Ethics Flashcards
(166 cards)
1
Q
What are the 5 Rules of Conduct?
ICSRP
A
- Members and firms must be honest, act with integrity and comply with their personal obligations to RICS
- Maintain their professional competency and ensures that services are provided by competenant individuals
- Provide good quality and diligent service
- Treat others with respect and encourage diversity and inclusion
- Act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
2
Q
When were the rules of conduct effective from?
A
- 2nd February 2022
- The Rules of Conduct replaced the 5 Global Professional and Ethical Standards
3
Q
Why new rules of conduct?
A
- Previous rules had been in place since 2007
- Majority of RICS members, firms and the public voted in favour of replacing the existing rules
- Simpler structure into a single document to provide clarity
- Clear examples
- Greater focus on diversity and inclusion
- Tackling global challenges (ESG, technology)
4
Q
What is the difference between Ethics and Rules of Conduct?
A
- Ethics are a set of moral values
- Rules of conduct are a framework that we work to
5
Q
Why does RICS have rules of conduct?
A
- To provide a framework to work to and so clients know they are getting a set level of service
- The Rules of Conduct are a useful professinal guide for members
6
Q
What is the RICS Ethics Decision Tree?
A
- The Decision Tree provides a framework of questions which members should ask themselves when facing a situation in which they are asked to act in a potentially unethical situation
- Guides professionals through the decision-making process. Aim is to ensure that any action taken is ethical, transparent and in the best interest of clients and the public. By following the decision tree, professionals can make consistent decisions that align with RICS standards and can be justified and documented if needed
- RICS Regulation Confidential Hotline offers assistance to members with any ethical issues
Supporting materials are provided on the RICS website
7
Q
Can you name some RICS guidance around social media?
A
- The updated ‘Use of social media: Guidance for RICS members’ (2024), includes guidance which specifically addresses what might be considered unacceptable sexual behaviour, the expectations of RICS Members and how RICS may address complaints
- The document also says the RICS is likely to investigate concerns about social media posts where they involve discrimination, dishonest, bullying etc.
- If it is felt a post may damage public confidence or trust in the profession, the RICS may take disciplinary action
RICS provides guidance but any ethical decision - Decision Tree/Hotline
8
Q
What is negligence?
A
Where a duty of care is breached which leads to damages
9
Q
Can you name some case law around negligence and PII cover?
A
- This case dates back to 2001 and highlights the importance of having run-off cover in place
- A surveyor was sued for negligence by a former client
- Because the surveying firm was no longer in existence, the individual surveyor was pursued for damages successfully
- This highlighted the need to ensure that run-off cover is in place for all previous employees
10
Q
How can you avoid negligence?
A
- Understanding the client’s objectives and confirming instruction in writing in ToE
- Ensure you are competent to take instruction
- Undertake the work in accordance with RICS advice, including ‘Professional Standards’ and ‘Practice Information’
- Keep up to date with market knowledge and legislation - record your CPD
- Cap the professional liability excess on your PII policy in ToE
11
Q
What must a Complaints Handling Procedure contain?
A
- Include a redress mechanism
- Be issued within Terms of Business
- Advise PII of a complaint immediately
- Be investigated within 28 days
12
Q
Can you tell me the standard procedure for handling a complaint?
RICS Regulated FIrm
A
- Stage 1 (In House): details of CHP should be issued whenever the firm receives a complaint. Details of the Complaints Handling Officer must be stated. The complaint must be made in writing. Complaints should be acknowledged in 7 days and investigated in 28 days
- Stage 2 (ADR - Third Party): if the complaint is unresolved it is referred to a third party e.g, CEDR (Centre for Effective Dispute Resolution)
RICS will only become involved if members fail to respond
13
Q
What is an independent redress scheme?
A
Consumer scheme designed to handle small issues that would be too disproportionally expensive to take to court
14
Q
What must a sole practitioner do if they receive a complaint?
A
Can nominate a surveyor in another firm to act as their complaints handling officer
15
Q
Why are the displinary procedures in place?
