Conduct rules, ethics and professional practice

Question 1

What does RICS stand for?

Answer 1

Royal Institution of Chartered Surveyors

Question 2

Why do you want to become a member of the RICS?

Answer 2

The RICS is one of the largest global professional bodies and is very well respected. I want to be a professional person and ensure that I am associated with an institution which promotes best practice within the industry.

Question 3

Who is the president of the RICS?

Answer 3

Chris Brooke

Question 4

Who is the president elect?

Answer 4

Time Neal

Question 5

Who was the previous president?

Answer 5

John Hughes

Question 6

Who is the CEO?

Answer 6

Dr Sean Thompkins

Question 7

Who is the senior vice president?

Answer 7

Kath Fontana

Question 8

When was the RICS founded?

Answer 8

1868 became chartered in 1881

Question 9

What is the structure of the RICS?

Answer 9

Privy Council -> Governing Council -> Regulatory board, audit committee and management board

Question 10

What are some current challenges facing the RICS?

Answer 10

• Sustainability – responsibility to ensure the industry contributes to sustainable development by becoming more environmentally aware and taking steps to improve energy performance
• Maintaining standards and consistency of approach across the world – adopting international standards to ensure everyone follows best practice

Question 11

How much CPD is required as a qualified surveyor?

Answer 11

A minimum of 20 hours per year.

Question 12

What are the five core principles?

Answer 12

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

Question 13

What are the Rules of Conduct for members?

Answer 13

• interpretation of member
• communication
• Ethical behaviour - act with integrity and avoid conflicts of interest
• Competence – carryout work with due skill, care and diligence
• Service – carry out work in a timely manner
• CPD – comply with RICS requirements
• Solvency – ensure personal and professional finances are managed appropriately
• Information to the RICS – submit info required in a timely manner
• Co-operation – cooperate with RICS staff

Question 14

Rules of conduct for firms?

Answer 14

• Definition of firm
• Communication
• Clients money
• PII
• Advertising must be truthful
• Arrangements to cover death
• Use of designations
• Information yo RICS
• Co-operation

Question 15

What are the principles of RICS regulation?

Answer 15

1. Proportionality
2. Accountability
3. Consistency
4. Targeting
5. Transparency

Question 16

What would you need to do before starting your own business?

Answer 16

1. Statutory – Disclose name of business, comply with relevant statute including Money Laundering Act (2007), H&S Act (1974), Equality Act (2010), Data Prot (2018) to name a few, inform HMRC for taxation purposes
2. RICS – Inform RICS, register for regulation, CHP, Client’s Account, PII, Succession Plan

Question 17

What is your company’s client acceptance procedure?

Answer 17

For non-agency instructions, I must be satisfied that I know my client and if I consider them high risk i.e. based in a high risk country where AML deficiencies exist or sanctions are in place then I should refer to my compliance team. If for an agency instruction I would undertake the standard Money Laundering checks.

Question 18

What do you include in Terms of Engagement?

Answer 18

• Address of the property
• Scope of works
• Fee arrangements
• PII cover
• Complaints handling procedure

Question 19

What are the PII bands?

Answer 19

• Turnover less than £100,000 = £250,000 minimum
• £100,000 to £200,000 = £500,000
• Over £200,000 = £1,000,000

Question 20

What is the purpose of PII and who does it protect?

Answer 20

Professional Indemnity Insurance protects surveyors, clients and third parties against negligence claims when there is a duty of care breached and a claim for damages arises.

Question 21

How would you handle client’s money?

Answer 21

• Keep clients’ money in a designated account
• Advise the client on and agree terms of account handling in writing
• Ensure there are sufficient funds in the account to pay amounts owing to clients as they fall due under the firm’s terms and conditions of engagement
• Obtain clients’ written approval to make payments from their accounts

Question 22

How would you treat a fee that had been paid in advance?

Answer 22

I would treat this as client’s money until completion of the instruction, so I would hold it in a separate client account and wouldn’t draw down on it until the work was complete.

Question 23

What are the offences under the Bribery Act?

Answer 23

1. Bribing
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent bribery

Question 24

Who polices the Bribery Act and what are the penalties?

Answer 24

The serious fraud office. 10 years imprisonment and/or an unlimited fine.

Question 25

What would you do if your client sent you a case of wine in thanks after the completion of an instruction?

Answer 25

I would consider whether accepting the gift would impact on my professional objectivity and whether the gift was proportionate to the size of the instruction. If I decided that it would not affect my objectivity I would accept the gift and log it in my company’s gifts register.

Question 26

What is your company’s gift acceptance policy?

Answer 26

I am able to accept gifts up to the value of £50 as long as they do not impact my professional objectivity. Above £50 I must seek permission from my line manager to accept it and register the gift in my company’s gift register.

Question 27

If a friend asks you to advise them on the sale of their house in the pub, what should you do?

Answer 27

I would not give this advice as I do not have Professional Indemnity Insurance and I would encourage my friend to seek advice through my company, being careful to acknowledge any conflict of interest.

