1 - Ethics, rules of conduct and professionalism Flashcards
(179 cards)
1
Q
Why do you want to become a member of RICS?
A
Demonstrate my commitment to the profession as an ethical construction professional dedicated to continuous development
Community, supported by like-minded peers/network
Enhance skills - Learning and development commitment
Confidence and trust for my clients
2
Q
What is the role of RICS?
A
Globally recognised professional body designed to effect positive change in the built and natural environments
Promote and enforce the highest professional standards
3
Q
What are the key functions of RICS?
A
Advancing the highest ethical and technical standards
Protecting consumers by enforcing standards and codes of best practical
Providing expert impartial advice to governments, business and the public
Equipping RICS members with leading edge advice, market insight and professional training
Promoting RICS status and standards in key worldwide markets as the mark of property professionalism.
4
Q
Tell me about an instance of when you have been offered a gift or hospitality by a client
A
AD - Lunch
Discussed with mgt
Recorded in gifts and hospitality register
Any gifts/raffles would be politely declined
5
Q
Lunch - why did you accept this invitation?
A
Newly award MTC contractors, to foster partnership
6
Q
Lunch - how did you record your decision?
A
Completed my clients gifts and hospitality form, and submitted to HR (Cc Manager) for record purposes
7
Q
Newham - why did you not advise the client on the drainage drawings?
A
This is outside my scope of competence and I did not feel I had the correct skills/knowledge to competently complete this for my client. I supported my client to appoint a surveying practice who could provide the drawing proposals
8
Q
What is a Royal Charter?
A
A royal charter is a document issued/granted by the monarch and advised by the privy council that gives independent legal standing to an organisation.
Royal Charter requires RICS to act in the public interest
Enables RICS to govern its own affairs
9
Q
Can you tell me what you understand by the principles of better regulation?
A
Transparency - Regulators should be open and keep Regulations simple and user friendly
Proportionality - Regulators should only intervene where required and be proportional
Accountability - Regulator should be fair and publish their decisions
Consistency - common sense approach, fair and in line with policy
Targeted - focus on the problem
10
Q
What is a Bye-law?
A
Local laws made by a local council or body under an enabling power. Non-observation of these laws can be enforced with a sanction or penalty
Rules made by an organisation to define itself and the sanctions
11
Q
Give an example of one of the RICS Bye-Laws
A
- Applications and definitions - who the Bye-Laws apply to. i.e RICS members and firms, and those regulated
- Membership and registration - who counts as a member and firm, their obligations
- Designations - who can use letters after their name - MRICS, FRICS and how firms describe themselves
- Contribution to funds - membership costs, and results of failure to pay
- Conduct - how M&F should conduct themselves, and consequences
- Governing council, officers and staff
- Sub-ordinate boards, committees and groups
- Procedures for general meetings - how they are held and practiced
- Accounts and audits - how RICS keep accounts and run their audits
- General
12
Q
Explain to me the new RICS Rules of Conduct - what do they replace?
A
The new Rules of Conduct replace the existing Rules of Conduct for Firms and for Members and the Global Professional & Ethical Standards.
The new Rules of Conduct aim to address global risks and opportunities including:
-simpler structure
-clear examples to support rules
-focus on respect, diversity and inclusion
-focus on sustainability
-highlight use of data and technology
13
Q
When did the new Rules of Conduct take effect?
A
February 2022
14
Q
Who do the New Rules of Conduct refer to?
A
RICS members and firms globally
15
Q
What are the 6 ethical principles that the Rules of Conduct are based on?
A
Honesty
Integrity
Respect
Service
Competence
Responsibility
16
Q
What are the 5 rules?
A
Rule 1: Members and firms must be HONEST, act with INTEGRITY and comply with their PROFESSIONAL OBLIGATIONS
Rule 2: Rule 2
Members and firms must maintain their professional COMPETENCE and ensure that services are provided by competent individuals who have the necessary expertise
Rule 3
Members and firms must provide GOOD-QUALITY and DILIGENT SERVICE
Rule 4
Members and firms must treat others with respect and encourage diversity and inclusion
Rule 5
Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
17
Q
Give an example behaviour for each Rule of Conduct
A
Rule 1 - (Honesty, Integrity, Professional obligation) - being transparent with client regarding fees and services
Rule 2 - (Competence) - only undertaking work where you have the relevant knowledge, CPD
Rule 3 - (quality service & diligence) - understanding client needs and objectives before accepting work. Clearly communicating with clients
Rule 4 - (respect, diversity, inclusion) - developing inclusive work culture, treating others with respect
Rule 5 - (public interest, confidence in the profession) - managing professional finances, responding to complaints promptly and transparently.
18
Q
What are the core professional obligations of firms and members to RICS?
A
Members must comply with the CPD requirements set by RICS.
Members must cooperate with RICS.
Members must promptly provide all information reasonably requested by RICS
Firms must publish complaint handling procedure
Firms must ensure that all previous and current professional work is covered by adequate and
appropriate professional indemnity
Firms with a sole principal must make appropriate arrangements for their professional work to
continue in the event of their incapacity, death, absence from or inability to work
Firms must cooperate with RICS
Firms must promptly provide all information reasonably requested by RICS
Firms must use designation according to RICS policy
Firms must report to RICS any matter that they are required to report under the Rules for the
Registration of Firms
19
Q
What disciplinary procedures can the RICS impose?
