Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Mia Bourne APC Revision > Ethics > Flashcards

Ethics Flashcards

1
Q

What is Rule 1 of Rules of Conduct?

A

Members must act with integrity and be honest, comply with professional obligations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is an example of Rule 1?

A

Open and transparent about fees as services

do not allow themselves to be improperly influenced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is Rule 2 of Rules of Conduct 2022?

A

Maintain professional competence ensure services are carried out by competent individuals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is an example of Rule 2?

A

Only undertaking work that I feel I have the knowledge skills and resources to carry out competently

developing my knowledge and skills through careers by undertaking CPD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is Rule 3 of Rules of Conduct 2022?

A

Members must provide good quality and diligent service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is an example of Rule 3?

A

Understanding clients needs and objectives before accepting any professional work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is Rule 4 of Rules of Conduct 2022?

A

Members should treat others with respect and promote diversity and inclusion?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is an example of Rule 4?

A

I always treat everyone fairly and do not judge or discriminate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is Rule 5 of Rules of Conduct 2022?

A

Act in public interest, maintain confidence in profession and take responsibility for actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is an example of Rule 5?

A

Respond to complaints professionally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are mandatory obligations for RICS members?

A
  • complete and log CPD
  • cooperate with the RICS
  • provide information reasonably requested by Standards and Regulations Board
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the mandatory obligations for RICS firms?

A
  • publish complaints handling procedure
  • previous and current work covered by PII
  • arrangements to be made if sold principle can’t work
  • co operate with the RICS
  • provide information reasonably requested by Standards and Regulations Board
  • display business literature in accordance with the RICS
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the RICS ethical decision tree?

A

a framework of questions that members should use when faced with a potential ethical situation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are some of the questions included in the RICS Ethical Decision Tree?

A
  1. do you have sufficient facts
  2. Is it in line with ROC
  3. have you consulted the appropriate people to inform your decision
  4. would you be content if your actions were made public
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How could a disciplinary procedure be triggered?

A

someone complaining to RICS, allegation from a client.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the three levels of disciplinary action?

A
  • action by head of regulation
  • action by disciplinary panel
  • action by appeal panel
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What actions might follow a disciplinary?

A
  • fixed penalty notice
  • reprimand
  • explosion of member
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is an example of a failure to comply with regulatory compliance?

A

failure to complete CPD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the current challenges with the RICS and how are they dealing with this?

A
  • ESG, sustainability, circular economy
  • RICS released a manifesto for the built environment in Sep 2023
  • public needs to have a safe sustainable energy efficient affordable built environment and home.
  • emphasis on social value and regenerative land
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the Bichard Review

A

Lord Bichard carried out a review to

  1. recommend on governing structure
  2. leadership proposals
  3. future culture and strategy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What were some of the key recommendations following the Bichard Review?

A
  1. renewed focus on public
  2. increase focus on diversity and inclusion
  3. greater leadership on sustainability and climate change
  4. increased focus on member engagement and focus on younger members
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Why were the Rules of Conduct updated?

A

easier for RICS members and firms to understand rules providing more confidence in public and clients.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What would you need to do to register with the RICS?

A
  1. Disclose Business Type
  2. Nature of clients
  3. Complaints handling procedures + log
    4 Responsible principle
  4. PII
  5. Whether firm holds client money
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

When was the RICS founded?

A

1868

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What are the 4 levels of membership?

A

FRICS
MIRCS
ASSOC RICS
Traniee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Who is the RICS governed by?

A

Royal Charter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Who is the current CEO?

A

Justin Young

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Who is the current predident?

A

Ann Gray

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is the role of the RICS?

A

promote and enforce highest professional standards within the property industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What are the three types of conflict?

A

Own interest conflict
Party conflict
Confidential information conflict

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is an example of a party conflict?

A

single firm accepts two professional assignments relating to same transaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

How would you deal with a party conflict?

A
  • I would be entirely transparent with all parties affected if they were happy to proceed
  • I would gain informed consent from affected parties
  • If informed consent is given I would put information barriers in place
  • I would ensure a clear audit trail
  • I would ensure securely stored information
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is an example of an own interest conflict?

A

relates to a personal interest - e.g valuing something for a family member

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What is an example of a confidential information conflict?

A

confidential work between two parties

for example say Allsop declined an instruction due to a conflict of interest but they obtained information that would be of interest to a client - that information would be confidential

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

what are the 3 steps to take before accepting an instruction?

A

checked professionally competent
check conflicts
confirm terms of engagement and written approval

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

When would you decline an instruction?

A

not competent
client has not completed AML checks
there is a conflict of interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What are the six main areas of good practice set out in RICS professional statement on Client money handling 2019 ?

A
  1. Holding client money
  2. Providing information to clients
  3. Receipts of client money
  4. Payments from client accounts
  5. Accounting records and controls
  6. Compliance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

How do you handle clients money?

