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APC - Building Surveying > Global Rules of Conduct > Flashcards

Global Rules of Conduct Flashcards

1
Q

What is Rule 1 of the Global Rules of Conduct?

A
  • Be honest
  • Act with integrity
  • Comply with professional obligations, inc. to RICS
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2
Q

What is Rule 2 of the Global Rules of Conduct?

A
  • Maintain professional competence
  • Ensure services are provided by competent individuals who have the necessary expertise
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3
Q

Wh

What is Rule 3 of the Global Rules of Conduct?

A

Provide good-quality and diligent service

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4
Q

What is Rule 4 of the Global Rules of Conduct?

A
  • Treat others with respect
  • Encourage diversity and inclusion
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5
Q

What is Rule 5 of the Global Rules of Conduct? (AACT)

A
  • Act in public interest
  • Act to prevent harm
  • Maintain public Confidence in profession
  • Take responsibility for actions
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6
Q

What are the 3 professional obligations for members

A
  • Comply with CPD requirements
  • Cooperate with RICS
  • Provide all info requested by Standards and Regulation Board
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7
Q

What is the professional obligation for firms relating to sole principals?

A

Make arrangements for work to continue in the event of incapacity, death, etc (another Chartered Surveyor to act as locum)

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8
Q

What is the obligation for firms under Appendix A relating to information requested by the Standards and Regulation Board?

A
  • Provide all information reasonably requested by the Standards and Regulation Board (or those exercising delegated authority on its behalf)
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9
Q

What are the Rules for the Registration of Firms?

A
  • Eligibility criteria %
  • Use of RICS logo, “Regulated by RICS”
  • Designate a “Responsible Principal” to provide oversight, accountability and engagement with RICS standards and regulation
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10
Q

Give me some example behaviors for Rule 1 (honest/integrity, professional obligations)

A
  • Don’t mislead (by actions or omissions)
  • Don’t be influenced improperly by gifts or self interest
  • Identify actual & potential conflicts of interest (only provide advice in accordance with Conflicts of Interest PS)
  • Give honest / objective advice, based on reliable evidence
  • Be open and transparent about fees/services
  • Act to prevent others being misled about your professional opinion
  • Don’t take unfair advantage
  • Protect confidential info
  • Keep client money safe, have accounting controls
  • Don’t misuse client money, comply with controls to keep it safe
  • Don’t facilitate financial crime, inc. money laundering, tax evasion, bribery, corruption
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11
Q

Give me some example behaviors for Rule 2 (professional competence)

A
  • Only undertake work that you have knowledge, skills and resources to
  • do competently
  • Check subcontractors have knowledge, skills and resources to do their tasks
  • Reflect on work you have undertaken, and its impacts
  • Identify CPD / development needs, plan and do CPD
  • Stay up to date & comply with relevant legislation, codes of practice & other technical standards
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12
Q

Give me some example behaviors for Rule 3 (good quality, diligent service)

A
  • Understand clients’ needs/objectives before accepting work
  • Agree with clients the scope
  • Inform clients that you’re RICS regulated
  • Undertake work timely; with due care, skill and diligence
  • Communicate clearly
  • Keep records
  • When advising clients on projects, encourage sustainable solution
  • Check data used accurate
  • Ensure any referral or intro you make for a client is in the best interests of the client
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13
Q

Give me some example behaviors for Rule 4 (respect, diversity + inclusion)

A
  • Respect rights of others, treat with courtesy
  • Treat everyone fairly, don’t discriminate on improper grounds, (“protected characteristics”: age, disability, gender reassignment, marriage or civil partnership, pregnancy/maternity, race, religion or belief, sex or sexual orientation)
  • Don’t bully, victimise or harass
  • Check supply chains don’t involve modern slavery, or abuses
  • Report abusive or suspected abusive labour practices to authorities
  • Work cooperatively
  • Develop inclusive culture in workplaces, support equal access/opportunity for all, identify/ address unconscious bias
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14
Q

Give me some example behaviors for Rule 5 (act in public interest, take responsibility, prevent harm, maintain public confidence)

A
  • Question practices and decisions you suspect aren’t right
  • Support directors, partners, employees, colleagues or clients who acted in good faith to report concerns
  • Ensure public statements made by the firm, or members who are (or could be identified) members of the profession, do not undermine public confidence in the profession
  • Respond to complaints promptly, openly & professionally
  • Don’t dissuade complainants from approaching ADR provider
  • Cooperate with investigations into complaints, provide info where requested (if lawful)
  • Consider the effect any health conditions a member may have on their competence or ability to undertake work. Inform management/clients where they need reasonable adjustments
  • Manage professional finances responsibly
  • Take appropriate action when rules have been breached, report suspected significant breaches by yourself or others to RICS
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15
Q

What is a conflict of interest?

A

Anything that impedes or may be percieved to impede on an individuals or firms ability to act impartially & at the best interest of the client.

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16
Q

Name some of the approved ombudsmen bodies for complaints handling?

A

Centre for Effective Dispute Resolution
Property Redress Scheme
Financial Ombudsmen Service
Local Government Ombudsmen
Adjudicators Office

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17
Q

What is informed consent?
How would you go by getting informed consent?