A
-disciplinary penalities and costs
-a caution fine
-conditions
-order to expel/deregister the member
20
Q
In what circumstances can these be imposed?
(Follow up question to ‘What disciplinary procedures can the RICS impose?’)
A
Where a complaint or concern about a Regulated Member (RICS professional or RICS-regulated Firm) is investigated by RICS and is considered serious enough and supported by evidence
Failure to adhere to the rules or professional standards
21
Q
When did RICS last update their disciplinary panel rules?
A
March 2020
22
Q
What are the different levels of action within these procedures?
A
Where a complaint or concern about a Regulated Member is investigated by RICS and is considered serious enough and supported by evidence, the Head of Regulation will consider disciplinary action or close case
For less serious cases where the Regulated Member admits allegations, the Head of Regulation may impose a Regulatory Compliance Order (or Consent Order) to ensure future compliance with the standards. This may include a fine, caution or conditions on the membership of the Regulated Member. Where the Regulated Member does not admit the allegations, but the case may not warrant a hearing, the case may be referred to a Single Member of the Regulatory Tribunal to determine the disciplinary outcome (which may include expulsion).
For the most serious cases it may be necessary for Head of Regulation to refer a case to a Disciplinary Panel, who will conduct a hearing to hear evidence and determine outcome.
22
Q
What are the different levels of action for disciplinary procedures?
A
Where a complaint or concern about a Regulated Member is investigated by RICS and is considered serious enough and supported by evidence, the Head of Regulation will consider disciplinary action or close case
For less serious cases where the Regulated Member admits allegations, the Head of Regulation may impose a Regulatory Compliance Order (or Consent Order) to ensure future compliance with the standards. This may include a fine, caution or conditions on the membership of the Regulated Member. Where the Regulated Member does not admit the allegations, but the case may not warrant a hearing, the case may be referred to a Single Member of the Regulatory Tribunal to determine the disciplinary outcome (which may include expulsion).
For the most serious cases it may be necessary for Head of Regulation to refer a case to a Disciplinary Panel, who will conduct a hearing to hear evidence and determine outcome.
23
Q
What do you understand by the term professional practice?
A
The conduct and work of someone from a particular profession
24
What money laundering regulations or legislation are you aware of?
The Money Laundering and Terrorist Financing (Amendment) Regulations 2019
25
What is a red flag of money laundering?
Secretive/evasive clients about who they are, the transaction, the source of funding
Client avoids personal contact
Refuses to provide information or documentation, or the docs are suspicious
Has criminal associations
Large cash payments
Unexplained payments from 3rd parties
Use of multiple accounts or foreign accounts
Unusual transaction for client profile
26
What bribery legislation are you aware of?
The Bribery Act 2010
27
What is a bribe?
Inducement or reward offered, promised or provided to gain an advantage i.e. contractual, personal
28
What are the penalties for accepting a bribe?
For individuals: maximum penalty of 10 years imprisonment, and/or unlimited fine
Corporates face an unlimited fine
29
What are the penalties for being involved in money laundering?
Financial penalty or criminal prosecution
30
What constitutes an offence under the Bribery Act 2010?
Offering a bribe
Accepting a bribe
Bribery of foreign public officials
Firms failing to prevent bribery
31
What constitutes an offence under the current money laundering regulations?
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
32
How long should you keep anti-money laundering records for?
For five years beginning from:
-the date a business relationship ends
-the date a transaction is completed
33
What is Professional Indemnity Insurance (PII)?
An insurance product for professional firms and people which covers them in the event of certain errors being made during their business.
Policies mainly cover professional negligence, errors or omissions, breach of professional duty and civil liabilities
34
Can you tell me about the RICS requirements in relation to PII?
Firm turnover £100,000 < (min. limit of indemnity = £250,000
Firm turnover £100,001 to £200,000 (min. level of indemnity = £500,000
Turnover £200,001 and above (min. level of indemnity £1milli
35
What is a PII aggregation clause?
Refers to the basis of cover on a professional indemnity insurance policy
An aggregate policy provides cover up to the full limit for all claims made in the period of insurance
36
What does 'claims made' mean in terms of PII?
The policy in place at the time the claim is made by the client will provide cover.
37
Is a PII excess usually paid per claim?
Yes, all policies will have an excess to be paid by the firm
38
In a negligence claim, what would help to show that you acted with consideration and due process?
Full and detailed recorded of meetings, conversations etc.
Records of recommendations and advice given.
Letters of engagement and appointment contracts including limitations and disclaimers
Record any changes in instructions
Report with disclaimer for any hidden defects
39
Can good record keeping help to provide a defence in a PII claim
Yes, good records can help support you in the defence of the claim.
Can help provide proof of decisions and actions carried out should they be questioned or challenged.
Generally what you can prove can help determine the outcome
Can support you to contest what the other party suggests
Helps support your story
40
If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?
Review cover to ensure you have the appropriate level of cover to carry out that work
41
What is run-off cover?
Run-off cover is insurance for claims made against a law firm after it has stopped doing business.
It makes sure that:
-clients can be compensated for claims made after a firm has closed
-retired partners of the firm have financial security and won’t be personally liable for any claims
42
What RICS requirements are there relating to run-off cover?
RICS-regulated firms should ensure that in the event of the firm’s practice ceasing, there
will be ‘run-off insurance’ in place to protect the firm’s partners and its customers
Six years should be looked on as a minimum
43
What changes did RICS recently make to the Minimum Approved PII Wording?
2021 - the changes allowed more chartered surveying firms to obtain improved fire safety cover within their PII
PII policies will provide greater fire safety cover for chartered surveyors
Under the new rules insurers are not permitted (without specific dispensation) to exclude fire safety claims on a property four storeys or less, and fire safety coverage must be provided as a minimum on an aggregate, defence cost inclusive basis.
44
What precedent has case law set in terms of keeping adequate site notes (and therefore providing a defence in a PII claim)?
That surveyors should collect appropriate evidence from each survey to back up their findings (i.e. proper notes and effective photographs).
Good set of notes can help support your story
## Footnote
Ryb v Conways Chartered Surveyors [2019]
45
Would a dictated report avoid the need to have any written site notes?
I would say no. Written site notes allow you to share with the relevent parties for all to review and agree. It is easier to do this that dictated notes.
Written notes are easier to review, and comment on
46
How long can a PII claim arise after the work is undertaken?
Up to 15 years from the date of the negligent act
47
What is the assigned risk pool?
The assigned risks pool is for firms that are unable to obtain professional indemnity insurance (PII) which meets RICS minimum requirements in the insurance market.
48
Who might need to access the Assigned Risks Pool? (ARP)
Any RICS members unable to obtain professional indemnity insurance (PII) which meets RICS minimum requirements
49
Explain when you might agree a liability cap?
For larger jobs or commercial clients, where it is possible that the amount of damages claimed could be in excess of the amount covered by the policy and so a liability cap is just an important way of providing a level of extra protection to the policyholder from aggressive claimants
50
How would you set out third party reliance in Terms of Engagement?
Include a clause in the engagement letter and included in the firms standard terms & conditions. The statement should be replicated in a prominent position in the body of the report as well. I.e our advice is for your benefit alone
51
What are the three key terms that should be considered from a risk?
1. The basis on which the fee will be calculated.
2. The scope of the work.
3. The liability cap
52
Tell me what you understand about Complaints Handling Procedures
A structured process for managing complaints/disatisfaction in an appropriate manner. They provide an opportunity to rectify service problems and further develop client relationships.
53
When and how can the RICS be involved in a complaint about a firm or member?
When it is about the service or professionalism of a member or regulated firm, i.e. if the standard of a reasonable professional or firm has been breached.
54
Can you tell me about the CPD requirements for members of RICS?
Members must undertake a minimum of 20 hours of CPD activity each calendar year, at least 50% formal
55
Why is CPD important?
* Helps you develop and improve your professional practice
* Keeps skills and knowledge up to date
* Prepare you for greater responsibilities
* Boasts confidence
* Helps you in tackling new challenges
* Enable you to make better decisions
* Help career progression
56
Tell me about the RICS guidance on dealing with conflicts of interest
Guidance note to provide clear rules for RICS members to identify and manage potential conflicts of interest. Outlines 3 types of conflict:
* party conflict
* own interest conflict
* confidential information conflict
57
What is double dipping (dual agency)?
When the professional works for/acts for multiple agencies, i.e. the buyer and the seller, or competing organisations
58
Why is double-dipping (dual agency) an unacceptable practice?
In conflict of the ethics of a professional, breaches:
* Transparency
* Confidentialiy
* Trust
59
How would you close down a regulated firm?
* Agree the closure date
* Inform staff, and notify of any redundancies
* Inform clients, and let them know if another firm could take over
* Deal with outstanding money in client accounts
* Notify insurer for run-off cover
* Make archiving arrangements, and destruction of any confidential data not being kept
* Set up a system for anyone who tries to contact the firm to notify them, i.e. voicemail
* Notify relevent people, i.e solicitor
60
Explain your understanding of the RICS Guidance Note Risk, Liaibility and Insurance (1st Ed)
Aims to provide guidance on mitigating or avoiding the risks and liabilities associated with surveying work
61
What can you tell me about RICS guidance relating to bribery, corruption or money laundering
RICS published Professional Statement for countering bribery and corruption, money laundering and terroist financing (Feb 2019):
* Published to help members identify and manage risks of bribery, corruption and money laundering.
* Divided into 3 sections:
1. Mandatory requirements
2. Good practice guidance
3. Supplementary guidance on section 1 & 2
March 2022 update: anti-money laundering sanction update in response to the war in Ukraine:
* reminding members importance of complying with sanctions
## Footnote
https://www.rics.org/uk/upholding-professional-standards/standards-of-conduct/aml-bribery-corruption-terrorist-financing/
62
What can you tell me about RICS guidance relating to bribery, corruption or money laundering
RICS published Professional Statement for countering bribery and corruption, money laundering and terroist financing (Feb 2019):
* Published to help members identify and manage risks of bribery, corruption and money laundering.
* Divided into 3 sections:
1. Mandatory requirements
2. Good practice guidance
3. Supplementary guidance on section 1 & 2
March 2022 update: anti-money laundering sanction update in response to the war in Ukraine:
* reminding members importance of complying with sanctions
## Footnote
https://www.rics.org/uk/upholding-professional-standards/standards-of-conduct/aml-bribery-corruption-terrorist-financing/
63
What status does the RICS guidance on bribery, corruption, money laundering hold?
