SOE related

Question 1

RICS governed by its Royal Charter, Byelaws, and Regulations.

Answer 1

Constitutional Documents.
RICS Royal Charter granted in 1881.
- Requires members to promote the profession for the public benefit.
- RICS has a seat on the Privy Council, advising the Crown.
- Gold standard of excellence.

RICS is self-regulated through the **Bye-Laws **and Regulations and internally monitored the Standards and Regulation Board (SRB).

Question 2

Bye-laws and Regulations?

Answer 2

Updated February 2020
* Byelaws - 10 enabling principles underpin RICS rules and regulations.
* Regulations - 10 which build on by-laws + further guide regulatory requirements
e.g. Designations, Membership and registration
* Byelaw & Regulation No. 5: Linked to the RICS ROC, which include 5 Rules.

Question 3

RICS Rules of Conduct - 5 Rules

Answer 3

1. Honest, Integrity Professional obligations.
2. Competence service necessary expertise.
3. Good quality and diligent service.
4. Respect. Encourage diversity and inclusion.
5. Public Interest, Take responsibility. Act to prevent harm. Maintain public confidence in the profession.

HIGRP

Question 4

Obligations for members.

Answer 4

3 Regulations for Member:
1. Comply with CPD requirements set by RICS
2. Cooperate with RICS
3. Promptly provide all information requested by the Standards and Regulations Board.

Question 5

Obligations for firms.

Answer 5

1. Publish a CHP
2. Ensure all previous and current work covered by adequate PII.
3. Sole principal make appt. arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
4. Cooperate with RICS.
5. Provide all information requested by SRB.
6. Display the “regulated by RICS” designation on business literature, in accordance with RICS’ policy.
7. Report to RICS any matter that they are required to report under the Rules for Registration of Firms.

Question 6

RICS Ethical Decision Tree.

Answer 6

Flow diagram key questions guiding the decision-making process:
1. Do you have sufficient facts on the issue?
2. Is it legal?
3. Is it in line with RICS ROC?
4. Have you consulted with appropriate people to make an informed decision? (e.g., senior colleagues).
5. Do you have clear reasoning in reaching your decision?

**The ultimate test: **
Would you be comfortable if your actions were made public – newspaper/internet?

Could you justify your actions if they were being challenged?

**Decide what action to take: **
Act / Record decision and reasoning.

Question 7

RICS Professional Standard, ‘Countering Bribery and Corruption, Money Laundering, and Terrorist Financing’

Answer 7

Mandatory, globally applicable requirements for RICS members and regulated firms in relation to bribery, corruption, money laundering and terrorist financing
Divided into 3 parts:
Part 1: Requirements
Part 2: Guidance
Part 3: Supplementary Guidance

Question 8

The relevant legislation.

Answer 8

The key legislation to consider is the Bribery Act 2010 and Proceeds of Crime Act 2002

Question 9

Bribery - definition

Answer 9

The offer, promise, giving, demanding, or acceptance of an advantage as an inducement for an action that is illegal, unethical, or a breach of trust.

Question 10

Corruption

Answer 10

The misuse of power for private gain.

Question 11

Money laundering

Answer 11

Concealing the source of the proceeds of criminal activity to disguise their illegal origin.

This may take place through hiding, transferring, and/or recycling illicit money or other currency through one or more transactions, or converting criminal proceeds into seemingly legitimate property.

Question 12

Terrorist financing

Answer 12

The solicitation, collection or provision of funds with the intention that they may be used to support terrorist acts or organisations.

Funds appropriated directly or indirectly for this purpose constitute terrorist funding.

Question 13

Rrecognise that ethics and professionalism are central to valuation integrity, as mandated by PS 2 of the RICS Valuation- Global Standards.

Answer 13

PS 2 Ethics, competency, objectivity, and disclosures.

act in accordance with the RICS Rules of Conduct
Independence, objectivity and the identification and management of conflicts of interest:

Question 14

Rule 1
I undertake a conflict of interest check before accepting instructions, in accordance with the RICS’ Professional Standard, ‘Conflicts of Interest’.
HOW?

Question 15

Rule 1
I identified a personal conflict when instructed to value a residential property in Manchester for Inheritance Tax (IHT) purposes. The property adjoined my friend’s parents’ home, and I had prior contact with the owner. I promptly informed my manager, who reassigned the case to another colleague.

Question 16

Rule 4
During negotiations for a rating appeal on a retail unit in Bury, I encountered hostility from the appointed agent. Despite our differences, I maintained respectful and professional communication, addressing all issues courteously. This approach facilitated a constructive resolution while upholding mutual respect.

Question 17

I act within my competence and recognise when to decline work
and review technical guidance before accepting new instructions.
I ensure my work is supervised and signed off by an RICS Registered Valuer.

Question 18

I comply with RICS’ CPD policy

Answer 18

Four requirements:

Members shall undertake a minimum of 20 hours CPD per annum
Of the 20 hours, at least 10 hours must comprise Formal CPD. The remainder can comprise Informal CPD (There is a guide on both definitions on the RICS website)
All members must maintain a relevant and current understanding of RICS Rules of Conduct during a rolling 3-year period.
All members must record their CPD activity using the RICS CPD Management System available online on the RICS website

Question 19

Rule 2
When approached by a friend for valuation advice on a house they were purchasing, I declined, explaining that I was neither qualified nor insured to provide such advice. I advised them to use the RICS ‘Find A Surveyor’ directory for assistance

Question 20

Rule 1
I inspected a retail unit as part of a Challenge involving an unrepresented ratepayer disputing their rateable value. The ratepayer, facing financial difficulties, implied that their business might close if rates were not reduced, seemingly to influence my decision. I remained empathetic but clarified that my duty was to ensure a fair and accurate rating list based on the evidence. I advised them to explore potential relief options with their local council.

Question 21

Rule 3
I undertook a Market Rent valuation for a doctor’s surgery whereby the landlord was formulating a lease agreement with the tenant.
I issued Terms of Engagement (TOE) outlining the scope of services.
During the valuation, I identified the absence of a valid Energy Performance Certificate (EPC) and advised the client of its necessity for formalising the lease.
The client confirmed they were arranging the certification. To meet the reporting deadline, I proposed proceeding with the valuation under the special assumption that an EPC compliant with the Minimum Energy Efficiency Standard (MEES) regulations was in place. This assumption was agreed upon and documented in the amended TOE.