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ANNA - RICS Spring 2024 Revision > Ethics ALL TOPICS > Flashcards

Ethics ALL TOPICS Flashcards

1
Q

What are the professional obligations of MEMBERS to RICS?

A
  1. Members MUST comply with the CPD requirements set by RICS.
  2. Members MUST co-operate with RICS
  3. Members MUST promptly provide any information required by the Standards and Regulation Board, or those exercising delegated authority on its behalf
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2
Q

What are the CPD requirements set by RICS?

A
  1. All members must undertake a minimum of 20 hours CPD each calendar year
  2. Of the 20 hours at least 10 hours must be formal CPD
  3. All members must maintain a relevant and current understanding of our professional and ethical standards during a rolling three-year period
  4. Members must record their CPD activity online by 31 January
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3
Q

What is an example of an exception to the CPD requirements?

A
  • Maternity/ Paternity Leave
  • Unemployed
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4
Q

What are the professional obligations of FIRMS to the RICS?

A
  1. Publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
  2. Ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
  3. Firms with a sole principle MUST make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
  4. Firms MUST cooperate with RICS.
  5. Firms MUST promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
  6. Firms MUST display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
  7. Firms MUST report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
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5
Q

What is Professional Indemnity Insurance?

A

PII is designed to protect professionals, their businesses and clients from claims arising to errors, omissions, negligence or malpractice in the services they provide.

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6
Q

What are the minimum requirements for PII?

A

£100k or less: £250k
£100k - £200k: £500k
£200k+: £1m

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7
Q

What is the Max Uninsured Excess for PII?

A

Liability up to £500k: 2.5% or £10k (highest)
Liability over £500k: 2.5% of sum

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8
Q

What does PII stand for?

A

Professional indemnity insurance

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9
Q

When is a firm required to register to be regulated under RICS?

A
  1. If the firm provides surveying services
  2. At least 50% of the Firm’s Principals are RICS Members
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10
Q

What are the SIX ethical principles on which the Rules of Conduct are based?
HICSRR

A

Honesty
Integrity
Competence
Service
Respect
Responsibility

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11
Q

When did the new rules of conduct come in to effect?

A

2nd February 2022

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12
Q

Why did the Rules of Conduct change?

A
  • A simpler structure
  • Clear examples
  • Focus on respect, diversity and inclusion
  • Understanding evolving technology
  • Tackling global issues (including creating sustainable development and tackling climate change)
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13
Q

What is Rule 1 of the RICS Rules of Conduct?

A

Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.

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14
Q

What is Rule 2 of the RICS Rules of Conduct?

A

Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.

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15
Q

What is Rule 3 of the RICS Rules of Conduct?

A

Members and firms must provide good-quality and diligent service.

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16
Q

What is Rule 4 of the RICS Rules of Conduct?

A

Members and firms must treat others with respect and encourage diversity and inclusion.

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17
Q

What is Rule 5 of the RICS Rules of Conduct?

A

Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

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18
Q

Give an example of when you acted within Rules 1 of the RICS Rules of Conduct.

A

Open and transparent with fees - always clearly state my fee in letters of instruction.

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19
Q

Give an example of when you acted under Rule 2 of the RICS Rules of Conduct.

A

I exceeded my CPD requirements ensuring I kept up to date with changing legislation in particular the new changes to Bio-Diversity Net Gain.

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20
Q

Give an example of how you show Rule 3 of the RICS Rules of Conduct.

A

I always ask a clients needs and objectives prior to undertaking any instruction.

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21
Q

Give an example of how you show Rule 4 of the RICS Rules of Conduct.

A

I treat everyone the same including colleagues and clients and I do not discriminate.

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22
Q

Give an example of how you show Rule 5 of the RICS Rules of Conduct.

A

I am never dishonest.

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23
Q

What are the 3 levels of disciplinary action under RICS?

A
  1. Action by Head of Regulation
  2. Regulatory Tribunal
  3. Appeal Panel
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24
Q

The Head of Regulation can initiate what 4 procedures?

A
  1. Serve a Fixed Penalty Notice
  2. Make a Regulatory Compliance Order
  3. CPD sanctions
  4. Refer the matter to the Disciplinary Panel for consideration
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25
Q

What is a Fixed Penalty?

A

Procedure used for breaches of the Rules relating only to the supply of information to the RICS by firms and members.

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26
Q

What is a Regulatory Compliance Order?

A

Written document which states the terms upon which the member or firm must take or desist from taking actions in a specified time period.

Procedure used for low level breaches of the Rules, such as for some minor breaches which could be easily corrected.

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27
Q

What are CPD sanctions?

A

These place an obligation on a member to follow the CPD requirements.

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28
Q

What penalties can the Disciplinary Panel issue?