Professional statement - mandatory requirements for members and regulated firms
64
What are some of the key principles of the bribery, corruption and anti-terrorist professional statement:
Part 1 - Mandatory requirements
Part 2 - Guidance
Part 3 - supplmentary advice in relation to part 1 and 2 relating to mitigation
Some of the key principes:
* Do not accept or offer anything which can be constituted as a bribe **(acceptance/offer)**
* Have plans in place to mitigate corruption and bribery and ensure these are implemented **(policies & implentation)**
* Report any breaches in accordance with local legislation, if no relative legislation report to senior member and record **(report)**
* Due diligence
* Record-keep how company has complied with professional statement
65
What must members/firms do to comply with the countering bribery and corruption, money laundering and terrosit financing professional statement?
Members:
* Do not accept or offer bribes
* Have adequate knowledge of bribery and corruption to following prof statement
* Report breaches in accordance with local legislation, if there is not any, record and report to senior management
Firms:
* Do not facilitate in terrorist financing or money laundering
* Systems and training, in place & followed
* Report suspicions to authority, if there is none record
* Appropriate checks to risk in place, i.e. client check
* Record and keep record of how complied to guiance
* Take appropriate measures to understand client and transaction
66
What are the current RICS rules for registration of firms?
Regulation - Rules for the registration of firms version 8
made in accordance with bye-laws
67
Rules for the
registration of firms - when did these last change?
Effective from February 2022
68
Rules for the
registration of firms - what were the key changes (following last change Feb'22)
Introduce the requirement
for all RICS regulated firms to appoint a Responsible Principal.
Will have primary responsibility for ensuring that RICS' professional, technical and ethical standards are applied, upheld and supported by an appropriate assurance framework within a regulated firm.
69
Who is a 'qualified member' of RICS?
AssocRICS, MRICS and FRICS
70
Who is a responsible principal?
RP has primary responsibility for ensuring that RICS' professional, technical and ethical standards are applied, upheld and supported by an appropriate assurance framework within a regulated firm.
Expectation is that the responsible principal would normally be an RICS member who is a
Director/Principal within the firm.
71
When did RICS rules for registration of firms change?
February 2022
72
Tell me how you treat clients with respect?
Keep promises
Keeping informed of client needs and objectives
Listen
Polite, courteous
Honest
Respectful
Accountable
Fulfil the service I have been appointed to fill
Supportive
Punctual
73
Tell me how you treat other surveyors with respect?
Collaborative
Share information
Active listening
Share ideas
74
Newham - why did you lead a joint inspection?
-Relationship building with stakeholders
-Enable me to determine and align objectives, outline requirements and restrictions
-Ensure client objectives were identified and satisfed
75
Newham - How did you ensure you sought your clients input throughout the project
-Joint inspection
-Issued outline SoW for their comment and approval
-Frequent meetings during design and construction stages
-Involved them in specification decisions, providing appropriate options for their approval
76
What is a phoenix firm?
A business that has been purchased out a formal insolvency process such as administration or liquidation, often by the existing directors
A company established after the insolvency or dissolution of an unsuccessful business to continue the same or similar work
77
When must a firm register for regulation?
A Firm is required to register for regulation by RICS if:
a) the Firm provides surveying services to the public
b) the Firm is operating in Regulated Area A
c) at least 50% of the Firm’s Principals are RICS Members.
78
What is the registration eligibility criteria for firms?
4.1 A Firm is eligible to register for regulation by RICS if:
a the Firm provides surveying services to the public and
b at least 25% of the Firm’s Principals are RICS Members.
79
What happens if a firm can not comply with the eligibility criteria? (Registering firm for regulation)
Must be implementing plan to secure 25% RICS principles in appropriate time frame
or
the Head of Regulation must be satisfied that the Firm is appropriately supported and supervised by another RICS-registered Firm
80
What are the rules around use of the RICS logo and 'regulated by RICS' designation?
1. The RICS logo may only be used by a Member or a Registered Firm (unless otherwise
authorised by RICS.)
2. Only RICS Registered Firm designation may only be used by an RICS Registered Firm/Regulated by RICS
81
Tell me about the restrictions to the use of the designation 'chartered surveyors' by firms
Sole practioner - The designation ‘chartered surveyor(s)’ may be used by a sole practitioner who is a chartered member.
Partnerships and company names -
may also use the chartered surveyor
designation if 50% or more of the partners or directors are chartered members
82
What must be included in Terms of Engagement relating to firm regulation?
Text dictated by RICS advising:
-the firm is regulated by RICS for provision of surveying services
-must uphold the RoC
-List nominated principal.
83
What is a locum and who might need one?
Another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work,
(e.g. in the event of an accident/illness, unforeseen circumstances, prolonged absence (e.g. holiday or a sabbatical) or death.)
Firms with a sole practitioner must have a locum in place
84
Who can be a locum?
Typically, a locum will be another Chartered Surveyor
Although they could also be a solicitor or accountant by trade, i.e. a trusted professional.
85
How could a sole trader set up their CHP using a locum?
A locum may be appointed by the sole principal as their complaints handling officer to ensure CHP is fair and impartial
86
What RICS guidance relates to handling client money?
Client Money Handling, 1st edition, Oct 22
*Professional Standards*
87
When was this last updated?
October 2022
88
What do the RICS Rules of Conduct say about client money?