A

Informed consent can only be sought where the RICS member or firm is satisfied that proceeding despite the conflict of interest is:
a) in the interests of all those who are or may be affected and
b) is not prohibited by law
and that the conflict will not prevent the member or regulated firm from providing competent and diligent advice to those that may be affected.

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18
Q

What is Lionheart?

A

A charity for RICS professionals from APC to retirement
Provide financial support, health and wellbeing, counselling and work related support. Legal Advise

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19
Q

How many hours CPD do you need to record each year once qualified?

A

20 hours per year

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20
Q

When was RICS founded?

A

1868

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21
Q

What is a fixed RICS penalty

A

Fine given for non compliance with the rules

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22
Q

Main principles of the bribery act?

And consquences?

A

Don’t offer or accept a bribe
Knowing about it
Receiving a bribe
Bribing a foreign government official

Up to 10 years in prision

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23
Q

What is a contract officer?

A

When registering the firm with RICS you need a designated contact within the RICS

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24
Q

What do registered firms need to provide to RICS annually?

A

Annual financial return
type of services offered
nature of clients
training provisions
details of PI insurance
If you hold clients money, how much and the procedures to hold it.

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25
Q

Whats required to start own practice?

A

nominated contact officer
locum agreement
register with company’s house
business bank account

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26
Q

What should PII policy cover?

A

Everything that you offer as a service

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27
Q

how would you close a business?

A

contact rics
do final accounts ans submit to rics
get run off cover min 15 years
return any clients money
retain copies of files for min 6 years

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28
Q

What is the RICS Mission Statement?

A

To qualify and equip our professionals to the highest level
To promote and enforce standards
To lead solutions to the major challenges facing the built environment through
professional expertise.

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29
Q

What are the RICS’ 5 principles of better regulation?

A

Proportionality
Accountability
Consistency
Targetting
Transparency

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30
Q

What is the difference between RICS ethics and rules?

A

Ethics are a set of moral values while rules of conduct are a framework that we work to.

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31
Q

How many professional and ethical standards are there?

A

5

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32
Q

What is Negligence?

A

A duty of care is owed to all clients and 3rd parties using reasonable skill and care.
If it is breached and there is a loss, then a claim for damages arises.

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33
Q

Describe the case of Merrit V Babb (2001)

A

Surveyor sued for negligence by former client when firms Pll cover was cancelled when firm became solvent which highlighted the importance of run off cover.

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34
Q

What must a complaints handling procedure include?

A

a redress mechanism
clear, quick, transparent and impartial and free of charge
Names and contact details of the nominated investigating person must be stated
The complaint must be investigated within 28 days
All complaints, their progress and outcomes must be recorded
Advise PI insurers of a complaint
Must have two stages as a minimum:
Consideration of the complaint by a senior member of the firm or the complaints handling officer
If not resolved, referred to an independent third party with the authority to award redress

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35
Q

What do you do if you received a letter of complaint?

A

I acknowledge reception and I forward it to our designated complaint handler, as per our complaint handling procedure, providing additional information as required. If I am a sole practisioner, I inform the RICS if it warranted my complaint handling procedure and I notify my PI insurer.

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36
Q

What is run off cover?

A

Run-off cover is insurance for claims made against a 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.

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37
Q

What status is a professional statement?

A

Mandatory

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38
Q

What status is a RICS code of Practice?

A

Mandatory or good practice (confirmed within the document itself)

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39
Q

What status is a guidance note?

A

Recommended Best Practice

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40
Q

What status is a RICS information Paper?

A

Information and/or recommended best practice

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41
Q

What status is the Conflicts of Interest document?

A

Professional Statement (mandatory)

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42
Q

What is a bribe?

A

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

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43
Q

What is the purpose of the Bribery Act 2010?

A

To update and enhance UK Law on bribery including foreign bribery. The Act also provides strict penalties for active and passive bribery by individuals and companies.

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44
Q

What is your firm’s policy on gifts?

A

It is acceptable to receive small tokens of appreciation, only, and infrequently.
If you are offered a gift or hospitality, you must report this to your Director as soon as it is given to you, for approval.
You must provide details of the nature of the gift and the identify of the sender.
The company gift register will be updated by the MD, which will identify whether it has been accepted/declined.
Accepting/declining the gift will have regards to any current or close professional activity with parties involved.
Central register of gifts is reviewed regularly by the Board of Directors.

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45
Q

What legislation are you aware of relating to bribery or money laundering?

A

Bribery Act 2010
Sanctions and Anti-money Laundering Act 2018
Proceeds of Crime Act 2002
Money Laundering and Terrorist Financing (Amendment) Regulations 2019

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46
Q

How do you take reasonable steps to keep information separate?

A

Create a non-physical barrier, a Chinese wall, and ensure that the two surveyors who have the conflict of interest do not discuss client matters/ keep confidential information on desks/ sit at desks next to one another/ save data in different files (permissions) etc.

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47
Q

What are the 3 different types of conflict?

A

Party conflict - duty to act in the interests of a party which conflicts with a duty owed to another party in relation to the same or a related professional assignment
Own interest conflict - duty to act in the interests of a client which conflicts with the interests of the RICS member or firm
Confidential information conflict - duty to provide material information to one client whilst having a duty to another client to keep that same information confidential

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48
Q

What are the different levels of PII?

