Brush up Ethics Q's Flashcards
(16 cards)
What is the minimum level of indemnity required for each and every claim.
Depends on Firms turnover in the preceding year.
£0 - £100,000 = £250,000
£100 - £200,000 = £500,000
£201,000 + = £1m
What is negligence?
A failure of duty of care that would be expected of a reasonably competent professional in the same circumstances, which results in loss or damage to a client or third party.
When a duty of care is breacher ->
What is the Limitation Act 1980?
6 years from when the service was provided.
6 years from when a loss was suffered.
A long-stop position of 15 years if the claimant did not know a loss was suffered earlier or 12 years depending on the type of instruction and the type of claim.
How do you avoid negligence?
Clearly understand clients objectives and confirm precise instructions in writing in the terms of engagement
Ensure you are competent to undertake the instruction
Make detailed files and take photos
Keep up to date with market knowledge and legislation and undertake and record CPD
What is the maximum level of uninsured excess required by RICS.
(The part of each claim the firm pays itself)
Up to 10 million - the great of 2.5% of the sum insured or £10,000
Over £10m - No set limit
What is the Proceeds of Crime Act 2002?
Provides enforcement authorities in the UK to recover in criminal and civil proceedings money and other assets which are deemed to be the proceed of crime.
Economic Crime Act 2022
The Economic Crime Act 2022 aims to improve transparency in UK property ownership and tackle money laundering. It introduced the Register of Overseas Entities, requiring foreign owners of UK property to declare their beneficial owners. This affects transactions, as unregistered entities can’t sell or lease property. It also strengthens Unexplained Wealth Orders and sanctions enforcement. In my work, I ensure overseas entities are compliant and that due diligence is carried out in line with AML regulations.
What are some of the actions by the Head of Regulation?
- Served a fixed penalty notice
- Regulatory Compliance Order (RCO)
- Refer to single member or Regulatory Tribunal
- Refer the matter directly to Disciplinary Panel
What is a Professional Standard?
These are a ‘set of requirement or expectations’ for RICS members and regulated firms about how they provide services or outcomes of their actions.
They may include MANDATORY REQUIREMENTS, which use the word MUST and these must be complied with; and/or recommended best practice, which uses the word ‘should’
What are 3 RICS Core Materials?
Professional Standards
Practice Information
Practice Alerts
What is Practice Information?
This is info to support the practice, knowledge and performance of RICS Members and regulated firms.
These publications can include, but are not limited to, good practice info, insights and processes.
They do not contain advice.
What are RICS Practice Alerts?
Key tools for warning or altering the profession to emerging areas of risk over which the RICS has concern.
How is the RICS governed?
Governed by the Royal Chart, governing council and various other councils and internal boards.
What was the Bichard Review?
Clarify the Purpose of the RICS, including its responsibility to act for the public advantage.
Make recommendations on its governing structure.
Proposal for incoming leadership and governing body on the future culture and strategy of the institution.
What did the Alison Levitt Review review?
This was an independent review of the internal governance failings within RICS.
What were some of the recommendations from the bichard review?
Increased focus on diversity and inclusion
Renewed focus on younger members
a new simplified, clear accountable governance structure