1. Firms keep client money safe and have appropriate accounting controls.
2. Members do not misuse client money and comply with controls intended to keep it safe.
3.Members and firms do not facilitate any financial crime including money laundering, tax
evasion, bribery or corruption.
Firms have effective processes to prevent directors, partners or employees from doing so
89
Explain your understanding of the RICS Scheme Rules relating to client money protection
Client money protection scheme provides last resort protection if a RICS regulated firm is unable to repay clients money. To protect and compensate.
Scheme covers:
-Client Money Protection for Surveying Services
-Client Money Protection for Residential Agents
90
What are the main schemes available to firms?
| RICS Scheme rules relating to client money protection
* Client Money Protection for Surveying Services
* Client Money Protection for Residential Agents
91
When were the RICS Scheme Rules last updated?
Published June 2020.
92
What is the current compensation limit?
| RICS Scheme Rules relating to client money protection
£50,000
93
Tell me what you would do if you felt that an instruction was outside your scope of experience or knowledge
Inform client
Support them to find/appoint suitably component person to complete the task
94
What does the annual regulatory review fee relate to?
All regulated firms who hold clients' money pay a regulatory review fee on an annual basis.
These fees covers the operational costs of the client money regulatory review visit programme
95
What might client money include?
* Payment on account of general costs
* Rent
* Service charges
* Interest credited to a client account
* Arbitration fees
* Client money held but due to be paid to contractors
96
How does client money differ from office money?
Office money includes:
*Interest on general client accounts which the client agrees will not accrue to them
* Fees
* Disbursements
* Money paid in advance in respect of an agreed fee for surveying services, but not property agent work in England
97
Explain what you understand by the RICS Bichard review
* Independant review of RICS purpose, governance and strategy
* to create new sense of purpose and direction for RICS
* report released 2022
*incl: give Matrcis stronger voice for young members, revision of RICS purpose, diversity and inclusion, improve technology,re-affirm to work in public interest
98
Explain some of the recommendations of the Bichard review
* Reinvigorate RICS Matrics to give voice to younger member
* Diversity and inclusion panel to be established
* Improve technology
* Re-affirm commitment to work in public interest
*
99
How do you ensure you comply with your firms bribery and gifts policy?
* Read and understand the policy
* Complete relevent training
* Decline any contractors gifts in accordance with policy
* Declare hospitaility
* Record in the hospitality register
* Notify senior management
100
Why is acting within your scope of experience important?
To ensure I am practicing my profession safely, responsibly and lawfully
101
What are some of the key principles of the RICS Professional Statement relating to client money protection?
* Hold all client money in an exclusively controlled client money account
* Ensure that the account only contains client money paid into it
* Not hold office money in a client money account unless it is a receipt of mixed monies where the office money is awaiting transfer
* Ensure that the account name includes the word ‘client’
* Confirm the bank operating conditions in writing, including confirmation that the bank will not set-off or counterclaim against the client money account for any sum owed to it by another account held by the firm
* must keep accurate accounting records and have appropriate systems, procedures and controls in place
* compliance with RICS Professional Statement, Countering bribery and corruption, money laundering and terrorist financing and anti-money laundering regulations, complying with firm-wide procedures, not overriding any controls in place and making appropriate disclosures if any issues relating to client money are identified.
102
Explain the key themes from the RICS Futures 2020 report
Report about change
* Sustainability - training of RICS members so we are trusted as professionals to drive change, operate ethically and sustainably
* Data and technology - understand data effectively, better connection, AI & privacy, utilisation of the physical office
* Talent and skills - review and evaluate qualifications framework, questioning of the 'traditional' learning path, lifelong learning, relevence, CPD with mandatory study, new routes to membership
103
Explain the potential implications of the Hart v Large case
* Surveyors focussing on risk management
-advising on correct survey level and limitations
-ensuring clients are clearly advised
- emphasis is on ensuring clients and their legal advisors can take the right steps to make an informed property purchase
- writing additional clauses relating to professional consultant certification
104
Explain your understanding of the precent set in Burgess v Lejonvarn
Duty to use reasonable skill and care services even if there is no payment in place
105
What do RICS set out as good practice for the use of social media in their Regulation document (June 201)
* Be professional (in the same way you would be face-to-face)
* do not be discriminatory, dishonest, abusive, threatening
* Do not bully/harrass
* Do not post or share highly offensive posts
* Protect the reputation of the profession
106
Expalin your understanding of the RICS Levitt review
* Independant review following reports that RICS tried to supress findings of internal financial report
* Findings: governance principles not followed by RICS, unfair dismall of board members who highlighted issue, lack of clarity around roles and responsibilities, lawyers protected exec rather than RICS as a whole
principles of good governance, the RICS structure and professional ethics.
107
What is whistleblowing?
A worker who reports a wrongdoing that affects the public interest
108
What does good governance mean to you?
| governance: system by which companies are directed and controlled
* Diverse
* Clear division of responsibilities and understanding of objectives
* Honesty/ transparency
* trust
* accountability
* fairness
* commitment
* reflective and willing to learn/grow
109
Explain what the Pandora Papers are, and the ethical issues raised with them
* Leak of financial secrets by the rich, powerful and wealthy of off-shore structures to hide/manage their forunes.
* Tax avoidance, tax evasion, high proceeds of crime, money laundering
* conflicts of interest, lack of transparency, corruption
110
What is the sanctions list, and why should you be aware of it?
List which details sanction measures for persons or ships.