A
- In place to protect the public, uphold the public confidence in the profession and uphold standards
- Undertaken by the Standards and Regulation Board
- Can be triggered by someone complaining to the RICS, an allegation by a client or information received by the RICS
16
Q
What are the 3 levels of disciplinary action taken by the Standards & Regulatory Board?
A
- Action by the Head of Regulation
- Disciplinary panel
- Appeal panel
17
Q
What actions can the Head of Regulation serve?
A
- Serve a fixed penalty notice - in relation to info not being provided by the RICS
- Make a regulatory compliance order - low level breach, pay a dinge, written document to outline terms where rules breached e.g. not completing CPD
18
Q
What actions can the Disciplinary Panel take?
A
- High level breach, a hearing is required
- An unlimited fine and/or temporary suspension/expulsion
- Publication of the reuslt of the hearing
19
Q
What can the Appeal Panel do?
A
- Reviews evidence and can vary the penalty
- Can have regard to new representatives of evidence
20
Q
When does a conflict of interest arise?
A
Arises when impartiality/independence is threated due to the existence of a conflict
21
Q
What is conflict avoidance?
A
Avoidance is when you don’t accept the instruction
22
Q
What is conflict management?
A
Management is when you put measures in place to manage the conflict e.g. information barrier
23
Q
What are the key messages from the RICS Conflicts of Interest Professional Standard 2017?
A
- Members must not advise or represent a client where doing so would involve a conflict of interest
- There are 3 types of conflicts of interest: Party Conflict, Own Interest Conflict, and Confidential Information Conflict
24
Q
What is a party conflict?
A
Relating to work on the same or related instruction for two different parties
25
What is an own interest conflict?
Relating to a peronal interest (family, member, friends etc.)
| Section 21 of Estates Agency Act 1979
26
What is a confidential information conflict?
Relating to work between two parties that is confidential
27
What is Informed Consent?
Written consent explaining the position, being entirely transparent and ensuring the party affected understand what they are doing
28
What are the steps to manage a conflict?
1. Recognise the potential conflict
2. Inform both tenant and landlord about the conflict
3. Proposal - the use of setting up an information barrier, with no sharing of sensitive information between teams
4. Request written consent from both tenant and landlord
5. After consent, set up the information barriers
29
What are information barriers?
- Physical barrier is sitting separately, preferably in different buildings or on different floors
- Digital barrier is all info should be securely stored within a password protected folder
30
What are the 3 steps when dealing with a Conflict of Interest?
Step 1: Conflict avoidance
Step 2: Written advice
Step 3: Conflict management
31
What is Step 1: Conflict of Avoidance?
* When you learn about a potential conflict, first decide if the conflict is too significant to manage
* Decide whether you can manage the conflict transparently or if you should decline the work with one of the clients to avoid the conflict altogether
32
What is Step 2: Written Advice?
* If you decide you can manage the conflict, write to both Clients as soon as possible
* Explain the conflict, how it might affect your work and how you plan to deal with it e.g. setting up an information barrier
* Make sure both clients understand the situation clearly
* Ask both clients to confirm to writing that they understand the conflict and agree to your proposed solution
33
What is Step 3: Conflict Management?
* Once both clients agree in writing, put your conflict management plan into place
* E.g. set up an information barrier
34
What is the purpose of Professional Indemnity Insurance?
* Mandatory for surveyors in all disciplines as set out in RICS Professional Indemnity Insurance Requirements July 2024
* The purpose is to protect clients, surveyors and 3rd parties against negligence claims when the duty of care is breached
35
What are the benefits of PII?
* Individual: is protected from financial losses
* Individual: the firm does not have to meet the claim from their own assets and resources
* Client: they are able to recover their financial losses
36
What are the requirements for PII?
* The policy cover must be made on an "each and every" claim-made basis
* The policy should include cover for past/present employees and directors
* The policy should be retroactive - PII covers claims that are made during the period of insurance regardless of when the negligent act occured
* Underwritten by an RICS approved insurer
* PII cover is needed for pro-bono work
37
Measures to avoid PII claims
* Keep detailed records
* Use Terms of Engagement
* Use RICS guidelines
38
What does the Limitation Act 1980 state?
