Conduct, Rules & Ethics Flashcards
1
Q
What is your understanding of ethics and why is it important?
A
Ethics is the application of ethical values / standards in relation to business behavior.
Has the role of business ethics changed over the years?
- More fluid in job market
- Requirement for companies and professions and individuals to behave
- RICS provides guidance and rules on this
2
Q
Why are ethics important in the property / construction profession?
A
- Issues around consistency
- People want a standard of expertise
- The RICS sets a standard which is portrayed through RICS rules of conduct.
3
Q
What are the benefits of doing business ethically?
A
Builds trust in the profession – stakeholder group / clients.
4
Q
How important is it to build trust in an organization?
A
- Very important for a company.
- Helps repeat business, key to strength of business.
- Work with stakeholder group to deliver business professionally and ethically.
5
Q
Why is it important to have a regulated profession?
A
It is important to have a regulated profession to ensure standards are adhered to and confidence is instilled into the profession.
6
Q
Why do you want to join the RICS?
A
- Globally recognised professional institution.
- Highly regarded reputation which I want to be a part of.
- Professional status within my profession.
7
Q
What are the 5 ethical standards?
A
- Act with integrity
- Always provide a high standard of service
- Act in a way that promotes trust the profession
- Treat others with respect
- Take responsibility
8
Q
What are the RICS Global Professional & Ethical Standards?
A
- Act with Integrity – being honest & straightforward in all that you do. Trustworthy, respecting confidential information, ensuring that Duty of care upheld, not allowing bias, conflict of interest override your professional / business judgement. Acting in the public interest when making decisions, compliance with Bribery Act. Eg. Do not take bribes.
- Provide a high level of service – transparent about fees, act within your professional capacity, communication, informed decisions, fair treatment, e.g. is work done to the best of my ability (template for submissions, professionalism)
- Act in a way which promotes trust – in personal and professional life. Fulfil your obligations. E.g. being open, honest and transparent in meetings.
- Respect – act with courtesy, politeness, consideration. Cultural sensitiveness & business practice, zero tolerance to discrimination. E.g. remaining calm and recognising different view points / characters exist.
- Take Responsibility – Be accountable for your actions, skill, care, diligence, compliant, question something you didn’t think is right & be prepared to raise a matter within a firm / to the RICS. E.g if something is my fault admit it.
9
Q
What are the principles of better regulation? (noted in the foreword of the RICS rules for members and firms)
A
- Proportionality – regulators should only intervene when necessary. Remedy should be proportionate to risk posed / costs identified.
- Accountability – justify their decisions.
- Consistency – adopt a common sense approach – implemented fairly
- Targeting – focused on the problem
- Transparency – open and keep regulation simple and user-friendly.
10
Q
Why is there a Code of Conduct for members & firms?
A
To protect consumers / Clients
To assist members in meeting the requirements expected of them.
The rules cover ethical, professional and conduct of business.
11
Q
Why did the Rules of Conduct for firms change?
A
Made by the RICS Regulatory Board
There are 9 rules for members (updated March 2020)
There are 15 rules for firms (updated March 2020)
Updated recently to reflect the RICS plans for global expansion
12
Q
Why is there a Code of Conduct for members & firms?
A
- In order to protect consumers and assist members in meeting the requirements expected of professional chartered surveyors.
- The rules cover ethical, professional and conduct of business.
13
Q
What are the RICS Rules of Conduct for members & firms?
A
- Made by the RICS regulatory board (Dame Janet Paraskeva is Chair)
- There are 9 rules for members
- There are 15 rules for firms
14
Q
What are the rules of conduct for members?
A
- Interpretation: In these Rules, unless the context otherwise requires, ‘Member’ means a Chartered Member, non-Chartered Member, Honorary Member or a member of the attached classes.
- Communication: RICS will communicate with Members by any of the following: post, fax, e-mail, telephone, in person.
- Ethical behaviour: Members shall at all times act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with their professional obligations.
- Competence: Members shall carry out their professional work with due skill, care and diligence and with proper regard for the technical standards expected of them.
- Service: Members shall carry out their professional work in a timely manner and with proper regard for standards of service and customer care expected of them.
- Continuing Professional Development: Members shall plan, undertake, record and evaluate appropriate continuing professional development and, on request, provide RICS with evidence that they have done so.
- Solvency: Members shall ensure that their personal and professional finances are managed appropriately.
- Information to RICS: Members shall submit in a timely manner required information, and in such form, as the Regulatory Board may reasonably require.
- Co-operation: Members shall co-operate fully with RICS staff and any person appointed by the Regulatory Board.
15
Q
What are the Rules of Conduct for firms?
A
- Interpretation: Providing a surveying service to the public means acting to provide a service(s) considered by RICS to be within those which are the responsibility of RICS’ Professional Groups to professional, corporate, institutional and all other clients. Contact Officer means 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. “Firm” means: the whole or part of any body corporate; or a partnership; or a limited liability partnership; or an unincorporated practice of a sole practitioner concerned with the business of surveying or providing other related services, which is regulated by RICS; or an equivalent in any of the world regions to any of the above.
- Communication: RICS will communicate with firms by any of the following: post, fax, e-mail, telephone, in person.
- Professional behaviour: A Firm shall at all times act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with its professional obligations.