A

I handle clients money in line with RICS Client Money Handling 1st Ed 2019

  • clients money must be in separately labeled client account
  • the word client is on the account
  • client can have monies on demand
  • money can only be withdrawn if properly required
  • accurate records are kept
39
Q

How would you decide what level of PII cover you need if you were starting up a new practice?

A

base on estimate turnover and adjust in due course.

40
Q

How do you avoid negligence when carrying our surveyor work?

A
  • understand clients objectives
  • terms of enragement
  • ensure competence
  • confirm PII insurance
  • detailed file notes
41
Q

What happens when you carry out AML checks?

A

run through a third party data base that will analyse information and flag anything that could be of a concern such as legal proceedings against someone, criminal activity.

42
Q

What customer due diligence checks do you carry out?

A
  • require certified copies of ID and proof of address within 3 months
  • for a company - name, registered address, number
  • ID and proof of address for anyone with 25% share more of company
43
Q

What is enhanced due diligence?

A

additional procedures for business or transactions involving high risk countries or politically exposed person.

additional evidence and monitoring
more detailed examination of background and nature of transactions

44
Q

What are some of the red flags that could indicate money laundering?

A
  • inability or unwillingness to provide documents required for AML
  • changes to parties involved in a transaction
  • unusual transactions features - loads of small payments
  • payment of fees in unusual currencies
45
Q

What are some of the key provisions of money laundering?

A
  • have systems and policies in place to address money laundering
  • provide staff training
  • comply with new customer and enhanced due diligence requirements
  • AML checks to identify anyone involved in transaction
  • ensure appropriate record keeping
46
Q

What are the penalties for money laundering?

A

14 years and unlimited fine for assisting
5 years in prison and unlimited fine for tipping off

47
Q

What is a bribe?

A

giving, offering, receiving or promising something of value in exchange for an act of service which you usually wouldn’t do

48
Q

what are the six principles of the bribery act

A

proportionality
top level commitment
risk assessment
due diligence
communication
monitoring and review

49
Q

what are the four offences under the bribery act?

A

bribing
receiving a price
failing to prevent a bribe
bribing a foreign public official

50
Q

How would you set up an RICS Practice?

A
  1. Inform the RICS of my practice
  2. Appoint a responsible principle
  3. Register for regulation with RICS
  4. Arrange PII and send details to RICS
  5. Set up client money handling procedures
  6. Appoint a complaints handling officer, procedures and log
  7. Use RICS logo on material
  8. Ensure CPD logged
  9. Ensure completion of annual return
  10. If carrying out red book valuations register for RICS valuer Registration scheme
51
Q

What statutory compliance do you need for setting up a new RICS practice?

A
  • disclose business name
  • register with companies house
  • comply with equality act
  • comply with fire regulations
  • comply with health and safety
  • register for data protection
  • inform HMRC
  • bribery act compliant
52
Q

How would you close an RICS practice?

A
  • inform RICS of closure
  • organise run off cover for 6 years - minimum £1m
  • return any clients money you are holding
  • organise for clients to be moved to a new firm
  • retain files for 6 years
53
Q

What are the three levels of disciplinary action?

A

Action by head of regulation
Action by Disciplinary Panel
Appeal Panel

54
Q

What is the initial investigation stage of a disciplinary procedure?

A
  • investigation by Head of Regulation
  1. Fixed penalty notice
  2. Regulatory Compliance order
  3. Refer to a Tribunal
  4. Refer to Disciplinary Panel
55
Q

What are some examples of a Regulatory compliance orders?

A
  1. written document which states that you must undertake certain actions in a specified time period
  2. fine
56
Q

What issues does a regulatory compliance issue cover?

A

Failure to log CPD
non compliance with Rules

57
Q

What are examples of actions by disciplinary panel?

A
  1. expulsion of membership
  2. publication in modus, website and local newspaper
  3. Fine
  4. Reprimand
58
Q

What is the RICS Decision Tree?

A

Framework of questions that members should ask when faced with an unethical situation

59
Q

What are some of the questions included on RICS ethical decision tree?

A

do you have sufficient facts
have you got all the relevant information / consulted with people to inform your choice
is it in line with rules of conduct
is it legal
would you be okay if you actions were made public

60
Q

How do you register with the RICS?

A
  1. Confirm Business Type
  2. Confirm responsible principle
  3. Confirm nature of clients
  4. Confirm whether you will be holding clients money
  5. complaints handling procedure, log and officer
  6. PII insurance
61
Q

What would you do if you could not complete Customer Due Diligence?

A
  1. If the client can not comply with the requested customer due diligence I would not carry on work with them and not form a business relationship
62
Q

What is your firms process if you suspected money laundering?