- **Contract** - 6 years from date of negligent act / 3 years from date of knowledge / 15 years long stop date
- **Tort** - 6 years from the date the claimant suffered the loss
39
What is the RICS Assigned Risk Pool?
For members who can't arrange cover
40
What does the RICS Practice Information - Risk, Liability and Insurance (2023) state?
* Recommends the use of liability caps to manage risks associated with professional work
* Make it clear that advice can only be relied upon by the client named in their terms of engagement
41
What are the minimum levels of PII cover?
| Based on turnover of the firm
* If a firm's turnover is £100k or less the minimum level of indemnity is £250k
* If a firm's turnover is £100k to £200k minimum level of indemnity is £500k
* If a firm's turnover is £200k+ minimum level of indemnity is £1m
42
What is the maximum uninsured excess of PII?
* For companies with a turnover in excess of £10m, there is no max limit
* For companies with a turnover of up to £10m, the max uninsured excess is 'the greater of 2.5% of the sum insured or £10,000'
43
What key legislation is related to gifts and bribery?
Bribery Act (2010)
44
What does the Bribery Act (2010) state?
* Aims to reduce bribery in business in the UK
* A bribe can be: 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
45
What are the The Bribery Act (2010) - 6 main principles?
1. Proportionality
2. Top level commitment
3. Risk assessment
4. Due diligence
5. Communication
6. Monitoring and review
46
What are The Bribery Act (2010) - 4 main offences?
1. Bribing
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent bribery
47
Who polices the Bribery Act 2010?
And what is the penalty for non-compliance?
* Bribery Act is policed by the **Serious Fraud Office**
* Max penalty of: 10 years imprisonment/unlimited fine for individuals; unlimited fines for companies
48
What is hospitality?
* Gestures like meals, invitations to events or social interactions
* Purpose is to build relationships or networking opportunities
* As long as it's reasonable, proportionate and transparent
49
What is bribery?
* Offering, giving, or receiving something of value, like money or gifts, to influence a decision
* The purpose here is the intent to corruptly influence the recipient to act in favour of the giver
50
What is your firms Gift Registry Policy?
* Have regard to gift proportionality
* Can never accept cash, no matter the amount, corporate hospitality for public or government officials, or political donations
* Must report the giving or receiving of any corporate hospitality involving gifts worth over £50 or entertainment worth over £200
51
If asked about acceptance of cash, gift or hospitality consider ...
* Bribery Act 2010
* RICS Professional Standard
* JLL procedures
* Professional objectivity, openess and transparency
* Proportionality
52
What does the RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing (2019) state?
This sets out the mandatory global requirements for RICS members and firms in relation to bribery, corruption, money laundering and terroist financing
53
What sections are within the RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing (2019)?
1. Mandatory requirements for RICS Firms
2. Guidance supporting good practice
3. Supplementary guidance
54
What are the mandatory requirements for RICS firms in relation to bribery, corruption, money laundering & terroist financing?
Bribery & Corruption
* Not offer or accept any bribe
* Have procedures in place to comply with the law
* Report suspicion
* Act with due diligence
* Retain records
Money Laundering & Terroist Financing
* Not facilitate in Money Laundering or Terrorist Financing
* Have systems in place to comply with the laws
* Report suspicion
* Evaluate the risks presented to the firm
* Use third-party reliance for check
* Understand client and purpose of instruction
* Verify the client with ID checks
* Retain records
55
What is some guidance for good practice in relation to bribery, corruption, money laundering & terroist financing?
* Have a written policy for the procedures
* Publish a code of behaviour for staff
* Encourage transparency - through staff training, maintaining detailed records, and regular compliance checks
* Set up a gifts register
* Keep up to date with legislation
56
What Supplementary Guidance is there in relation to bribery, corruption, money laundering & terroist financing?