- Competence: A Firm shall carry out its professional work with due skill, care and diligence and with proper regard for the technical standards expected of it.
- Service: A Firm shall carry out its professional work proper regard for standards of service and customer care expected of it.
- Training & Continuous Professional Development: A Firm shall have in place the necessary procedures to ensure that all its staff are properly trained and competent to do their work.
- Complaints hanAecoming: A Firm shall operate a complaints hanAecoming procedure and maintain a complaints log. The complaints hanAecoming procedure must include a redress mechanism that is approved by the Regulatory Board.
- Clients’ money: A Firm shall preserve the security of clients’ money entrusted to its care in the course of its practice or business.
- Professional indemnity insurance: A Firm shall ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity insurance cover which meets standards approved by the Regulatory Board.
- Advertising: A Firm shall promote its professional services only in a truthful and responsible manner.
- Solvency: A Firm shall ensure that its finances are managed appropriately.
- Arrangements to cover incapacity or death of a sole practitioner: A Firm which has a sole principal (i.e. a sole practitioner or a sole director in a corporate practice) shall have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absences.
- Use of designations: A Firm registered for regulation must display on its business literature, in accordance with the Regulatory Board’s published policy on designations, a designation to denote that it is regulated by RICS.
- Information to RICS: A Firm shall submit in a timely manner such information about its activities, and in such form, as the Regulatory Board may reasonably require.
- Co-operation: A Firm shall co-operate fully with RICS staff and any person appointed by the Regulatory Board.
16
Q
What are the Global Professional & Ethical Standards?
A
1) Act with integrity.
2) Always provide a high standard of service.
3) Act in a way that promotes trust in the profession.
4) Treat others with respect.
5) Take responsibility.
17
Q
What can be used if uncertain how to act regarding professional & ethics?
A
- Discuss with AECOM Director;
- RICS online ‘ Decision Tree’;
- RICS Helpline.
18
Q
What does each of the ethics address?
A
- Act with Integrity – honest, straightforward, open, transparent, duty of care, public interest, compliance with Bribery Act, no conflicts of interest.
- Provide a high standard of service– Be clear about service to be provided, transparent about fees, communication, informed decisions, pay others for services provided, fair treatment.
- Promote a professional & trustworthy manner – in personal & professional life, fulfil your obligations.
- Respect – courtesy, politeness, consideration, cultural sensitivities & business practice, zero tolerance to discrimination.
- Take responsibility – be accountable for your actions, skill, care, diligence, compliant, question something you don’t think is right & be prepared to raise the matter within firm / to the RICS.
19
Q
You mentioned that you always act within you capabilities – why is this important?
A
To ensure that I don’t advise incorrectly – negligence or error could lead to a claim being made
20
Q
Why were the Global Professional & Ethical Standards changed?
A
RICS rules of conduct for firms, changed in 2019
Rules of conduct for firms came into effect 1st of march 2020
Use of designations etc
RICS Value the plant campain
21
Q
If faced with a situation that you felt was unethical, how would you address it?
A
would use the RICS Professional & Ethical Standards Decision Tree to inform my course of action:
1. Do I have sufficient facts on the issue?
2. Is it legal?
3. Is it in line with RICS Professional and Ethical Standards?
4. Have I consulted with appropriate people to make an informed decision?
5. Do I have clear reasoning in reaching my decision? Is the decision informed?
6. Would I be content for my actions to be made public?
If I answered ‘No’ to any of the previous questions, I would not proceed, bearing in mind any cultural variations when establishing intent (foreign customs).
22
Q
How would you define a conflict of interest and can you give some examples?
A
- Where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
- E.g. if there is a conflict of two competing clients represented by the same firm:
o Disclose to each client the possibility, nature and circumstances of the conflict, in writing.
o Inform them you cannot continue to act for them unless requested to do so.
o Obtain written confirmation from both that you can act. - Measures that could be taken to protect commercially sensitive information:
o Exclusivity of staff working for each of the clients, including support teams.
o Staff confidentiality strictly enforced.
o Physical separation of staff.
o Security of stored documentation, including locked filing cabinets etc. - If you have a personal conflict, disclose the relevant facts promptly in writing, including if you are receiving any remuneration over and above your fee.
23
Q
How do you identify a conflict of interest?
A
Can be identified by whether my ability to act in the best interests of my client could be impaired by:
- Any financial interest.
- A personal relationship.
- Commercial relationships.
- The interests of the firm.
24
Q
How would you react when faced with a conflict of interest?
A
- The best way of dealing with conflicts of interest is openness and transparency.
- Declare the conflicts to all appropriate parties as soon as possible.
- Offer to stand down from acting for any party.
- If any party objects, I would step away from the instruction.
- With written permission from the other parties, I would need to make the final decision on whether I felt comfortable to go ahead with the instruction.
What
25
What would you do if a contractor gave you a gift or hospitality?
In this scenario, I would ask myself some questions as per RICS guidance:
1. What is its value?
2. Who is it being given to; just me or a range of people from different organisations?
3. Is it reasonable and proportionate?
4. Does it have a genuine business purpose?
5. When is it being given? For example, near a key decision date or is it a fairly regular event?
6. Can you decline it there and then?
26
What changes or new initiatives have recently occurred in the RICS regarding professional behavior?
- Bribery Act 2010 came into action in July 2011.