A

This relates to turnover of the company.

£100,000 or less = £250,000 PII required
£100,000 to £200,000 = £500,000 PII required
£200,000 and above = £1,000,000 PII required

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49
Q

If you receive a complaint, when should you notify your Insurance provider and when will RICS get involved?

A

Insurance provider - as soon as the formal complaint or query is received.

RICS - only if the issue cannot be rectified with the firm or independent 3rd party ADR (KKL - this is the Centre for Effective Dispute Resolution, CEDR)

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50
Q

When does a company need to register with HMRC?

A

When a company exceeds the VAT threshold of £85,000

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51
Q

Is there a run-off cover value per claim that RICS require?

A

£1 million

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52
Q

What is the role of a Contact Officer?

A

The individual designated by the Firm to be the main liaison point between the Firm and RICS and the person authorised by the Firm to submit the Firm’s Annual Return.

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53
Q

What is the limit on client money that you are allowed to hold on behalf of a client?

A

£10,000

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54
Q

What are the laws and regulations that govern the RICS?

A

Bye-Laws and Royal Charter.

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55
Q

What is the role of RICS?

A

Maintain highest standard of education and training.
Provide consumer protection
Provide impartial advice
Maintain and regulate the profession.

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56
Q

What are they key functions of RICS?

A

Promotes and enforces the highest professional qualifications and standards in: Land, Real Estate, Construction and Infrastructure.

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57
Q

Why do you want to become a member of RICS?

A

To obtain a recognised professional status which promotes best practices in the profession and to be part of an international professional community.

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58
Q

What is a Royal Charter?

A

Formal grant issued by the Monarch. It requires RICS to ‘promote the usefulness of the profession for the public advantage in the UK and other parts of the world’.

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59
Q

􏰀What sort of information is contained in the RICS Standard Form of Consultants Appointment?

A

The parties entering into the agreement
Terms of appointment and scope of services
Exclusions - services not included
Client’s objectives
Payment Terms
Insurance
Termination of agreement
Dispute Resolution.

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60
Q

What are the Continuing Professional Development requirements for a Member of RICS?

A

20 hours ever 12 month period (Jan-Dec); a minimum of half of which (10 hours) must be formal CPD.

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61
Q

What is the difference between formal and informal CPD?

A

Formal CPD has a learning outcome, informal CPD does not.

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62
Q

What must you do if a conflict of interest occurs?

A

Reference RICS Conflicts of Interest 2017 Professional Statement

Conflict Avoidance - inform the client, and offer to withdraw yourself from the instruction

Conflict Management - Disclose the nature fo the conflict, recommend they obtain professional advice, establish proposals for dealing with conflict, and obtain informed consent from the client to proceed.

Set up an information barrier, and ensure that the firm’s compliance officer oversees all actions.

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63
Q

Why do we have to carry PI insurance?

A

To protect a client’s, staff’s and firm’s financial risk associated with claims of negligence. Also PII is required by RICS Rules of Conduct.
Must have 6 years run-off cover if you move to a different firm (as defined within RICS Statement ‘Professional Indemnity Insurance Requirements 2019’.

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64
Q

Explain the term ‘claims made basis’?

A

The policy covers claims that are first made against the insured during the period of insurance regardless of when the negligent act occurred e.g. PII and Employer’s Liability Insurance (refer to RICS Statement ‘Professional Indemnity Insurance Requirements 2019’)

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65
Q

What were the implications of the Merrett and Babb case (2001)?

A

A surveyor was individually liable for a negligent valuation report when he did not have the protection of PII due to the firms’ insolvency. The purchaser was entitled to recover damages from the defendant personally. The defendant should have had 6 years run-off PII cover after practicing.

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66
Q

Who does interest earned on a client account belong to?

A

The Client, unless the client has agreed in writing to the consultant retaining the interest accrued.

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67
Q

What is the RICS Professional Statement relating to Money Laundering?

A

Countering Bribery and Corruption, Money Laundering and Terrorist Financing, 2019 (came into effect January 2020), 1st Edition.

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68
Q

What is the RICS approved Complaints Handling Procedure?

A
  • Obtain the complaint in writing
  • Respond to the complaint in writing within 7 days
  • Resolve the complaint within 28 days
  • Provide details of access to independent redress if the firm cannot resolve the complaint
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69
Q

What is an information barrier?

A

An invisible information barrier between two parties working on the same professional assignment to appropriately manage a conflict of interest.

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70
Q

What is the purpose of the Technology and Construction Court?

A

The TCC primarily deals with litigation of disputes arising in the field of technology and construction, including professional negligence claims.

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71
Q

Give an example of an International Standard?

A

International Ethics Standards (IES):
- Accountability
- Conflict of Interest
- Financial Responsibility
- Lawfulness
- Reflection

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72
Q

What legislation deals with issues around discrimination?

A

The Equality Act 2010.

73
Q

What are the principles of the UK legal system relating to construction?

A

Common Law - developed by court judgements (case law)
Contract Law - must have offer, acceptance and consideration
Tort Law - civil law which does not arise from contractual obligations e.g. trespass, negligence
Statutory Law - legislative, written law.

74
Q

What legislation affects contracts in the UK?