Establish a 'risk-based approach': consider the following when assessing risks to your business:
* Who you act for
* What you are doing
* Why you are being asked to do something
## Footnote
When dealing with PEPs, they are at higher risk as they hold positions of influence, and enhanced due dilgence is required
57
What is money laundering?
* It is when the proceeds of criminal activities are disguised or converted and then realised as legitimate assets
58
What are the Key provisions of the Terroist and Transfer of Funds Regulations (2017)?
1. Have a written money laundering and terroist financing risk assessment
2. Provide staff training
3. Comply with new customers, enhanced and simplified due diligence requirements
4. Comply with the requirements relating to PEP's
5. AML due diligence checks
6. Ensure appropriate record keeping
59
Firms must have policies to identify and scrutinise certain transactions, what type of transactions are these?
* Complex or unsually large
* Contain unusual patterns of transactions
* Without apparent economic or legal purpose
60
How do you carry out Anti-Money Laundering Checks?
* Identity of client by obtaining their address and confirming their address by using publicly available info and an online portal to which clients can submit their info and relevant identify documentation
* Here, they check clients' IDs and identifying beneficial owners if it is a company
61
What are the Levels of Due Diligence for Money Laundering Checks?
1. Customer Due Diligence (CDD)
2. Enhanced Due Diligence (EDD)
62
What is Customer Due Diligence?
* Identify and verify the client based on a reliable form of identification (passport, drivers' licence)
* Identify beneficial owners of the client and/or Persons of Significant Control - Companies House
* Obtain information on any funding arrangements and nature of business
63
What is Enhanced Due Diligence?
* Additional procedures required for transactions or business involving a person in a 'high-risk third country' or a 'politically exposed person' (PEP)
* Generally more detailed investigations into the purpose of the transaction and increased monitoring
64
What is a Politically Exposed Person (PEP)?
Someone who presents a higher risk of involvement with bribery or money laundering/corruption
65
What Evidence is Required for Money Laundering Checks for CDD?
| For a Public Limited Company
London Stock Exchange listing
66
What Evidence is Required for Money Laundering Checks for CDD?
| For a Private Limited Company
Full name, registered number, registered office, business address, names of all directors and names of all shareholders (with 25%+ holding)
67
What Evidence is Required for Money Laundering Checks for CDD?
| For a Private Individual
Copy of passport/driving licence and copy of bank statement to show evidenec of address (no more than 3 months old)
68
What Evidence is Required for Money Laundering Checks for CDD?
| For a Publicly Accountable Body
Government ownership/control
69
If asked about Anti Money Laundering what do you need to consider...
* Money Laundering, Terroist Financing and Transfer of Funds Regulations 2017
* RICS Professional Standards, but law comes first
* Government guidance for estate agents
* Due diligence procedures
* Professional objectivity, openness and transparency
* 'Red Flags'
70
What the penalties with failure to comply with AML regulations?
* Up to 14 years in prison/unlimited fine for assisting with money laundering
* Up to 5 years in prison/unlimited fine for tipping someone off that they are under investigation
71
What are some **Red Flags** associated with Money Laundering?
* Inability or unwillingness to provide identity documents
* Changes to parties involved in transactions
* Unexpected urgency or unusual behaviour
* Payment of fees in unusual currencies
72
What does the Sanctions and Anti-Money Laundering Act (2018) state?
* Following geopolitical activities such as the Ukraine conflict, wider sanctions have been enforced
* HM Treasury's Office of Financial Sanctions Implementation provides regular updated guidance against countries, companies and individuals
73
What does the RICS Anti-money laundering sanctions update (2022) state?
Provides a reminder about sanctions and estate agents' role in enforcing these, including:
* Understand red flags
* Have regards to high-risk countries and political exposed people
* Check clients against the HM Treasury's 'consolidated list'
74
What does the Proceeds of Crime Act 2002 state?
Provides powers for enforcement authorities to recover money/assets in criminal proceedings
75
What does the Economic Crime Act 2022?