Members must comply to the financial sanctions in accordance with Anti-Money Laundering 2018, particularly relevent atm due to the imposed sanctions resulting from Russias war on Ukraine
111
How do you ensure you comply with bribery legislation?
* Read and understand organisation policy
* Complete relevent learning
* Declare gifts and hospitality, following gifts and hospitality policy
* Do not give/offer bribes
* Report any offers, or suspected bribes to Head of Governance in accordance with policy
112
How do you ensure you comply with money laundering regulations?
Not facilitate or be complicit in money laundering or terrorist financing activities
Report any suspicions of money laundering to the relevant authorities (as specified in local legislation); and, if possible, reported to a senior manager'
113
Tell me about an instance of when you have handled clients money
Not applicable to my role, but if I had to:
* hold client money in designated account
* only client money paid to account
* ensure account states 'client'
* pay client money into the account promptly
* not mix client and office money
114
How would you keep client money securely and safely held
* hold client money in designated account
* only client money paid to account
* ensure account states 'client'
* pay client money into the account promptly
* not mix client and office money
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Explain how you have taken responsibility in your current role
Generally:
* Accountable
* Act with skill, care, diligence
* Do the right thing
Margery Park Road -
* Identified limitations of competence based on client requirements - drainage drawings
* I declared that I would be unable to perform this duty but took responsibility by identifying suitable surveying consultants, procuring the appropriate one and supporting the client by producing the appointment docs.
Ensured I acted within my limitations of competence and supported client
116
Tell me how you have promoted trust in the profession
* Honest, transparent and communicate
* Manage expectations
* Try to find solutions
* Keep my promises, do as i say - fulfil obligations
* Trustworthy in both private and professional life
117
Give me an example of how you have acted with integrity
* Trustworthy
* Open and transparent
* Respect confidential information
* Not taking advantage
* Not allowing bias or CoI
* Not offering or accepting gifts, hospitality or anything which may suggest improper inducement. - proportionality
Eg. gifts and hospitality - politely declined contractor christmas gift and declared in gifts and hospitality register
118
Margery Park Road - why is acting within your scope of experience important?
* To ensure level of service I am delivering is safe, legal and responsible
* To promote trust in the profession
* Reduce error
* Deliver good service
119
Margery Park Road - what are the risks of exceeding your scope of competence?
* Job may be carried out incorrectly, or inadequately. Time, cost, quality, safety repurcussions
* Could affect trust in the profession
* Reputational risk
120
Margery Park Road - How did you ensure the right consultant was procured?
*Reached out to 2 surveying consultancies familiar with my client who have the experience
* Discussed the scope of service
* Assessed reponse based on quality of response, and value for money
121
Margery Park Road - how did you formalise the consultants appointment
Agreed fees
Produced appointment letter detailing scope of service, fees, appointment brief, services, PII etc.
Signed by myself and client, and issued to all relevent parties
122
Tell me how you would handle a client complaint?
*Handle in a timely matter
* Acknowledge within 7 working days
* Investigate (or if was about me, would ask someone independant to investigate/review)
* Keep complainant updated throughout
* Formal response within 28 working days
* Record details in a complaints log and reflect
123
Tell me about your firms process for escalating a complaint to Alternative Dispute Resolution
Dispute hierarchy
If any dispute or difference arises under the Contract, either Party may refer it to
adjudication. RICS nominated body
124
What are the potential issues of acting as CA while working for the client
As the CA is supposed to work impartially
RoC work with professionalism and integrity:
-Members and firms do not allow themselves to be influenced improperly by others
-providing advice and opinion in a professional context do so honestly and
objectively based on relevant and reliable evidence
-do not take unfair advantage of others
125
What would you do
126
What is the RICS and why does it exist?
The Royal Institution of Chartered Surveyors is a professional body promoting and enforcing the highest international standards in the valuation, management and development of land, real estate, construction and infrastructure. Also has influence on legislation.
As graduates aiming to join the RICS we therefore have a responsibility to uphold the high standard of ethical behaviour.
127
Why do you want to be a member of the RICS?
Status - your professional credentials provide unrivalled client confidence
Market advantage - RICS status and standards gives you a competitive advantage
Knowledge - International practice standards, professional guidance, CPD & knowledge sharing
Network - access to professionals worldwide.’
128
What if we don’t adhere to the Rules of Conduct?
Internal disciplinary for minor breaches
Compliance Order – outlines actions you need to take
Unlimited Fine (proportionate to the offence)
Expulsion from the RICS
Results of court hearing can be published.
129
Why were the rules of conduct updated?
To be more relevant and comprehensive
Incl main areas:
Sustainability
Diversity and inclusion
Handling data
130
What professional obligations to RICS are mandatory for RICS members.
Members must comply with CPD requirements
Members must cooperate with RICS.
Members must promptly provide all information reasonably requested by the Standards and Regulation Board
131
What obligations are mandatory for RICS-regulated firms
Firms must publish a complaints-handling procedure, inc alternative dispute resolution provider, complaints log.
Firms must ensure appropriate professional indemnity cover
Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
Firms must cooperate with RICS.
Firms must promptly provide all information reasonably requested by the Standards and Regulation Board
Firms must display on their business literature a designation to denote that they are regulated by RICS.
Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
132
Talk me through your ethical decision making process
1. consider facts
2. Identify RoC and other relevent standards and legislation
3. Use professional judgement
4. Document my decision
133
What is the Bribery Act 2010?
