Ethics Flashcards

Question

What is PII for?

Answer 1

Used to protect clients, surveyors and third parties against negligence claims when there is a duty of care breached and damage arises

Answer 2

1. Holding client money 2. Providing information to clients 3. Receipts of client money 4. payments from client accounts 5. Accounting records and controls 6. Compliance

Answer 3

Client accounts must be kept seperate and be clearly identifiable with the word client on the bank account and cheque book A client must be able to have their monies on demand and the account must be kept in credit Accurate records are kept with a running balance available All firms handling client money need to display their procedures document on their website

Answer 4

Disclose business name Disability discrimination compliance (Equality Act 2010) Bribery Act 2010 Compliance Financial services compliance Appoint a money laundering reporting officer Health and safety compliance (Act 1974) Register for data protection Estate agency compliance Inform HMRC for VAT and tax registration Ensure compliance with employment law (minimum working wage and hours etc) Ensure insurance compliance for employer and public liability

Answer 5

Inform RICS of your new practice by completing a firm details form Appoint a responsible principal for all rics communication Register with RICS for regulation of the firm Arrange PII send details to RICS Set up procedures for handling client money if needed Register for the VRS of undertaking red book valuation work Obtain RICS approval for the complaints handling procedure Appoint a complaint handling officer Use a logo kit from rics for all practice material Plan for succession if a sole practitioner Ensure completion of an RICS annual return Ensure cpd is logged online and set up a staff training plan

Answer 6

Inform the RICS of your retirement/ closure and de register Return any money held by clients to their own accounts Inform insurers and procure a professional indemnity insurance run-off cover for a minimum of 6 years from the expiry of the policy in force at the time of close Retain a copy of client files and records for a minimum of 6 years

Answer 7

A bribe can be the giving, offering, promising or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust

Answer 8

Bribing Receiving a bribe Bribing a foreign public official And failing to prevent bribery

Answer 9

Maximum 10 years in prison and or an unlimited fine, companies face an unlimited fine Enforced by the serious fraud office

Answer 10

Involving a high risk country or non face-to-face business relationships

Answer 11

Customer due diligence Enhanced due diligence

Answer 12

Depends on the type of organisation Private individual- 1) copy of valid passport or driving license with photo 2) copy of a bank statement, credit card bill etc. for proof of address. Can’t be more than 3 months old Limited company- 1)certificate of incorporation, full name, registered number, registered office address, names of all directors and shareholders with more than 25% holding. Report any discrepancies to companies house Public accountable body- government ownership Public limited company- London stock exchange listing

Answer 13

Identify client and verify identity Make reasonable endeavours to identify beneficial owners Obtain information on purpose and intended nature of the business relationship and proposed funding arrangements as appropriate

Answer 14

Additional procedures are required for any transaction involving a PEP or PEP family member or someone established in a high risk third country. More detailed examination of the background and purpose of the transaction and increased monitoring is required

Answer 15

10,000 euros

Answer 16

Ongoing business relationship with client should be monitored Detailed record keeping of the procedures undertaken A senior member of staff/ board member must be appointed to take responsibility for all compliance A nominated person (money laundering officer) must be appointed to report any suspicious activity to the national crime agency Fire has to maintain records for min 5 years and report to companies house any discrepancies between the info the firm holds and information with companies house

Answer 17

Inability or unwillingness to provide documents Changes to parties involved in transactions Unusual transaction features such as unexpected urgency required by parties, potential loss making or an unusual transaction for client Payment of fees, purchase or rental monies in unusual currency

Answer 18

Provides powers for enforcement authorities in the UK to recover in criminal and civil proceedings money and other assets which are deemed to be proceeds of crime

Answer 19

Concealing criminal property Arrangements: if a person enters into or becomes concerned in an arrangement which they know or suspect facilitate the acquisition, retention, use or control of criminal property by or on behalf of another person Acquisition use and possessions

Answer 20

Split into 3 parts Part 1 What regulated firms must do in relation to bribery and corruption and Money laundering and terrorist financing Part 2 Guidance Part 3 Supplementary guidance (Last page of ethics booklet)

Answer 21

The person who owns or ultimately controls a legally defined minimum percentage of shares or voting rights in that entity

Answer 22

I would request useful documents such as certificate of corporation or an annual return for a company

Answer 23

Let the reasons why your proposal would benefit the other parties Define your specific goals and desirable outcome Identify several alternative scenarios that your party would be comfortable with Identify any potential weaknesses in the opposing party’s position

Answer 24

It’s a process involving 2 or more parties where they come together to reach an end-goal to all parties involved

Answer 25

Strategic business plan focuses on mid-long term goals A departmental business plan focuses on current jobs what we can improve upon, where the next job is coming from etc within that team

Answer 26

Facilitates decision making and allows setting of a time frame by predicting when the company can achieve its goals

Answer 27

Return on investment Ratio between income and investment

Answer 28

It’s where an independent and neutral third party works with both parties to achieve an agreeable solution for the dispute. Does not go to court and mediator does not advise or issue a decision

Answer 29

We can accept any gift below £20. Anything higher has to be noted in the gift log and we cannot accept gifts if we have ongoing work with the gifter that may impact our impartiality. Gifts logged must be proportionate to the work undertaken

Answer 30

We have a 2 stage process Initially I would pass it on to a senior colleague who would contact the client seeking resolution through clear communication and any necessary corrective actions Step 2 would be to escalate the complaint to an independent third party such as an ombudsman or RICS dispute resolution service ensuring impartiality would promote the clients trust

Answer 31

It all depends on the size of the development and the impact it has on the subject, I would most likely not include photos of the development site but mention it within the writing of the particulars to uphold my professional duty of care and avoid complaints. We have to act transparently and I would speak to the client about how he would like to market it providing it doesn’t conflict with your duty to act ethically. If it’s a major development I’d include photos and a brief commentary in the interest of potential buyers

Answer 32

I acted with honesty and integrity when a prospective purchaser Called up asking to know what the vendor would accept and what level of offers we had received in a best bids scenario. I maintained my integrity by not disclosing specifics and advised submitting an offer according to the request for offers email

Answer 33

I’ve ensured I was component by undertaking training sessions and CPD on HMO valuations. So that I feel comfortable on providing advice in this sector going forward. I was also asked to value a public house by a client of Bradley halls and rejected in doing so as it’s a specialist valuation we do not undertake at Bradley hall which would require the profits method with it being trading

Answer 34

I regularly provide a good and due diligent service writing valuation reports for loan security purposes I ensure these get checked over and counter signed before being sent to the client. I also complete the report within the timescales promoting our relationship with the client

Answer 35

I usually work with a range of people from different backgrounds and always make sure I treat everyone equally and with respect.

Answer 36

Yes I read about high street rental auctions are coming into effect next month as part of the regeneration act 2023. Government has stated that councils will have the power to let vacant high street and town centre properties without the permission of the landlord to breathe new life into high streets and town centres. Has to be unoccupied for 366 days.

Answer 37

5 or more years as MRICS Leadership role within the industry Professional technical achievement Academic achievement Raising the profile of the RICS

Answer 38

Justin Young

Answer 39

14 years in jail and unlimited fine 5 years in jail for tipping them off that they are under suspicion for money laundering

Answer 40

Unusual currencies Inability or unwillingness to provide documentation changes to parties involved in transactions unusual transaction features, such as unexpected urgency and potential loss making activities

Answer 41

Currently, the Governing Council is in charge of the management of the RICS (chaired by Tina Paillet) The RICS is a Royal Charter body, this requires the RICS to act in the public interest. Under the Royal Charter, the RICS’s governing body is the Governing Council, which is responsible for approving RICS strategy and vision. The regulatory board, management board and various boards and committees report to Governing council.

Answer 42

The RICS is a self regulating body. The five principles for better regulation are 1. Proportionality 2. Accountability 3. Consistency 4. Targeting 5. Transparency

Answer 43

Ultimately to provide a simpler structure to make it easier to members and firms to understand the rules.

Answer 44

Framework of questions members can ask themselves when facing a situation where they are asked to act in a potentially unethical manner. eg. is it legal?

Answer 45

set requirements or expectations for RICS members or regulated firms about how they provide a service. Principles based, focus on outcomes and set a baseline expectation for competence. They set mandatory requirements and best practice.

Answer 46

supplementary guidance to support surveyors in delivering specific services or working in specific area of practice. Not mandatory and does not provide explicit recommendations.

Answer 47

It can happen and that in all circumstances the terms of engagement must state whether the instruction is on an exclusive or non-exclusive basis

Answer 48

Incremental advice would be when an agent is acting for the seller in relation to a disposal and is approached by the buyer to provide a valuation.

Answer 49

This cannot be used for the surveyor’s own purposes. The client and sender should be advised of the error. The matter should be recorded in a note to the firms compliance officer.

Answer 50

The RICS states that a firm must 1) Seek cover from an RICS approved insurer 2) Have a retroactive policy – case by case 3) Provide details of their cover as part of the regulated firms annual return to the RICS

Answer 51

RICS Professional Statement – Countering Bribery, Corruption, Money laundering and Terrorist Financing 2019

Answer 52

Yes pro bono work is when you do work for no fee for a friend or a charity etc. PII is still required.

Answer 53

For consumer claims a minimum of £1 million cover over 6 years and for commercial claims the firm must consider what is appropriate for at least 6 years.

Answer 54

RICS Guidance Note Risk, liability and Insurance in Valuation Work 2021

Answer 55

A contractual claim = claim by contracted party i.e. client A claim in negligence = by third party

Answer 56

1. Contractual claims = 6 years from the negligent act 2. Tort claims = 6 years from the date the claimant suffered the loss Set by limitations act 1980

Answer 57

1. Understand client needs 2. Terms of engagement 3. Ensuring competence prior 4. Detailed file notes 5. Stay up to date with market knowledge and legislation 6. Cap the PII excess on you PII policy in Terms of Engagement

Answer 58

1. Confirm client money is held in client account 2. Ensure it contains no other funds 3. Not to hold office money in account 4. All client money accounts include the word client in the name 5. Ensure the money held is immediately available 6. Only withdraw out of high interest with written consent from the client 7. Confirm operating conditions with the banks 8. Ensure that when a client requests, the money is held in an account both the firm and client have access

Answer 59

RICS regulated firms that hold client money must therefore ensure that they are registered with the appropriate RICS scheme - RICS Client Money Protection Scheme for Surveying Services - RICS Client Money Protection Scheme for Property Agents

Answer 60

Yes, if you have written confirmation from the client before hand.

Answer 61

1. Proportionality 2. Top level commitment 3. Risk assessment 4. Due diligence 5. Communication 6. Monitoring and review

Answer 62

The Proceeds of Crime Act 2002.

Answer 63

The proceeds of criminal activities that are disguised or converted and then realised as legitimate assets.

Answer 64

Produce a Suspicious Activity Report (SAR) and report to National Crime Agency

Answer 65

Firms with over 250 employees are required to complete an annual report stating the difference in pay between their male and female employees

Answer 66

Divided into 3 parts: 1) Mandatory requirements for anti-bribery, corruption, anti-money laundering and terrorist financing eg. not accept a bribe or facilitate money laundering 2) Guidance setting out supporting good practice for the above 3) eg. set up a gifts register 3) Supplementary guidance on some of the concepts eg.dealing with Peps

Answer 67

You are able to accept cash of up to 10,000 euros. Based on the exchange rate this is above this. But in any case you would turn it down as it reduces the capability of people able to get a proper audit trail.

Answer 68

It sets a maximum financial amount that the insured (e.g., a surveyor, architect, or consultant) would have to pay if a client sues them for negligence or errors in their work. This cap must be agreed upon with the client and is typically outlined in the terms of the professional contract. It helps manage risks and prevents unlimited exposure to claims.

Answer 69

Main objectives to be achieved Staffing levels Budgets Timescales External factors which can affect plan e.g. economy

Answer 70

3 Corporate levels affect the entire company, is long term and fairly broad. Management level- affects each area of an organisation, quite detailed. Operational levels- affects individuals in the organisation.

Answer 71

Arrangements reached between the Agency and its principle key clients normally for a defined period of time under which the Agency provides services and under which the Agency receives payments for those services. The SLA normally includes details of the services to be provided, charges and terms, quality standards and monitoring and review process.

Answer 72

Bradley Hall has an SLA with Together finance which cover the key requirements of RICS. E.g. Terms of Engagement, fees, purpose of the valuation, service, delivery, timeliness and format of the report. Conflicts of interest are to be considered for each case.

Answer 73

RICS GN: Complaints Handling July 2016 - TOE can help reduce complaints - Complaints must be dealt with in accordance with your PII policy - Establish root cause of the complaint - Record and allocate all complaints - Establish and adhere to review process - Don’t get defensive - Establish a degree of empathy - Provide clear timeframes

Answer 74

If there is a conflict of interest I would notify my manager immediately. I would also contact all parties involved and inform them of the conflict. I would explain how the conflict has arisen and explain that although I would try not to allow it to affect my impartiality I would step down from the instruction if they required me to. If they allowed me to continue with the instruction I would make sure I recorded this in any report provided to the client.

Answer 75

- Listed buildings - Religious buildings - Temporary buildings - Buildings due to be demolished

Answer 76

Consent exemption- landlord has not had permission from the tenant. Devaluation exemption- report obtained which states the property would be devalued by more than 5% if energy improvements are made

Answer 77

Firm details, Regulated services, personnel Rics membership, PII, CHP, Financial info, Client money

Answer 78

Govening council, regulatory board, regional board, professional groups

Answer 79

I ensure i do not give into client pressures which ask to over-value properties. This could harm investors, lenders and overall the wider economy.

Answer 80

conflicted and client has asked too, not competent client will not sign TofE or complete AML A PII cap cannot be agreed

Answer 81

fair, competetive and cover costs

Ethics Flashcards

(105 cards)