A

The Contracts (Applicable Law) Act 1990

75
Q

Explain the relationship between the Privy Council and the RICS?

A

The RICS is self-regulated, but important changes to its constitution have to be ratified by the UK Government, through the Privy Council.

76
Q

Explain the function of the professional groups?

A

Professional groups are the way that RICS segments the various technical specialisms of the profession. There are 17 groups including, Building Control, Building Surveying, Dispute Resolution, Valuation and Project Management.

77
Q

What is the status of a guidance note and professional statement and what is the difference between the two?

A

Guidance notes are documents providing recommended good practices. They are not mandatory.

Professional statements are documents containing mandatory requirements or rules that members of regulated firms are expected to adhere to.

78
Q

Give an example of a legal case that relates to your work?

A

Merrett vs. Babb (personally liable for advice)
Ampleforth Abbey vs. T&T (Letter of intent, no contracts signed)

79
Q

What constitutes an offence under the money laundering regulations?

A

Handling or facilitating criminal property;
Concealing or disguising criminal property
Criminally obtained money or assets (criminal property), exchanged for ‘clean money’ or other assets.

80
Q

What money laundering regulations and legislation are you aware of?

A

Sanctions and Anti-Money Laundering Act 2018
Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
Money Laundering and Terrorist Financing (Amendment) Regulations 2019

81
Q

What is the Black Book?

A

A suite of good practice guidance notes and technical standards provided by the RICS.

82
Q

What do you understand by the term self-regulation?

A
  • An organisation that regulates itself with its own bye-laws
  • Internally monitored and inspected
  • RICS Bye-laws have to be approved by the UK Government via the Privy Council
83
Q

In the RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing - what must RICS Members and Firms do?

A
  • Not be complicit in money laundering activities
  • Not facilitate money laundering activity
  • Report any suspicion of money laundering
84
Q

Are RICS rules just for members?

A

For RICS Members and RICS Regulated Firms

85
Q

Is there a minimum value that has to be adhered to when declaring gifts received?

A

No. All gifts should be declared with a company gift register.

What is it at Peabody?

86
Q

What is required to start your own RICS compliant practice?

A

Advise RICS that you are starting a business
Register for Regulation
Meet the requirement of the Rules
Understand the need for insurances (ELI, Public Liability etc), a health and safety policy, equal opportunities policy etc
Appropriate designation of RICS logo, as defined by RICS.

87
Q

Give me some of the essential steps to be taken before setting up your own practice.

A

“Follow HMRC’s rules and procedures for setting up a firm
25% of principle members are members (to be regulated)
Contact officer - responsible principle of the firm for AML (MLO, CHO, etc)
Comply with RICS Rules for firms (to be regulated)
PII and ELI in place
Business Plan (do I know who my clients are, what my areas of expertise are?)
Accounts management procedure (have I worked out how I am going to price my time, do I have an accountant?)
Provide training for staff
Providing safe environments for staff (in current climate this extends to addressing the home-working environment)”

88
Q

As surveyors, why do we have ethics?

A

To establish a professional standard and promote trust in the profession. RICS professionals have to adhere to five global professional and ethical standards.

89
Q

Give an example where you have been offered a gift by a client, contractor or other stakeholder you work with. Did you accept the gift?

A

Think about bottle of champagne after contract end. Did you accept?

90
Q

What are the CPD requirements for a Chartered Building Surveyor and how might you achieve these? Why is it important to undertake CPD?

A

20 hours ever 12 month period. RICS offer CPDs, face-to-face and online, CPD can also be done by reading latest guidance. Commitment to life-long learning to stay up to date with regulations, standards of practice, products, RICS rules.

91
Q

Where making recommendations to clients on contractor selection, how do you ensure that your advice is impartial and there are no perceived conflicts of interest?

A

1) I ensure that recommendations are based on facts:
* - Information on financial status of companies
* Example projects completed
* Errors within tender submission
* Response to queries.

2) If there was the potential for a perceived conflict of interest I would have obtained informed consent from the client having outlined the conflict of interest and only proceeded on this basis.

92
Q

Have you ever had to deal with a complaint? If so, how did you approach this?

A

Not formal complaints, only a verbal complaint which was resolved by apologising on behalf of the colleague who made the error and explaining how the error came about

93
Q

What do you do when setting up a practice - RICS complaince.

A
  • Inform RICS by completing Firm Detail form.
  • Appoint responsible principle for RICS communication.
  • Register for regulation with RICS Regulatory Board
  • Arrange Indemnity Insurance
  • Set up procedures for handling clients’ money.
  • Set up a complaints log & appoint Complaints handling officer.
  • Plan for succession if sole practitioner.
  • Log CPD online.
  • Complete RICs annual return each year.
94
Q

What do you do when setting up a practice - Statutory compliance;

A

Statutory compliance
* Disclose business name
* Disabiltiy discriminate compliance (equality act)
* Financial services compliance Act
* Bribery Act
* Appoint Money Laundering Reporting Officer.
* Health and safety compliance
* Asbestos Register
* Fire safety Compliance
* Register for data protection
* Inform HMRC for VAT and Tax
* Ensure compliance with current employment law
* Insurances.