Question 28

What is the difference between mandatory RICS codes and guidance notes? Which ones are mandatory?

Answer 28

* International Standards – mandatory e.g. International Ethics Standards, International Property Measurement Standards * Practice Statement - mandatory e.g. Global Practice Statement in Real Estate Agency & Brokerage, Valuation Professional Standards The Red Book * Code of Practice – can be mandatory or just recommended e.g. Code of Measuring Practice * Guidance Note – recommended e.g Conflicts of Interest, Surveying Safely * Information Paper – info only e.g. Valuation of Development Land, Comparable Evidence in Property Valuation

Question 29

What are the RICS decision trees?

Answer 29

The decision tree provides step-by-step advice on how to deal with ethical issues we may face as professionals. 1. Do I have sufficient facts? 2. Is it legal? 3. Is it in line with RICS ethical standards? 4. Have you consulted with the appropriate people to make an informed decision? 5. Do you have clear reasoning? 6. Would you be content for your actions to be made public?

Question 30

What would you do if a Client tried to pay you in cash?

Answer 30

Under the Money Laundering Regulations, I am not able to accept payments in cash of over 15,000 euros (£10,000). It is my company policy not to accept any payments in cash, even below this threshold.

Question 31

Why is the RICS Global professional standards important?

Answer 31

It maintains five key principals which promotes trust within the profession.

Question 32

What is your firms CHP?

Answer 32

Try and settle mutually. If a written complaint, send it to the CHO which is confirmed within 7 working days Will write to the complainant within 20 working days to confirm the outcome. If, in the case of a consumer complaint, the matter has still not been resolved to your satisfaction, we will agree to the referral of your complaint to the Ombudsman Service If in the case of a business to business complaint the matter has still not been resolved to your satisfaction, we will agree to the referral of your complaint to The Neutral Evaluation Procedure for Surveying Disputes operated by IDRS Limited. Or RICS DRS

Question 33

What are the RICS Rules of conduct for firms and how does it differ for members?

Answer 33

Members: - Definition of member type, communication - Professional standards, competence, service, CPD, Solvency, information to RICS, Co-operation Firms include the above and: - Advertising, death, Use of Designations, Complaints Handling, Clients Money, Indemnity

Question 34

What are the MLR 2017?

Answer 34

Came into force on 26 June 2017. They implement the EU’s 4th Directive on Money Laundering. In doing so, they replace the Money Laundering Regulations 2007 Requires more DD into clients and cannot accept large cash payments over €10,000

Question 35

How would you undertake an AML check?

Answer 35

I complete the form filling out the entering the office ID, entering the type of business and name and address and submit This goes to CO and notifies of any risks

Question 36

How would you undertake a conflict check?

Answer 36

Log onto my internal system I enter the property address or post code and press search Export to excel and print and sign If there is a conflict I notify the party

Question 37

What does the RICS Conflicts of interest outline?

Answer 37

March 2017 with a blue square pattern on the front set an overarching obligation on both members and RICS regulated firms at all times to: act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with its professional obligations

Question 38

What does the RICS standard form of consultant’s appointment set out?

Answer 38

sets out the parties and consultants involved, the terms of appointment and consultants obligations, H&S

Question 39

What is the purpose of the EA79?

Answer 39

The Estate Agents Act 1979 regulates work as an estate agent. Its purpose is to make sure that an agent works in the best interests of your clients, and that both buyers and sellers are treated honestly, fairly and promptly. references estates in land and warning orders from local authorities

Question 40

What does RICS client’s money general advice for firms outline?

Answer 40

Blue honeycomb on front page • Keep clients' money in a designated account • Advise the client on and agree terms of account handling in writing • Ensure there are sufficient funds in the account to pay amounts owing to clients as they fall due under the firm's terms and conditions of engagement • Obtain clients' written approval to make payments from their accounts

Question 41

What are the 10 international ethical standards?

Answer 41

``` Accountability Confidentially Conflict of interest Financial responsibility Integrity Lawfulness Reflection Standards of service Transparency Trust ```

Question 42

What are the principles of the bribery act?

Answer 42

``` DD risk assessment Proportionality Top level commitment Monitoring and review Communication. ```

Question 43

What is the RICS motto?

Answer 43

Modus Ed Rebus - measure in all things

Question 44

What are the CPD requirements?

Answer 44

20 hours and 10 must be formal.

Question 45

Under what law must companies police thier employees on tax evasion?

Answer 45

Criminal Finances Act 2017

Question 46

What does the proceeds of Crime act 2002 enforce?

Answer 46

one must not tip someone off under suspicion or assist or fail to report the person, firms must have a nominated officer

Question 47

What does the RICS UK Commercial Estate Agency Professional Statement 2016 outline?

Answer 47

``` Standards and Ethics Securing Instructions - TOE Marketing the property - inspections implementing the disposal - methods of sale Acquisitions Ending the instruction ```