Ethics Flashcards

Question

PI insurance limits:

Answer 1

Minimum levels are based on firm’s turnover: -£100k or less: minimum £250k PI -£100-200k : minimum £500k PI -£200k+: minimum £1m PI

Answer 2

-On an ‘each and every claim’ basis -On a ‘claims made’ basis -Cover past and present employees -Minimum levels -Runoff cover -Underwritten by RICS listed insurer -Retroactive (cover claims from work before took out insurance) -Full civil liability basis (minimum policy wording) which covers actions that damage but aren't criminal - but wider than negligence as cover situations where a policyholder may be held liable for a loss, without having being found to be negligent

Answer 3

Each claim treated as separate (e.g £1m claim each time) rather than aggregate where is £1m for whole financial year

Answer 4

-insurance policy that is in place at time the breach is discovered is responsible for providing the indemnity… regardless of when it happened. So is NOT the insurance policy in place when the breach was made.

Answer 5

-Ensured if a firm faces a claim, it is protected from financial loss that it cannot meet from its own resources. (From liability to pay damages to third parties for breaches of professional duty - which is wider than just negligence) -Enaure the firm's clients do not suffer financial loss, which the firm cannot meet.

Answer 6

When a firm ceases to trade you need run off cover for: -Minimum 6 years -(Best practice 15 years as this is PI insurance long stop) -Minimum £1m aggregate -Retroactive

Answer 7

If firm unable to obtain PI then as last resort to access coverage through pool of insurers while firm takes action to rectify issues

Answer 8

-A conflict of interest is when in a position of trust and have a competing interest that can cause you to act impartially -Have an obligation to make clients aware of this and if necessary decline work opportunities where there is one -Can be a party, own interest, or confidential information conflict

Answer 9

-Report into treasury management issues -Four non-executive board members raised concerns on audit and were dismissed from Management Board -Governing Council commissioned independent review -Found that governance principles were not followed due to a lack of clarity of roles and responsibilities of various RICS boards leading to lack of scrutiny of Chief Executive and CEO -This led to a power struggle between MANAGEMENT BOARD and EXECUTIVE BOARD It recommended: -An independent review into governance (Bichard Review) -Governing council have more oversight of internal dealings of RICS -Presidential team cannot be part of management board -Board chairs can raise matters with Governing Council rather than single CEO -Overhaul of whistleblowing structure, -Review of legal advice and executive bonuses Governing council accepted all recommendations precursor to update of rules for members/firms. Found that sound governance principles were not followed by RICS (accountability, awareness, impartiality and transparency). Concerns of non-Executive Board members’ concerns were legitimate and were wrongly dismissed. A lack of clarity around the roles/responsibilities of the various RICS Boards, senior leadership and management. Led to a lack of scrutiny over the actions of the RICS Chief Executive and Chief Operating Officer. Review recommended: more board meetings, a values statement, board members subject to regular reviews, overhaul of whistleblowing structure

Answer 10

Ethically (could also be good service): -On HS2 audit I had meetings with the client who were interested in a potential audit - I did an initial review to see if there was scope for cost control to be up front instead of saying we can definitely help Taking responsibility: notified CE period to respond was almost up so did an initial review and prompted PM Good service: -Provided knowledge share to junior members of the client as this was identified as a weaker area of my employer’s feedback -During valuation of jobs on SoR at month end I stayed late to get some pending high value jobs over the line, benefitted contractor’s cash flow, and prevented employer from having to make a payment on account -

Answer 11

-Don’t work/advise outside of your competence -Understand client’s objectives -Work in accordance with RICS guidance/standards -Keep full record of advice given, meetings -Proper letter of engagement outlining services and terms of engagement -Avoid excessive workloads

Answer 12

-Agreement that a client can only claim damages up to the amount agreed from a breach of contract -Can be used to limit liquidated damages Can be used in PI where: -Each and every claim where each claim has a limit -More limited in aggregate (but doesn’t meet RICS requirements)

Answer 13

PACTT -Proportionality -Accountability -Consistency -Targeting -Transparency

Answer 14

-Accountability: decisions should be transparent and justified under public scrutiny to promote fairness -Consistency: fair and level playing field -Transparent: keep regulations/ROC simple and user friendly

Answer 15

-Set up separate client bank account properly named -Inform and agree drawdowns -Provide a statement of account/ledger detailing what services the fees are made up of, always updated -Show a final statement and ensure transparency throughout

Answer 16

-Type of business/staffing/nature of clients -Training provisions -Complaints handling procedure / records -PI insurance details -If handle client money

Answer 17

RICS is self regulated so it sets out how it regulates internally to maintain highest standards of professionalism/integrity for benefit of public interest

Answer 18

-More a matter of negotiation -Would consider the reduction of services/resources would need to be reviewed in line with this -Ensure do not devalue the profession if original fees fair - Produce a fee profile / resource schedule to determine if saving and adequate service can be provided

Answer 19

-Could not offer advice on my own without Pl insurance. -If I did, I’d ensure information was subject to thorough checking process given to all information -Inform they can contact you during working hours to discuss T&Cs of appointment. -If not comfortable then advise them to use RICS "find a surveyor scheme" -Adhere to rules of conduct

Answer 20

-Internal/external review of RICS due to member’s dissatisfaction with with its regulation -It recommended a conduct board, need to regulate firms, review of CPD requirements

Answer 21

-Have knowledge of the data you store/ process, and where it is -Know how it is used and rights of individuals -Be able to supply on request data you hold and how it is being used -Be able to delete with right to be forgotten

Answer 22

DAMPCoT -Due dilligence -Assessment (risk) -Monitoring and review -Proportionate procedures -Communication -Top level commitment

Answer 23

-RICS is self regulated so members are internally monitored/inspected -Standards and regulation board do this for RICS to build and maintain trust and confidence in the profession for the public advantage.

Answer 24

Regulated firms must: 1. Register with HMRC 2. Carry out customer due diligence measures to check client identities eg passports m, and assess risk 3. Keep records of customer due diligence checks and financial transactions 4. Put systems in place to avoid money laundering 5. Appoint a 'nominated officer' who is responsible for reporting suspicious activity to the National Crime Agency (NCA) under the Proceeds of Crime Act 2002

Answer 25

-At least the duration of the limitation period - 6 years for underhand and 12 for deed -Consideration must be given to the Data Protection Act 1998, which states records should be kept for 'no longer than is necessary'

Answer 26

Head of Regulation manage the RICS regulatory regime day to day and conduct investigations. Can also decisions such as imposing a Regulatory Compliance Order. Regulatory Tribunal - reviews appeals against regulatory decisions made by the Head of Regulation and sits on disciplinary panels

Answer 27

-Set up a fraud response plan, outlining procedures for detection, investigation, prevention of further loss, securing evidence, recovery and reporting -Never hand out confidential information to any unsolicited phone calls, texts or emails

Answer 28

CooCI Cooperate CPD Information

Answer 29

Rule 1 -Heathrow audit: given accounts by client and gave summary of if there was scope for costs to be reduced. If there was then Gleeds would get more work but I advised that there was only a small amount of concern Rule 2 -client asked for advice on asset standards which I couldn’t provide, I explained how I would look into this for them and Reflect on work and identified need to undertake training on TW asset standards to improve knowledge and advise client better on design etc

Answer 30

Rule 3 Tailored my approach to inexperienced client who required an impact study. I explained the requirements of it and ways they could reduce cost -During valuation of jobs on SoR at month end I stayed late to get some pending high value jobs over the line. Benefitted contractor’s cash flow and prevented employer from having to make a payment on account Rule 4 Ramadan example Rule 5 Investigated complaint promptly

Answer 31

-Inform RICS -Inform clients and return money -Inform insurers -Ensure RUN OFF COVER in place for minimum 6 years at minimum £1million aggregate and retrospective Runoff cover is for negligence once cease trading

Answer 32

-designed to improve diversity and inclusion within the property and construction sector. -The scheme requires employers to pledge their commitment to adopting and continually improving against the following six principles: • Leadership and Vision. • Recruitment. • Staff development. • Staff retention. • Staff engagement. • Continuous improvement. -Participating firms will be required to assess their performance against the criteria on a bi-annual basis. -RICS will use the assessment information to document the outcomes and trends for the profession as a whole.

Answer 33

Following Bichard Review, now split into these two types Professional standards are requirements for RICS members using ‘must’ and ‘should’ eg conflict of interest, bribery anti money laundering Practice Information: supporting guidance and recommendations eg Black Books, checklists, research

Answer 34

-RICS Article - e.g Luton stadium upgrade in only 5 months built with sustainable materials that will be reused when they move stadiums Also Tina Paillet on a built environment GCSE RICS modus: making homes more foood resilient -RICS news - review of President Justin Sullivan following criticism of evidence given during a high-profile case as an expert witness in High Court.’ Governing Council confirmed President Elect Nick Maclean to be Acting Chair of Governing Council and Acting President Also, Whole life carbon assessment 2nd edition July 24 Environmental impacts of data centres RICS events near you: RICS Matrics Bristol

Answer 35

-Make sure they understand COI -Seek written INFORMED consent, not just consent -Agree procedures to manage CO. Such as information barrier across departments -Keep them updated of risks and changes

Answer 36

18 of them such as QS’ing, Project Management, Building Surveying, Dispute Resolution, Rural, valuation, facilities management Separate from the 6 Professional Group Panels (commercial, residential, valuation, land, building surveying) They draft/review professional guidance, set standard for professional competence required for RICS membership, Contribute to policy formation, do research, do CPD events

Answer 37

Summary: -Minimum 2 stage procedure….. with second stage an independent redress mechanism dealt with by senior person -Must be free -Must be clear, quick, transparent -Acknowledge in 7 days and resolve in 21 -Issued (published) in terms of business -RICS approved independent redress -Maintain complaints log and record outcome -Details of nominated person investigating Also: -Notify PI ———— RICS has model form with minimum 2 stages: Stage One First stage gives firm opportunity to review and consider complaint and try to resolve it -Acknowledge -Consideration by senior member/complaints officer -Try to resolve Stage Two Second stage if party still not happy and allows complaint to be reviewed by a free independent redress provider -If unable to resolve internally then taken to an independent redress mechanism (approved by the RICS) -Must be clear, quick, transparent and impartial -All complaints, progress ,outcomes must be record RICS default redress provider is Centre for Effective Dispute Resolution (CEDR) - Gleeds use this TW is Council for Consumer of Water General: -Must be free -Must be clear, quick, transparent -Issued (published) in terms of business -RICS approved independent redress -Notify PI -Maintain complaints log and record outcome -Details of nominated person investigating

Answer 38

-Director for each region to deal with complaints -If made orally then requested for written summary to director -Gleeds contact within 7 days on their understanding and seek complainants comments -Within 21 day of this Gleeds will inform of outcome -If dissatisfied, then CEO will review within 14 days ————— INDEPENDENT REDRESS (stage 2) -Then mediation with CEDR -After that, revert complaint to RICS through its dispute resolution service (DRS)

Answer 39

Party Conflict - where the duty to act in the interests of a client conflicts with a duty owed to another client in the same professional assignment Can also apply to duty to courts and adjudicators Eg Gleeds acts for 2 clients bidding for development rights, developer and tenant Gleeds requires more sophisticated systems as is multi disciplinary. Party conflict can be avoided by clearly defining scope of duties —- Own Interest Conflict - where a duty to act in the interests of the client conflicts with your interests Eg Gleeds could secure future work as a result of giving advice to another party, have insider information Informed consent possible but great caution exercised here —- Confidential Information Conflict - a conflict between duty to provide all information for client and duty to maintain confidentiality with another client Applies to current and past clients Eg have useful information for one client but is sensitive information another client gave you

Answer 40

When a firm is acting for 2 clients, an information barrier is the Physical/electronic separation of individuals within same firm that prevents confidential information passing between them. These may ASSIST a client to give Informed Consent (to a Party Conflict) or in resolving a Confidential Information Conflict But on its own will NOT be a solution to a Conflict of Interest. Informed Consent must still be obtained from all affected parties Consent should be obtained from all parties affected when an Information Barrier is put in place. If Information Barrier is part of a solution to obtain Informed Consent, the onus will be on the member/firm to ensure it works in practice, not just in theory/reasonable steps So need to understand how their office works physically/electronically Examples: physical separation of systems, electronic access restrictions (encryption), physical segregation of duties, put in different offices, password protected documents, separate communication lines, locked storage In all cases, informed consent must be received for information barrier to be implemented

Answer 41

Consent given willingly by party who may be affected by a Conflict of Interest, they acknowledge the risk and provide consent to proceed despite it. But they have to demonstrate to RICS member that they understand: -that there is a COI/a significant risk and client knows what they are doing -the facts that are material to the COI, and RICS members had been transparent -what that COI is or may be -that a COI may affect the ability of the RICS member/firm to advise or act fully in the interests of a client. Must prove that INFORMED consent was achieved, not just consent should only consider proceeding with the work (and seek Informed Consent in order to proceed) if satisfied that all of the relevant clients’ (or other parties’) interests will be served by you doing the work (as opposed to another firm doing it). Just because client has given informed consent does not mean should definitely proceed, so could decline the assignment - USE YOUR professional judgment You should not seek Informed Consent in order to proceed because your firm's interests are served by doing so. If informed consent is obtained it must be in writing/recorded. Communications are AUDITABLE in case of claims, and need in writing to prove it happened It is generally not enough for party or confidential interests, most likely used for personal conflict

Answer 42

-Generally won’t advise if a risk of COI -No personal conflict -If managing a COI, Gleeds must decide, not client. -Global head of Risk will maintain register of why declarations with a note on how to proceed eg reject assignment, proceed with informed consent, no conflict -Has steps how to identify a COI, how to report, how to manage -Scenarios where Informed Consent not appropriate eg Due Dilligence assignment, public sector, litigation support

Answer 43

Have a policy Regularly review/amend Provide training Maintain register or declarations potential conflicts Record of decisions made Record of informed consents and other measures Declare personal conflicts Immediately REPORT ANY CONCERNS TO MANAGER or through WHISTLEBLOWING POLICY

Answer 44

-All work honest and ethical -Due diligence to ensure no bribes -In accordance with principles of Bribery Act 2010 -Must declare all offered gifts and need approval from line manager -must notify manager OR the Group Compliance Director OR the confidential email helpline (whistleblowing) ASAP if suspect bribery taking place -Accept if proportionate, justified and not lavish while considering its intention -No cash -All recorded in gifts/hospitality register -Can accept up to £50 with line manager approval -£100+ need director approval -£500 regional director

Answer 45

-Insists on dealing with cash -Payment to different country than usual -Payment certificate doesn’t relate to work done -Lavish gifts -Non standard invoices -Disproportionate fees

Answer 46

• Procurement: (eg insider information, improper evaluation) • Valuation of works: carried out in accordance with our Technical l (eg improper evaluation, unauthorised payments). • Preparation of budgets and estimates: in accordance wit Technical Procedures. Ensure we do not come under influence n preparing estimates (e.g misrepresentation of genuine cost an offence under the Fraud Act) • Corporate hospitality and gifts: • Facilitation payments: making of such payments will be an offence under the Bribery Act. Not necessarily illegal in USA • Operate in countries of high risk corruption • Interactions with public officials: especially in high-risk jurisdictions. • Operates in the construction sector: considered to be high risk.

Answer 47

Risk assessment - one in each country Proportionate procedures - clear policy Top level commitment - executive management board approved policy Due diligence - appointments procedure for clients Communication - to all employees Monitoring and review - annually, frequent audits

Answer 48

-Gleeds targeted as multi disciplinary, in differing countries, significant value transactions Gleeds’ responsibilities: appropriate policies/procedures to comply with legislation, regularly review these, Appoint a Money Laundering Reporting Officer and Money Laundering Compliance Officer, Appoint a member of the management board to be responsible for compliance with MLR2017, Carry out a Risk Assessment to comply with the MLR2017, identify current/emerging risks, appropriate training to all staff, Engage independent auditors, Implement systems to enable reporting, Regularly review, and where necessary update AML / CTF Policy, Implement systems to verify clients , Refuse cash payments from clients or third parties. Must know clients work is: being financed, beneficial owner, whether work/client structure makes sense , follow KYC due diligence Report to: line manager, money laundering reporting officer, or confidential whistleblowing email

Answer 49

Terrorism Act: relating to terrorist activity Proceeds of Crime Act: provides powers for confiscating assets obtained through criminal activity/money laundering Money Laundering Regulations 2017: relating to anti money laundering administrative procedures Legislation applies to everyone in ‘regulated sector’, if not then may need to submit a Suspicious Activity Report (SAR)

Answer 50

proceeds of crime are converted into assets that appear to have a legitimate origin Done by: Placement: into legitimate financial systems Layering: moving money around to avoid detection Integration: buy something legitimate.

Answer 51

-High risk country -Pay in cash -Avoid personal contact/secretive -PEP subject to sanctions -Unusual work or transaction size that is disproportionate -Choosing Gleeds when no local offices -Loss making -Complicated structure -New businsss

Answer 52

-Firm process depends on size / areas of firm’s practice -Through database checks, ask staff to declare personal interests -Update register on regular basis -Properly consider systems to identify conflicts between different disciplines in the business -Continuously apply process as risk can arise during project’s lifetime

Answer 53

-Submit information to business/their register -If there is one and you decide to proceed, consider informed consent and information barriers

Answer 54

money that RICS firm holds for or receives on behalf of someone else that is not immediately payable. Could be: -Tenant deposit -Rent -Service charge -Client account interest -Arbitration fees -Client money due to be paid to contractors -Money due to contractor

Answer 55

-Actively identify -Disclose information to employer AND client (obligation!) -Make judgment on whether seek: -Informed consent / Information Barrier/NDA -Professional judgment if in Client’s best interests

Answer 56

-At least 6 for underhand, 12 years for deed -Best practice 15 years as this is PI insurance long stop

Answer 57

1. Regulate and promote the surveying profession 2. Maintain the highest educational and professional standards 3. Protect clients and consumers via a strict code of ethics 4. Provide impartial advice and guidance

Answer 58

-Support, develop, provide networking for new and prospective members in the surveying profession -Organises networking opportunities, charity events and CPD, -providing a voice for individuals new to the profession following Bichard Reciew

Answer 59

-Charity funded through past and present RICS members -Provides support to members (past and present) and their families, including financial support, health and wellbeing packages and work-related support

Answer 60

Neil A'Bear

Answer 61

Nicholas Maclean - acting President AND acting chair of governing council Maureen Ehrenberg - acting president elect Justin Sullivan WAS President but now under review

Answer 62

Justin Young is CEO

Answer 63

Professional Standards Practice Information Guidance notes Rules of conduct

Answer 64

-International property measurement standards. More specifically IPMS: All Buildings -RICS Property measurement - for office and residential buildings -RICS Code of measuring practice - all other buildings BOTH OF THESE BEING UPDATED TO REFLECT IPMS ALL BUILDINGS

Answer 65

-If an allegation of professional negligence is made against a surveyor, the court is likely to take into account compliance with relevant professional standards published by the RICS in deciding whether or not the surveyor acted with reasonable competence -Best practice -Confidence to consumers

Answer 66

1. The RICS is a self-regulatory body, meaning members are not regulated by government but are internally monitored and inspected 2. The Standards and Regulations Board helps regulate the profession, deciding on policy and overseeing the implementation of regulatory matters

Answer 67

A firm must register for regulation by the RICS if it provides surveying services in the UK and at least 50% of its principals are RICS members CAN register when at least 25% of principals are members, provide surveying services, and practice on UK

Answer 68

After you become regulated, you must comply with the RICS Rules of Conduct for Firms: -Having adequate Professional Indemnity Insurance (PII) -Complying with regulations for holding clients’ money -Having a written Complaints Handling Procedure -Ensuring staff receive adequate training to act competently Registration of Firms: Firms must register for regulation if they provide: -Surveying services to the public -In UK -At least 50% of the firm's principals are RICS members. The firm must: -25% of the firm's principals must be RICS qualified members or have a plan to secure compliance and supervised by RICS regulated firm -Designate a responsible principal who provides oversight, accountability, and engagement with RICS standards and regulations.

Answer 69

1. Create a business plan 2. Register the new company on Companies House (if required) 3. Comply with the RICS obligations 4. Comply with statutory obligations 5. Take out sufficient insurance policies

Answer 70

1. Public liability insurance 2. Employers' liability insurance 3. Business vehicle insurance 4. Buildings insurance 5. Contents insurance 6. Directors' and officers' insurance 7. Business interruption insurance

Answer 71

An agreement for a person to temporarily fulfil the duties of another due to their incapacity or death. They essentially step in to manage the business and client affairs while the regular surveyor is away. including: 1. Description, 2. Timetable of work 3. Remuneration provisions 4. Restrictions to carry out work 5 Conflicts of interests 6. Restriction to carry out work that 7. confidential information 7. Insurance policy arrangements

Answer 72

RICS Regulation employs a risk-based approach to regulating firms and members, initially employing a Desk-Based Review (DBR), followed by a Regulatory Review Visit (RRV) if necessary

Answer 73

Following completion of the Annual Return, RICS Regulation may require a firm to undertake a DBR (electronic questionnaire), which looks to determine what level of risk a firm or member poses based on their activities High risk activities: 1. Holding clients' money 2. Undertaking general insurance mediation work (i.e. holds a DPB licence - see below) 3. Undertaking valuation work in accordance with the RICS Valuation Standards

Answer 74

Approved by HM Treasury, it enables the RICS to be a Designated Professional Body (DPB). Allows RICS to regulate its members for general insurance advice activities on behalf of the FCA

Answer 75

Regulated firms that hold clients' money must pay a regulatory review fee on an annual basis

Answer 76

To preserve the security of clients' money entrusted to regulated firms against: 1. Insolvency of the firm 2. Misappropriation by any party 3. Death of a sole practitioner

Answer 77

-General client account - holds money belonging to more than one client -Discrete client account - holds money belonging to a single client

Answer 78

Belongs to the client unless written consent states otherwise

Answer 79

• Free to use RICS service (paid for by firms as part of their yearly regulatory review fee) that allows members of the public to be reimbursed for any direct loss of funds (i.e. clients' money held by a regulated firm that has been misappropriated) • The scheme is one of last resort - the firm is primarily responsible for making good the loss and the scheme only comes into operation when the firm are unable to make payment Current limit is £50,000 per claimant up to an overall limit for all claims under the scheme of £5,300,000 in any one calendar year

Answer 80

1. Ensure all efforts are made to trace the clients/owners of the money 2. Hold the surplus money in a suspense account 3. Hold surplus money for at least 3 years 4. Donate to a registered charity if no owner has been found (keeping a receipt and preferably an option recover the donation)

Answer 81

1. The Proceeds of Crime Act 2002 2. The Terrorism Act 2000 (all individuals and companies must report terrorist financing where suspected/known)

Answer 82

1. Set up a fraud response plan, outlining procedures for detection, investigation, prevention of further loss, securing evidence, recovery and reporting 2. Never hand out confidential information to any unsolicited phone calls, texts or emails

Answer 83

Report it to Action Fraud

Answer 84

Set up a clients' holding account in accordance with the RICS requirements

Answer 85

1. Question why cash is being used 2. If circumstances are not deemed to be suspicious, set up a client holding account in accordance with the RICS' obligations 3. If circumstances are deemed to be suspicious, report to the National Crime Agency (NCA)

Answer 86

Only applicable for insufficient CPD, failing to provide information to the RICS and insufficient firm registration fees

Answer 87

1. Breaches not serious enough for a public disciplinary hearing 2. The member/firm admits the breach and is willing to co-operate with the RICS

Answer 88

For serious breaches (e.g. mishandling clients' money, accepting bribes etc.)

Answer 89

1. Comprises 3 members - a chair and 2 others, at least one of which must be a non-member of the RICS 2. Hears disciplinary cases and exercises the disciplinary powers of the RICS More serious cases than Regulatory Tribunal which is 1 person

Answer 90

1. Comprises 3 members - a lay chair and 2 other panellists 2. Hears appeals arising from decisions of the Disciplinary Panel and Registration Panel

Answer 91

Continuing Professional Development - commitment by members to continually update their skills and knowledge in order to remain professionally competent

Answer 92

Formal - structured learning with clear learning objectives and outcomes (e.g. professional courses, seminars and conferences, technical training, formal teaching/training for others etc.) • Informal - self-managed learning relevant to your professional role (e.g. private study, attendance at informal seminars or events where the focus is on knowledge sharing etc.)

Answer 93

APC candidates must undertake 48 hours of CPD each year, of which at least 50% must be formal CPD Chartered members is 20 hours per years, at least 10 formal.

Answer 94

1. RICS website - news section 2. Modus 3. Building Surveying Journal 4. CPD seminars

Answer 95

Under RICS board responsible for overseeing the advancement of knowledge and professional practice. Eg training Sits above the Professional Group Panels

Answer 96

Monitors integrity/efrectiveness of RICS financial reporting, internal control, and risk management systems, anti fraud measures

Answer 97

Oversee election and appointment of governance bodies Set remuneration policies and budgets for RICS employees

Answer 98

-Introduced Whole Life Carbon Assessment Measure whole-life carbon emissions, manage carbon budgets, reduce life cycle emissions and deliver a net-zero future for the built environment by adopting this standard. -Represented at COP29: to strengthen relationships with decision makers, advocating the importance of WLCM and legislation to improve sustainability -ICMS3: Helped develop cost and carbon management in construction. provides high-level structure/format for classifying/measuring/recording, analysing ife cycle costs and carbon emissions

Answer 99

Summary: -DEI panel following Bichard Review -RICS inclusive employer quality mark -Data insight eg women in surveying report and diversity reports -RICS Diversity, equity and inclusion progress report 2024 - Encouraging an ethnically diverse environment - following McGregor-Smith review develop ethnic minority talent -Diversity & Inclusion leadership knowledge hub -RICS diversity, equity and inclusion policy document -Lionheart

Answer 100

When a person offers, promises or gives a bribe, it is called 'active bribery' and when a person requests, receives, or accepts a bribe, it is called 'passive bribery'.

Answer 101

Not offer or accept a bribe Report any activity Act with due diligence Ensure have adequate knowledge

Answer 102

Firms -Written policy -Register -Risk assessment -Encourage transparency -Contactable person training -Responsible person Members -Declare gifts/hospitality -Comply with firm’s policy -Attend training

Answer 103

-Not complicit in money laundering -Report Firms only: -Review periodically -Understand client and their identity with appropriate measures (due diligence) -Record information -Systems and training in place

Answer 104

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

Answer 105

Firms -effective systems and controls in place appropriate to the size and complexity of business to ensure firm/employees can manage compliance RICS professional standard. Members -Identify and manage -Keep records of COI and decision made -Records of informed consent and other measures taken to prevent COI

Answer 106

-Required by law -Can demonstrate that consent was achieved

Answer 107

-Duty to advise and represent each client objectively and independently -RICS core (royal charter) must be considered at all times to: be for public advantage, promote usefulness of profession.. so must avoid COI’s for consumer protection. -Rule of conduct: rule 1 - always act honestly and with integrity

Answer 108

-Introduced The Central Digital Platform (CDP) to simplify/modernise public procurement…. It is a centralised hub to streamline government procurement activities by making it easier for suppliers to find/bid for public contracts, and for buyers to meet transparency commitments ….it's simple registration removes barriers for SME's to bid -now require companies to demonstrate factors such as environmental responsibility to secure contracts. -New “competitive flexible" procedure, allows for a tailored process that aligns with the specific needs of the procurement. -SMEs receive payment within 30 days. -8 year maximum for framework contracts

Answer 109

Aim to address global risks and opportunities: -A simpler structure, consolidating the rules for members and firms into one -Clear examples to support each Rule -A focus on respect, diversity and inclusion -Highlighting the use of data and technology -Tackling global challenges, including sustainability

Answer 110

The Responsible Principal (or person designated by Responsible Principal) shall be the primary regulatory contact for RICS within the Firm. And must must satisfy the RICS Head of Regulation that they are appropriate appointment primary responsibility for ensuring that RICS' professional, technical and ethical standards are applied, upheld and supported by an appropriate assurance framework w Take all reasonable steps to ensure that the Firm complies with its regulatory and statutory obligations, such as: -reasonable steps to ensure Firm has implemented appropriate policies, systems and controls to ensure compliance with all RICS standards/requiremenrs, and legal obligations -able to demonstrate evidence of this to RICS if required to do so -ensure all information provided to RICS is truthful and adequate -any material changes in circumstances are reported to RICS -ensuring there are processes and systems to record any failure to comply with RICS requirements, and provided to RICS Obligations of registration: A Firm that has been granted registration for regulation by RICS shall: -comply with the Rules of Conduct and these Rules -act in accordance with the obligations set out in RICS’ Royal Charter and Bye-Laws -inform the Head of Regulation of any finding against it by any disciplinary or regulatory body, court or statutory authority -inform the Head of Regulation of any finding of insolvency against the Firm -Notify the Head of Regulation within seven days if there is a material change regarding the Firm, and full details.

Answer 111

A profession I love, have always wanted to do to be in, and for the rest of my working life.. so a personal goal I want to be Part of an organisation where highest standards are upheld… and contribute to the community I live in Promote trust and usefulness in the profession

Answer 112

Rule 1 Example: members do not misuse client money and keep it safe

Answer 113

-using their standardized forms for consultant appointments. Standard Form and Short Form, designed for different project types and complexities. These forms are intended to provide a clear and consistent framework for appointing surveyors -RICS members are obligated to record the terms of their appointments in writing, as opposed to relying solely on verbal agreements. This helps reduce the potential for disputes and ensures a clear understanding of obligations between parties. -RICS members must adhere to their professional standards and rules of conduct, which include maintaining a high level of competence, acting with integrity, and upholding ethical principles.

Answer 114

-Inform Client you are stepping down -Return/deal with outstanding money in client account if your firm ceases trading -Make arrangements in respect of files and digital records you are holding to keep them safe and confidential for as long as required. -If just you stepping down then ensure a locum in place temporarily and arrangements for permanent replacement Not client related: -Inform your PI insurers and ensure runoff cover in place

Answer 115

-For simple contracts made under hand, run-off cover is needed for 6 years, while -For deeds, it's needed for 12 years.

Answer 116

Ring Fenced = guarantee that (funds allocated for a particular purpose) will not be spent on anything else. -Protection of Client Funds: by holding it in separate account from firm's own funds -Transparency: to make it easier to track and manage client money, ensuring it is only for the purposes intended by the client and minimise risk of misappropriation -Confidence for Clients: Strict Controls: Firms must maintain detailed records of all transactions involving client money and reconcile them regularly to ensure accuracy and prevent discrepancies. Protection against Misappropriation:

Answer 117

While advance payment is acceptable, it's crucial to clearly identify it as such and ensure it's treated as client money -Document the Agreement: clearly written outlining scope of work, value, payment schedule. -Provide documentation showing how held money will be used and that the firm won’t use it for anything else, ensuring client understands -Put into designated bank account only, with a receipt -Maintain accurate records of all transactions, eg amount received, purpose, date. -Ensure the client account is reconciled regularly -Compliance with the RICS Client Money Protection Scheme. - Adhere to the RICS Client Money Handling Professional standards

Answer 118

RICS Although Employer’s may comply with law, they may not follow ethical rules required in the surveying profession

Answer 119

-If myself I would disclose it ASAP to my line manager / group compliance director (If someone else would do same or report to whistleblowing) -Record it in my company’s register with details -Consider the type of conflict of interest -Get assessment from company and -Use my professional judgement on whether I should be on this assignment, considering informed consent should be obtained -Comply with RICS conflict of interest Professional Statement

Answer 120

This is a ‘red flag indicator’ from both RICS guidance and Gleeds policy Would be subject to enhanced due diligence as part of the Know Your Customer process

Answer 121

-Up to 10 years in prison -unlimited fine (the company only, NOT individual)

Answer 122

-Bribing someone (active) -Receiving a bribe (passive) -Bribing a foreign public official -Firm failing to prevent a bribe

Answer 123

-Locum agreement of competent professional -Must notify RICS -The locum's primary responsibility is to ensure that clients' needs are met and ongoing projects are not disrupted

Answer 124

Another Chartered Surveyor, or a trusted professional such as a solicitor or accountant, appointed to temporarily cover for a sole practitioner who is unable to work.

Answer 125

Gleeds uses CEDR (Centre for Effective Dispute Resolution) Mediation, and: -RICS DRS for adjudication RICS DRS provides a range of alternative dispute resolution services, including: Mediation: A voluntary process where a neutral mediator helps parties reach a mutual agreement. Adjudication: Ideal for construction disputes, providing a fast decision during ongoing projects. Arbitration: A binding process where an arbitrator decides the outcome. Expert Determination: A technical expert resolves highly specialised disputes.

Answer 126

-I could not offer advice on my own without Pl insurance. -If I did have my own Pl insurance I would ensure that the information given was subject to the thorough checking process given to all information prior to issue regardless of who it was to. -Inform them they can contact you during working hours to discuss T&Cs of appointment. -If you are not comfortable acting for them, advise them to use the RICS "find a surveyor scheme" -Adhere to rules of conduct.

Answer 127

-RICS member/ firms should not accept gifts or hospitality that could be construed as a bribe or inappropriately influence professional judgment. -They should declare gifts, hospitality, entertainment, and other related items to their employer, and adhere to employer’s/RICS policy -Gifts should should be of a nominal or notional value, not lavish, proportionate given for a reasonable purpose, and not in advance of a decision or award

Answer 128

-RICS member/ firms should not accept gifts or hospitality that could be construed as a bribe or inappropriately influence professional judgment. -They should declare gifts, hospitality, entertainment, and other related items to their employer, and adhere to employer’s/RICS policy -Gifts should should be of a nominal or notional value, not lavish, proportionate given for a reasonable purpose, and not in advance of a decision or award -Inform your line manager / group compliance director for approval -Declare the offer on the register, and also declare if accepted gift along with its value

Answer 129

-Would breach contract with my employer -Not acting with integrity -Not treating employer with respect -Devalues the profession by undercutting, not sustainable -Need to consider if can offer the same service for that price - probably not !

Answer 130

-Maintaining professionalism at all times -Follow RICS Royal Charter to advance profession and for the benefit of public -Following and professional standards and RICS rules of conduct: - honesty, integrity, and impartiality, along with upholding professional competence and providing diligent, good-quality service. They must also act in the public interest, take responsibility for their actions, and respect the rights and privacy of clients

Answer 131

Royal Charter, Bye-Laws, Regulations and Standing Orders. Changes to the Royal Charter and Bye-Laws can only be amended following a membership vote and approval of Privy Council which is part of the UK government. Governing Council can approve changes to the Regulations and Standing Orders

Answer 132

These regulations set out administrative requirements, including: -Customer due diligence (CDD): verifying customer identities and understanding the purpose and nature of business relationships or transactions. -Suspicious Activity Reporting (SAR): Businesses are obligated to report suspicious activities to the National Crime Agency (NCA). -Training: Relevant staff must be adequately trained -Record keeping: maintain comprehensive records of their AML measures and procedures. -Independent audit function: Some firms required to establish independent audit function to assess the adequacy of their AML policies, controls, and procedures. The MLR 2017 are part of a broader UK regime that also includes the Proceeds of Crime Act 2002, the Terrorism Act 2000

Answer 133

-New Regulations and Standards; developed by UK which will need to be complied with. Eg GDPR changes, -Project Disputes: caused by Brexit, threat to respect and professionalism -Personal disagreements was reasons as above -Ethical debate of denying visas for workers

Answer 134

-Working from home -When someone should not come in -What more to be done on protecting staff in terms of infection

Answer 135

-Increased duty on sustainability .. unethical conduct, such as prioritizing profits over environmental protection or ignoring safety regulations, can cause pollution, resource depletion, and habitat destruction. -Company Corporate Social Responsibility -Respect greatly affects workplace morale - Take responsibility

Answer 136

-Confidentiality by avoiding detailed comparisons with the winning proposal as this could reveal sensitive information about the internal evaluation process. General feedback without getting into specific details about competitor scores or weaknesses. -Focused solely on that contractor’s submission in comparison to the AWARD CRITERIA. And how it could be improved -Maintain a thorough record of the evaluation process, including the rationale for each decision, to ensure transparency and accountability. -

Answer 137

-maintain clarity, avoid jargon, and adapt their approach to the audience -ensure all communications are clear, accurate, and honest, adhering to RICS's Rules of Conduct, -Procedure: maintaining records of all communications and confirming key points in writing

Answer 138

Ethical Procurement: -honesty, fairness, and open communication in all interactions with suppliers and stakeholders. -ensures suppliers are treated fairly and equitably, with no preferential treatment or discrimination. -considers the social impact of purchasing decisions, such as fair labor practices, human rights, and community development. -environmentally responsible sourcing, including reducing waste, conserving resources, and minimizing the environmental impact of products and services. -adheres to all applicable laws and regulations, including anti-corruption laws, anti-discrimination laws, and trade regulations. -requires individuals involved in procurement to avoid conflicts of interest and ensure that their decisions are based on objective criteria. -Due diligence: thorough research and assessment of potential suppliers, including their ethical practices, financial stability, and compliance with regulations. -holds individuals and organizations accountable for their actions and decisions, ensuring that they are transparent and responsible. -Whistleblower Protection: protects individuals who report unethical or illegal activities within the organization or its supply chain. -Supplier Code of Conduct: establishing clear expectations for suppliers regarding ethical and responsible business practices.

Answer 139

Immediately: -contain the breach by eg shut down system/changing password -report to ICO within 72 hours if a risk to individuals' rights is likely. Then: -Adequate staff training to prevent happening again -Do risk assessment, Investigate and Review processes overseen by Responsible Principal -Only keep data for as long as it is necessary to do so. 6, 12, 15 years

Answer 140

-Know what to do if there is a data breach -how to report one -how to transfer data securely (both inside and outside the office) -how to work securely from home -how to comply with the firm’s personal data-protection policy -how to avoid falling victim to malware, phishing and other types of cyber-attacks

Answer 141

-Could influence me to behave impartially -Could create a conflict of interest -undermining trust and fairness in professional relationships. -Potentially a bribe

Answer 142

-Lavish, disproportionate to occasion -During award of something eg a tender -Felt I was trying to be induced to acting impartially, what was INTENTION -Consider if it is a legitimate business expense that promotes cordial relations

Answer 143

-Seeking approval from line manager on accepting the gift and recording it in the gifts and hospitality register

Answer 144

-Information given to one subcontractor given to all tenderers -If allow errors to be amended, afford same opportunity to all tenderers -Followed timescales -implementing clear and open evaluation criteria -managing conflicts of interest

Answer 145

-Ensured I did not score the consultant I knew -For the others, I made sure it was based on the EVALUATION CRITERIA only -Did not share value engineering proposals with any other bidders (confidentiality) -Identified conflicts of interest and decided whether I should continue -Followed RICS rule of conduct and TW tendering policy

Answer 146

TW Procurement Policy based on Public Contract Regulations 2015 state: TW may request the bidders concerned to submit, supplement, clarify or complete the relevant information or documentation within an appropriate time limit, provided that such requests are made in full compliance with the principles of equal treatment and transparency." TW follow JCT Practice note which states that contractor’s prices must not be altered without GOOD JUSTIFICATION Use Alternative 2 that allows changes

Answer 147

Collaboration required in an NEC or general framework contract Clear payment timelines in accordance with Construction Act Also payment notices Ensure contractor paid fairly to facilitate cash flow Assessed fairly The contract followed fair payment

Answer 148

Integrity and honesty to allow contractor opportunity to correct their application Would facilitate their cash flow Promote a collaborative relationship

Answer 149

Every three years

Answer 150

Equality Act 2010 Data protection act 2018 Human rights act 1998 Bribery act 2010 Money laundering regulations 2017 TW: Water Industry Act 2014 Flood Management Act 2010 Competition Act 1998 Enterprise Act 2002

Answer 151

-provides surveying services to the public -least 25% of the Firm's Principals are RICS Members. OR -if Head of Regulation satisfied that Firm implementing an appropriate plan to secure compliance of getting 25% qualified, or is appropriately supported/supervised by another RICS-registered Firm

Answer 152

Same as assigned risk pool (PI) but for run off cover. So firms that are unable to obtain runoff cover can apply for coverage from RICS’ Run-off Pool (ROP)

Answer 153

-Must be reported under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) -To the Health & Safety Executive -Reported by Responsible Person eg employer/those in control of site -Notify Public Liability Insurance provider as member of the public may sue due to negligence

Answer 154

-professional indemnity (PI) insurance that protects firms and individuals after they have ceased trading against claims arising from work they've done in the past, -requirement for RICS-regulated firms to ensure they are protected

Answer 155

-Email is sent to everyone in business when company is about to be appointed -If you have a conflict of interest, you respond, and this is recorded in a register with the details -This is fed back to client who can decide on whether they want to give informed consent to proceed

Answer 156

Slavery that still occurs today, such as: -trafficking -forced labour -debt bondage situations of exploitation that a person cannot refuse or leave because of threats, violence, coercion, deception, and/or abuse of power -look at supply chain

Answer 157

individuals face penalties of up to 10 years imprisonment and unlimited fines, -companies can also face unlimited fines and subject to confiscation orders for the proceeds of the crime

Answer 158

-Following RICS rules of conduct and advice/guidelines -Report unethical behaviour -Follow UK legislation -Maintain CPD -

Answer 159

raising and moving funds to support terrorist activities, regardless of the funds' origin, which can be legitimate or illegitimate

Answer 160

Usually should be But if it isn’t, and the credit rating is to the RICS standards, then you can obtain it elsewhere: From AM Best, with a credit rating of at least B+, or Standard & Poor with credit rating at least BBB

Answer 161

-Deposit into a clearly designated bank account -Agree a drawdown i.e if it’s £10k could pay £2k a month for 5 months This facilitates cash flow for both parties

Answer 162

-Open to negligence claims where courts will look at whether you followed these -May result in disciplinary action by RICS

Answer 163

process of illegally concealing the origin of money obtained from illicit activities through a seemingly legitimate source,l -Placement (of illegal funds into legitimate source) -Layering (moved around to disguise trail) -Integration (re-enters legitimate source to be withdrawn by criminal)

Answer 164

Maximum level of uninsured excess what you pay yourself is based on your limit of indemnity (turnover): -Turnover £10m or less: maximum uninsured excess greater of 2.5% or £10k -Turnover £10m+: no limit

Answer 165

-Loss of rental income -Incurred cost of renting eg storage space -Increase of professional fees -Third party fines from eg council, increased road closure fees -Associated legal costs

Answer 166

A platform for professionals that provides the opportunity to connect, network and engage with other professionals

Answer 167

Must be honest, act within integrity and comply with their professional obligations, including obligations to the RICS -Acting impartially -Identifying/dealing with conflicts of interest -Ensuring clients are informed by being open and transparent -Protecting confidential information -Not facilitating any financial crime, eg money laundering, bribery or corruption

Answer 168

must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise -Only undertaking Work I am competent to do -Maintaining and developing knowledge and skills -Stay up-to-date with relevant legislation

Answer 169

must provide good quality and diligent services -Understanding clients needs and objectives -Understanding client scope of services -Undertaking work in a timely manner Ensuring proper records are kept of all advice

Answer 170

must treat others with respect and encourage diversity and inclusion -Treating everyone with fairness and respect -Creating inclusive cultures and environments -Reporting abusive labour and modern slavery

Answer 171

must act in the public interest, take responsibility for their actions and prevent harm and maintain public confidence in the profession -Responding to complaints promptly, openly and professionally -Cooperate with investigations Ensure not to undermine the RICS -Take responsibility for actions

Answer 172

-Publish a whistleblowing policy for confidentiality -Include ethical evaluations in performance appraisals -Encourage staff to pursue chartership -Conduct CPD sessions surrounding ethics -Put necessary training in place -Comply with legislation and statutory obligations

Answer 173

Professional standards Practice information

Answer 174

The locum would either be covered under the firms Pll policy, or they could get their own cover

Answer 175

Mock interviews Formal CPD through RICS website Reading articles, standards, practice notes Optional training my employer provides

Answer 176

-Timing of the gift - is a project in an important stage, for example during tender -Proportionality - Could it be considered a bribe? -Impartiality - would accepting this gift affect my ability to act impartially? -Accepting this align with the RICS rules of conduct

Answer 177

-Members of the firm are required to issue a conflict of interest check email to members of the company, to see if there would be any conflicts of interest -If a conflict of interest is identified, the client would be notified, in writing, about the detail of the conflict of interest, and whether or not they deem it significant to exclude us from the works -Client can give informed consent

Answer 178

-I would follow the Gleeds conflict of interest policy and the RICS professional standard for conflicts of interest -This would include emailing details of the conflict to the risk management team to review whether we are able to continue with an appointment -If the risk management team deem acceptable to continue with an appointment, details of a conflict of interest would be emailed to the client -This would include what the conflict is, and ways it would be dealt with eg an information barrier -Once have properly INFORMED client, they can decide to give informed consent

Answer 179

If the works include due diligence where we have undertaken another role on the project

Answer 180

Money laundering regulations 2017 - set out the requirements for businesses to analyse their potential exposure to money laundering or terrorist financing such as risk-based approaches, customer due diligence, and maintain records. Proceeds of crime act 2002 - relates to the preventing and recovery of proceeds from illegal activities, and establishing offences

Answer 181

-I would ask my client to pay the monies into a ring fenced bank account -and agree a drawdown from that for payments for the works completed

Answer 182

-Money could come from different sources and bank accounts -Money transferred from third parties -Large cash payments -Client avoids personal contact -Lack of construction knowledge -invoices don’t relate to project

Answer 183

The modern slavery act 2015 Makes it a level requirement for organisations to address and report on modern slavery, and ensure all goods and services have been ethically sourced

Answer 184

-Set clear scope of services and understand client objectives -Proper letter of engagement -Keep record of all communications, meetings and advice -Follow RICS professional standards and practice notes -Don't advise outside scope of competence -Avoid excessive workloads

Answer 185

a form of PIl which covers the business after they cease trading

Answer 186

-Understanding why clients complain -Understanding how to deal with a complaint and escalation -Highlights the importance of good record keeping, learning from experience and identifying training needs -Includes appendices for claim processes and Pl insurance

Answer 187

-Follow my companies complaints handling procedure which includes: -Issue complaints handling procedure to client -Notifying the Pl insurer as soon as possible of a potential claim -Notify the complaints handling manager -Contacting the complainant within seven days of their preliminary notice to inform them of my understanding -Responding to the preliminary notification within 21 days to inform complainant of the actions taken to rectity the issue -Ensuring I do not dissuade the complainant from escalating their complaint to independent redress (ADR) provider eg the property ombudsman RICS dispute resolution service, CEDR

Answer 188

-Setting clear expectations in scope of services and appointment documents -Regular communication with client -Following up in writing for good housekeeping and records -Following company and RICS policies for conflict avoidance

Answer 189

-If I didn’t have information it would be outside my area of expertise If they did provided the numbers: -I would calculate on that basis and ensure I reply to the client in writing that these are calculated based on the costs they have provided -Before undertaking this work, I would always seek advice from my employer and risk management team before calculating damages on behalf of a client

Answer 190

-Serious professional incompetence -Failure to adhere to regulations and bylaws -Convicted criminal -Conduct liable to bring RICS into disrepute

Answer 191

The person in a chartered firm responsible for upholding the RICS professional, technical, and ethical standards. must be a senior manager, partner, or owner Can also be contact officer

Answer 192

-The everyday contact for a person, whereby the RICS can get in touch about a company -responsible for submitting the firm's annual return and submitting information requested by RICS

Answer 193

Byelaws are set by the Governing Council but they must be signed off by the Privy Council

Answer 194

-Each and every claim would always be a preferred option, but an aggregate plus unlimited 'around the clock' reinstatement can also be used. Basically whenever the aggregate is used up, it is reinstated to the full amount again

Answer 195

-Rule 1: I do not take unfair advantage of others; this is demonstrated regularly by ensuring | act impartially when assessing valuations -Rule 2: I maintain my CPD and adhere to the RICs CPD policy -Rule 3: I always ensure I keep proper records by providing all advice in writing to clients to ensure an audit trail is available -Rule 4: I always treat others with respect and ensure everybody has the ability to speak when chairing meetings -Rule 5: If it were to arise, I would ensure all complaints were dealt with in a timely manner

Answer 196

-Insurance -VAT/tax

Answer 197

-Try and resolve with my client initially, -and if cannot be resolved, resort to my company's CHP

Answer 198

-VAT -Services not included -Travel expenses

Answer 199

your total taxable turnover for the last 12 months goes over £90,000 (the VAT threshold)

Answer 200

-Ask client on deposit into bank account while a project bank account is set up -Deposit into ring fenced discrete client bank account

Answer 201

€10,000 In RICS documents And Money Laundering Regulations Is the threshold for high-value cash transactions that trigger the need for anti-money laundering (AML) supervision by HMRC

Answer 202

Summary -Restructure and re-emphasise* importance of public advantage -DEI panel -Greater delegation to regional boards and voice for Matrics -Commercial activities separated -Professional group panels ReDMAP (Restructure, DEI panel, Matrics, Activities separate, Professional Groups) ———— -Re-emphasise importance of public interest/advantage with changes to royal charter and establish public interest panel -5 year reviews against charter meeting public advantage -Standards and regulations board only focus on regulatory operations, with a Framework to set out responsibilities and governance -Simplification of governance structure e.g RICS Board as the only overseer of day to day operations -Audit, Risk, Finance & Assurance Committee + Sustainability Panel established -Greater delegation and support to regional boards -Development of professional group panels to lead advancement of knowledge -Stronger voice for young members through Matrics -Commercial activity separate as RICS is a professional body -Diversity and Inclusion Panel -Improve technology -Fund to support those in underrepresented communities funded by sanctions from Regulatory Tribunal -Make it clearer how to seek independent redress -Leadership on climate change

Answer 203

commissioned by the Governing Council in 2021, following a recommendation in the Levitt Review that sets a new direction for RICS for: purpose, governance and strategy. Aim to create a new sense of purpose and direction and is capable of tackling future challenges. Review advised on 36 recommendations

Answer 204

-upholding professional standards, -maintaining public trust in the profession -safeguarding public interests -ensures RICS is self regulating itself -having a more ethical built environment

Answer 205

-Choose business structure eg limited company, LLP, sole trader …. And REGISTER WITH HMRC for tax purposes (Also companies house if a limited company) -Get insurances: PI, public liability, employers liability -Meet legislation eg H&S at work act, equality act, data protection act, bribery act, money laundering regs -Separate account for client money

Answer 206

-You/your firm: so don’t have to meet claim from your own funds -The client: to recover financial loss So if we do fail then client is protected by being able to claim on that insurance to make sure they’re reimbursed the cost of their loss

Answer 207

-coverage for claims related to work performed before the policy's start date, regardless of when negligent act occurred -RICS requirements is ‘FULLY retroactive’ which means it should be back to a date that covers all work done by firm (This is important because claims can arise from past work long after the work is completed, and retroactive cover ensures that the firm is protected even if it didn't have PII when the work was originally done)

Answer 208

-Robust anti bribery procedures -Having a gifts and hospitality register -Provide training -Undertaking customer due diligence -Regularly assess risk -Top level commitment on bribery procedure

Answer 209

Where one person/firm’s interest conflicts with duties that cause you to act impartially

Answer 210

-Improper use by firm -Death/incapacity of a sole practitioner

Answer 211

-Charity that supports RICS members, partners, retired members, students -support through difficult times eg: financial assistance, health and wellbeing resources, career-related help

Answer 212

Replaced: o Rules of conduct for Members. o Rules of Conduct for Firms. o Global Professional and Ethical Standards. -ROC includes Appendix A (rules for members and firms) -Rule 4 added -Focus on competence

Answer 213

• 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.

Answer 214

• Gross, persistent or willful failure to comply with an RICS rule of conduct. • Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a client’s money.

Answer 215

-RICS provides a model form -must include a redress mechanism. -Details of the policy should be issued to the client with the Terms of Business. -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. -must be investigated within 28 days. -All complaints, their progress and outcomes must be recorded. -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 216

-Base the appointment on reasonable care and skill rather than fitness for purpose which is more onerous. -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 217

put in place procedures to ensure exclusivity of staff eg: -avoid any cross over of information between departments. -separate communication lines into the client. -Separate geographical locations and secure office and data storage -Staff sign up to confidentiality or non-disclosure agreements. -monitor the potential conflict and keep the client updated on progress.

Answer 218

-check clients understanding around the conflict of interest. -then make client aware of the potential for reduced impartiality. -If they were still insistent on the appointment, I would seek a letter of instruction from the client to continue. -Following the appointment I would agree working procedures to manage the conflict of interest with the client and the teams involved.

Answer 219

Firms must: -not offer or accept a bribe -have plans in place to comply with laws, and ensure these are followed -report any activity they are aware of that breaches anti-bribery and corruption laws to relevant authorities -act with due diligence to perform periodic written evaluations of the risks that face the firm, considering the type of business activities they engage in/ environment they operate in • retain information detailing how the firm has met this professional statement. Members must: -not offer or accept a bribe -ensure that they have adequate knowledge to comply with the this professional statement -report any activity they are aware of that breaches applicable anti-bribery and corruption laws to the relevant authorities

Answer 220

Firms MUST: -not facilitate/be complicit in money laundering or terrorist financing -have systems and training in place to comply with laws, and ensure these are followed -report any suspicions to the relevant authorities -evaluate and review periodically the risks that prospective and existing business relationships present -ensure that their responses to the risks identified are appropriate eg conducting appropriate checks on clients -use reliance only where information given is of quality eg from third parties with standards conforming to the legal requirements, -take appropriate measures to understand the client and the purpose of the transaction -verify the identity of their client by undertaking basic identity checks -record and retain information detailing how the firm has met the requirements of this professional statement. Members MUST: -not facilitate/be complicit in money laundering or terrorist financing activities -report any suspicions to the relevant authorities

Answer 221

If the client: -is secretive/evasive about who they are, beneficial owner is, source of funds, reason for the transaction, -avoids personal contact and he’s intermediary disguising real client -high knowledge level on money laundering -PEP subject to sanctions Transaction has unusual features eg: -loss making -frequent transactions -early repayment of loans -no obvious commercial purpose to the transaction, or unusual in relation to who the client is -unnecessarily complicated poshest structure -Disproportionate to work being done If the parties: -in a high risk country -director appears unsuitable/lack of knowledge of work Source of funds: -large cash payments -unexplained payments from third party -clients ability to pay from the ‘legitimate’ source doesn’t make sense Instructions: -Client using you when you have no local office or firm doesn’t deal with that type of project/work -client unconcerned/lacks knowledge about the work/transaction

Answer 222

-Anyone who benefits from ownership of a security/property, but not necessarily on record as the owner -Someone who owns or controls 25% or more of the shares or profits of a legal entity.

Ethics Flashcards

(247 cards)