95
Q

What do you do when closing a practice:

A

Rics compliance:
* Inform rics
* Inform clients & make handover arrangements.
* Return moneys
* Inform insurers & procure Professional indemnity insurance run-off cover for minimum of 6 yers from expiry of the policy.
* Retain copy of client files and records for 6 years.

96
Q

All members must undertake ethical standards training - what timescale?

A

Every 3 years.

97
Q

When asked about acceptabance of any cash, gift or hospitality in your interview, consider the following:

A

Bribary Act 2010
You firm’s procedures
professional objectivity,
openness and transparency
proportionality
tax implications
money Laundering
employment contract details.

98
Q

What are Peabody’s anti-bribary procedures and gift register requriements.

A
99
Q

What are the four offences within the Bribary Act

A

4 offences are:

Bribing
Receiving a bribe
Bribing a foreign public offical
Failing to prevent a bribe.

100
Q

What is a bribe?

A

A bribe can be the giving, offering, promising or receiign of an advantage - such as payment, gift, or ervice, or an action which is illegal or a breach of trust.

101
Q

If faced with a situation that you felt was unethical, how would you proceed?

A

Using the decision tree:
* Do I have sufficient facts?
* Is the matter legal?
* Is it in line with RICS Professional and Ethical Standards?
* Have I consulted with appropriate people?
* Do I have clear reasoning in reaching my decision?
* Would I be content for my actions to be made public?
If answered no to any of the above, I would not proceed with the situation alone and would consult senior staff with direction on how to proceed.

102
Q

Why did the RICS implement the new Rules of Conduct?

A
  • A simpler structure.
  • Clear examples.
  • Focusing on respect, diversity and inclusion.
  • Understanding evolving technology. .
  • Tackling global challenges.
103
Q

What is the RICS Governance structure

A
  • Governing Council has 25 members and runs the RICS, providing management and strategic direction.
  • Regulatory Board, Management Board & various committees report to governing council.
  • 17 specialist professional groups covering property land and construction.
  • Each professional group has an elected board and responsible for outlining standards of competence and practice.
104
Q

What is the RICS UK Structure:

A

4 National Associations
10 regional boards
Local associations
Current president Ann GRAY

105
Q

What is the role of RICS?

A
  1. To maintain the highest standards of education and training.
  2. To protect consumers through strict regulation of professional standards.
  3. To be the leading source of information and independent advice on land, property and construction associated environmental issues.
106
Q

What are the Benefits of being a RICS member?

A
  1. Status – your professional credentials provide unrivalled client confidence.
  2. Recognition: promotion of your professional excellence to government and markets.
  3. Market advantage: RICS status and standards gives you a competitive advantage.
  4. Knowledge: International practice standards, professional guidance, CPD & knowledge sharing.
  5. Network- access to 125,000 professionals worldwide
107
Q

What are the 5 principles of better regulation and who do they apply to?

A

PACTT A) proportionality / accountability / consistency / targeting / transparency.

108
Q

What are the 3 proffessional obligations for members in Appendix A the New Rules of Conduct?

A
  1. Members must comply with the CPD requirements set by RICS.
  2. Members must cooperate with RICS.
  3. Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
109
Q

What is included in Appendix A (Professional Obligations) in the New Rules of Conduct?

A

3 obligations for members, 7 for firms, on what they need to do to comply with their professional obligations. They are:

Members:

  1. Maintain CPD
  2. Cooperate with RICS
  3. Provide info requested reasonably by Standard and Information Board

Firms:

  1. Cooperate with RICS
  2. Provide info requested reasonably by Standard and Information Board
  3. Maintain adequate PI insurance
  4. Operate a complaints handling procedure
  5. Sole practitioners to make arrangements for work to continue in event of death/incapacitation (such as locum)
  6. Display “Regulated by RICS” on literature
  7. Report any info required under “Rules for Registration of Firms”
110
Q

If a conflict of interest arose within your business, what advice would you give to col-leagues or clients on how to deal with it?

A

Is it in the best interests of the client to proceed?
How would it appear/look if I took on this instruction?
Consult RICS decision tree?
Can the conflict be managed - information wall?
Can the client give informed consent?

Roger:
Depends on the type of conflict (party conflict, own interest conflict, confidential information conflict).
I would advise to establish if the instruction/client could continue if both parties to the conflict gave their informed consent. Then explain the COI to the client(s), and obtain that informed consent. Arrange for any necessary internal processes to ensure confidentiality, such as an “information wall” and/or IT access restrictions.
If cannot proceed with informed consent, or despite it instruction is not appropriate, decline instruction.

111
Q

If you and a colleague were invited to a consultant’s Christmas Party, what advice would you give to your colleague;

A

First, inform director of invite.
Check timing, value (of party – it is proportionate), and purpose of invite. If any contravene Bribery Act 2010, decline. Inform director.
If it is appropriate and you go, record in gift register.
If in doubt, seek advice inc. from RICS.

112
Q

What are the guidelines for dealing with an offer of a gift or hospitality and when may ac-ceptance be appropriate?
Three elements to consider;

A
  • Timing of gift offer
  • Value of gift (is it proportionate, or ridiculously expensive?)
  • Intent behind gift (informed by the other two)

No “guidelines” I know of, but comes under Bribery Act 2010.

113
Q

How would you describe ‘conduct befitting’ a Chartered Surveyor?

