SUMMARY - FINAL Flashcards

1
Q

Ethics - (Role) What is the role of the RICS?

A
  • promote and enforce highest professional qualifications and standards
  • accountable to both members and the public
  • involved in policy inflience and political engagement
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2
Q

Ethics - (Regulate) How does the RICS set and regulate standards?

A
  • Professional and Ethical Standards - Rules of Conduct 2021
  • self-regulated - monitors compliance through Regulatory Board
  • compliance - CPD requirements
  • Disciplinary Procedures - Disciplinary Panel
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3
Q

Ethics - (Rules) What are the 5 rules of conduct?

A

1- members and firms must act with honesty and integrity and comply with professional obligations

2 - members and firms must maintain professional competence and ensure services are provided by competent individuals

3 - members and firms must provide good quality and dilgent services

4 - members and firms must must treat each other with respecct and encourage diversity and inclusion

5 - members and firms must act in the public interest, take responsabilitty, prevent harm and maintain public confidence

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4
Q

Ethics - (Rules) What are the 6 ethical principles the rules of conduct are based on?

A

integrity
competence
service
trust
respect
responsability
public interest

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5
Q

Ethics - (Trust) How do you promote trust in the profession?

A

Ensure I am competent and provide good quality and diligent services

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6
Q

Ethics - (Bribery) What anti-bribery CPD have you completed?

A

Internal CPD seminar by Compliance Officer

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7
Q

Ethics - (Bribery) What is the UK Bribery Act 2010?

A

Aims to reduce bribery in UK and abroad
A bribe can be giving, offering, or promising, or receiving of an advantage such as payment or gift

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8
Q

Ethics - (Bribery) What are the 6 principles of the UK Bribery Act 2010?

A
  1. Proportionality
  2. Top level committment
  3. Risk assessment
  4. Due dilligence
  5. Communication
  6. Monitoring and review
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9
Q

Ethics - (Bribery) What are the 4 offences?

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a forein public official
  4. Failing to prevent a bribe
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10
Q

Ethics - (Bribery) Who is responsible for corrupt act?

A
  • company unless can demonstrate sufficient procedures in place
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11
Q

Ethics - (Bribery) Are hospitality events prohibited?

A
  • UK Government states no, as long as the gift is proportionate and reasonable and accurately recorded/logged
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12
Q

Ethics - (Bribery) What are the penalties?

A
  • maximum penalty of 10 years imprisonment
  • unlimited fine for companies or individuals
  • Policed by serious Fraud Office
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13
Q

Ethics - (Bribery) How do you identify a bribe?

A

Excessively generous gifts

cash payments

lavish entertainment, vacations

accommodations that seem to go beyond standard business hospitality.

Language used

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14
Q

Ethics - (Bribery) Under Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019), what must RICS regulated firms do?

A
  • not offer or accept bribes
  • have procedures in place to comply with law
  • report suspicious (SAR)
  • act with due dilligence (CDD, EDD)
  • retain records to show compliance to this statement
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15
Q

Ethics - (AML) What is Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019).

A

Mandatory, global requirements to guide its members and firms on how to prevent and address these illegal activities

Works off regulations on Terrorist Financing and Transfer of Funds Regulaions (2017)

Part 1: Bribery and corruption
Part 2: Money Laundering and Terrorist Financing

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16
Q

Ethics - (AML) Under Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019), what are firms required to do?

A
  • Not facilitate or be complicit in TF or ML
  • have systems in place to comply with laws
  • report suspicious (SAR) to UK National Crim Agency
  • undertake CDD and EDD
  • Retain records to show compliance
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17
Q

Ethics - (AML) What is Money Laundering?

A

Proceeds of criminal activities are disguised or converted and then realised as legitimate assets

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18
Q

Ethics - (AML) What does Terrorist Financing and Transfer of Funds Regulation (2022) mainly cover?

