Summary of Experience Questions Flashcards
What does the term “Ethics” mean to you?
Ethics are a set of moral principles that govern behaviour and the conducting of an activity. Essentially, they are principles of right and wrong behaviours.
Outline the RICS Client Money Handling Guidance
- All client money should be held in a client money account
- The Firm should have exclusive control of client money accounts
- The accounts should have the word “client” written in full and the name of the firm in the title of the account
- Money should be ready immediately even at the sacrifice of interest
- There cannot be any overdraft allowed
- Should be protected by one of the two RICS Client Money Protection Schemes
- Regular bank reconciliation
What is a cashflow?
Shows all money going in and out of a business.
What would you expect to see on a Profit and Loss statement?
Company revenues, expenses and losses, and net income over a specified period.
What would be required to set-up your own practice?
- Inform the RICS
- Appoint a Principal
- Register for regulation with RICS
- Arrange PI insurance
- Set up Client Money Handling and Protection Schemes
- Register with RICS Valuer Registration Scheme
- Obtain RICS approval of your Complaints Handling Procedure
- Set up a complaints log
- Use RICS logo kit
- Log CPD
- Plan for succession or death of a sole practitioner
- Complete annual RICS return
- Set up Client accounts and accounting services
What are business objectives and why do we need them?
Business objectives are specific and measurable outcomes that a company works to achieve.
It ensures a successful and healthy business growth or maintenance and enables a business to keep “in-check” with itself and provide a good quality service to its Clients.
What makes a successful business?
- Setting business goals
- Understanding client needs
- Market research
- Attracting and retaining good employees
- Transparency and accountability
- Diligent record keeping
- Building healthy relationships
How much Professional Indemnity (PI) Insurance should you have?
- Turnover of £100,000 or less = cover of £250,000
- Turnover of £100,001 to £200,000 = cover of £500,000
- Turnover of £200,001 or more = cover of £1,000,000
How would you close an RICS practice?
- Inform RICS of retirement or closure
- Ensure clients are informed and make hand-over arrangements
- Return monies held for clients to their own accounts
- Inform insurers and procure professional indemnity insurance run-off cover for min. 6 years
- Retain a copy of client files and records for min. 6 years.
What statutory compliance must a practice or firm comply with?
- Disclosing business name
- Equality Act 2010
- Health and Safety at Work Act 1974
- Bribery Act 2010
- Fire Safety
- Asbestos Register
- HMRC registration
- Pension schemes and employment law
- Ensure insurance compliance for employer and public liability
- Data Protection Registration
What six principles is the Bribery Act 2010 built upon?
- Proportionality
- Top level commitment
- Risk assessment
- Due Diligence
- Communication
- Monitoring and review
What are the four offences under the Bribery Act 2010?
- Bribing
- Receiving a bribe
- Bribing a foreign public official
- Failing to prevent bribery
What are the penalties for breaches of the Bribery Act 2010?
Imprisonment of up to 10 years and an unlimited fine.
What are the two levels of Due Diligence?
- CDD - Customer Due Diligence
- EDD - Enhanced Due Diligence
What is the role of the RICS?
To promote and enforce the highest professional qualifications and standards in the development and management of land, real estate, construction, and infrastructure.
When was the RICS founded?
The RICS was founded in 1868 and gained a Royal Charter in 1881.
Who is the President of the RICS?
Tina Paillet FRICS, but Justin Sullivan FRICS is President Elect
How would you become a Fellow of the RICS?
- Evidence of achievement of four fellowship characteristics, which are:
1. Five or more years at MRICS
2. Leadership role
3. Professional/technical achievement
4. Academic achievement or raising profile of the RICS - You must also demonstrate a portfolio of professional achievement including your CPD record.
What is the structure of the RICS?
President, Vice President, Governing Council, plus various boards and councils beneath them.
What are the five benefits of being an RICS member?
- Status
- Recognition
- Market Advantage
- Knowledge
- Network
What are the RICS disciplinary procedures?
Three levels of disciplinary action including:
1. Action by Head of Regulation
2. Disciplinary Panel (drawn from independent regulatory tribunal)
3. Appeal Panel
- Fixed Penalty Notices, Regulatory Compliance Order, Referral to Tribunal/
What must you do ahead of accepting an instruction?
- Check professional competence
- Check for conflicts of interest
- Confirm Terms of Engagement in writing and get written approval from client before starting work
When might it be appropriate to decline an instruction?
- You are not competent to undertake the work
- You do not have sufficient facts on the matter
- Proposed client wont sign terms or complete AML checks
- Conflict of interest
- Professional Indemnity Insurance liability cap cannot be agreed
- Advice is for a friend or on a pro bono basis and insurance doesn’t cover you for doing so
What are the three types of Conflict of Interest?