Measures for overseas entities owning property in the UK, allowing easier prosecution and powers on Unexplained Wealth Orders (UWO)
76
What are Terms of Engagement?
* Sets out scope of instruction and clients agreement to fees, along with the complaints handling procedure and PI cover
* Must get written approval from the client before you start the instruction
77
When would you decline an insutrction?
* You are not competent to undertake work
* There is any conflicts of interest present
* A PII liability cap cannot be agreed
* The advice is for a friend or pro bono basis and your PII will not cover work carried out on a personal basis
* The client is on the UK sanction list
78
When proposing your fee, what do you need to consider?
* Should be market-based and agreed on an ad-hoc basis
* Can revise fees if scope of instruction changes
* Should avoid fee under-cutting another firm
* Be transparent with your client; any referral fees should be clearly outlined in TofE
* Have regard to Bribery Act 2010 and the RICS Rules of Conduct (2021)
79
How are fees calculated?
Should consider the amount of time and resources required and that you have the appropriate expertise
80
What is included in a fee proposal?
* Terms and Conditions
* Scope of services
* Exclusions
* Assumptions
81
What does the RICS Professional Standard: Client Money Handling (2019) state?
When handling client money:
* Client accounts must be kept separate and clearly identifiable
* The word 'client' must be marked on the bank account
* Client must have on demand access to their moeny
* Firms handling money must display procedures on their website
82
What must RICS regulated firms do when handling client money?
* Accounting systems and data must be secure
* Client money must be kept separate and clearly identified with the word 'client' included in the bank account name
* Client must always have access to funds
83
What are the different types of client money accounts?
* General accounts that holds money for more than one client
* Discrete accounts that hold a single named client
84
What must a firm do when wanting to register to the RICS?
1. Type of business and staffing details
2. Name of **Responsible Principal** - this person ensures compliance of the firm and its members
3. Statutory regulated activities - e.g. financial services
4. Nature of clients
5. Complaints handling procedure details and records
6. Professional Indemnity Insurance details
7. Whether the firm holds client money
If a firm has more than 50% RICS accredited Principals it must be regulated, and if firms have a minimum of 25% they can apply.
85
What is confidentiality?
* RICS Byelaws state "**client confidentiality must be maintained for all client affairs**". This includes historic information and information provided by a client prior to instruction
* If third party wants to access your files you must get client approval first - can lead to HMRC investigation
* Must hold files for a min. of 6 years
86
How do you keep up to date with topical issues?
* I am on the mailing list for several CPD providers
* I follow updates of the RICS social media accounts
* I get emailed from CoStar News
87
When starting a New Practice, what RICS Compliance Procedures do you need to undertake?
* Contact RICS for guidance and obtain a company start up pack
* Inform the RICS of new practice and register for regulation
* Appoint a Responsible Principal for all RICS communication
* Prepare a complaints handling procedure
* Arrange PII cover and send details to RICS
* Set up a procedure for clients money handling, including a protection scheme
* Appoint Complaints Handling Officer
* Abide by the Rules fo Conducts for firms
88
When Starting a new practice, what Statutory Compliance Procedures do you need to undertake?
* Disclose business name
* Disability discrimination compliance (Equality Act 2010)
* Financial Services compliance
* Bribery Act (2010) compliance
* Appoint a Money Laundering Officer
* Health and Safety compliance
* Inform HMRC for VAT and Tax Registration (VAT threshold is £90k pa turnover)
* Fire Safety Compliance
* Asbestos register
* Data protection compliance
* Ensure compliance with current employment law i.e. National Living Wage, Gender Pay Gap reporting etc.
* Ensure insurance compliance for employer and public liability
89
If you are Closing down a Practice, what do you need to do?
* Inform the RICS and deregister
* Inform clients at the earliest opportunity
* Return any monies held by clients to their own accounts
* Inform insurers and procure PII run-off cover for min 6 years
* Hold records and files for a min 6 years
90
What Insurances do you need when Starting a New Practice?
* PII
* Employer's Liability
* Public Liability
* Building insurance for an office premise
91
What Annual Returns are Required by RICS regulated firms?