It aims to reduce bribery in business in UK and abroad.
134
Bribery - what are the 4 offences?
offering a bribe
receiving/accepting a bribe
bribing a foreign official (such as foreign government)
failing to prevent a bribe
135
What is a bribe?
A bribe can be the giving, offering, promising or receiving of an advantage such as payment, gift, or a service for an action which is illegal or a breach of trust
136
What is the penalty for breach of the bribery act?
If the bribery act is breached there is a maximum penalty of 10 years imprisonment and / or an unlimited fine
137
How do you recognise if an offer is a bribe?
When a gift influences a business decision or impair independence or judgment or give the appearance of doing so.
Three main things to consider when proposing to offer, or being offered are intention, value and timing
There's the reasonable test;
Consider the 6 principles
For example;
- Think whether there is an expectation that the business relationship is influenced. If so this is a bribe not a gift.
- Consider the timing: Gifts or hospitality given at the time of a tender or during a dispute could be considered a bribe, no matter how innocent they may be.
General examples of gifts and hospitality that may fail the reasonable test and in fact be bribes;
The offer or receipt of cash inducements
Payments for lavish or inappropriate entertainment
Favours including offers of employment
Arrangements which may personally benefit, directly or indirectly, a member of staff or their family, friends, associates
However, Gifts and hospitality that are reasonable and proportionate are not criminalised in the Bribery Act.
138
# W
What is money laundering?
Money laundering refers to the process of ‘cleaning’ ‘dirty’ money which has been gained from illegal activity
139
What can firms do to prevent money laundering?
-Carry out Due Diligence by verifying the identity of our clients and monitoring the business relationship.
-Keep records of such due diligence.
-Maintain systems to identify and prevent money laundering.
-Appoint a Money Laundering Reporting Officer and maintain a system for reporting suspicious circumstances relating to the handling of the proceeds of crime.
-Provide training for relevant staff on Money Laundering and our procedures
140
What are the 3 types of conflict of interest?
Party interest – working on the same or similar instruction for two different parties, such as CJ is the agent for the seller of a property, and then the buyer approaches CJ for a valuation
Own interest – benefits yourself financially or otherwise
Confidential Information – A confidential information conflict relation to work between two parties which is confidential
141
What is a conflict of interest?
A conflict of Interest exists when a firms independence and impartiality is threatened due to the existence of a conflict between two clients
142
What is PII?
Professional indemnity insurance protects surveyors, clients and third parties against negligence claims
143
I just passed my APC today and now setting up a practice as a sole practitioner. What are some things I need to take into account?
Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
Firms must cooperate with RICS.
Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
144
My firm has a potential conflict of interest but I cannot disclose the specific details of this to all parties without breaking client confidentiality. I believe that we may be attempting to advise two separate clients who are opposed on the same potentially contentious matter
What is the process to resolving this?
Conflicts of Interest 2017- double dipping and informed consent
Can you continue to act?
Get written consent from both parties.
If so what steps are you going to prevent it happening again?
145
In light of recent sanctions against Russia, how do you act when there is two similar bids, and one of them is from a Russian bidder and the other is from a UK bidder?
In response to the Russian aggression in the Ukraine, the UK have announced trade sanctions and the FCA have also issued stringent guidelines as to what transactions are to be treated as “off limits”. We have therefore taken the decision that any transaction involving Russian passport holders, or where the source of wealth emanates from Russia, must be placed on hold and referred to Compliance for review (compliance@carterjonas.co.uk). We will be logging all such transactions separately and in some instances we may be unable to proceed.
Existing instructions with Russian links are not necessarily impacted, however, if the client/tenant requests any change in their current arrangement (e.g. a change in bank details), please refer to Compliance immediately.
146
Why is ethical practice important?
Anyone can work within the industry but the RICS distinguishes us from the market place
They therefore except us to show a high standard of ethical practice to adhere to their guidelines.
147
What is client money?
Money of any currency that a RICS regulated firm holds for or receives on behalf of another person
148
How should you set up a Clients Money Account?
In accordance with client money handling professional statement
Account must include the word 'client' and the name of the firm
Not to contain sums other than what the client pays into it/ Hold all client money in an exclusively controlled client money account
Confirm the bank operating conditions in writing, including confirmation that the bank will not set-off or counterclaim against the client money account for any sum owed to it by another account held by the firm
Information should be provided to the client in writing i.e. that money will be held in a client account, account details, firm procedure
Controls in place to protect money
149
How should a firm keep client money safe?
* Hold client money in a bank account you have exclusive control over
* Keep money safe
* Use client money accounts for appropriate purposes only
* Controls in place to protect money
* Have the word client in the client account and the name of the firm
* Money must be immediately available to the client
* Must comply with RICS professional statement
* Records must be available to the RICS
150
How do RICS regulate client money?
Client money protection regulation
Client money handling professional statement
151
Client money handling - what should you do if the client wants their money back?
Should be immediately available unless other arrangement in writing.
152
Can a client account have negative balance?
No, should ensure sufficient funds before making payments. Client account should not be overdrawn or show a negative balance. If this is discovered, the firm should place funds in the client account pending resolution of the negative balance.
Overdrawn balances should be prevented by controls, and should be investigated promptly should it occur.
153
Tell me about a situation where you have had cto consider your competence and ability?
- Fire stopping
- Drainage drawings
154
Demonstrate where you have encouraged fair treatment and ethical behaviour?
Supporting client employee councils and networks to assess and support positive change.
I.e. promoting data, inclusivity, challenging data.
155
What consequences can apply when making ethical decisions?
Lack of trust and confidence
Reputational risk = loss of business = detriment to company status
Customer loss
156
If you were offered a financial incentive to make a specific decision, what would you do?
In accordance with RoC Rule 1 and bribery act 2010 I would politely and firmly decline the incentive.
In accordance with my organisations bribery policy I would immediately notify the head of governance of the bribery attempt, and keep a written record
157
Are you familiar with any RICS guidance on money laundering?
Countering bribery and corruption, money laundering and terrorist financing professional statement, 1st ed.
To identify and manage risk
158
Follow on from Are you familiar with any RICS guidance on money laundering....
What is the status of that document?
Professional statement - standard in keeping with the RoC
159
What is money laundering?
Financial criminal activity which involves the layering and cleaning of money (obtained through illegal activity i.e. drug trafficking) to appear to have come from a legitimate source
160
Why is real estate a money laundering risk?
Provides the criminal with a relatively “safe” property investment. This can include the purchase of houses, apartments, office space, factories, hotels, vineyards, etc.
Criminals can further enrich themselves by:
Renting out a property they have purchased
Renovating a new property and re-selling it
Cashing in on property appreciation over time
In addition, the price of real estate is fairly easy to manipulate and, with collusion, property can be over- or undervalued.
161
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What are some reg flags of suspicious activity (money laundering)
Large cash payments
High volume of transactions in a short period
Facilitator of payment not as seems, i.e. underage
Reluctance to provide information
Politically exposed persons (at high risk)
Criminal association
Secretive/evasive i.e. about source of funds
Disguising the real client
Avoiding personal contact without good reason
Refuses to provide info
Well informed on laundering
High risk countries
Transactions that are potentially loss making
162
If you ran your own firm, who would you report suspicious activity to?
The National Crime Agency (NCA)
163
What are some KYC checks you might undertake?
* Collect personal information on registration i.e. name, DoB, email address
* Supporting identifying document i.e. driving license, credit/debit card/passport, Is it a real individual, are they who they say they are?
* Background checks
* Is it a politically exposed person?
* Ultimate beneficiary owners of a business
* Credit check
164
Do you know what a MLRO is?
A money laundering reporting officer (MLRO) is an employee appointed to oversee a firm's compliance with anti-money laundering (AML) regulations and to alert the company where there is knowledge or suspicion of money laundering
165
What is a PEP?
Politically exposed person
Presents a higher risk for potential involvement in bribery and corruption by virtue of their position and the influence they may hold
166
What should members be aware of regarding sanctions?
We are required to comply with financial sanctions.
Located gov.uk.
In accordance with RoC - do not facilitatr financial crime
167
If you were to set up your business would you have to be regulated, or is it optional?
If the business provides surveying services in the UK, with over 50% principals being chartered surveyors, the business would have to be registered for regulation.
If providing surveying services, with at least 25% principals would be eligible to register
168
What are some of the things you have to put in place if you were working for your self?
Complaint handling procedures with 3rd party redress
Appropriate and adequate PII in accordance with RICS requirements
Locum
169
PII how much would you need in terms of cover for the first year of business?
min. £250,000 based on predicted turnover
170
Tell me about money laundering regulations?
The money laundering and terrorist financing (amendments) regulation 2019
Require firms to put in place policies and procedures in order to prevent activities related to money laundering and terrorist financing
171
Give me an example of a PEP?
Politician
MP
172
What would you do if you was offered hospitality?
* Consider the office in accordance with the RoC and my employers policies regarding hospitality
* Consider timing, and proportionality?
* How would it be considered by a 3rd party?
* Is it a form of inducement?
* Discuss with senior management to agree
* Record in the gifts and hospitality register
* Politely decline or aceept accordingly
173
Have you ever been offered any hospitality?
Christmas luncheon
174
Gifts and hospitality - in addition to proportionality, is there another measure that is qute important?
Timing
i.e. is there an ongoing tender?
175
What is the RICS mission?
To be recognised in key worldwide markets as the leading body that sets and enforces standards, and offers access to the most sought after professional status in land, property and construction
176
How have I acted/demonstrated one of the rules in my work?
Rule 1- honey and integrity, and prof obligations - CPD, working in line with firm CHP, acting openly and honestly, not misleading
Rule 2 - competence - limitations of knowledge, CPD, staying up to date with regs and guidance
Rule 3 - Good quality and diligent services
Understand client needs and objectives. Clear communication systems with client, and project team. Records of work. Handling data. Recommendating sustainable initiatives i.e. PV and EVs
Rule 4 - Diversity, inclusion, respect
- Promoting diversity and inclusivity
- treating people fairly and respectfully
- Building with inclusivity
Rule 5 - Responsibility for actions in public confidence
Social media handling - respectful, in line with GDPR, not at detriment to the professon
Reporting any concerns/wrong doing
177
What legislation is there covering professional conduct and ethics?
Bribery Act 2010
The money laundering and terrorist financing regulations 2019
General data protection regulations
178
What is the difference between a gift and a bribe?
A gift is something of value given without the expectation of return; a bribe is the same thing given in the hope of influence or benefit.
