage diversity
5 - must act in the public interest and take responsibility for actions
Explain rule 1
Members and firms should not allow themselves to be influenced improperly through gifts and hospitality.
Remain impartial e.g. contractors
Explain rule 2
only act of clients if they have the necessary knowledge and skills.
Supervise where needed.
Explain rule 3
Members and firms must understand a clients requirements before acting on their behalf.
Explain rule 4
Members must treat everyone fairly and with respect
Explain rule 5
Members must question practices that are not right and keep the public confident in the profession
When was the RICS founded?
1868
Difference between RICS ethics and rules?
Ethics are moral values, rules are a framework to work towards.
Obligations for members?
- Minimum 20 hours of CPD 50% formal
- Must cooperate with RICS
- Must provide all information requested by the Standards and Regulation Board
Case Study
Lvl 2 - 18 Farnborough Rd valuation - conflict of interest and money laundering checks - then agreed TOE
Lvl 3 - Wellesley House Sale - AML check as the rental value was over £100,000 per annum
Client Care Principles
- Clients Objectives
- Regular Communication
What is CPF?
Client Performance Feedback
- Process of gathering and acting on feedback from clients
When should you decline an instruction?
- If you or the firm do not have the competency
- If there is a conflict of interest
- If the firm cannot meet the clients best interests
- If the work is unlawful
What is your companies complaints handling process?
- Compliant reported to a Senior Member of staff or designated complaints handler (Nick A)
- If the complaint cannot be resolved this is referred to the firms redress provider (Property Redress Scheme Borehamwood)
Guidance on money laundering?
RICS Countering bribery and corruption, money laundering and terrorist financing 2019
Whats is your responsibility when considering money laundering?
Members and firms must not facilitator money laundering or financial crime
How do you avoid money laundering?
- Identify any politically exposed persons (PEP)
- Persons with significant control (PSCs)
- Imposed sanction
When are you required to undertake a money laundering check?
- Lettings over £10,000 per month
- Sales over £100,000
- New instructions
- PEP
Process for AML checks?
- Input personal name or company into smartsearch which will confirm pass or fail
- It looks to identify the ultimate beneficial owner of the company (UBO) to check them.
- Can request structure chart to assist in identifying UBO
- If issue arises, disinstruct and report to National Crime Agency (NCA)
Names some Alternative Dispute Resolutions?
Arbitration
Litigation
Adjudication
Ethics (Case Study)
Lvl 2 Industrial 18 Farnborough Road - money laundering and conflict avoidance checks - agreed TOE
Lvl 3 Office Wellesley House
AML check for sale as over £100,000
Details requested from new client?
- Passport
- ID
- Bank Statements
Client Care (Case Study)
Lvl 2
Client 1 - weekly meetings with RBC - reports
Client 2 - Oades - Lease ending tenant informed 12 months prior, arranged dilapidation survey, access, reporting to client throughout
Communication and negotiation (Case Study)
LVL 2 - lettings - follow up email confirming figures, misrepresentation
Industrial - Oades - lease expiring - only renew on £11.30 psf (overrented) next door on the market for £18 psf (agent discussion)
advised the client
next door agreed at £17.50, put this to tenant for agreement.