Firms must submit a mandatory annual return to the RICS, wich includes:
* Type of business and staffing
* Nature of clients
* Training provision
* Complaints handling procedure details and records
* PI insurance details
* Whether the firm holds clients' money
## Footnote
This is to be carried out online and failure to do so leads to a fixed penalty
92
What are some Professinal Obligations of RICS Regulated Firms?
* Firms must publish a complaints handling procedure, which includes an alternative dispute resolution provider
* Firms must ensure work is covered by PII
* Firms must cooperate with RICS and report to RICS
93
What must RICS members do?
1. Comply with CPD requirements set by RICS
2. Cooperate with rICS
3. Provide all information reasonably requested by the Standards and Regulations Board
94
What are some Continuining Professional Development requirements?
1. Members must undertake a min of 20 hours CPD in a year
2. 10 hours of this must be Formal CPD
3. All members must maintain a relevant and current understanding of the RICS Rules of Conduct during a rolling 3-year period
4. All members must record their CPD activity using the RICS CPD Management System available online
95
What is Formal CPD?
* Includes all forms of structured learning that has clear learning objectives and outcomes
* Examples include structured online training
96
What is Informal CPD?
* Includes any self-managed learning that is relevant or related to your professional role
* Includes private study, on the job training and informal seminars
97
What are the conditions of informed consent?
Consent is in their best interest and not prohibited by law
98
What is a Regulatory Compliance Order?
* For low level breaches of the Rules, such as for some minor breaches which could be easily corrected
* Written document which states the terms upon which the member or firm must take or desist from taking actions in a specified time period and an agreement to pay a fine
* RCO may cover issues such as non-compliance with RICS Rules
99
What is JLL Complaints Policy?
- The complaint must be written in writing to the person named on the Terms of Engagement
- The complaint will be acknowledged and aimed to be investigated within 15 working days
- If the complaint has not been resolved, it gets referred to our Complaints Handling Officer who will aim to resolve the issue within 8 weeks of when the original claim was made
- If it is still not resolved at this stage, then it is referred to my firms Alternative Dispute Resolution service which is the Property Ombudsman
100
When was the RICS founded and granted royal charter?
* Founded in 1868
* Royal Charter awarded in 188. Initially granted by the Privy Council
* RICS Regulation and Bye-laws set out the governance of the Institution
101
What are the 4 levels of membership?
1. RICS Fellow - FRICS
2. Chartered Member - MRICS
3. Associate Member - AssocRICS
4. RICS Student
102
What is the Current Governance Structure of the RICS?
* RICS is currently governed by various internal councils and boards
* There are 17 specialist professional groups covering property, land and construction
103
Who is the current president of the RICS?
Nicholas Maclean has been appointed as the Acting President and Acting Chair of Governing Council.
104
Who is the current CEO of RICS?
Justin Young
105
What are the RICS 3 main roles?
1. To maintain the highest standards of education and training
2. To protect consumers through strict regulation of professional standards
3. To be the leading source of information and independent advice on land, property, construction and associated environmental issues
106
What is the Bichard Review?
* Following the Independent Review of internal governance failings within RICS in 2021, the RICS commissioned Lord Bichard to undertake a further review
* The RICS agreed to adopt all the Bichard recommendationa in 2022
* The aim is to deliver a member-led public interest focussed RICS with 5 key themes of governance, strategy, people, culture and values and members
107
The RICS published 5 Future Foundations in Nov 2023 following the Bichard Review, what are these?
1. Vision - a natural & built environment that is sutainable for all
2. Mission - inspire members & uphold standards
3. Strategic goals - lead & influence on sustainability
4. Values - professional, collaborative, and inclusive
5. A world class organisation - an efficient, effective, and inspiring professional body
108
What are the 5 benefits of being a RICS member?
1. Status
2. Recognition
3. Market advantage
4. Knowledge
5. Network
109
What Practices can register to the RICS?
* Corporate body
* A partnership
* Limited Liability Partnership
* Sole practitioner practice
110
What does the RICS 'Rules for the regulation of firms' 2022 state?
