Ethics

Question 1

RICS

Answer 1

Royal Institution of Chartered Surveyors

Question 2

Date founded

Answer 2

1868

Question 3

Current President

Answer 3

Kath Fontana FRICS

Question 4

CEO

Answer 4

Sean Thompkins

Question 5

President Elect

Answer 5

Clement Lau FRICS

Question 6

RICS Global Professional and Ethical Standards

Answer 6

Act with integrity
Always provide a high standard of service
Act in a way that promotes trust in the profession
Treat others with respect
Take responsibility

Question 7

Example of Act with Integrity

Answer 7

1. Disclosed all cost info to client prior to commencing marketing and disclosed all info on brochure
2. Informed client that report going to be delayed

Question 8

Example of high standard of service

Answer 8

1. Report provided in timely manner

2. Undertook high level of due diligence for valuation report

Question 9

Example act in a way that promotes trust in profession

Answer 9

1. Arranging key organisation for viewings

2. Used ethical decision tree to ensure making correct decision - illustrates trustworthiness as based on own judgement

Question 10

Example treat others with respect

Answer 10

1. Informing tenant of inspection and being respectful of their operations
2. Contacting all parties who were not successful in bid process

Question 11

Example take responsibility

Answer 11

1. Submit report in timely manner

2. Organising inspections and covid 19 protocols

Question 12

Royal charter

Answer 12

Granted 1881

Obliges RICS to act for the public advantage in surveying services

Question 13

5 benefits of becoming an RICS member

Answer 13

1. Status of organisation internationally, providing client confidence
2. Recognition that you’re promoting professional excellence
3. Market advantage as status provides competitive advantage
4. Better knowledge and professionalism due to adherence to standards and guidance
5. Access to strong network of professionals

Question 14

Role of RICS

Answer 14

1. Maintain Highest standards of education and training
2. protect consumers to strict regulation of professional standards
3. Leading source of information and professional advice in surveying

Question 15

Benefits of regulation for firms

Answer 15

1. Confidence (as firms monitored by RICS)
2. Professionalism
3. Security (as need to have PII cover/ CHP etc)

Question 16

Why new Ethical Standards and Rules of Conduct?

Answer 16

Simplify existing rules into 5 new rules for all and deal with modern day societal issues (eg sustainability/ D&I)

Question 17

What else will new rules include?

Answer 17

Professional Obligations for Member and Firms

Eg comply with CPD/ have appropriate PII cover and CHP

Question 18

What is ethical decision tree?

Answer 18

Framework used to determine whether member should act in a situation that they think is unethical

Question 19

Steps on ethical decision tree

Answer 19

Do you have sufficient facts?

Are you acting in line with RICS Rules of Conduct and ethical standards?

Would you be happy for your actions to be published in the press?

Question 20

Requirements to register as an RICS regulated firm

Answer 20

1. Providing surveying services to public
2. Firm operating in the UK
3. At least 50% of principals are RICS members

Question 21

Responsible person

Answer 21

Someone elected within a firm Who is responsible for ensuring the firm complies with its regulatory and statutory obligations of the RICS

New rule from 1 April 2020

Question 22

Information required for registration

Answer 22

1. Type of business and staffing details
2. Statutory related activities
3. Nature of clients
4. Complaints handling procedure and records
5. PII details
6. Whether the firm holds client money

ALSO INCLUDED AS PART OF ANNUAL RETURN

Question 23

Process for setting up and RICS regulated firm

Answer 23

RICS COMPLIANCE
Complete RICS firm details form
Setting up CHP/ PII Cover
Register for RICS Registered Valuers scheme
Obtain logo kit (Use of Designations rule)
Log CPD
Appoint responsible person/ locus (if sole trader)

STATUTORY COMPLIANCE
Adhering to legislation eg Equality Act/ Estate Agents Act/ Bribery Act/ appointment of money laundering officer

Question 24

Closing a practice

Answer 24

Transfer all money back to clients and transfer clients to another firm
Ensure still keep client folders for 6 years and have 6 years PII cover to cover any complaints (still need cover following cease of trading)

Question 25

Disciplinary procedure

Answer 25

Self regulated by RICS 3 x levels 1. Action by Head of Regulation 2. Regulatory tribunal 3. Appeal panel

Question 26

Professional Indemnity Insurance

Answer 26

PII Cover Minimum required PII based on turnover of firm £100,000 or less = £250,000 minimum cover £100,000 to £200,000 = £500,000 £200,000+ = £1 mill

Question 27

Run off cover

Answer 27

Need 6 years PII cover following cease of trading

Question 28

Assign risk pool

Answer 28

Scheme by RICS for firms who are unable to arrange cover Eg if firm needs to renew cover and still had claims to sort so obtain temp cover from RICS whilst dealing with claims

Question 29

PII policies made on a...

Answer 29

... claim by claim basis Ie doesn’t matter when negligence occurs, use current insurer when claim is made

Question 30

Rules for holding clients money

Answer 30

Client accounts must be kept separately ‘Client’ must be name on account Client must be able to have access to their money on demand Annual audit by certified accountant

Question 31

types of bribe offences Act?

Answer 31

Bribery Act 2010 Aim- reduce bribery in UK and abroad ``` 4 offences: 1 bribing 2 receiving a bribe 3 bribing a foreign official 4 failing to prevent a bribe ```

Question 32

Money Laundering

Answer 32

Money Laundering Regulations 2007 Concealing origins of illegally obtained money and using for legitimate business

Question 33

Types of DD for money laundering

Answer 33

1. Customer Due Diligence Identify client and verify identity (Ie usual AML checks) 2. Enhanced Due Diligence Additional procedures needed when dealing with politically exposed person or person from a high risk third country 3. Simplified Due Diligence

Question 34

Politically Exposed Person

Answer 34

Someone who has been entrusted with a prominent public function and therefore is at higher risk of bribery due to their influence

Question 35

RICS doc concerning bribery and ML

Answer 35

RICS Countering Corruption, Bribery, Money Laundering and Terrorist Financing Professional Statement

Question 36

Defining our future

Answer 36

Consultation to review RICS strategic direction

Question 37

Defining our future issues being addressed

Answer 37

8 1. purpose of RICS as a professional body 2. Qualification and entry to the profession 3. Membership engagement and involvement