A
  • estateagency work and relevant financial business work

key provisions
- written money laundering and terrorist financing risk assessment
- implement systems to mitigate risks
- adopt appropriate internal controls
- provide staff training
- comply with new customer, enahnced, and simplified due dilligence
- comply with requirements relating to PEP’s
- ensure record keeping, policies and procedures
- AML checks to confirm identity and check source of funds before contracts exchanged
- inclusion of high risk factors when assessing need for enhanced due dilligence e.g. high risk countries

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19
Q

Ethics - (AML) What are estate agents obligations under Terrorist Financing and Transfer of Funds (2022) regulations?

A
  • register with HMRC if let properties more than £10,000/month
  • CDD checks for sales and new lettings
  • EDD for any red flags (high risk countries, PEP)
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20
Q

Ethics - (AML) What are the key requirements under Terrorist Financing and Transfer of Funds (2022) regulations?

A
  • limit of £10,000 for acceptance of cash
  • client relationships monitored
  • compliance manager appointed
  • nominated person appointed to report suspicions with a Suspicious Activity Report (SAR) to National Crime Agency
  • firm must maintain records for minimum of 5 years
  • report to companies house any discrepencies they hold between inhouse data
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21
Q

Etrhics - (AML) What is CDD?

A
  • identify client (e.g. passport, driving licence)
  • check companies house to understand company structure
  • name, company number, adress of registerd office
  • name of directors
  • nature of busines relationship and proposed funding arrangement
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22
Q

Ethics - (AML) What is EDD?

A
  • additional procedures for ‘high risk third country’ or PEP
  1. source of funds
  2. in dpeth document verification
  3. continuous monitoring
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23
Q

Ethics - (AML) What are the penalties for Money Laundering?

A
  • 14 years prison sentence / unlimited fine for money laundering
  • 5 years prison / unlimited fine for tipping off by informing them that they are under suspicioun for money laundering
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24
Q

Ethics - (AML) If asked about AML, what would you consider?

A
  1. Money Laundering, Terrorist Financing, Transfer of Funds (2022) Regulations
  2. Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)
  3. DD procedures (CDD, EDD)
  4. Professional objectivity, openness and transparency
  5. Red Flags
  6. Sactions - see HM Treasury’s OFSI list against people, companies, countries,
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25
Q

Ethics - (AML) What are Red Flags relating to AML?

A
  1. not showing identity documents
  2. changes to parties involved
  3. urgency!
  4. unusual currency
  5. unusual payment terms
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26
Q

Ethics - (AML) - How can you find out about sanctions?

A

HM Treasury’s consolidated list

  • can always check existing clients by subscribing to sanctions list to get notified
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27
Q

Ethics - (AML) - What to do if client match on sanctions list?

A

report to Office for Financial Sanctions Implementation (OFSI)

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28
Q

Ethics - (AML) -What regulations police money laundering?

A

Proceeds of Crime Act 2002
- allows authorities recover monies
- also sets criminal offences

Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017

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29
Q

Ethics - (AML) Talk me through Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 ammended 2022

A
  • CDD
  • EDD for PEP’s
  • SAR - reporting to UK National Crime Agency (NCA)
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30
Q

Ethics - (Gifts) What is your companys policy on declaring gifts? (Level 1)

A

Declare to compliance team:

Who the gift is from or for;
The gift’s monetary value;
Its business purpose;
If and which director/team head has approved the gift;
When the gift was given or received;
Any other additional information that may be relevan

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31
Q

Ethics - (Gifts) Talk me through disclosing gifts example? (Level 1)

A

I was invited to a hospitality event by a supplier trying to win business
as this was a conflict of interest, I informed compliance, and rejected the invitation

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32
Q

Ethics - (Gifts) If aasked about the acceptance of cash, hospitality, what do you consider?