* If 50% of Principals of a UK firm are RICS members than it has to be regulated, if 25% then can apply to be regulated
* Principals are sole practitioners, directors, partners or board members
* Each firm must name a 'Responsible Practitioner'
* Complete an annual return on the RICS professional portal
111
What Information is required by the RICS for Registration?
1. Type of business and staffing details
2. Name of the Responsible Principal
3. Statutory regulated activities
4. Nature of clients
5. Complaints handling procedure details and records
6. PII details
7. Whether the firm holds clients' money
112
What is the definition of money laundering?
Money laundering is when proceeds of criminal activities are disguised or converted and then realised as legitimate assets
113
Failure to undertake appropriate CPD may result in sanctions such as
A Fixed Penalty and Disciplinary Panel action resulting in expulsion
114
What is Appendix A of the RICS Rules of Conduct?
Mandatory Professional Obligations
## Footnote
What RICS members and regulated firms MUST DO
115
Name some of the questions within the ethics decision tree
* Is it legal?
* Is it in line with the rules of conduct?
* Does it have sufficient facts?
116
What are the methods of ADR?
* Negotiation
* Mediation
* Adjudication
117
What is included with your firms Terms of Business?
* Services provided
* Complaints Handling Procedure
* Liability
* Data protection
118
Who is JLL's Responsible Principal?
Simon Peacock
119
When was the RICS founded?
1868
120
How many members are there in the RICS?
c. 140,000
121
How would you set out third party reliance in terms of engagement?
Explicit statement stating that you exclude third party reliance and is confidential
122
Can you provide incremental advice?
Yes you can but only when you have information barriers in place and you have informed consent
123
What can trigger a disciplinary procedure?
* Someone complaining
* A client or third party raising an alligation
* Information received by or established by the RICS
124
What actions could the Head of Regulation make?
* Fixed penalty notice
* Regulatory Compliance Order
* Refer the matter to a singularity tribunal order
* Refer to the disciplinary panel
125
What is a RICS Professional Standard?
These are the documents which set requirements for competent and ethical practice
126
Is a RICS Professional Standard mandatory?
Mandatory requirements are where they use the word 'must'
127
What is a RICS Practice Information?
These documents provide advice or practice support to RICS members and firms.
128
What is employer liability insurance?
Employer liability insurance protects businesses from financial loss due to employee claims for injuries or illnesses arising from work-related activities, covering compensation and legal costs.
129
What are Unexplained Wealth Orders?
* Unexplained Wealth Orders (UWOs) are court orders that require individuals or organisations to explain how they obtained assets, particularly those with a value exceeding £50,000, when there are reasonable grounds to suspect the assets are disproportionate to their known legitimate income
130
What would you do if your client was a match on the UK's sanction list?
Contact the Office of Financial Sanctions Implementation for assistance
131
Who policies the Bribery Act (2010)?
The Serious Fraud Office
132
Who decides what is a high-risk country?
Financial Actions Task Force
| Algeria
133
What do you do if you suspect anti money laundering?
I would report any suspicious activity to my firms Money Laundering Reporting Officer and then they can issue this to the National Crime Agency who will decide on what next steps to take
134
What are the three main areas of offence of the Proceeds of Crime Act 2002?
1. Concealing criminal property
2. Arrangements: If a person enters into or becomes concerned in an arrangement which they know or suspect facilitates the acquisition of criminal property
3. Acquisition use and possession
135
What is the difference between professional indemnity insurance and liability cap?
Professional indemnity insurance (PI insurance) protects a business against claims from clients for professional negligence or mistakes, while a liability cap is a contractual clause that limits the amount a party can be held liable for in the event of a breach or negligence
136
How is negligence quantified?
Negligence is quantified by assessing the damages suffered by the claimant as a direct result of the breach of duty, and then quantifying the losses, both financial and non-financial
137
What is Negligence?
Breach of a duty of care which results in damage
138
What are the two stages of CHP and what does the RICS offer?