A

Staff must raise an internal report by filling in unusual activity form
AML nominated officer but make a suspicious activity report to national crime agency if they believe there is reasonable grounds to suspect money laundering
I also understand it is a criminal offence to do or say anything that tips another person off who is suspected of money laundering

63
Q

What is Phishing?

A

cyber attacks usually via email with bad links corrupt downloads

64
Q

What are some red flags of phishing?

A
  1. unexpected emails
  2. information mismatch
  3. urgent language
  4. unprofessional design
65
Q

Could you accept a gift worth £2,000?

A

No because this is in breach of my firms gift policy

66
Q

Please can you tell me about your firms gift policy?

A
  • giving or accepting gifts up to the value of £150 is allowed if they are not made with intention of influencing a third party, does not include cash equivalent, appropriate in circumstances
  • all gifts must be registered of gift register
  • gifts over the value of £150 should be reported to department head
  • report any suspicion
67
Q

What is your firms complaint handling procedure?

A
  1. contact the firms complaint handling officer
  2. send a written summary
  3. within 7 days allsop will contact you to inform understanding and circumstances of complaint
  4. within 21 days we will informs of outcome of investigation and actions taken
  5. if complaint is unresolved the person can contact the property readdress scheme
68
Q

What steps would you take if you were valuing a property and was concered it was contaminated?

A

I would consider declining the instruction depending on what the property was

If I felt I was competent to undertake the instruction I would ensure a specialist report was undertaken before providing advice.

69
Q

What is the Proceeds of Crime Act 2022?

A

creates a set of criminal offences to combat money laundering

  1. concealing criminal property
  2. if a person enters into an arrangement which they suspect facilitates criminal property
  3. if a person acquires or uses criminal property
70
Q

What are the two main duties under the Royal Charter?

A
  • act in the public interest
  • to inform and educate
71
Q

What are 5 benefits of being a RICS member?

A

SKRAN

Status - client confidence
Knowledge - professional standards / cpd
Recognition
Market Advantage
Network

72
Q

What is conflict avoidance?

A

where you do not accept the instruction

73
Q

what is conflict management?

A

instruction is accepted then managed

74
Q

How long should you hold data for?

A

Under the GDPR, you can only hold personal data for as long as you need it.

75
Q

Can you act for the buyer and the seller of a property?

A

dual agency must not be undertaken in any circumstances.

76
Q

Can you provide incremental advice if you are acting as agent for a seller but approached by the buyer or lender to provide a valuation?

A

must only provide incremental advice if consent is given and an information barrier is put in place before.

77
Q

How would you put an effective information barrier in place?

A

ensure it was robust so no information can pass

all information should be securely stored

keep a clear audit trail

physical separation

78
Q

How long should old files be kept?

A

minimum of 6 years before disposal and destroyed securely.

79
Q

What are the CPD requirements for a chartered surveyor?

A

20 hours CPD, at least 10 hours formal

80
Q

What is formal CPD?

A

structured learning that has clear objectives

81
Q

what is informal CPD?

A

self managed learning / private study

82
Q

What are the current minimum requirements for PII based on firm turnover?

A

Turnover PI
£100k =£250k
£100 - £200k = £500k
£200k + = £1m

83
Q

What is the maximum level of uninsured access?

A

Up to £10m - 2.5% or £10,000

Over £10m - no set limit

84
Q

What run off cover is required?

A

minimum of £1m over 6 years

85
Q

How would you deal with a transaction involving a Politically Exposed Person (PEP)?

A
  • senior managers involved and decide whether to proceed with transaction
  • enhanced diligence undertaken
  • deeper understanding of transaction and source of funds
86
Q

How would you deal with a bribe?

A

I would never accept anything that could constitute a bribe

I would report to my senior management

If I was a sole trader I would report directly to serious fraud office

87
Q

as and RICS valuer, why couldn’t you disclose the Market Value of a property to the agent who was selling the freehold?

A

In breach of RICS professional statement on conflicts of interest, which states that client confidentiality must be maintained

88
Q

are professional statements mandatory?

A

Yes

89
Q

What is duty of care?

A

in commercial auction team my duty of care was to get the best price possible and to achieve a sale

when I was a valuer my duty of care was to provide independent reasoned advice on market value

90
Q

If you were approach to carry out a valuation of a property that an equity partner at Allsop owned what would you do?

A

I would decline the instruction as this could be seen to effect impartiality.

91
Q

What is negligence?

A

breach of duty of care

92
Q

Tell me about a case law on negligence

A

Yianni Vs Evans

Valuers were liable for negligence for failing to report a subsidence issue.

93
Q

How would you carry out enhanced due dilligence?

A

The source of funds involved;

The background and purpose of the transactions

Official records, registration documents, etc.

94
Q

What enhanced due diligence would you carry out for a PEP?

A
  • were funds are coming from
  • if company paying understand the company, who are the people in the company

Mia Bourne APC Revision (36 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions