Ethics Flashcards

Question

If the prospective client did want to instruct yourselves to undertake the terminal schedule of dilapidations, despite the conflict of interest, how might you go about managing this?

Answer 1

* Obtain prior written informed consent from both the landlord and tenant, ensuring that all parties are fully aware of the implications of the conflict are consenting willingly. * Maintain records of steps taken regarding managing the conflict. * Set up information barriers (have a surveyor from another office carry out the instruction). * If it were not possible to set up an effective information barrier it may be more ethical to decline the instruction.

Answer 2

* I ensure that I do not undertake any work in which I am not competent to do. * I carry out regular CPD in line with the RICS CPD policy.

Answer 3

* I ensure that any work I undertake is done so to a high standard, following relevant guidance set out by RICS. * A clear client brief is established and terms of service are set out within fee proposals, including the services to be provided, fees, timescales and any exclusions and assumptions.

Answer 4

* I always treat others with courtesy and respect no matter who I am dealing with. * I am encouraging of diversity within the workplace and always work collaboratively with colleagues regardless of their age, sex, ethnicity, religious beliefs etc.

Answer 5

When using social media I ensure that I use it responsibly and do not make any statements that may undermine the reputation of the profession or RICS.

Answer 6

* All RICS members (AssocRICS, MRICS and FRICS) must undertake at least 20 hours of CPD each year. This must be completed by 31st December and recorded online (or using the RICS mobile app) by 31st January. At least ten hours must be formal (structured) CPD * Every three years, CPD relating to ethics must be undertaken.

Answer 7

Provided step by step guidance and considerations on how to deal with ethical decisions. Steps: * Do you have sufficient facts on the issue? * Is it legal? * Is it in line with RICS Rules of Conduct? * Have you consulted with appropriate people to make an informed decision? * Do you have clear reasoning in reaching your decision?

Answer 8

* It is called annual return and carried out on-line. * Failure to do so leads to a fixed penalty. * It includes:- o Type of business and staffing. o Nature of clients. o Training provision. o Complaints handling procedures details and records. o PI insurance details. o Whether the firm holds clients’ money

Answer 9

An exchange of something of value in return to the person receiving it promising to do something improper in their line of business.

Answer 10

Countering bribery, corruption, money laundering and terrorist financing, 1st edition, February 2019 – Professional Standard

Answer 11

The Bribery Act 2010.

Answer 12

* To offer, promise or give a bribe (Section 1) * To ask for, agree to or receive a bribe (Section 2) * To bribe a foreign public official – including facilitation payments (Section 6) * Failure of a corporate organisation to prevent a bribe on its behalf (Section 7)

Answer 13

* When under duress, for example when there is a risk of life, limb or liberty. * You should put safety first, make the payment and report the matter immediately or as soon as is practicable to your manager or your ethics compliance contact.

Answer 14

* Proportionate procedures * Top-level commitment * Risk Assessment * Due diligence * Communication (including training) * Monitoring and review

Answer 15

Up to 10 years’ imprisonment and/or an unlimited fine.

Answer 16

* If it is genuinely and proportionately for business purposes. * If it would be rude to decline for cultural reasons and the value was reasonable.

Answer 17

* Is the value of the offer proportionate to the work undertaken? * Who is the intended recipient; is it an individual or a range of people, such as a project team? * Is the offer reasonable and proportionate? * Is the offer for genuine business purposes? * When was the offer made? Was it near a critical business decision or contract award, or at a regular business marketing event? * How easy is it to politely decline the offer? * What are my company policies on gifts and hospitality?

Answer 18

* Inform my manager or senior management of receiving a gift / hospitality. * Include details of the gift on the gifts and hospitality register. * Follow the company’s procedures / policy.

Answer 19

* A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially. * An existing relationship will result in reduced impartiality and Chartered Surveyors have an obligation to make clients aware of this and if necessary, decline work opportunities where a conflict of interest occurs.

Answer 20

RICS Professional Standard - Conflicts of Interest, 1st edition, March 2017.

Answer 21

* Party Conflict – where the duty to act in the interest of a client or other party in a professional assignment conflict with a duty owed to another client or party in relation to the same or related professional assignment. * Own Interest Conflict – Where the duty to act in the interest of a client in a professional assignment conflict with the interests of the member or firm. * Confidential Information Conflict – Where the duty to provide material information to one client conflicts with the duty owed to another client to keep that same information confidential.

Answer 22

Prior written informed consent.

Answer 23

* If the instruction is illegal. * If the instruction is contentious. * If two instructions conflict with each other. * If the firm / member are unable to act impartially. * Dual agency (acting for a buyer and seller – to never be done).

Answer 24

* Fixed Penalty Notices. * Regulatory Compliance Orders (as of 1st October 2019) * Consent Orders (before 1st October 2019) * Regulatory Tribunal

Answer 25

An administrative fine and/or caution when RICS members breach the Rules: * Rule 2 of Rules of Conduct in regards to Continuing Professional Development (CPD). * Professional Obligations under Rules of Conduct in regards to providing information to RICS. * Rules 13 of the Rules for the Registration of Firms in regards to payment of Fees. * First breach will attract a caution. Second breach within 10 years of a caution will result in a caution and a fine.

Answer 26

A Regulatory Compliance Order is an agreement between RICS and a Regulated Member (either an RICS professional or a RICS-regulated firm) that they are liable for disciplinary action. In agreement the regulated member: * accepts that they have fallen short of the standards expected; and * accepts the proposed sanction; and, in some cases, * accepts to take steps to meet the standards expected and/or to prevent it happening again.

Answer 27

RICS may only enter into a Consent Order in relation to any concerns or information received prior to 1 October 2019, when the Regulatory Compliance Order were introduced. A Regulated Member agrees to accept a Consent Order with the Head of Regulation which can contains the following terms: * To take a certain action within a specified period of time * To desist from taking a certain action within a specified period of time * Pay a fine (up to £2,000 per breach or equivalent currency value) * Pay RICS' costs

Answer 28

* The Birchard Review was an independent review commissioned by the RICS Governing Board in December 2021 into the purpose, governance and strategy of the RICS. * This was commissioned following the Levitt Review and aimed to create a new sense of purpose and direction of the RICS. The review advised on 36 recommendations that are currently being implemented which include: * Commercial Activity will now be separated from other activities within the RICS and led by a suitable qualified executive with strong commercial experience who reports to the Commercial Committee. * RICS Matrics should give younger members a stronger voice through an improved governance structure with an appropriately selected representative from the community of younger members to sit on the Governing Council. * A Diversity and Inclusion Panel will be setup to provide advice to the RICS Board and Standards and Regulation Board. * Improvement of Technology within the RICS. * A Public Interest Panel will be setup to advise the Governing Council. The Governance Structure will be updated to include a Public Interest Panel, Sustainability Panel, Commercial Committee and Audit, Risk, Finance & Assurance Committee.

Answer 29

Lord Bichard makes 36 recommendations and suggests a phased timetable for implementation. The report’s recommendations include: * A renewed and increased focus on the public interest remit of RICS, including amending the Royal Charter and creating a public interest panel to advise Governing Council * Maintaining self-regulation, through greater independence for regulatory functions * Increased focus on Diversity and Inclusion across the profession and within RICS governance * Empowering and enabling members through greater support for regional boards, alongside increased member engagement, with renewed focus on younger members * Undertaking an independent review of RICS’ governance and effectiveness at delivering against its Charter for the public advantage once every five years * A new simplified, clear, accountable governance structure * Showing greater leadership on the issues that matter most to society, such as sustainability and climate change

Answer 30

* The Levitt Report was commissioned by the RICS following a Treasury management audit in 2018. * Prior to the Audit the RICS had to extend its overdraft facility by circa £3m due to inaccurate cashflow forecasting. * The treasury management audit offered a ‘no assurance verdict’ on RICS internal financial control procedures and following this the Levitt report was commissioned as an independent review. * The conclusion of the Levitt report illuded to an internal power struggle due to its two board structure made up of a Management Board and Executive Board.

Answer 31

* MRICS status provides clients with confidence that members are competent and work to the highest professional standards. * Achieving MRICS status will enhance my career progression and opportunities.

Answer 32

* At least 25% of the regulated firm’s principals must be RICS members. * The firm must offer professional services in surveying disciplines to professional, corporate, institutional and other clients who rely on such services. * The firm must agree to observe and comply with RICS Rules of Conduct for Firms, including working to RICS standards. * RICS regulated firms must designate a responsible principal. * Registration for regulation is mandatory form firms who: provide surveying services to the public, operated within Regulated Area A and at least 50% of principals are RICS members.

Answer 33

* Agree the closure date. * Seek advice if the firm is insolvent. * Inform staff and deal with any redundancies, ensuring you direct them to Government support if necessary. * Inform clients and let them know if another firm could take over ongoing work (at the discretion of the client). * Deal with any outstanding money in client accounts (in line with the RICS Professional Statement Client Money Handling). * Notify your professional indemnity insurer to arrange run-off cover (on a claims made basis, for a minimum of 6 years). * Make arrangements relating to hard copy and electronic files and keep them for as long as necessary (up to 15 years under the Limitation Act 1980). Any documents not required should be destroyed confidentially. * Notify former clients to return any leases or other original documents being held for them. * Inform RICS and fill in the firm deregistration form. * Set up a system whereby anyone trying to contact you after closing is notified that the firm is closed, e.g., notice of closure on any physical offices, voicemail, closure notice on the firm’s website. * Amended notepaper to confirm the firm is not practising, emergency contact number and a mail redirection to a home address. * Contact any other parties who need to be told about the firm closure, e.g., other insurance provider, accountant, solicitor, HMRC, bank and Information Commissioner (for data protection purposes).

Answer 34

* Inform RICS; * Inform clients at the earliest opportunity and, if required, confirming hand-over arrangements to a new firm; * Return clients’ monies; * Inform the firm’s PII insurer and arranging run-off cover; * Retain records for at least six years.

Answer 35

* Any cash, cheque, draft or electronic transfer which an ‘RICS Regulated Firm holds for or receives on behalf of another person, including money held by a Regulated Firm as stakeholder and is not immediately due and payable on demand to the RICS Regulated Firm for its own account’. Examples include rent, service charge or interest credited to a client account. Also includes: * ‘fees paid in advance for professional work agreed to be performed, and identifiable as such, unless the fees are for work undertaken as a property agent as defined by the Rules of the RICS Client Money Protection Scheme for Property Agents’.

Answer 36

* Provides free recourse (within 12 months of discovering the loss) for clients when a Regulated Firm is unable to repay a client’s money, subject to specific limits (i.e., £50,000 per claim) and exceptions. The Scheme is one of last resort, i.e., it will reimburse the client for a direct loss of funds where the firm cannot make good the loss. * Claims may be made in circumstances such as a firm’s insolvency, the death of a sole practitioner, misappropriation of client monies or transfer of client monies to another organisation. The Scheme is split into two categories: * Client Money Protection for Surveying Services; * Residential agency under the Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 (Client Money Protection for Residential Agents).

Answer 37

If mixed funds are received, they must be paid into the client account, and office money must be transferred out promptly.

Answer 38

* Not holding office money in a client money account; * Ensuring that the word ‘client’ is in the client account name; * Holding all funds in a client money account over which the firm has exclusive control; * Ensuring that client money is immediately available; * Confirming the bank operating conditions in writing; * Keeping comprehensive and accurate accounting records, systems and procedures. This includes regular reconciliations by a senior staff member or Principal, having disaster recovery plans in place, ensuring electronic data is held securely and avoiding overdrawn balances.

Answer 39

If your firm has any surplus client money in a client account, best practice is to: * Ensure that all efforts are made to trace the clients or owners of the money. * Hold the surplus money in a client suspense account. * Hold surplus money for at least three years. * If, after three years, the client or owner of the money has not been found and no true claimants to the money have come forward, it must be donated to a registered charity. A receipt must be obtained for this transaction so should a true claimant come forward to collect the money it can be made available to them. The receiving charity should offer the donating firm an indemnity to enable the firm to recover a donation in the event of a claim.

Answer 40

* To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, errors or omissions. * PII ensures clients are able to recover any financial loss suffered. * PII protects surveyors from financial losses. * PII protects firms from having to meet the cost of claims from their own assets.

Answer 41

As of 2023, the RICS specifies minimum limits of indemnity, based on the last year’s turnover (or estimated turnover for new firms): * £100,000 or less (last year’s turnover) = £250,000 (minimum limit of indemnity) * £100,001 to £200,000 = £500,000 * £200,001 and above = £1,000,000 As of 2023, RICS also specifies maximum levels of uninsured excess, based on last year’s turnover: * £10,000,000 or less (last year’s turnover) = greater of 2.5% of the sum insured or £10,000 (maximum uninsured excess); * £10,000,001 and above = no limit.

Answer 42

* Provide cover for any one claim (each and every claim basis) or be on an aggregate plus unlimited round-the-clock reinstatement basis; * Fully retroactive (‘each and every claim made’ basis), covering claims made during the term of insurance cover irrespective of when the original act occurred; * Include RICS’ minimum policy wording. In 2022, this included specific fire safety exclusions; * Being written on a full civil liability basis; * Provide at least the minimum level of indemnity based on the firm’s turnover in the previous year (or estimated for a new firm); * Provide for a maximum level of uninsured excess based on the sum insured; * Underwritten by an RICS-approved insurer (found on RICS website); * Provide cover for past and present employees.

Answer 43

Insurers are not permitted without specific dispensation to exclude fire safety claims on a property four storeys or less and fire safety coverage must be provided, as a minimum, on an aggregate, defence cost inclusive basis.

Answer 44

* A minimum of 6 years for consumer claims. * A minimum of £1,000,000 PII cover (consumer claims). * For non-consumer claims, ‘The requirement is for firms to have adequate and appropriate run-off, but RICS would expect run-off to be a maintained for a minimum period of six years from the cessation of the practice.’

Answer 45

* Merrett vs Babb. * In this case, a valuation surveyor (Babb) conducted a mortgage valuation for a lender. His firm was subsequently closed due to bankruptcy with no run-off cover. The house purchaser successfully brought a negligence claim against the surveyor personally, even though the purchaser had not seen the valuation report and was unaware of the surveyor’s identity when they purchased the property.

Answer 46

* A liability cap is a contractual agreement that a client can only make a claim up to the amount agreed, even if the law would otherwise award a greater sum in damages. * PII limit is the maximum amount the insurer will pay out for a claim. * It is best practice to agree liability caps below the PII limit.

Answer 47

* Third party reliance happens when a 'third party' relies on advice that has been prepared for a member's client. * RICS-regulated firms’ PII may impose specific conditions concerning third party reliance and may exclude indemnity in relation to certain third-party claims.

Answer 48

* Expectation that RICS members and firms work to the highest possible professional and ethical standards. * The RICS exists to provide services for the public advantage.

Answer 49

* Scope of work * Fee basis * Liability cap * Contracting entity (i.e. the firm) and exclusions of personal liability * Proportionate liability if advice is provided alongside other professionals, such as a solicitor or architect. * Third party reliance * ADR method to avoid costly court litigation. * Governing law and jurisdiction i.e. requiring any claims to be subject to English law (or the first’s home country).

Answer 50

* I ensure that I abide by the Rules of Conduct at all times and follow RICS guidance. * I treat others with courtesy and respect and I am conscious not to do anything improper in my personal and professional life that may damage the reputation of surveyors.

Answer 51

* Professional Standard - Set requirements or expectations for RICS members and regulated firms about how they provide services or the outcomes of their actions. They may include: mandatory requirements, which use the word ‘must’ and must be complied with, and/or recommended best practice, which uses the word ‘should’. It is recognised that there may be acceptable alternatives to best practice that achieve the same or a better outcome. * Practice Information - Set out supporting guidance to advise surveyors in delivering specific services or working in specific areas of practice. The guidance is not mandatory and does not provide explicit recommendations. Practice Information can refer to processes, toolkits, checklists, insights, research and technical information or advice. * Rules of Conduct * Consumer Guide – for use by the public

Answer 52

Professional Standard * Home Survey Standard, 1st Edition, November 2019 * Dilapidations in England and Wales, 7th edition, September 2016 * Party Wall Legislation and Procedure, 7th edition, July 2019 * Residential Retrofit Standard, 1st edition, March 2024 Practice Information * Appropriate Contract Selection, 2nd edition, April 2024 * Risk, liability and insurance, 1st edition, April 2021

Answer 53

* I ensure that I abide by the Rules of Conduct at all times. * Review guidance prior to undertaking tasks, such as reviewing the Home Survey Standard prior to undertaking pre-purchase residential surveys.

Answer 54

* Home Survey Standard, 1st Edition, November 2019 * Party Wall Legislation and Procedure, 7th Edition, July 2019 * Dilapidations in England and Wales, 7th Edition, September 2016 * Surveying Safely, 2nd Edition, November 2018 * Asbestos, 4th edition, May 2021 * Investigation of moisture and its effects on traditional buildings Principles and competencies Joint position statement, 1st edition, September 2022 * Technical due diligence of commercial property, 1st edition, January 2020

Answer 55

* Ensures I am following the correct procedures as advised and mandated by RICS. * If a claim of negligence were to be brought against me, proof of following relevant guidance would provide a partial defence.

Answer 56

* RICS Professionalism Module. * Private reading of RICS guidance. * Online webinar for anti-money laundering.

Answer 57

* Concealing the source of the proceeds of criminal activity to disguise their illegal origin. This may take place through hiding, transferring and/or recycling illicit money or other currency through one or more transactions, or converting criminal proceeds into seemingly legitimate property. * The process by which the proceeds of crime are converted into assets which appear to have a legitimate origin, so that they can be retained permanently or recycled into further criminal enterprises.

Answer 58

* Person of Significant Control (PSC): Individuals or legal entities who have significant control or influence over a company. * Politically Exposed Person (PEP): Individuals and the family members of such individuals, entrusted with prominent public functions. * Beneficial Ownership/Owner: Anyone who benefits from ownership of a security or property, who may or may not be on record as the owner.

Answer 59

* To ensure that members and firms consistently provide a high standard of service and act in the best interest of the public and their clients. * To protect the reputation of the RICS and the surveying industry as a whole. * To maintain focus on tackling key challenges and barriers within the industry, including those relating to sustainability, diversity and inclusion, evolving technologies and

Answer 60

* Professional fees (agreeing and serving of Award and hourly rate for further services required). * Content of the schedule of condition. * Rights of access onto AO’s land. * Manner and timing of undertaking of the works. * Reference to drawings and planning application.

Answer 61

* S1 and S6 Notices must be served within 1 month of commencing works. * S2 Notices must be served within 2 months of commencing works. * AO(s) have 14 days to respond to Notices. * AO(s) can serve a counter-Notice to a S2 Notice within 1 month. * After 14 days has passed (with no response – deemed dispute) a 10 day Notice is served, requesting the AO(s) to appoint a surveyor, or the BO will appoint one for them. * Once the Award has been agreed, both parties have 14 days in which to appeal the Award (through the courts). * Notices and Awards are both valid for a period of 12 months.

Answer 62

* I did not prioritise my appointing owners (adjoining owners) over the building owner. * I made sure to act in the interest of the wall rather than any of the disputing parties. * The duties of a party wall surveyor are bound by statute to resolve the dispute. * Being impartial ensured that the agreed Award would be fair, the interests of both parties would be balanced, and that the rights of both parties under the Act would be upheld.

Answer 63

The loads previously imposed on the load bearing element (walls) would need to be supported by something else, such as a steel beam spanning a new opening.

Answer 64

* Mould growth to ceilings and walls (Stachybotrys chartarum). * Water cascade marks down walls.

Answer 65

* Inhaling or touching mould spores can result in an allergic reaction and can cause asthma attacks. * Living in damp conditions can result in fatal illnesses to babies, young children, the elderly and those with underlying health (respiratory) conditions.

Answer 66

This was based on an initial visual assessment, including observing mould growth to susceptible areas (corners of rooms) and within the kitchen and bathroom. The indoor air temperature was also considerably low, which would increase the likelihood of condensation occurring.

Answer 67

Ensuring adequate heating, ventilation and insulation.

Answer 68

Issue a fee proposal to the client, outlining the scope of services, including timescales, fees, limitations and exclusions.

Answer 69

Due to the excessive amount of mould growth and the associated health risks.

Answer 70

1.1 Members and firms do not mislead others by their actions or omissions, or by being complicit in the actions or omissions of others. 1.2 Members and firms do not allow themselves to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments) or by their own self-interest. 1.3 Members and firms identify actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises, unless they do so in accordance with the current edition of Conflicts of interest, RICS professional statement. 1.4 Firms have effective processes to identify actual and potential conflicts of interest, to enable appropriate decisions to be made on whether to accept work, and to keep records of decisions made about actual and potential conflicts of interest. 1.5 Members and firms providing advice and opinion in a professional context do so honestly and objectively based on relevant and reliable evidence, and firms have processes to ensure that directors, partners and employees do so. 1.6 Members and firms are open and transparent with clients about their fees and services. 1.7 Members and firms act to prevent others being misled about their professional opinion. 1.8 Members and firms do not take unfair advantage of others. 1.9 Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law. 1.10 Firms keep client money safe and have appropriate accounting controls. 1.11 Members do not misuse client money and comply with controls intended to keep it safe. 1.12 Members and firms do not facilitate any financial crime including money laundering, tax evasion, bribery or corruption. Firms have effective processes to prevent directors, partners or employees from doing so.

Answer 71

2.1 Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently. 2.2 Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently. 2.3 Members and firms check that subcontractors have the necessary knowledge, skills and resources to do their tasks competently. 2.4 Members and firms reflect on the work they have undertaken and its impacts, and consider how they might apply what they have learned to their future work. 2.5 Members maintain and develop their knowledge and skills throughout their careers. They identify development needs, plan and undertake continuing professional development (CPD) activities to address them and are able to demonstrate they have done so. Firms encourage and support directors, partners and employees to maintain and develop their knowledge and skills, and check that they are complying with CPD requirements set by RICS. 2.6 Members and firms stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards. Firms ensure that their directors, partners and employees do so.

Answer 72

3.1 Members and firms understand clients’ needs and objectives before accepting any professional work. 3.2 Members and firms agree with clients the scope of the service to be provided and its limitations, and timescales for the work. 3.3 Firms inform clients that they are regulated by RICS and that they may need to disclose records to RICS where required for regulatory purposes. 3.4 Members and firms inform clients promptly and seek their agreement if it is proposed that any of the terms of engagement or estimated fees or costs be changed. 3.5 Members and firms undertake their work in a timely manner; with due care, skill and diligence, and in accordance with RICS technical standards. 3.6 Members and firms communicate to clients the material information on which their professional advice and opinion is based. 3.7 Members and firms communicate with clients and others clearly and in a way they can understand. 3.8 Members and firms ensure that any referral or introduction they make for a client is in the best interests of the client and inform clients about any financial or other benefits to the member or their firm from a referral or introduction. 3.9 Members and firms keep proper records of their work and decisions in enough detail to allow them to answer questions from clients and to allow their work to be audited for quality assurance or regulatory purposes. 3.10 Members and firms, when advising clients about projects, encourage solutions that are sustainable in that they minimise harm and deliver balanced economic, social and environmental benefits. 3.11 Members and firms understand the risks and benefits of using relevant technology. 3.12 Members and firms check that all data used is accurate and up to date, is kept securely, and that they have proper legal rights to use it and, where required, share it. 3.13 Firms have effective quality assurance processes for their work.

Answer 73

4.1 Members and firms respect the rights of others and treat others with courtesy. 4.2 Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds, including age, disability, gender reassignment, marriage or civil partnership, pregnancy or maternity, race, religion or belief, sex or sexual orientation. 4.3 Members and firms do not bully, victimise or harass anyone. 4.4 Firms check that supply chains do not involve modern slavery or other abuses of the workforce. 4.5 Members and firms report abusive labour practices to proper and recognised authorities if they become aware of, or suspect, them. 4.6 Members and firms work cooperatively with others. 4.7 Members and firms develop an inclusive culture in their workplaces, support equal access and opportunity for all, and identify and address unconscious bias.

Answer 74

5.1 Members and firms question practices and decisions that they suspect are not right, and raise concerns with colleagues, senior management, clients, RICS or any other appropriate person, body or organisation where they believe in good faith that it is necessary to do so. Firms provide processes to allow and support individuals within the firm to raise concerns with senior management. 5.2 Members and firms support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns. 5.3 Members and firms ensure that public statements made by the firm, or in which members are (or could be) identified as members of the profession, do not undermine public confidence in the profession. 5.4 Members and firms respond to complaints made against them promptly, openly and professionally. 5.5 Members and firms do not dissuade complainants from approaching an alternative dispute resolution provider, RICS or any other regulatory body. 5.6 Members and firms cooperate with investigations into complaints or concerns, and provide information where it is reasonably requested and they can do so lawfully. 5.7 Members consider the effect that any health conditions may have on their competence or ability to undertake professional work, and inform management or clients where they require reasonable adjustments or are unable to continue to undertake work competently. 5.8 Members and firms manage their professional finances responsibly. 5.9 Members and firms take appropriate action when they consider that the rules have been breached, and report suspected significant breaches of the Rules of Conduct by themselves or others to RICS.

Answer 75

* Contact the RICS for guidance and obtain a company start up pack. * Inform the RICS and register for regulation. * Appoint a contact officer for all RICS communication. * Prepare a complaints handling procedure. * Obtain Professional indemnity insurance cover. * Abide by the Rules of Conduct for Firms. * Use the designation ‘Regulated by RICS’ on all practice material.

Answer 76

* Professional Indemnity Insurance. * Employer’s Liability. * Public Liability. * Building’s insurance of an office premises.

Answer 77

Preserve the security of clients' money which does not belong wholly to the company. RICS regulated firms that operate a client account must:- o Set clear segregation of duties for employees. o A Principal oversees the client money accounting functions. o Principles cannot override controls. o Competent and knowledgeable staff are to process clients' money with cover provided for long term absence. o Accounting systems and data must be secure. o Client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name. o Clients must always have access to funds. o We must agree the terms and advise the client on bank details. o The account must not be overdrawn. o We must maintain client ledgers and provide a running balance.

Answer 78

* The RICS provides a model form. * The process must include a redress mechanism. * Details of the policy should be issued to the client with the Terms of Business. * It must be clear, quick, transparent and impartial and free of charge within the first stage. * 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. * We must note the need to advise PI insurers of a complaint immediately. * The process must have two stages as a minimum:- o Stage 1 is where there needs to be consideration of the complaint by a senior member of the firm or the complaints handling officer. o Stage 2 if the issue is not resolved, the complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costs at this stage.

Answer 79

* It is a consumer scheme designed to handle small issues that would be disproportionally expensive to take to court. * If the scheme judges in favour of the complainant, it is binding. * If it judges in favour of the firm, the complainant can escalate the matter to court. * RICS firms must specify which redress scheme they want to use, it could be an ombudsman, arbitration or sometimes adjudication. * If the complaint relates to a large amount of money or if the complainant wishes so, he can take the matter to court.

Answer 80

* I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing additional information as required. * I would also highlight the importance of informing our Professional Indemnity insurance providers immediately.

Answer 81

For the purpose of dual authorisation.

Answer 82

The insurance policy that is in place at the time the breach is discovered is responsible for providing the indemnity, not the insurance policy in place when the breach was made.

Answer 83

* Keep full and detailed records of meetings and conversations. * Record recommendations and advice given. * Use proper letters of engagement, scope of services and terms of engagement. * Don’t advise on a specialism outside your field of experience. * Use RICS guidelines. * Avoid poor management and excessive workloads.

Answer 84

* Base the appointment on reasonable care and skill rather than fitness for purpose which is more onerous. * If the client’s requirements are performance based, this may imply fitness for purpose. It is advisable to request a clause limiting the appointment to reasonable skill and care only. * Run off cover must be in place. * Execution of the appointment under hand will result in a reduced liability period of 6 years instead of 12.

Answer 85

I would place the funds in a separately identified client account and agree a drawdown of monies against the services being provided with the client.

Answer 86

Rule 1 1.5 - providing advice and opinion in a professional context honestly and objectively based on relevant and reliable evidence. 1.7 - Members act to prevent others being misled about their professional opinion. Rule 3 3.6 - Communicate to clients the material information on which their professional advice and opinion is based. Rule 4 4.1 - Respect the rights of others and treat others with courtesy. Rule 5 5.1 - Question practices and decisions that they suspect are not right

Answer 87

Awaab's Law is a UK law that requires social housing landlords to address damp and mould in their properties within strict time limits. The law was introduced in the Social Housing (Regulation) Act 2023 and is named after Awaab Ishak, a toddler who died from a respiratory condition caused by mould in his social housing.

Answer 88

They can apply to use the RICS Assigned Risks Pool or Run-Off Pool.

Answer 89

The PII would need to be converted to run-off cover.

Answer 90

- Professional indemnity - Public liability - Employer’s liability - Building - Contents - Cyber and business interruption.

Answer 91

- Anonymising confidential information - Seeking the client’s permission to disclose information.

Answer 92

The GC set the strategy and vision of RICS.

Answer 93

An independent charity which supports RICS professionals and their families.

Answer 94

- Locally organised bodies that support early career-stage surveyors. - Matrics run low-cost or free events and provide a source of networking and support.

Answer 95

Where the member or firm is satisfied that proceeding despite a conflict of interest is: - in the interests of all of those who are or may be affected and - is not prohibited by law - and the conflict will not prevent the member or firm from providing competent and diligent advice.

Answer 96

Keep records of the decisions made in relation to: - whether to accept the assignment - the obtaining of informed consent and - any measures taken to avoid conflicts of interest arising.

Answer 97

- when required or permitted by law - when the client has given permission to do so

Answer 98

Effective systems and controls appropriate to the size and complexity of the business to facilitate the management of compliance with the RICS’ requirements set out within Countering Briber, Corruption, Money Laundering and Terrorist Financing 1st Edition.

Answer 99

The physical and/or electronic separation of individuals within the same firm that prevents confidential information passing between them.

Answer 100

That they understand: - that there is a conflict of interest or a significant risk of one - the facts known by the RICS member that are material to the conflict - what the conflict of interest is or may be and - that a conflict of interest may affect the ability of the RICS member to advise or act fully in the interest of a client.

Answer 101

Whether their course of action could: - be perceived to imply a lack of clarity - cause embarrassment to the profession or - mean that they are unable to advise and represent each client objectively and independently. If there is a risk of the above, the member or firm should not proceed.

Answer 102

Agree with the client restrictions on the scope of services to be undertaken.

Answer 103

Where there are commission or success based bonuses in relation to a professional assignment.

Answer 104

By ensuring that: - the firms are separate legal entities - there are no directors, partners or employees in common - there is no direct or indirect fee sharing - there is no access to information or common internal data sharing arrangements relating to the area of conflict.

Answer 105

The affected party can only provide informed consent if the person explaining the conflict is: - entirely transparent about the conflict and - ensures the affected party understand what they are doing and are doing so willingly.

Answer 106

Written confirmation of the informed consent should be provided as soon as possible and the verbal consent was provided.

Answer 107

If it is not possible to outline the nature of the competing interest without breaching a duty of confidentiality, the member or firm should not proceed with the professional assignment.

Ethics Flashcards

(132 cards)