Stage One (In House)
Stage Two (ADR - Third Party Resolution)
The RICS Dispute Resolution Service
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Why would a client choose a regulated firm rather than a firm that isn’t regulated?
Clients choose RICS regulated firms over unregulated ones because RICS regulation offers assurance of high ethical and technical standards
140
Difference between Professional Standards and Statements?
RICS is in the process of reviewing its standards portfolio because the Standards and Regulation Board wants to ensure that RICS standards and advice documents are up-to-date and easy to use. All documents fit into two categories: Professional Standards and Practice Information
141
What is The Property Ombudsman?
| JLLs CHP redress
The Property Ombudsman (TPO) is an independent, free dispute resolution service for consumers and property agents
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What is an inclusive environment?
One which is designed and managed to allow people with a diverse range of needs and abilities to access and use it
143
What would you see on an EPC?
- Rating
- Address
- Score
- Floor area of the property
- Estimated running costs
144
How do you know when CPD is formal and not formal?
CPD decision tree
145
What is a RICS byelaw?
Requirement to follow - so that the RICS can self-regulate themselves
146
What does the Royal Charter allow you to do?
Means the RICS can self-regulate
147
Who pays for ADR services?
The RICS regulated firm would pay for the ADR
148
What are some examples of specific charges for a NDA?
The charges primiarly focus on penalties for breach. These can include financial damages, legal fees, and even potential criminal charges in extreme cases
149
How do you become FRICS?
1. Leadership role
2. Professional achievement
3. Acadamic achievement
4. Prove you've elevated the profile of RICS
5. Minimum 5 years' experience
150
What are the benefits of being a regulated firm?
- Confidence for clients
- Professionalism
- Security
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What must RICS members do?
1. Comply with CPD requirements
2. Cooperate with RICS
3. Promptly provide info requested by the standards and regulatory board
152
Do you know any case law around fee issues?
**Competition & Markets Authority 2019**
Concluded 5 office fit-out contractors had collueded over pricing, fined a total of £7m
153
Can you name some Alternative Dispute Resolution?
1. Negotiation
2. Mediation - facilitates discussions between parties
3. Early neutral evaluation - independent, non-binding opinion
4. Ombusman - confidentially receive case details and instigates resolution of complaint
5. Arbitration (Arbitration Act 1996) - evidence provided, limited right of appeal to High Court, not liable for negligence - issues award
6. Independent Expert Determination - appointed by two parties, undertakes own investigations both parties bound by decision, can be sued - issues determination
154
Why is PII cover in place?
- Protects against negligence claims when duty of care is breach
- Policy should be retroactive on a 'claims made' basis
155
What is the minimum aggregrate of run off cover?
Minimum £1m cover over 6 years, RICS run-off pool
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When does negligence occur?
Where a duty of care exists and claim for damages arises
157
What case law is related to negligence?
**Donoghue v Stevenson** is considered the foundation of modern negligence law, establishing the "neighbour principle" and the duty of care
158
What regulation is there that covers AML within estate agency work?
* The Terrorist Financing and Transfer of Funds Regulations (2017) (amended in 2023) covers estate agency work inside and outside the UK by a firm
159
What is the limit for the acceptance of cash?
My company's policy is to never accept cash, but according to HMRC you can legally accept cash payment up to 10,000 euro limit
160
How long should firms maintain records of AML?
For a minimum of 5 years
161
If you note any suspicious activity who should you report to?
Should report to my firms Money Laundering Reporting Officer who will report this to the National Crime Agency
162
In instances where an RICS regulated firm is unable to repay a client's money, what happens?
- There is a RICS Client's Money Protection Scheme for claims from clients which provides last resort money protection
- This is provided through an RICS insurance policy
163
How often do you undertake customer DD checks for ongoing clients?
Every 3 years
164
Who would deal with your Displinary Panel?
Head of Regulation of the RICS
165
How many cases are there related to the 5 Rules of Conduct?
12
166
How often do you have to undertake the professionalism module?
Every 3 years