A
  1. Compliance Order
  2. Unlimited fine (must be proportionate)
  3. Impose conditions upon future continued RICS registration
  4. Expulsion
  5. Require publication of results of the hearing
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29
Q

What 3 steps should you follow before accepting instruction?

A
  1. Competence
  2. Conflicts of Interest
  3. Confirm TofE in writing and get written approval from client
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30
Q

When may it be appropriate to decline an instruction?

A
  1. Not competent
  2. Do not have sufficient facts
  3. Client will not sign TofE of undertake AML checks
  4. CoI
  5. PII cap cannot be agreed
  6. Advice is for a friend
  7. Sanctioned client
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31
Q

What is conflict avoidance?

A

When you do not accept an instruction due to a CoI

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32
Q

What is Conflict management

A

When you accept an instruction with a CoI and steps are agreed and put in place to manage the conflict.

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33
Q

What are the 3 types of conflict of interest?

A
  • Party conflict - work on the same or related instruction for two different parties
  • Own Interest Conflict - personal interest
  • Confidential Information Conflict - work between tow parties which is confidential
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34
Q

What is informed consent?

A

Consent given in writing by the party.
(Can only be given if party has all information)

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35
Q

How would you deal with a Conflict of Interest?

A

STEP ONE - Conflict Avoidance: Do you want to accept the instruction
STEP TWO - Written Advice: Set out in writing the nature of the conflict, the circumstances surrounding it and any other relevant factors and request written confirmation from parties.
STEP THREE - Conflict Management: Set up an information barrier in accordance with the provisions agreed.

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36
Q

How should you operate an information barrier?

A
  • Must be robust enough for no chance of information being passed between the parties
  • ‘Reasonable steps’ to operate an effective barrier
  • The surveyors must be different and physically separated
  • All information securely stored
  • Keep a clear audit trail
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37
Q

How long should files be held for?

A

Minimum of 6 years before disposal and destroyed securely

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38
Q

How would you comply with Client Money Handling 2019?

A
  • Client accounts must be kept separately and clearly identifiable
  • Must have the word ‘client’
  • On demand to client
  • Interest agreed with client
  • Check monthly
  • Accurate records kept
  • Annual audit
  • Only withdrawn if properly required
  • Signatories agreed
  • Discrete account for single named client account only
  • Procedures displayed on website
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39
Q

What does CMPS stand for?

A

Clients’ Money Protection Scheme?

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40
Q

What is a CPMS?

A

RICS run scheme for claims from clients where the firm is unable to repay a clients money.

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41
Q

What steps would you undertake in line with RICS compliance when starting a new practice?

A
  • Inform RICs
  • Appoint a Principle
  • Register for regulation
  • Arrange PII and send RICs details
  • Set up CMH scheme
  • Register for Valuer Registration Scheme
  • Obtain RICs approval for complaints handling procedures
  • Set up complaints log
  • Appoint a complaints handling officer
  • Obtain a logo kit
  • Plan for succession/ future if sole practitioner
  • Ensure CPD logged online
  • Staff training
  • Complete annual return
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42
Q

What steps would you undertake in line with Statutory Compliance when starting a new practice?

A
  • Disclose business name
  • Comply with Equality Act 2010
  • Comply with Financial Services and Markets Act 2000 and Financial Services 2012
  • Comply with Bribery Act 2010
  • Appoint AML Reporting Officer
  • Comply with Health & Safety Act 1974
  • Control of Asbestos Regulations 2021
  • Regulatory Reform Fire Safety Order 2005
    GDPR 2016 and Data Protection Act 2018
  • Estate Agents Act 1979 compliance, Consumer protection Regulations 2008.
  • Compliance employment law
  • Employer and public liability
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43
Q

What are the 4 offences of a bribe?

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign public official
  4. Failing to prevent a bribe
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44
Q

who is bribery policed by?

A

Serious Fraud Office

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45
Q

What are the penalties of bribery?

A
  • Max 10 years in prison
  • Unlimited fine
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46
Q

What are the penalties for assisting with money laundering?

A
  • Max 14 years in prison
  • Unlimited fine
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47
Q

What are the penalties for informing someone they are under suspicion for money laundering?

A
  • Max 5 years prison
  • Unlimited fine
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48
Q

What is negligence?

A

When a duty of care is breaches and there is a loss, a claim for damages arises.

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49
Q

How can you avoid negligence claims?

A
  • Understand the clients objectives and confirm in precise instructions in writing
  • Ensure competence
  • Undertake the work in accordance to relevant guidance
  • Make detailed notes
  • Keep up to date with market knowledge
  • Cap PII in TofE
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50
Q
A
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51
Q

What should you avoid when negotiating a Fee?