A
  • UK Bribery Act 2010
  • Organisation’s Procedures
  • Professional objectivity, openness, transaparency
  • Proportionality
  • Sanctions
  • Employment contract details
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33
Q

Ethics - (Misrepresentation) Talk me through avoiding misrepresetaion example? (Level 2)

A

prior to issuing marketing collateral for an office renovation I ensured the design speciication was accurate the project manager to ensure imagery aligned with design.

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34
Q

Ethics - (Misrepresentation) What is the Misrepresentation Act 1967 and what is the offence?

A

any misrepresentation made to proposed purchaser is regarded as a civil offence, actionable by tort.

can be sued for damages

action can be limited by effective disclaimer clause

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35
Q

Ethics - (Misrepresentation) - What are the 3 types of misrepresentation?

A

Innocent
Negligent
Fraudulent

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36
Q

Ethics - (Competence) Talk me through referring a specialist example? (Level 3)

A

In salisbury, a tenant issued me a written alterations proposal to upgrade their HVAC system and electrical power supply.

I advised the client to appoint a building surveyor and structural engineer to ensure that any changes comply with building regulations and won’t negatively affect the structural integrity or functionality of the building.

Rule 2 - maintain professional competence

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37
Q

Ethics - (Competence) Why did you appoint a building surveyor and structural engineer?

A

Building surveyor - ensure functionality / compliance with buildings regs
Structural surveyor - structural integrity

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38
Q

Ethics - (Integrity) Talk me through lease disposal, bishop auckland example? (Level 3)

A

My duty was to determine the market rent for a retail unit in Bishop Auckland, after liasing with the agent, and coming to an estimation, the client was dissatisfied as the Market Rent was lower then the previous tenants rent.

Rule 1 - must be honest, act with integrity

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39
Q

Ethics - (Integrity) What would you do if your client continued to pressure you on the Market Rent in Bishop Auckland?

A

If the client insisted on increasing the rent despite my advice, I would reiterate the potential risks of doing so, such as the property being overvalued and possibly remaining vacant for longer.

I would document my advice in writing to protect both the client and myself, ensuring it was clear that I had provided professional advice based on market evidence.

I would inform my client that advising on an increase would breach the rules of conduct, so would not increase the market rent.

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40
Q

Client Care - How do you uphold a high standard of care to all clients?

A

read PMA / AMA
understand deliverables
ensure timely and accurate report

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41
Q

Client Care - How would you establsh KPI’s?

A

Can be set by the client in the terms of engagement
Set in the business plan
Set dynamically during instruction

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42
Q

Client Care - What is NOI and how is it calculated?

A

NOI=GrossOperatingIncome−OperatingExpenses

before tax, amortisation, depreciation etc

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43
Q

Client Care - What is you fiirms Complaints Handling Procedure?

A

in line with Complaints Handling (2016) Guidance Note

Step 1 (in-house)
- written complaint issued to director (nominated person)
- acklowedgement of complaint issued within 7 days
- formal response in 28 days

Step 2 (Extenal)
- take complaint to independant redress provider, approved by RICS Regulatory Board

Centre for Effective Dispute Resolution (CEDR) - business

RICS Dispute Resolution Panel (DRP) - consumers

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44
Q

Client Care - How do you maintain a complaints log?

A
  • notify compliance officer of complaint who registers the complaint
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45
Q

Client Care - What is PII?

A

Professional Indemnity Insurance

Protection against negligence claims

PII is crucial as it safeguards them from potential financial losses arising from legal action or compensation claims made by clients or third parties.

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46
Q

Client Care - What is adequate PII?

A

Turnover proceeding year min. indemnity required for each and every claim
up to £100k £250k
£100-200k £500k
£200k or more £1m

Turnover proceeding year maximum uninsured excess
up to £10m 2.5% of sum insured or £10k (whicher greater)
Over £10m no limit

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47
Q

Client Care - How would you estimate PII if you are a new company?

A

Estimate turnover

Once you have turnover info, revise PII cover in-line with turnover

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48
Q

Client Care - How is a PII policy implemented?