A

Adhering to the 5 global rules of conduct, and having them extend to your personal as well as professional life.

114
Q

What is Bribery?

A

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

115
Q

What is Corruption

A

The misuse of public office or power for private gain; or misuse of private power in relation to business practice and performance.

116
Q

What is Money Laundering?

A

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.

117
Q

What is the role of RICS?

A
  1. To maintain the highest standards of education and training.
  2. To protect consumers through strict regulation of professional standards.
  3. To be the leading source of information and independent advice on land, property and construction associated environmental issues.
118
Q

What are the 5 principles of better regulation and who do they apply to?

A

PACTT A) proportionality / accountability / consistency / targeting / transparency.

119
Q

Name three main roles of RICS

A
  1. Maintain highest standards in education and training
  2. Protect consumers through strict regulation of professional standards
  3. Be the leading source of information and independent advice on land, property construction and environmental issues.
120
Q

Rules of conduct are based on what ethical principles?

A

Honesty
Integrity
Competence
Service
Respect
Responsibility

121
Q

Rules of conduct are based on what ethical principles?

A

Honesty and integrity
Competence
Service
Respect
Responsibility

122
Q

What is rics required to do under it’s royal charter.

A

Maintain the usefulness of the profession for the public advantage.

Surveying is defined as securing the optimal use of land and it’s associated resources to meet the social and economic needs.

123
Q

What happens if a member contravenes the rules?

A
    • Penalties
    • Caution
    • Fine
    • Conditions
    • Removal of Registration
    • Expulsion
124
Q

How many bye laws are there

A

There are 10 bye laws ratified by the privy council.

There are 10 regulations approved by the RICS governing Council.

125
Q

Provide some examples of RICS documents and their status?

A

Rules of conduct: These Rules set out the standards of professional conduct and pracice.

International standard - (such as INTERNATIONAL ETHICS STANDARDS) High-level standard developed in collaboration with other relevant bodies

Professional statement (CONFLICTS OF INTEREST) Mandatory requirements for RICS members and regulated firms

Guidance note (SURVEYING SAFELY) A document that provides users with
recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.

Code of Practice (CODE OF MEASURING PRACTICE) A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note.

Jurisdiction Guides - This provides relevant local market information associated with an RICS international standard or RICS professional statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally.

126
Q

What are the different levels of RICS documentation?

A
  • Rules of conduct: These Rules set out the standards of professional conduct and practice.
  • International standard - (such as INTERNATIONAL ETHICS STANDARDS) High-level standard developed in collaboration with other relevant bodies
  • Professional statement (CONFLICTS OF INTEREST) Mandatory requirements for RICS members and regulated firms
  • Guidance note (SURVEYING SAFELY) A document that provides users with
  • recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
  • Code of Practice (CODE OF MEASURING PRACTICE) A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note.
  • Jurisdiction Guides - This provides relevant local market information associated with an RICS international standard or RICS professional statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally.
127
Q

Rule 2.1 - what is this?

A

Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently. – I’m not a valuer – I would not know how to advise on this.

128
Q

Rule 3.1?

A

Rule 3 – Service – 3.1 Members and firms understand clients’ needs and objectives before accepting any professional work.

129
Q

Appendix for firms: Rule 2.

A

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

130
Q

What is the RICS Governance structure:

A

Governance structure:
* Governing Council has 25 members and runs the RICS, providing management and strategic direction.
* Regulatory Board, Management Board & various committees report to governing council.
* 17 specialist professional groups covering property land and construction.
* Each professional group has an elected board and responsible for outlining standards of competence and practice.
UK Structure:
* 4 National Associations
* 10 regional boards
* Local associations
* Current president Ann GRAY FRICS – and chair of Governing Council.
* Martin Samworth FRICS becoming Chair of the RICS BOARD.

131
Q

Why don’t you need PII insurance at Peabody?

A

PII insurance is requried when a business provides professional services, including expert advice and consultancy, to clients. We are teh client, and we do not provide proffessional advice to thrid parties. I only provide this directly to my employer.

132
Q

Limitations Act 1980.

A

Current limitations for negligence are:

Contract - 6 years from the date of negligent act, breach or omission. Section 14a provides an alternative limitation period of three years from the date of knowledge of the damage subject to the 15 year stop from the negligent act or omission.

Tort - 6 years from the date the claimant suffered the loss.

133
Q

What sort of information do registered firms have to send to the RICS
annually?

A

It is called annual return and done on-line. Failure to do so leads to a fixed penalty.
Type of business and staffing
Nature of clients
Training provision
Complaints handling procedures details and records
PI insurance details
Whether the firm holds clients’ money

134
Q

What are the client money handling procedures?

A

Client money must be kept separate and clearly identifiable — included ‘client’ in
account name
Client must always have access to funds
Agree the terms and advise the client on bank details
Interest on the account must be agreed with the client
Must not be overdrawn
Maintain client ledgers — Provide running balance (important for General
Accounts)
Controls in place to keep funds secure
Locate and reimburse client

135
Q

What 2 types of acount are there for handling clinet’s money?

A

General account: holds money for more than one client
Discrete account: single named client

136
Q

What 2 types of acount are there for handling clinet’s money?