- Party Conflict - work on the same or related instruction for two different parties
- Own Interest Conflict - relating to a personal interest
- Confidential Information Conflict - relating to work between two parties that is confidential
What do you understand by the phrase “informed consent”?
Consent given in writing by a client or relevant party having been given the appropriate and sufficient information required to make a “yes” or “no” decision on a matter or instruction.
How should you handle a conflict of interest using the three-step process?
- Conflict Avoidance - decide if you want to accept or decline instruction.
- Written advice to both parties - if you accept, set out in writing a disclosure of nature of conflict, circumstances surrounding it, other relevant factors, and your proposal for management of conflict. Also request written confirmation from parties that they give informed consent for you to act.
- Conflict Management - once written consent provided, set up information barrier in accordance with provisions agreed with both clients.
What mandatory professional statement could you refer to if you suspect a Conflict of Interest?
RICS Conflicts of Interest Professional Statement 2017
How much CPD are you required to do post-qualification?
Minimum of 20 hours with 50% being classified as formal, and should also include CPD on ethics and professionalism.
What is Money Laundering?
When proceeds of criminal activities are disguised or converted and then realised as legitimate assets.
What might a “red flag” look like or be in terms of Money Laundering?
- Transactions from sanctioned jurisdictions such as Afghanistan
- Funds being transferred from unknown or unclear sources
- Client is secretive or evasive about who the client is
- Client avoids personal contact without good reason
- Unusual currencies or large over-payments
What are the sanctions and penalties surrounding Money Laundering?
14 years imprisonment and a fine.
What are the three offences under the Proceeds of Crime Act 2002?
- Concealing criminal property
- Arrangements - if they know or suspect but do not flag it
- Acquisition use and possession of criminal property
What are the requirements of the Data Protection Act 1998 and General Data Protection Regulations 2016?
- Obligation to conduct data protection impact assessment
- Data controller decides how and why personal data is processed
- Data security breaches much be reported to ICO within 72 hours of loss if a risk of harm to individuals
4.
What are the penalties under GDPR?
Fines of up to 4% of global turnover or £17.5 million, whichever is greater.
What are some examples of Protected Characteristics under the Equalities Act 2010?
- Sex
- Sexual orientation
- Gender reassignment
- Age
- Disability
- Race
- Religion or belief
- Marriage or partnership
- Pregnancy and maternity
What are the four types of illegal discrimination under the Equality Act 2010?
- Direct discrimination
- Indirect discrimination
- Harassment
- Victimisation
Outline the RICS Boundaries Guidance Note 2021.
- Provides members with an understanding of the value and role that clearly identifiable boundaries provide.
- Helps in event of a boundary dispute and sets out facts in a manner that assists parties and advisers.
- Safeguards interests of the client and promotes public interests.
- Gives guidance on conduct, setting up project, research, site visit, reporting, and court hearings.
What are the alternative dispute resolutions noted in the RICS Boundaries Guidance Note 2021?
Boundary Disputes Mediation Service
When would you record the outcome of a boundary dispute with the RICS?
Whenever a boundary dispute has a resolution to allow a public record of the agreement to be relied upon in the future. Two ways of achieving this are by entering a boundary agreement and having a determined boundary.
Outline the RICS Rural Arbitration Guidance Note 2017.
Designed to assist rural chartered surveyors who are appointed in acts of arbitration dealing with rural assets and property as advocates, experts, or the arbitrator.
Can you be an Arbitrator as a Chartered Surveyor?
Yes, if appointed by the President of the RICS. Usually, you will have had to complete additional examinations with the Chartered Arbitrators Institute and be registered duly with the RICS.
What are the legal cases in favour of Inclusive Environments?
Equalities Act 2010 demands it - you could gave civil enforcement procedures, receive an unlimited fine, or could be convicted of a criminal offense with fines.
What are the economic cases in favour of Inclusive Environments?
Increased innovation and creativity.
What are the sustainable cases in favour of Inclusive Environments?
Working towards environment goals.
What are the social cases in favour of Inclusive Environments?
Social cohesion between differing user needs.
What does CABE stand for?
Commission for Architecture and the Built Environment
What are the CABE principles for the built environment?
- Inclusive
- Responsive
- Flexible
- Convenient
- Accommodating
- Welcoming
- Realistic
What does LOLER mean?
Lifting Operations and Lifting Equipment Regulations 1998
What does CDM mean?
Construction (Design and Management) Regulations 2015
What does PUWER mean?
Provision and Use of Work Equipment Regulations 1998