A

minimum level of indemnity required based on turnover

also consider likely risk profile when deciding on level of insurance

policies must be under-written by RICS approved insurer

49
Q

Client Care - Talk me through Asset Management Reporting example (Level 2)

A

Asset management reportig for a mandate called HSPI
- detailed asset management initatives
- leasing updates
- measurement against KPI’s
- terms of engagement required reports to be delivered 1 week before quarter end

50
Q

Client Care - What is NOI and how is it calculated?

A

Net Operating Income

= Gross operating income - operating expenses

operating expenses (maintenance, utilities, marketting etc)

51
Q

Client Care - How do you measure against KPI’s?

A
  • budget v actual performance against business plan
  • rents, void, noi etc
52
Q

Client Care - How do you know when quarterly reports are due?

A
  • AMA typically 2-week post quarter end
53
Q

Client Care - What’s included in an AMA terms of engagement?

A
  • date
  • client
  • firm responsable
  • fees
  • additional expenses
  • scope of work / responsabilities
  • term
  • termination
  • KPI’s
  • reporting
  • CHP
  • dispute resolution
54
Q

Client Care - Talk me through lease disposal, Kensington example (Level 2)

A

For client care retail disposal, I took part in leasing strategy workshop with client to understand their objectives.

This included understanding their vision for the asset and the type of occupier. I prepared schedules of interest , reported on offers etc.

I understood my client wanted a minimum term of 10 years, and to target a fashion retailer to compliment the current tenant mix.

I adjusted the marketing to concentrate on the retail elements of Kensington.

  • market analsysis
  • understand competition
  • tailor brochures and HTML’s
  • direct outreach to shoe retailers
  • highlight property features that attract shoe retailers (good frontage, back of house storage
  • highlight tenant mix
  • highlight synergies to F&B operators
55
Q

Client Care - What is a schedule of interest?

A

schedule of interest is a chart that reflects current interested parties and their requirements

56
Q

Client Care - What were your clients requirements and long term objectives for lease disposal, Kensington example (Level 2)

A
  • target shoe retailer
  • long term objective was capital preservation
  • long hold
  • good covenant
57
Q

Client Care - How did you tailor the leasing strategy to target relevant tenants?

A
  • direct outreach to shoe retailers
  • highlight property features that attract shoe retailers (good frontage, back of house storage
  • highlight tenant mix
  • highlight synergies to F&B operators
58
Q

Client Care - How did you negotiate offers to align with your clients stratefgy?

A
  • understood business plan strategies and negotiated to them
59
Q

Communication and Negotiation - What are some different methods of communication?

A

written, visual, verbal

60
Q

Communication and Negotiation - How do you avoid conflicts and misunderstanding?

A
  • ensure clear and precise communication
  • avoid ambiguity
  • clear terms of engagement
61
Q

Communication and Negotiation - What did you learn on the 4-day negotiation course?

A
  • importance of win win outcomes
  • never agree to any terms until all terms are agreed
  • take breaks
  • negotiate in teams
62
Q

Communication and Negotiation - How do you negotiate a win-win outcome?

A
  • only give something away if you can get something back
63
Q

Communication and Negotiation - How did you identift a tenant was in debt? (Trowbridge)

A
  • credit control meetings
  • arrears reports off propman
64
Q

Communication and Negotiation - Why did you advise a tenant payment plans (Trowbridge)

A
  • no rent deposit
  • less aggressive than CRAR
  • tenant informed intention of wanting to pay
65
Q

Communication and Negotiation - How did you create a tenant payment plan?

A
  • template payment plan
  • include tenant details
  • arrears amount
  • duration
  • t&c’s etc
66
Q

Communication and Negotiation - On your quarterly client meeting example, how did you report on portfolio performance against benchmarks?

A
  • Bishop Auckland Client Meeting
  • report on rent collection, NOI, rents achieved against ERV’s, voids etc
67
Q

Communication and Negotiation - Whats the process for taking and issuing meeting minutes?

