SOE direct Qs - Mandatories Flashcards
What is RICS rule of conduct 1?
Members/firms must be honest, act with integrity and comply with professional and RICS obligations
What is RICS rule of conduct 2?
Members/firms must maintain professional competence and ensure services are provided by competent individuals with the necessary experience
What is RICS rule of conduct 3?
Member/firms must provide good quality and diligent service
What is RICS rule of conduct 4?
Members and firms must treat others with respect and encourage diversity and inclusion.
What is RICS rule of conduct 5?
Members/firms must act in the public interest, take responsibility for actions, prevent harm and maintain public confidence in the profession
Why were the new rules of conduct brought in?
To simplify the structure and to provide clear behaviour examples for each rule.
What is an example behaviour of rule 1?
Members and firms do not allow themselves to be influenced improperly by others (eg. gifts, hospitality or payments) or by their own self-interest.
What is an example behaviour of rule 2?
Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently
Members maintain and develop their knowledge and skills throughout their careers by undertaking relevant CPD.
What is an example behaviour of rule 3?
Members and firms understand clients’ needs and objectives before accepting any professional work.
Members and firms undertake their work in a timely manner.
What is an example behaviour of rule 4?
Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds.
Members and firms work cooperatively with others.
What is an example behaviour of rule 5?
Members and firms question practices and decisions that they suspect are not right, and raise concerns with the appropriate person.
The Rules of Conduct are based on what 6 ethical principals?
honesty
integrity
competence
service
respect
responsibility
When were the new rules of conduct effective from?
February 2022
When were the new rules of conduct published?
October 2021
What is a conflict of interest?
A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially
What is conflict avoidance in the context of conflict of interests?
You do not accept the instruction as there is a conflict of interest
what is conflict management in the context of conflict of interests?
when the instruction is accepted and steps are put in place to manage the conflict, eg information barrier with the written agreement of all parties
when did the RICS Global Professional standard: Conflicts of Interest 2023 come into effect?
19th july 2023
what is informed consent?
Consent given willingly by a party who may be affected by a conflict of interest. - must be given in writing and the situation must be explained entirely transparently to the affected party so that they know what they are doing
What are the 3 types of conflict of interest?
- Party conflict - relating to work on the same/related instruction for 2 different parties
- Own interest conflict - relation to personal interest
- Confidential information conflict - work between 2 parties that is confidential
What else must firms do to comply with the the RICS Global Professional standard: Conflicts of Interest 2017?
All firms must keep accurate records and have effective systems in place
What is an information barrier?
The physical and/or electronic separation of individuals (or groups of individuals) within the same firm that prevents confidential information from passing between them.
Why are conflict checks important?
Ensure impartiality and integrity as per Rules of Conduct (2022)
Ensure accurate work is undertaken that isn’t influenced by external factors
What is an example of where you have seen a conflict of interest managed in your firm
A member of my firm sent out a conflict of interest check after being asked to value a plot of land.
Another member of my firm then responded to check by confirming that the firm were acting on behalf of the developer looking to acquire the land and therefore the decision was made to decline the instruction to value the land.
This meant the conflict was avoided
When considering fees for an instruction, they should be….
Based on the current market and agreed on an ad-hoc basis with clients
What are the main elements included within a fee proposal?
Terms and conditions.
Scope of services.
Exclusions.
Assumptions.
Once you and your client agreed the services that are to be provided
verbally what would you do next?
Follow up with a formal letter which includes the terms and conditions, fees and scope of services that are to be provided.
What must terms of engagement state?
Clients agreement to the proposed fee basis
Payment of expenses
A copy of the firms complaints handling procedure is available upon request
Scope of work
3 steps to follow before taking on a job…
Check professionally competent
No conflicts of interest
Confirm terms of engagement and get written approval from the client
How might fees be calculated differently
- Fixed fee
- Time spent basis
- Performance based
- Percentage of project value
- Hybrid of the above
What is a deed of variation
It is a formal agreement between the involved parties to modify specific terms of a contract such as a lease without creating an entirely new contract.
What act includes BNG targets
2021 Environment Act
What does the 2021 Environment act enforce about BNG
- Any new development must improve biodiversity by a minimum of 10%
- This BNG can be achieved both on and off site, or via statutory biodiversity credits as a last resort
- BNG measures must be maintained to a minimum of 30 years
What developments are exempt from the BNG provisions of the 2021 environmental act
Certain small sites, householder developments, and permitted developments may be exempt.
What year is the equality act?
2010
Can you name some of the 7 key principles of the data protection act 2018
Lawfulness, fairness, and transparency – Data must be processed legally and fairly.
Purpose limitation – Data must be collected for a specific, explicit, and legitimate purpose.
Data minimisation – Only the necessary data should be collected and processed.
Accuracy – Personal data must be kept accurate and up to date.
Storage limitation – Data should not be kept longer than necessary.
Integrity and confidentiality (security) – Data must be protected against unauthorised or unlawful processing.
Accountability – Organisations must take responsibility for data protection compliance.
What is the data protection act 2018
The Data Protection Act 2018 (DPA 2018) is the UK’s implementation of the General Data Protection Regulation (GDPR) and sets out the legal framework for handling personal data. It applies to all organisations that process personal data, including businesses, public authorities, and charities.
How is the DPA 2018 relevant to surveying?
The DPA 2018 is crucial in handling personal and property-related data in property transactions, valuations, and land management. Compliance is essential when dealing with confidential client information and due diligence processes.
Where might you find the requirements for RICS firms handling clients money
The RICS Professional Statement on Client Money Handling (2019).
Can you name me some of the RICS requirements for handling client money
- Client money must be held in a separate designated client account (By an approved bank) and clearly labelled as a client account
- Client money must be protected and the firm must hold adequate PII
- Firm must hold proper accounting and record keeping
- Clients funds should be available on request and paid out without delay
- There must be full transparency and compliance (e.g regular independent audits or immediate reporting if there is a form of breach)
What act governs workplace H&S?
The Health and Safety at Work Act 1974
What does the The Health and Safety at Work Act 1974 outline
H&S executive
Employer responsibilities
Employee responsibilities
The Act requires that employers create policies and risk assessments to minimise risks
What is a balance sheet
Shows a company’s financial position at a specific point in time.
It includes the firms Assets and Liabilities
What is a profit and loss statement
Shows the company’s profitability over a specific period (e.g., quarterly or annually). Shows expenses and revenue
Profit/loss = net result after subtracting revenue from profit
Gross Profit: Revenue minus cost of goods sold.
Operating Profit: Gross profit minus operating expenses.
Net Profit: The final profit after all expenses, taxes, and interest.
What is a cash flow statement
Tracks the flow of cash in and out of the business over a specific period.
Can you name the differences between the numerous
kinds of financial statements, including balance sheets, cash flow
statements, and profit and loss (P&L) statements.
Balance Sheet: Shows a snapshot of the company’s financial position at a point in time.
P&L Statement: Measures the company’s profitability over a period of time.
Cash Flow Statement: Shows how cash moves in and out of the company over a period, providing insight into liquidity.
What is PPG?
Peaking power generation
What did securing a fee undertaking with the developer entail?
- After the developer had come to my client NPG with their proposal, NPG instructed us.
- We then approached the developer to ask if they would cover our professional fees, for the negotiation , we set out our fee undertaking and they agreed to cover them
- This meant our client weren’t exposed to professional costs