- Rules of Conduct for Firms was updated in March 2020
- Global Professional & Ethical Standards updated in September 2012 – reduced to 5 from 12.
27
What is CSR?
- Corporate Social Responsibility.
- Shows a firm’s compliance to laws / ethical standards / international norms.
- Encourages activities which impost positive impact regarding triple bottom line.
In the
28
In the case of a breach of a rule of conduct what is the procedure?
- New procedures were put into place in June 2007.
- Not every shortcoming will necessarily give rise to proceedings.
- A formal investigation by the Head of Regulation of the RICS is the first step in the process.
- The RICS can request information and/or visit and inspect to investigate compliance.
- Members must cooperate fully with all enquiries.
29
How can a disciplinary proceeding be triggered?
- Someone complaining to the RICS.
- An allegation by a client or third party.
- Information received or established by the RICS.
30
What three actions can be imposed after the end of the investigation stage?
a) Fixed penalty.
b) Consent order.
c) Disciplinary panel.
31
What happens in these three stages after the end of the investigation stage?
1. Fixed penalty – A fixed penalty is an administrative fine and/or caution issued by RICS when a member or regulated firm fails to provide us with information that we have requested. Admin fine issued to members who fail to provide requested info e.g. annual returns, CPD records, failure to pay invoices.
2. Consent order - A consent order is a formal written agreement between RICS and a member or firm concerning a disciplinary issue arising from an identified breach of RICS rules. Requires the member or firm to refrain from undertaking certain actions for aspecified period of time and may require them to pay a fine or costs.
A consent order may include terms to:
- Take a certain action
- Desist from taking a certain action
- Pay a fine (up to £2,000 per breach)
- Pay RICS’ costs
- Can be applied for the breach of any of the Rules.
3. Disciplinary panel hearing:
- Held for more serious breaches.
- Panel chosen from committee of 8 RICS members + 8 non members + 1 lay chair.
- Disciplinary panel hearings are posted on the website 14 days before.
- The decision is published in RICS business, on the website and in local newspapers.
- A list of number of fixed penalties and consent orders issued during the previous quarter is placed on the RICS website for 12 months but doesn’t name individuals or firms.
- Penalties:
o Caution.
o Reprimand.
o Undertaking as to future conduct.
o Fines.
o Conditions on the member’s continued membership.
o Conditions on the firm’s registration for regulation.
o Expulsion: Gross, persistent or wilful failure to comply with an RICS rule of conduct
o e.g. fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a client’s money.
o Removal of the firm’s registration for regulation.
32
What are fixed penalties?
A fine by the RICS.
33
When are they applicable?
- They are used for minor breaches of Rule 8 for members and Rule 14 for firms – failure to provide the RICS with required information.
- Rules for Registration of Firms – 10 – Fees.
- For continued non-compliance a further notice may be issued and the fine increased.
- Appeals can be made against them within 28 days.
34
What is the RICS scrutiny panel?
- Provides assurance that the regulation & disciplinary systems are doing what it set out to do.
- Adherence to the 5 principles (proportionate, accountable, consistent, targeted & transparent).
- Protects the public.
- Provides a risk based approach.
- Future planning - Agrees areas of work for the next year or so.
- Reports to the RICS Regulatory board & advises/makes recommendations on their findings
35
Could you name some topics on which the RICS publishes help sheets and policy documents?
- Use of Firms Designation ‘Regulated by the RICS’ policy.
- Professional Indemnity Insurance policy.
- Complaints HanAecoming Procedure.
- How Complaints to RICS Firms are dealt with.
- Clients Money; General Advice for Firms.
- Clients Money; Advice for Auctioneers.
- Advice for Sole Practitioners.
- Training for Firms.
- Lifelong Learning for Members.
- Maintaining professional and ethical standards.
36
What does the Use of Designation ‘Regulated by RICS’ policy set out?
- ‘Regulated by RICS’.
- For Firms only (not Individuals).
- For members of the public, firms’ clients and potential clients to be able to identify firms that are ‘Regulated by RICS’.
- Not prescriptive – sets out basic parameters of how firms should use the new designation ‘Regulated by the RICS’.
- Can feature on letterhead or marketing material – not near RICS logo.
37
Who can use designations?
- A sole practitioner.
- Firms with over 50% partners / directors who are members.
- No partners or directors that have been expelled from the RICS or refused reinstatement.
38
How would you deal with a situation that you felt was unethical?
I would use the RICS professional ðic standards decision tree to inform my course of action:
F-L-RICS-C-R-P
1. Do I have sufficient facts on the issue?
2. Is it legal?
3. Is it in line with the RICS Professional and Ethical Standards?
4. Have I consulted with appropriate people to make an informed decision?
5. Do I have clear reasoning in reaching my decision? Is the decision informed?
6. Would I be content for my actions to be made public?
39
If successful today, what measures would you need to have in place to start your own company?
1. PII and run off cover
2. Complaints hanAecoming procedure
3. Register on Companies House
4. Client bank account
5. Apply for an RICS pack (register RICS)
6. An RICS single point of contact
40
Can you tell me about a new RICS initiative you have read about?
- Pride in the Profession - Showcases surveyors
| - Supporting Blak surveyors
41
Where can you find out more about PII requirements for RICS firms?
RICS regulation - Professional indemnity insurance requirements
(Version 5 with effect from 2 July 2019)
42
What are the CPD requirements for a MRICS?
20 hours. 10 formal, 10 informal. Definitions of formal/informal online.
43
When must CPD be recorded by?
End of December, record on online CPD portal.
44
What are ethics CPD requirements?
One CPD on ethics every 3 years at least
45
What must you do if you were to set up a firm of chartered surveyors?
- State if you are to handle clients money. If so, confirm arrangements for handling clients money
- Complaints handling procedure
- PII (estimate turnover to calculate)
- 50% must be MRICS (until Feb 2020, reduces to 25%)
- Company name, number
- Register company w/ companies house
- What the professional service you are offering
- Provisions in place for incapacity or death of sole practitioner
- Appoint a contact officer
46
What would handlings client money procedures have to state?
- Bank account must have "client" in the name
- Account must be separate
- State arrangement for interest
- Transparent with reconciliation
- Fast acces
47
What are your company's complaints handling procedure?
Complaint made
Sent to complaints handling person for review
Acknowledged
Respond
Third party organisation used should complainer not be satisfied
48
Give an example of a high level of service.
- Prepare comprehensive handover notes before annual leave, always be available to take a call or reply to an email
- Client commendation
49
What does promoting trust in the profession mean?
- Be careful of your actions outside of the workplace, social media etc.
- Promote the profession to external acquaintances
50
What would you do if your colleague was acting outside of the Global Professional and Ethical Standards?
- Ascertain the facts to ensure they are acting outside of the rules
- Use ethical decision tree to confirm
- Remind them of the rules
- If no change, report to RICS
51
What is your company's gift policy?
Any gift must be noted in the Register of Interest.
Maximum threshold is £100 for an individual, £250 for a group.
52
What document does the RICS publish about bribery?
RICS have just released:
RICS professional standards and guidance GLOBAL "Countering bribery and corruption, money laundering and terrorist financing February 2019."
53
What does the RICS publish on the conflict of interest?
RICS professional standards and guidance, global
| Conflicts of interest 1st edition, March 2017
54
What is informed consent?
Informed Consent may be sought only where the RICS member or regulated firm is satisfied that proceeding despite a Conflict of Interest is:
(a) in the interests of all of 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.
55
How would you carry out a money laundering check?
- Customer Due Diligence
- Simplified Due Diligence
- Enhanced Due Diligence (done by compliance team for detailed investigation required out of my scope of confidence)
56
What is tipping off?
Alerting the client you suspect them of something/give them an early warning of the investigation
57
What is the maximum amount of cash allowed to be taken?
Most firms don't accept cash, request for it to be paid into an account and transferred across.
Maximum allowed is EU10,000 in cash, counted and receipted.
58
What work can you do prior to agreeing your terms of engagement with a client?
Anything, so long as you do not advise the client.
59
What does RICS stand for?
Royal Institution of Chartered Surveyors.
60
What role does the RICS play in the profession?
| The RICS
RICS is the global professional body promoting and enforcing the highest international standards in valuation, management and development of land, real estate, construction and infrastructure. Across 148 countries
The RICS has global reach and:
1. Provides knowledge and best practice through setting standards, accrediting courses/qualifications.
2. Regulates through ethical principles and a regulatory framework.
3. Is heavily involved in public affairs, advising & leading debates.
4. Conducts research & economic analysis in property and construction.
61
What is the motto of the RICS?
Est Modus in Rebus meaning ’There’s measure in all things’.
62
Who is the President of the RICS?
Timothy Neal
63
Who is President-elect?
Kath Fontana
64
Who is the RICS CEO (Chief Executive Officer)?
Sean Tompkins
65
When was RICS formed?
1868
66
What is the RICS’ address?
Great George St, Parliament Square, although its administrative centre is in Coventry.
67
When were the Rules of Conduct introduced?
2007
68
As a member of a professional body, what are the expectations of your performance?
To use reasonable skill and care.
69
What is the Royal Charter?
Awarded in 1881 by Queen Victoria to “maintain and promote usefulness of the profession for public advantage” – guiding principle – commitment to act in the interests of society.
70
What is the UK Structure of the RICS?
- Four regions – England, Northern Ireland, Scotland, Wales.
- Each has a council made up of elected and appointed members – role is to agree business strategy within the corporate RICS strategic framework.
- In England 9 regions.
- They address regional issues and provide local events e.g. London Matrics
71
How is the RICS organization structured (regulated body)?
Professional body that accredits professionals within land, property and construction worldwide. (history from late 1700s)
72
What is the structure of the RICS?
Privy Council - The Privy Council is the mechanism through which interdepartmental agreement is reached on those items of Government business which, for historical or other reasons, fall to Ministers as Privy Counsellors rather than as Departmental Ministers. Andrea Leadsom was appointed Lord President of the Council in June 2017.
Governing Council - Our top-level strategy is set by our Governing Council. This is chaired by the president and includes our members from all world regions. The council meets twice a year, once to debate strategy and once to exercise oversight, and is supported by other member groups.
Regulatory Board - Regulation is administered by our Regulatory Board, which is chaired by a non-member to demonstrate that our regulation of members is independent and at arm's length from the interest of our members. The Regulatory Board meets regularly to decide policy on regulatory matters and oversee implementation of the regime. It is responsible to RICS Governing Council for its decisions. The Assigned Risk Pool and the Conduct and Appeals Committee also help in regulating the profession.
Management Board - The Management Board is responsible for developing and implementing RICS' business plan to deliver the strategic goals set by our Governing Council.
Management Board - The Management Board is responsible for developing and implementing RICS' business plan to deliver the strategic goals set by our Governing Council. The board consists of non-executive members, including three independents from outside the surveying profession, and two executive team members including our CEO Sean Tompkins.
73
What is the RICS Medium Term Strategy?
1. Aims to be “the mark of property professionalism worldwide”.
2. Improve business efficiency.
3. Align the organisation to be better positioned to deliver Front-line strategies:
- Communicating & influencing.
- Promoting Professional standards.
- Delivering Professional knowledge.
- Developing Membership.
4. Supporting Strategies:
- Governance & organisation.
- Strategy development & planning.
- Delivering a service.
- Finance.
- HR and IT.
- Sustainability & CSR
74
What is the Ethical Standards Coalition
An international coalition of professional organisations will develop and implementing the first set of globally recognised ethics standards for property and related professional services.
75
What sort of information do registered firms have to send to the RICS annually?
Type of business and staffing.
- Nature of clients.
- Complaints handling procedures details and records.
- PI insurance details.
- Whether the firm holds clients’ money.
76
Why do you want to join the RICS?
- Oldest organisations in the UK
- Globally recognised – as the mark of property professionalism;
- Have the right to use ‘Chartered Surveyor’
- Produces papers and gov’t recommendations – active member of industry
- Access to library of information & best practice.
77
How much Professional Indemnity Insurance would you need?
The minimum level of indemnity should be based on an estimate of turnover;
- £250k indemnity for under £100k turnover.
- £500k indemnity for £100k-£200k turnover.
- £1m indemnity for over £200k turnover.
78
How much must a firm pay itself in the event of a claim? (Maximum level of uninsured excess)
- Up to and including £500k indemnity: The greater of 2.5% of the sum insured or £10k.
- Over £500k indemnity: 2.5% of the sum insured.
79
What level of professional indemnity cover does AECOM have?
£5m PI cover on an each and every claim basis for each twelve month policy. If necessary, it can raise higher cover on a project-by-project basis.
80
How long should you hold PI insurance for?
For the span of any statute of limitations which for construction contracts is six years if written under hand and twelve years if written under deed.
81
What other insurances does Aecom have?
- Property damage: All Risks
- Public Liability: £5m each & every claim
- Employer’s Liability: £10m any one occurrence
82
When should you inform an insurer of an incident concerning your PI?
- Your firm is obliged under the terms of its professional indemnity insurance (PII) policy to tell its insurers about any situation that may give rise to a claim.
- Client has expressed dissatisfaction / complaint and so your firm should inform its insurers as soon as possible to ensure compliance with the terms of your PII policy.
83
What is the aim of Professional Liability Insurance?
- That, if a firm faces a claim, it is protected from financial loss that it cannot meet from its own resources;
- To protect the insured (member or firm) against the consequences of its liability to pay damages to third parties in respect of breaches of professional duty that it commits in the course of its professional activities; and
- That the firm’s clients do not suffer financial loss which the firm cannot meet.
84
What must an RICS approved complaints handling procedure include?
- The RICS provides a model form.
- Details should be issued to the client with the Terms of Business.
- It must be clear, quick, transparent, 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 – keep a log.
- Note the need to advise PI insurers of a complaint.
- Must have two stages as a minimum:
1. Consideration of the complaint by a senior member of the firm or the complaints hanAecoming officer.
2. If not resolved, referred to an independent third party with the authority to award redress.
85
Do you know what Matrics is?
- Division of RICS (run by each UK region) for students / graduates / trainees / people with under ten years experience.
- Organises social / sporting / charity / networking / CPD events.
- Acts as a support group for the APC.
86
Who is the current chair of RICS Matrics?
Stuart Scott
87
What are the levels of membership available in the RICS?
- Student: studying for accreditation
- Member (MRICS): qualified
- Fellow (FRICS): prestigious award to mark career achievements; only major career achievers can apply (completed unique projects / contributed to the profession). Leaders in the profession.
- Associate (AssocRICS): non-chartered grade (non accredited degree) for technical & support staff.
Stepping stone to becoming fully chartered.
88
What is the APC?
- Assessment of Professional Competence
- A period of structured training comprising 3 graduate entry levels:
o Graduate Route 1: accredited degree, two years experience and diary etc
o Graduate Route 2: accredited degree, five years experience, one year diary
o Graduate Route 3: accredited degree, ten years experience, final submission and interview
89
What is Lionheart?
- Independent charity.
- Founded & run by RICS members.
- Provides confidential advice + information + support + in certain circumstances financial assistance to those who, for whatever reason, find themselves in difficulty to current and past members of the RICS and their families.
90
What is the RICS Foundation?
- Independent worldwide charitable foundation.
- Founded by the RICS in 2000.
- Committed to sustainability.
- Raises awareness about issues of concern within the built and natural environments.
- Supports and promotes research and publishes the results to the industry.
91
What Statutory Requirements and obligations would you need to adhere to if you set up your own business?
- The Business Name Act 1986 (updated in 2009) – gives Secretary of State influence over the name of your business – must obtain approval, not use certain words (listed in Act) & make certain info available about the ownership of the business.