A
  • write meeting minutes in meeting
  • revise minutes
  • issue minutes to all parties
68
Q

Health and Safety - What is the Health and Safety at Work Act (1974)?

A

Regulations governed by HSE

69
Q

Health and Safety - What are the obligations for employees and employers under Health and Safety at Work Act (1974)?

A

Employers are required to ensure, as far as is reasonably practicable, the health, safety, and welfare of their employees. This includes:
- Providing and maintaining safe work environments, equipment, and systems of work.
- Ensuring safe handling, storage, and transportation of goods and substances.
- Offering appropriate information, training, and supervision to employees.

Employees must take reasonable care for their own health and safety and that of others who may be affected by their actions. Cooperate with their employer to comply with legal obligation

70
Q

Health and Safety - What is your firms Health and Safety policy?

A

?

71
Q

Health and Safety - What is Surveying Safely (2018)?

A
  • must ensure safe working environment
  • safe working equipment
  • safe systems of work
  • competent staff
72
Q

Health and Safety - How would you undertake a health and safety Risk Assessment?

A

Firstly, all organisations with more than 5 staff require one

Secondly, conducting my own when visiting site
- identify hazards
- identify who might be harmed
- evaluate risk
- evaluate severity
- record and implement them

73
Q

Health and Safety - What is a health and safety policy?

A

required for firms with more than 5 staff

  • details commitment to health and safety
  • details organisations H&S structure
  • risk assessment detailing risks in workplace and preventative measures
  • details of control measures
74
Q

Health and Safety - What risks does Surveying Safely (2018) seek to mitigate?

A

any harm when inspecting

75
Q

Health and Safety - What is the Occupiers Liability Act 1957 and 1984?

A

Duty of care owed to visitors and tresspasses

76
Q

Health and Safety - What is your firms lone working procedure?

A
  • charge mobile
  • inform colleagues
  • update calender
  • inform of attendees
77
Q

Health and Safety - How did you inspect safely at Victoria?

A

Acting in accordance with Surveying Safely, 2018

  • desktop risk assessment (current state, is there asbestos, is there scaffolding)
  • lone working procedures
  • check date tag of scaffolding
  • non slip shoes
  • hardhat
  • read and sign health and safety form
  • high vis jacket
  • safe to inspect alone? no - so guided by building surveyor
  • sign in and out of the building
78
Q

Accounting - What are financial statements?

A

required to submit annually to companies house and HMRC

  • balance sheet
  • income statement
  • cash flow statement
79
Q

Accounting - What are profit and loss accounts?

A

summary of a businesses income and expenditure

focus to demonstrate if company made profit or loss

80
Q

Accounting - What are balance sheets?

A
  • assets and liabilities

assets = cash, property, debtors

liabilities = loans, creditors

81
Q

Accounting - What are cash flow statements?

A

cash inflows and outflors

shows liquidity

82
Q

Accounting - What is IFRS 16?

A

leases must be incorporated into balance sheets

as assets (right to use something)

liabilities (the lease payments)

83
Q

Accounting - What accounting standards does your company report under?

A

UK GAAP

Parent company reports unde IFRS

84
Q

Accounting - How do you assess covenant strength?

A

CreditSafe (0-100 test)

Profit test (3x rent)

85
Q

Business Planning - What is your firms future strategy?

A

Sector agonostic
Grow AUM to £2b
Growth in different sectors

86
Q

Business Planning - What is the 3 horizon model?

A

Core business: 1-2 years
Emerging: 2-5 years
Transformative: 5 years +

87
Q

Conflict Avoidance - What is Conflicts of Interest (2017)?

A

Professional Standard on identifying conflicts

88
Q

Conflict Avoidance - What procedures do members and firms need to follow should a conflict arise?