A

General account: holds money for more than one client
Discrete account: single named client

137
Q

Example behaviour of Rule 1

A

Example behaviour. 1.9 Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law.

138
Q

Example behaviour of Rule 3

A

Rule 3 – Service – 3.1 Members and firms understand clients’ needs and objectives before accepting any professional work.

139
Q

Rule 2 Example behaviour.

A

Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently.

140
Q

Appendix for firms:

A

Rule 2. 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

141
Q

When closing down a business you must:

A

Inform RICS
Run off Cover
Locum agreement
Return client money

142
Q

Confidential information example.

A

I previously identified an issue relating to confidential information, whereby a contractor asked the rate of commission my organisation was paying a competitor. I politely but firmly advised that this information was strictly confidential, and recommended requests for information go through formal channels, if at all.
Rule 1 Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS: Example behaviour. 1.9 Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law.

143
Q

What legislation is relevant to Money Laundering etc.

A
  • Proceeds of Crime Act 2002
  • The Terrorism Act 2000
  • The Money Laundering Regulations 2007
  • Bribary Act
  • Finance Act 2016
  • Money Laundering Regulations 2017
144
Q

What happens if a complaint is made?

A

Triggered by complaint, allegation or information.
Three levels of action:
1. Action by head of regulation.
2. Regulatory tribunal
3. Appeal panel.

common breaches include:
* Breaches of professional behaviour (such as passing info shared by client in a report, repeated failure to communicate, and trading whilst insolvent).
* Protecting clients’ money
* CPD.

Sanctions:
* FPN can be served.
* Regulatory compliance order – (low level written doc which specifies what action to take)
* CPD sanction – obligation to follow.
* Disciplinary panel. – more serious. – 50% of panel lay members.

145
Q

What is the royal charter

A

To maintain and promote the usefulness of the profession for the public advantage in the United Kingdom and in any other part of the world.

146
Q

What is the governance structure?

A

Governance structure:
* Governing Council has 25 members and runs the RICS, providing management and strategic direction.
* Regulatory tribunal, Standards and regulation Board, RICS board report to governing council.
* 17 specialist professional groups covering property land and construction.
* Each professional group has an elected board and responsible for outlining standards of competence and practice.

UK Structure:
* 4 National Associations
* 10 regional boards
* Local associations
* Current president Ann GRAY FRICS – and chair of Governing Council.
* Martin Samworth FRICS becoming Chair of the RICS BOARD.

147
Q

Who is RICS President Elect, FRICS

A

Tina Paillet

148
Q

Senior Executive Officer, RICS

A

Chris Alder

149
Q

The RICS have introduced two new definitions for professional guidance; what are these?

A

Professional Standards and Practice Information.

These replace the former definitions categorising the status of various RICS guidance; International Standard, Professional Statement, Guidance Note, Code of Practice and Jurisdiction Guide.

These are being rolled out on all new RICS guidance being published, or in some cases existing guidance is being reissued using the new definitions.

150
Q

Provide an example behaviour of rule 5.

A

RULE 5 – take responsibility: 5.4 Members and firms respond to complaints made against them promptly, openly and professionally.

151
Q

Provide an example behaviour of rule 1:

A

Example behaviour. 1.9 Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law.

152
Q

What is Peabody’s complaints handling procedure?

A

Peabody complaint handling procedure:

Stage one
Acknowledge complaint within five working days.
Case manager will investigate and get back to you with their findings within ten working days.
You then have ten working days to let us know whether you’re satisfied with the outcome. If we don’t hear back from you the case will be closed.

Stage two
Customer Experience Team takes over. Named manager handling the case. full review of the case and send a response to you within** 20** working days.

Housing Ombudsman if you remain unsatisfied. However, even while you are engaging with us during the complaints process, you can contact the Housing Ombudsman at any time to seek advice or guidance on the process or service you are receiving.

Leaseholders can go to Leasehold Tribunal Service for complaints relating to setting of service charges can be referred to the First-Tier Tribunal.

153
Q

What are the 6 principles of mitigating a bribe.

A
  1. Proportionality
  2. Top level commitment
  3. Risk assessment
  4. Due diligence
  5. Communication
  6. Review & monitor
154
Q

If a client goes on holiday could you manage payments for a project?

A

Interest payable.
Seperate client account.
Payments made on works done.
Regulator contact.

155
Q

What are the six requirements of the Bribery Act

A

Proportionality.
* Top level commitment.
* Risk assessment.
* Due diligence.
* Communication.
* Monitoring and review

156
Q

What are the three levels of disciplinary action?

A
  • Action by Head of Regulation.
  • Disciplinary panel.
  • Appeal panel.
157
Q

Head of Regulation can initiate wihch of the following Three actions if he believes disciplinary
actions is required:

A
  • Serve a Fixed Penalty Notice.
  • Make a Regulatory Compliance Order.
  • Refer the matter to the Disciplinary Panel for consideration under the discipline rules.
158
Q

What are the procedures for STARTING UP A PRACTICE (RICS COMPLIANCE)

A
  • Inform RICS of your new practice by completing a Firms Detail Form.
  • Appoint a Contact Officer for all RICS communication.
  • Register with RICS for regulation of the firm by the Regulatory Board.
  • Arrange Professional Indemnity Insurance and send details to RICS.
  • Set up procedures for Members Account Regulations for handling client’s money.
  • Obtain RICS approval for CHP.
  • Set up a complaints log.
  • Appoint a Complaints Handling Officer (or elect a surveyor in another practice if a sole practitioner).
  • Obtain a logo kit from the RICS to use for the production of all practice material to ensure compliance with the designation
    “Regulated by RICS”.
  • Make arrangements for succession and future running of business if a sole practitioner.
  • Set up a staff training plan and ensure CPD logged online on the RICS CPD Management System.
159
Q

What are the new document types?

A

Professional Standards and Practice Information

160
Q

What are teh requirements for PII insurance

A

PII insurance – each and every claim, - minimum policy wording – fully retroactive – each and every claim – RICS listed insurer and cover for all past and present employees.

161
Q

Key questions from recent mocks:

A
  • Setting up a businesss
  • COI
  • Client money
  • Money laundering
  • Bribery
  • Complaints
  • Gifts
  • Ethical principles / ROC
  • 3 key things to determine work
  • Unconsciousbias
162
Q

What is a responsible perosn.

A

RESPONSIBLE person is responsible for ensuring RICS guidance are followed within a firm.

163
Q

What are the six principloes for mitigating a bribe.

A
    1. Top level committment.
    1. Due diligence,
    1. Risk assessment
    1. communication
    1. monitor
    1. Review
164
Q

What must you do if you are a private firm and receive a complaint?

A

Inform your PII insurance.

165
Q

Setting up a practice:
RICS compliance:

A
  • Inform RICS by completing Firm Detail form.
  • Appoint responsible principle for RICS communication.
  • Register for regulation with RICS Regulatory Board
  • Arrange Indemnity Insurance
  • Set up procedures for handling clients’ money.
  • Set up a complaints log & appoint Complaints handling officer.
  • Plan for succession if sole practitioner.
  • Log CPD online.
  • Complete RICs annual return each year.
166
Q

What three steps should you follow before agreeing instruction?

A
  1. Check you are professionally competent.
  2. No conflicts of interest or personal interests.
  3. Confirm Terms of Engagement in writing & get written approval from the client BEFORE you start work on the instruction.
167
Q

What are the 6 principles of the Bribary Act

A
  1. Proportionality
  2. Top level committment
  3. Risk Assessment
  4. Due Diligence
  5. Communication
  6. Monitoring and Review.
168
Q

What can you do to reduce negligence

A

Understand client’s objectives & get this in writing.
Ensure you are competent.
Undertake work as per RICS guidance notes and standards
Detilaed notes and photos.
Keep up to date with legislation and CPD
Cap professional liablity excess on you PII policy in the terms of engagement.

169
Q

What can you do to reduce negligence

A

Understand client’s objectives & get this in writing.
Ensure you are competent.
Undertake work as per RICS guidance notes and standards
Detilaed notes and photos.
Keep up to date with legislation and CPD
Cap professional liablity excess on you PII policy in the terms of engagement.

170
Q

On the conflicts of itnrest profesional statement there is wording for “informed consent.

A

Party conflict – working for purchaser and vendor.

Own interest conflict – your dad asked you to do a survey.

Confidential information conflict: - where you are working for two competetor firms in the same office.

171
Q

What sort of information do registered firms have to send to the RICS annually?

A

Its called an annual return and done online. Failure to do so leads to a fixed penalty.

Type of business and staffing
nature of clients
Training provision
Complaints handling procedures and records
PI insurance details
Whether the firm holds clients money.

172
Q

What must a complaints handling procedure include;

A

Must inform PI insurance!
redress mechanism
detailed within terms of businesss
free of charge
Name of nominated investigator stated
28 days
complaints recorded
2 stages
Independent redress mechanism.

173
Q

Example behaviour Rule 2

A

2.4 “reflect on the work they have undertaken and its impacts, and consider how they might apply what they have learnt to future work” - Homerton

2.5 develop their knowledge and skills throughout their careers. Identify development needs and undertaken CPD.
2.6 stay up to date with relevant legislation, codes of practice and technical standards.

174
Q

How do you comply with rule 1 in your everyday life.

A

Members and firms protect confidential information Jimmy Rule 1

I also like rule 1.5 – Providing advice and opinion in a professional context do so honestly and objectively based on relevant and reliable evidence).

175
Q

How do you comply with rule 3 in your everyday life.

A

3.9 – Golden Thread – Members and firms keep proper records of their work and decisions in enough detail to allow them to answer questions from clients and to allow their work to be audited for quality assurance or regulatory purposes.

176
Q

How do you comply with rule 4 in your everyday life.

A

4.2 members treat everyone fairly and do not discriminate on the 9 protected characteristics: Harrier way. Made reasonable adjustment and ensured compliance with equality act.

177
Q

How do you comply with rule 5 in your everyday life.

A

5.4 – you respond to complaints made against you promptly openly and professionally .
Homerton:

178
Q

How do you comply with Rule 4?

A

Educate yourself about different cultures.
Foster an inclusive culture valuing respect and diversity.
Be mindful of language and communication.
Active listening.
Foster diverse perspectives
Address bias and discrimination

APC - Building Surveying (22 decks)

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