- Companies Act 2006 – Makes provisions relating to companies & other forms of business organisation. Makes provisions about directors’ disqualification, business names & auditing.
- Financial Services & Markets Act 2000 – Put the Financial Services Authority as a regulator for insurance, investment business & banking. FSA objectives to give market confidence; financial stability; public awareness; protect customers & reduce financial crime.
- Money Laundering Regulation 2007 – Money laundering is the process of concealing the source of legally / illegally / grey area obtained monies.
- Turning criminal money into clean money, hanAecoming the proceeds of crime or stolen goods, or being involved with the laundering of money which is intended to fund terrorism.
- General Obligations:
o Society as a whole has obligations to prevent the use of criminal proceeds
o Terrorism Act 2000 - Concerned with ensuring Businesses and Individuals do not fund terrorism
o Proceeds of Crime Act 2002 - Includes Failure to disclose knowledge or suspicion of Money Laundering
o Those within the regulated sector must report suspicion of money laundering and those not within the regulated sector should consider making a Suspicious Activity Report if they come across suspicious behaviour
o The ‘regulated sector’ means those businesses which are covered by the Money Laundering Regulations, and include:
Lawyers;
Tax advisors;
Credit institutions;
Financial institutions;
Auditors and accountants;
Casinos;
Trust and company service providers;
Dealers trading in goods who trade in cash over €15,000; and
Estate agents.
o If your business falls within the regulated sector (Money Laundering Regulations 2007), you must:
Perform client due diligence to identify clients and monitor the business relationship
Keep records of the checks you have undertaken
Maintain systems to identify and prevent money laundering
Nominate a money laundering reporting officer and maintain internal procedures
to
Report suspicion
Provide training for employees on the money laundering regulations and your internal procedures to prevent money laundering
Failure to comply with the Money Laundering Regulations can lead to an unlimited fine or two years imprisonment
- Data Protection Act
- H&S & Works Regulation
- Employer’s Liability Act
- Bribery Act 2010
o provides a more effective legal framework to combat bribery in both private and public sectors
o Two general offences:
1. the offering, promising or giving of an advantage
2. requesting, agreeing to receive or accepting of an advantage
o Creates a discrete offence of bribery of a foreign public official
o Create a new offence of failure by a commercial organisation to prevent a bribe being paid for or on its behalf
o Guidance about procedures that organisations can use available online
What
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What is the RICS stance on sustainability?
The RICS and its members are committed to creating and maintaining a healthy environment, not only for today but also for future generations, by adhering to the following principles:
1) Protection of the environment through the preservation of natural capital
2) Promotion of social equity by ensuring access to services for the benefit of all
3) Support of a healthy local economy, including high levels of employment
The RICS seeks to promote sustainability by conducting research, publishing guidance papers and setting its own corporate responsibility charter titled ‘A Vision for Sustainability’. Key initiatives in 2010-11 included:
Benchmarking RICS' carbon footprint, including displaying CO2 emissions in real time
93
If a client gave you money to look after for a project, what would you do?
If a client gave you money to look after for a project, what would you do?
1. Open a separate designated bank account with the word ‘Client’ in its title
2. Advise the client and they must agree to the account hanAecoming terms in writing
3. Ensure monies are available to the client on demand
4. Interest is to be paid to the client unless otherwise agreed
5. Signatories agreed, only authorised staff allowed and at least two required
6. A bank reconciliation must be undertaken at regular intervals
7. Firm is audited by RICS’ appointed accountants; annual fee for monitoring
8. If it is to pay myself or others, agree a drawdown of monies against services
For added protection, the RICS provides a free ‘Clients’ Money Protection Scheme’ to Clients of firms that are regulated by the RICS. This protects Clients in the unlikely event that money to a maximum of £50k is mishanAecomed.
94
What is Vicarious Liability and how would it be applicable to a construction firm?
It is a legal doctrine that assigns liability for an injury to a person who did not cause the injury but has a particular legal relationship to the person who did act negligently; for example an injured party may sue the employer rather than the employee who caused the injury during the course of his scope of work
95
What is a bribe?
The exchange of something of value in return for someone doing/agreeing something improper in a business context.
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What are the principles of The Bribery Act 2010?
- Aims to enhance UK laws on bribery, including foreign bribery.
- Applies to individual RICS & Corporate members
- Includes offering / promising / giving something of value to a foreign official
- Applies to:
o British Citizens / people residing in the UK / people who commit an offence in the UK
o UK companies & partnerships operating in the UK / overseas o Non UK companies conducting part of their business in the UK o Bribes made anywhere in the UK & overseas
- Organisation could be held liable if a bribe is made by a company performing services on your behalf
e.g. agents.
- It is a Corporate Criminal Offence if an organisation cannot demonstrate that they have adequate procedures in place to prevent bribery.
- Firms must have anti-bribery procedures in place such as hospitality & charitable donations.
- Individuals convicted of an offence face a prison sentence of up to ten years, in addition to unlimited fines.
- Businesses can be penalised with unlimited fines and excluded from the right to tender for public contracts.
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What is the procedure for identifying whether a bribe has been made?
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- Follow the RICS guidance:
o Does the UK Bribery Act apply to me / my business?
o Has a bribe been made?
o Am I / is the business liable?
o Seek advice from the RICS Regulations.
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What are the different offences under the Bribery Act?
- Individual – 10 years imprisonment
- Organisation – unlimited fine / ban from participating in EU public procurement
- Directors – Disqualification from acting as a Director
99
What is a Facilitation Payment?
- An illegal unofficial payment
- Paid to a public official to secure / expedite a routine government action.
- Small payments to make an individual carry out their job quicker. Offence under the UK Bribery Act.
100
Why does corruption matter?
- Corruption undermines democracy and law – leads to the violation of human rights, distorts markets.
- Construction is a high risk industry with little margin – people might be tempted to do something to secure work.
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What does the Bribary Act aim to do?
- Bribary Act replaces a list of Edwardian Statutory rules.
- Zero tolerance culture of bribary across all industries – illegal.
- It is applicable to UK professionals working outside of the UK in foreign markets. It is not a defence that other countries find bribes acceptable.
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What are the key principles for firms to prevent bribery?
Proportionate
- Firm procedures must be proportionate & tailored to the bribery risk in terms of the nature, scale & complexity of the firm’s activities.
- Must be clear, practicable, effectively implemented & enforced.
- Must have anti-bribery procedures in place such as hospitality, charitable donations, facilitation payments, staff recruitment & HR disciplinary policies.
Top level commitment
- Issue statement to staff/business partners that communicate the firm’s anti-bribery policies.
- Zero tolerance approach
- Select & train a senior employee to take responsibility for anti-bribery procedures & policies.
- Issue internal & external publications re. anti-bribery policies.
Risk Assessment
- Procedure to assess the nature & extent of a firm’s exposure to potential external & internal bribery risks.
- Accurately identify & prioritise risks a firm faces.
- Keep written record of risk assessment processes & findings
- Types of risks:
o Internal:
Deficiencies in training / bonus culture / lack of clarity of policies / lack of financial controls / lack of clear bribery message from top level management.
o External:
Country
Sectoral
- Be aware of countries where corruption is more endemic in business culture e.g. Russia, China, Mexico.
- Assess the risk for your firm & from 3rd parties providing service
-
- Some sectors more high risk than other e.g. construction, property. Stats can be obtained from Transparency International which publishes Bribery Perceptions Index.
Transaction
- Identify the number & type of high risk transactions which a firm is involved with.
- Working with Government Officials Competing in public procurement Obtaining licences & permits
- Charitable / political donations – must have company wide policy & a central record
- Hospitality – must have policy & a central record
- Business opportunity
- Need to identify the number & type of business opportunity risk
- E.g. high value projects / projects involving many contractors / intermediates
- Need to consider how expenditure is recorded on the projects & how it is overseen / audited.
- Business partnership
- Need to assess the type of relationships the organisation has with 3rdparties.
- High risk relationships include: use of intermediaries in transactions with foreign officials / joint venture partners / relationships with politically exposed persons / links to prominent public officials.
Due Diligence
- A firm should carry our due diligence on employees & business partners (internal & external) that may be exposed to corruption before party is engaged.
- Should be informed by Risk Assessment
- E.g. credit checks, internet search, direct interrogation enquiries (e.g. with local authority), indirect investigations, questionnaires, references, face-to-face meetings.
- Request a copy of the potential agent’s anti bribery policy
A clear statement of the precise nature of services to be offered (e.g. outlining remuneration – fees / bonuses) should be issued
Communication
- Aim to embed understanding of procedures & zero tolerance approach by effective internal & external communications.
- Basic training – should be continuous
- Whistle blowing – establish secure, confidential & accessible means for individuals to raise.
Monitoring & Reviewing
- Have periodic review of the anti bribery policy & assess its effectiveness.
- Use bribery risk assessment to inform decisions e.g. when entering into a new business relationship.
- Review process in response to other stimuli e.g. government changes / after an incident which leads to negative press reports.
- Include reviews of internal financial control mechanisms, staff surveys, questionnaires & feedback.
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What are the key principles for firms to prevent bribery?
- Proportionate
- Top Level Commitment
- Risk Assessment
- Transaction
- Due Diligence
- Communication
- Monitoring & Review
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Who will prosecute?
The SFO – Serious Fraud Office – large scale, international cases
The CPS - the crown prosecution service
105
What does the Bribery Act say in relation to hospitality?
- Must be ‘proportionate and reasonable’ given your particular industry
- Bona fide expenditure
- Is the gift or hospitality intended to : improve the companys image, highlight a company’s goods and services or establish cordial relations?
106
What would need to be in place if you were asked to start work on a project before a contract was signed?
- An appointment
| - An agreed drawdown from a designated bank account.
107
When would it be acceptable to receive a gift or something similar?
- It would acceptable to accept promotional merchandise.
| - Or perhaps a lunch for which the purpose was to discuss business matters and which could be returned.
108
What happens if you can’t obtain insurance?
- Firms can gain insurance cover through the RICS’s agreement with the insurance market for the provision of an Assigned Risks Pool.
- ARP is a facility to which a Firm may apply to enable it to comply to a more limited degree with the RICS Insurance Requirements whilst the Firm takes action to rectify the issues that have led to it being declined PI insurance.
- Entry in to the ARP should only be considered after a Firm has exhausted all other options.
- The Deposit Premium and Final Premium will be substantially higher than the expiring premium.
- The extent of cover will be lower, since the limit of indemnity is Aggregate rather than Each and Every Claim.
- Firms can remain in the ARP for a maximum of three years during which they will be audited and guided in how to amend business procedures/practices.
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Where a firm ceases to trade or becomes unregulated what must you do?
- Complaints hanAecoming - Continue to adopt an effective procedure for hanAecoming complaints which were made to the firm prior to it ceasing to trade/becoming unregulated by RICS.
- Clients’ money - On ceasing to trade – ensure that the security of clients’ money is preserved until all monies have been distributed. In the event of a firm becoming un-regulated by RICS – inform your clients that the monies are no longer covered by the RICS Clients’ Money Protection Scheme.
- Professional indemnity insurance - Maintain run-off cover for a minimum period of six/twelve years. This ensures you are not exposed to claims during the period following ceasing to trade or becoming unregulated by RICS. It is advisable to contact your broker for more detailed advice.
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What constitutes providing a high level of service?
- Be clear about what service your client wants and the service you are providing.
- Act within scope of confidence
- Be transparent about fees and other costs/payments
- Communicate in a way that allows them to make informed decisions
- if your service requires third party involvement pay parties within timescales agreed
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How do you maintain transparency in valuations?
a. Through regular communication with the contractor
| b. Substantiation for any differences in assessment
112
What is a payless notice?
a. Payless notice is a certificate issued by the EA/CA that shows that the Client intends to pay less than
the amount stated in the issued payment notice
b. Must be issued at least 5 days before final payment date
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How does a Client know what services they are purchasing?
a. Within the scope of services offered
b. Should be clearly defined within the initial fee agreement
c. Any additional works excluded should be clearly stated
d. Fees for additional works should be clearly highlighted in the appointment documents
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Have you heard of an ESCROW account?
a. Account which is held by a third party on behalf of two other parties that are in the process of
completing a transaction
b. Holding accounts for project funds
c. Bad for employers cashflow
d. Beneficial to contractor – security
e. Interim payments – employer must top up the account
115
What is an annual return?
a. Completed online
b. Provides the RICS regulation with the information required to regulate and monitor your firm
c. Used to develop a risk profile of your firm
d. Information required:
i. Business and staffing details
ii. Nature of clients
iii. Complaints
iv. PII and runoff cover information
116
What is money laundering?
a. Introducing dirty money into a financial system to clean it
b. Financing projects and getting a clean return
117
Are you aware of the proceeds of crime act?
Proceeds of crime act 2002
| b. Confiscation or civil recovery of the proceeds of crime
118
What is a non disclosure agreement?
a. Confidentiality agreement
b. A legal contract
c. Should clearly state the parameters of the NDA
d. Usually a set time limit
e. Project A:
i. Defines that all information except for that which would be in the public domain is private
ii. Requires written consent to be obtained prior to disclosure
iii. Contractor acknowledges that damages may not be an adequate remedy and the employer
can seek legal injunction where applicable
iv. Damages usually the loss suffered by the client as a direct result
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Farmers report?
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Report by Mark Farmer in October 2016
b. Evaluation of the construction industry’s current and future state, comparing it to the condition and
anatomy of a body
i. Identifying the symptoms
ii. Diagnose the root causes
iii. Provide a prognosis
iv. Establish a treatment plan for recovery
v. Keep the industry under observation
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120
What does AECOM stand for?
a. Architecture
b. Engineering
c. Construction
d. Operations
e. Management
121
What is AECOM’s Vision?
a. To become the world’s premier, fully integrated infrastructure firm – ONE AECOM
122
What is a joint venture?
A commercial alliance by two or more entities that allows them to share risk and reward.
b. Used on project A to combine their expertise and share the risk
c. One in five JV’s in 2015 led to a dispute (EC Harris Report) as a result of:
i. Failure to properly administer the contract
ii. Conflicting interests
iii. Employer imposed change
d. Key requirements:
i. Shared vision and ethos
ii. Structure is clear from the outset
iii. Efforts are made to build relationships
iv. Collaborative practices are in shape
123
What is the RICS members support service?
What is the RICS members support service?
a. If you find yourself being sued and have no PII, the Member support service can provide defence and
advisory services
b. Only available in the UK
c. Does not cover people who should already have indemnity insurances
d. It is aimed at helping those who believed they were covered by an employers
e. Mandatory levy funds this membership benefit, included within membership fee
f. The case of Meritt v Babb led to this service being introduced
g. Created in 2002 following a vote
h. Generally £15 of each membership fee
i. What does it provide?
i. Access to external expert legal advisors
ii. A dedicated helpline manned by qualified staff
iii. Support in dealing with insurance providers
iv. Investigate the allegation
v. Help with legal costs
vi. Provide further support at its discretion
j. If your firm does not contribute to the levy, you are obliged to fund this separately
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What are AECOM’s core values?
b. Collaborate
c. Inspire
d. Anticipate
e. Deliver
f. Dream
g. The core values are clearly set out and defined in line with the UK Bribery Act 2010
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Six Principles to Follow for Bribery Prevention
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Proportionate procedures. Bribery prevention procedures should be proportionate to the risks faced by the organization and to the nature, scale and complexity of its activities. ...
Top-level commitment. ...
Risk-assessment. ...
Due diligence. ...
Communication (including training) ...
Monitoring and review.
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