A
  1. Identify
  2. Disclose
  3. Obtain informed consent
  4. Withdraw
  5. Manage
  6. Document
89
Q

Conflict Avoidance - How would you manage a conflict?

A

Information / ethical barriers
Agreed in writing first

  • ensure no information can pass between parties
  • take reasonable steps to operate
  • seperate surveyors (physically) and seperate support teams
  • securely held information
  • keep clear record of conflict audit trail
  • firms compliance officer should overee
90
Q

Conflict Avoidance - Talk me through a time where you have managed a conflict?

A
91
Q

Conflict Avoidance - What does Conflict of Interest (2017) say about conflicts?

A

Adhere to Conflict of Interest (2017)

must not represent or advise a client where doing to would involve a conflict of interest or significant risk - unless informed consent provided

informed consent must be given in writing - only obtained when totally transparent and all parties are best served by proceeding

92
Q

Conflict Avoidance - What is ADR?

A

Alternative Dispute Resolution

93
Q

Conflict Avoidance - What is mediation?

A

?

94
Q

Conflict Avoidance - What is arbitration?

A
95
Q

Conflict Avoidance - What is adjudication?

A
96
Q

Conflict Avoidance - What is litigation?

A

?

97
Q

Conflict Avoidance - How do you ensure clear Terms of Engagement, talk me through the process?

A
98
Q

Conflict Avoidance - What is Complaints Handling (2016)?

A

?

99
Q

Conflict Avoidance -What is your firms CHP?

A

?

100
Q

Data Management - What is the Data Protection Act 2018

A
101
Q

Data Management - What is the General Data Protection Regulations (UK) 2021?

A

?

102
Q

Data Management - What are the fines under GDPR and Data Protection Act (2018)?

A

4% global turnover
or £17.5m

103
Q

Data Management - If you identify a data breach, what would you do?

A

Report to ICO (Information Comission Officer) within 72 hours of breach
Report to compliance team

104
Q

Data Management - How do you protect sensitive information?

A

?

105
Q

Data Management - What are the limitations of third party databases?

A

?

106
Q

Diversity - What is the UK Equality Act 2010?

A

Regulations that governs equality in the UK

107
Q

Diversity - What are the 9 grounds under the UK Equality Act 2010?

A
  • sex
  • seual oritentation
  • gender
  • race
  • religion
  • age
  • disability
  • pregnancy and maternity
  • marriage or civil partnership
108
Q

Diversity - What does your DEI committee do?

A

promote and encourage DEI in workplace
Rule 4 of Code of Conduct 2021

e.g. maternity package

109
Q

Diversity - What is REB?

A

Real Estate Balance

110
Q

Inclusive Environments - How do you consider user needs in the built environment?

A
  • ramps
  • lifts
  • brail
  • rails
  • autmatic doors?
111
Q

Inclusive Environments - How and why would buildings be altered?

A

enable access from all user needs

112
Q

Inclusive Environments - How do you ensure inclusivity throughout the property lifecycle?

A

design - ensure accessibility is considered from various user needs perspectives, physically and socially, aligned with UK Equality Act 2010

during occupancy - owners, occupiers, managers must ensure potnetial users can reasonably do so despite disabilities

113
Q

Inclusive Environments - What legal requirements impact inclusivity?

A
  • Building Regulations 2020
  • Equality Act 2010
  • NPPF?
  • Health and Safety at Work Act 1974
114
Q

Sustainability - What are the three pillars of sustainability?

A
  • economic
  • environmental
  • social
115
Q

Sustainability - What is the definition of sustainability ?

A
  • Brundtland report 1987 - meeting the needs of the present without compromising the ability of future generations to meet their own needs
116
Q

Sustainability - What are EPC’s?

A

energy performance certificates

117
Q

Sustainability - What is MEES?

A

minimum energy efficiency regulations

118
Q

Sustainability - What did you learn from the CPD seminar on MEES?

A

new white paper on MEES windows

119
Q
A