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RICS APC > Ethics Level 1 > Flashcards

Ethics Level 1 Flashcards

1
Q

What is your RICS membership number?

A

6846826

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2
Q

Who is the president of the RICS

A

Clement Lau FRICS

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3
Q

Who is the president elect of the RICS?

A

Ann Gray

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4
Q

What is the role of the RICS

A

Is to promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure.

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5
Q

What do the new Rules of Conduct do?

A

Support positive change in the built and natural environment - through promoting and enforcing the highest ethical standards in

Valuation
The development and Management of land
Real Estate
Construction
Infrastructure

And provides a structure for making ethical decisions about how to behave as a professional

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6
Q

What ethical principles are the New Rules of Conduct based on?

A

Honesty
Integrity
Competence
Service
Respect
Responsibility

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7
Q

What is a Royal Charter?

A

An instrument of incorporation granted by the king, which confers independent legal personality on an organisation and defines its objectives, constitution and powers to govern its own affairs

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8
Q

What do you understand about the term self- regulation ?

A

RICS operates under self-regulation meaning Individuals (members) are not regulated by government but are internally monitored and inspected

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9
Q

What are the principles of better regulation

A

5 principles which were identified by the better regulation task force in 1997

-proportionality
- Accountability
- Consistency
- Transparency
- Targeting

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10
Q

What is a bye-law?

A

A law that is made by an organisation, club or association that people or members of the organisation must abide by

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11
Q

Give 1 example of the RICS bye-laws

A

Members must conduct themselves in a manner of benefiting membership of the RICS

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12
Q

Explain the New Rules of Conduct?

A

The RICS Rules of Conduct have recently been updated in order to help the global profession respond to new risks and opportunities. The new rules provide a simpler structure and focus on respect, diversity and inclusion.

They apply to ALL MEMBERS AND FIRMS regulated by the RICS

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13
Q

When do the new Rules of Conduct take effect?

A

2nd Feb 2022

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14
Q

Who do the new RICS Rules of Conduct relate to?

A

All Members and Firms regulated by the RICS

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15
Q

What are the 6 ethical principles that the Rules of Conduct are based on?

A

Honesty
Integrity
Competence
Service
Respect
Responsibility

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16
Q

What is Rule 1 of the Rules of Conduct?

A

All members and firms must be HONEST, act with Integrity and comply with their professional obligations, including obligations to the RICS

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17
Q

Give 2 Example behaviors of Rule 1 of the Rules of Conduct

A
  1. Members and Firms are OPEN and TRANSPARENT with clients about FEES AND SERVICES
  2. Members and Frims DO NOT allow themselves to be influenced improperly by others or by their own self interests
  3. Members Do Not MISUSE CLIENT MONEY and comply with controls intended to keep it safe
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18
Q

What is Rule 2 of the Rules of Conduct?

A

Members and Firms must MAINTAIN THEIR PROFESSIONAL COMPTENECE and ensure services are provided by competent individuals who have the necessary expertise.

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19
Q

Give two examples behaviors for Rule 2

A
  1. Members and Firms ONLY UNDERTAKE WORK that they have the KNOWLADGE, SKILLS and RESOURCES to carry out competently
  2. Members MAINTAIN AND DEVELOP THEIR KNOWLADGE AND SKILLS THROUGHOUT THEIR CARER - plan and undertake CPD activities.
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20
Q

What is Rule 3 of the Rules of Conduct?

A

Members and Firms must PROVIDE GOOD-QUALITY and DILIGENT SERVICE

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21
Q

Give 3 example behaviours for Rule 3 of the Rules of Conduct

A
  1. Members and Firms Understand CLIENTS NEED’S AND OBJECTIVES before accepting professional work.
  2. Members and Firms AGREE with clients THE SCOPE OF THE SERVICE to be provided and its limitations and timescales.
  3. Members and Firms COMMUNICATE with clients and others CLEARLY and IN A WAY THEY CAN UNDERSTAND
22
Q

What is Rule 4 of the Rules of Conduct?

A

Members and Firms must TREAT OTHERS WITH RESPECT and ENCORAGE DIVERSITY and INCLUSION

23
Q

Give 2 examples behaviors for Rule 4 of the Rules of Conduct

A
  1. Members and Firms RESPECT THE RIGHTS OF OTHERS and TREAT OTHERS WITH COURTESY
  2. Members and Frims TREAT EVERYONE FAIRLY and DO NOT DISCRIMINATE against ANYONE on improper grounds - age, disability, gender, race
24
Q

What is Rule 5 of the Rules of Conduct?

A

Members and Firms Must ACT IN THE PUBLIC INTEREST, TAKE RESPONSABILITY for their actions and ACT TO PEVENT HARM and MAINTAIN public confidence in the profession.

25
Q

Give 2 example behaviors of Rule 5 of the Rules of Conduct

A
  1. Members and Firms RESPOND TO COMPLAINTS , Promptly, Openly and Professionally.
  2. Members and Firms SUPPORT INDIVUDUALS (directors, employers, partners) who have acted in good faith to report concerns.
26
Q

What are the Core professional obligations of Members to RICS?

A

3 items for members - Members MUST -

  1. Comply with the CPD requirements set out by the RICS
  2. Co-operate with the RICS
  3. Promptly provide all information requested by the standards and Regulation board, or those exercising delegated authority on their behalf.
27
Q

What are the Core professional obligations of Firms to RICS?

A

7 obligations firms have. Firms MUST -

  1. Publish a complaints Handling Procedure - which includes an ADR provider approved by the RICS
  2. Ensure that all previous and Current professional work is covered by adequate and appropriate PII.
  3. Firms with a sole principle - make appropriate arrangements for their professional work to continue in the event of their death/absence/inability to work
  4. Co-operate with the RICS
  5. Provide all information requested by the standards and regulatory board
  6. Display on business literature that they are RICS registered
  7. Report any matters to RICS that they are required to report.
28
Q

Why do the RICS take Disciplinary Action?

A

2 reasons -
1. To protect the Public Interest
2. To Safeguard the reputation of the Profession

29
Q

Who makes the Rules about the exercise of disciplinary powers?

A

The RICS Charter and Byelaws authorise the Standards and Regulation Board to make the Rules

30
Q

What do you understand about the term Professional Practice?

A

The use of ones Knowledge in a particular profession.

31
Q

What Money Laundering Regulations or legislation are you aware of

A

The Money Laundering and Terrorist Financing (amendments) Regulations 2019 WAS PREVIOUSLY

The Money Laundering and Transfer of Funds (information on the payer) regulations 2017.

32
Q

What is a Red Flag of Money Laundering?

A

If the client refuses to provide information about the transaction

Has criminal associations

if the source of funds for the transaction is unusual such as large cash payments

33
Q

What Bribery legislation are you aware of?

A

The Bribery Act 2010

34
Q

What is the definition of a Bribe?

A

The Offer, Promise, Giving, Demanding or Accepting an advantage as an inducement for an action that is illigal, unethical or a breach of trust.

35
Q

What are the main principles of The Bribery Act 2010

A

Making a bribe
Receiving a bribe
Bribery of a foreign public official
Failure by a commercial organisation to prevent a bribe

Applies to all UK entities

Has 6 principles of prevention
- proportortinate procedures
- Top-level management
- Risk Assessment
- Communication
- Monitor and Review

36
Q

What are the Penalties for Accepting a Bribe?

A

Individuals can be prosecuted
- face imprisonment for up to 10 years
- an ultimate fine
- both

37
Q

What are the penalties for being involved in Money laundering?

A

Money laundering under the Proceeds of Crime Act 2002 carries a jail sentence of up to 14 years or a large fine

38
Q

What constitutes an Offence under the Bribery Act 2010?

A
  • Marking a bribe
  • Receiving a Bribe
  • Bribing a foregin public official
  • Faliure by a commercial organisatio to prevent a bribe
39
Q

What constitutes an offence under the current money laundering regulations?

A

A person commits an offence if he

  • Conceals
  • Disguses
  • Converts
  • Transfers
  • Removes

Criminal property from England, Wales, Scotland and northern Ireland

Offences can be found in Part 7 of the Proceeds of Crime Act 2002

40
Q

What is professional Indemnity Insurance?

A

Professional Indemnity Insurance (PII) is a type of business insurance that protects businesses.

It is put in place to ensure that if firms faces a claim - it is protected from financial losses that it cannot meet from its own resources.

41
Q

Is a PII excess usually paid for per claim?

A

Yes

42
Q

Can you tell me about the RICS requirements in relation to PII?

A

The RICS PII requirements can be found in the RICS Regulation UK Professional indemnity Insurance requirements Version 9 with effect from 1st April 2022.

RICS requires that a policy should meet the following standards:
The nature and extent of insurance must be adequate and appropriate for the business. It
must meet the following requirements.

• An ‘each and every’ claim basis or aggregate plus unlimited round the clock reinstatement
basis.
• As a minimum, ensure that policy wording is written on a full civil liability basis
- the minimum level of indemnity based on the firm’s turnover in the previous year (or estimated for a new firm).
- To manage their risk adequately, some firms may wish to hold a higher level of indemnity

43
Q

What is PII aggregation Clause?

A

aggregation clause tis a clause that allows or requires a number of, usually, similar or linked claims to be treated as a single claim. - this is for the benefit of the insurance company

44
Q

W

A
45
Q

What is the RICS minimum Level of indemnity?

A

£100,000 or less turnover = £250,000 minimum level of indemnity
£100,001 to £200,000 = £500,000 minimum level of indemnity
£200,001 or Above = £1,000,000

46
Q

What is the RICS statement relating to Client Money Handling?

A

RICS Professional standards and Guidence, UK Client Money Handling, 1st Edition, Octobre 2019

47
Q

What are the Mandatory requirements for RICS firms when Handling Client Money?

A
  1. Handle all client money in a client money account
  2. DO NOT hold office money in a client account
  3. Ensure that a client money account does not contain any sum other than the whole or part of client money paid into it
    4.Ensure that client money account include the word ‘CLIENT’ and NAME OF THE FIRM in the title
  4. Money held in a client account is IMMEDIATELY AVAILABLE
48
Q

what might client money include?

A
  1. A payment on account of costs
  2. rents
  3. service charges
  4. arbitration fees
  5. Auction sale proceeds where a firm is acting as an agent
49
Q

what might office money include?

A

payments received for fees from an invoice
Disbursements already paid or incurred but NOT yet paid by the firm

50
Q

What are the two types of Client Money Accounts?

A

A Discrete client account - a signle client of the firm e.g estate barony

General Client Account - more than one client of the firm - e.g people who we collect grazing rents for

51
Q

What do the rules of conduct say about client money

A

Rule 1 - firms must keep clients money safe
- members must not misuse client money and comply with the controls to keep it safe

RICS APC (7 decks)

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