A
  • price fixing
  • aggressive fee cutting
  • collusion with competitors
  • Undercutting another firm
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52
Q

What are your companies fees based on?

A

They are based on an hourly rate, recent experience of time taken to do similar jobs, market forces.

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53
Q

What is a conflict of interest?

A

Arises when a firm’s independence and impartiality is threatened due to conflict between two Clients.

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54
Q

Give me an example of a Conflict?

A

Entering in to a promotion agreement on competing sites in the same LPA

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55
Q

What is your companies conflict process?

A

Before a job is entered in to I have to send a company wide email including:
- Address
- Client
- LPA
- Work to be undertaken

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56
Q

Should you accept gift/hospitality from a third party supplier or contactor?

A

No

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57
Q

What do you do if you receive a reasonable/proportionate gift?

A

Log within the gift register

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58
Q

What is your companies policy on bribes?

A

Our company strictly prohibits bribery in any form. We adhere to the Bribery Act (2010) and have clear policies and procedures in place to prevent bribery, including training for employees and regular compliance audits

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59
Q

How does the Bribery Act (2010) impact businesses and individuals?

A

It applies to both individuals and businesses, imposing criminal liability for bribery-related offenses. It requires businesses to implement adequate procedures to prevent bribery and holds individuals accountable for their involvement in bribery schemes.

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60
Q

Can you provide examples of situations that could constitute bribery under the Bribery Act (2010)?

A

Example: providing lavish gifts or hospitality to influence a decision-maker

Any form of inducement or reward aimed at improperly influencing someone’s actions could be considered bribery.

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61
Q

What are the requirements for members (bribery)?

A

1) Declare items in risk register
2) Attend training provided by firm
3) Be familiar with employer’s policy

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62
Q

What is money laundering?

A

Process of disguising proceeds of crime to make them appear legitimate within the financial system.

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63
Q

What are the levels of due diligence for money laundering?

A

1) Customer Due Diligence:
2) Enhanced Due Diligence:
3) Simple Due Diligence

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64
Q

What is the procedure for suspicion of money laundering?

A

any suspicions reported through compliance officer to the National Crime Agency

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65
Q

What is customer due diligence (CDD)?

A

Customer due diligence involves verifying the identity of clients, assessing the nature of their business, and understanding the purpose of the intended transactions to mitigate the risk of money laundering or terrorist financing.

66
Q

What are the key principles outlined in the RICS Professional Statement?

A

The key principles include maintaining integrity, avoiding conflicts of interest, ensuring transparency in financial transactions, conducting thorough due diligence on clients, and reporting suspicious activities.

67
Q

Who can file a complaint under the RICS Complaints Handling Procedure?

A

clients, other professionals, or members of the public who have concerns about the conduct or services of an RICS professional or firm.

68
Q

what is your companies complaints handling procedure?

A

Initial issues raised with member client is working with, who will discuss concerns, and aim to resolve them. Formal complaint procedure below:

Stage 1)
- In writing to designated director
- Acknowledged within 7 days / response provided within 28 days
- Recorded in complaints log

Stage 2)
- If unable to agree then taken to Independent Redress Provider: Centre for Dispute Resolution (CEDR)

Sole practitioner must nominate a surveyor in another form to act as complaints handling officer

69
Q

What is Duty of Care?

A

Duty of Care exists to clients and third parties, using ‘reasonable care and skill’. When breaches, and there is a loss, a claim for damages arises.

70
Q

What is Run off Cover?

A

Insurance which continues after the firm closes or members of the company retire.

71
Q

How do you form a contract?

A

3) Offer
4) Acceptance
5) Consideration

72
Q

What can clients monies include?

A

Deposits, rent collection, service charges

73
Q

what are the steps for closing a practice?

A

1) Inform RICS
2) Ensure Clients are informed + hand over to new firm
3) Return any client money
4) Inform insurer
5) PII insurance for min of 6 years from expiry of current policy
6) Retain client files for minimum 6 years.

74
Q

Tell me about how you have promoted trust in the profession.

A

By fulfilling my obligations. Doing what I say I would do.

75
Q

Explain how you have taken responsibility in your current role.

A

Case Study - found a solution to the viability issue of the planning

76
Q

Tell me about how you treat clients with respect.

A

By speaking to them in a timely and respectable manner no matter of the issue in hand.

77
Q

Tell me about how you treat other surveyors with respect.

A

The same way as how you would treat a client, within a respectable manner.

78
Q

If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.

A

I would decline the offer immediately and inform my director.

79
Q

What would you do if you became suspicious that a client was involved in money laundering?

A

I’d follow company policy on reporting concerns to the designated Money Laundering Reporting Officer while also maintaining confidentiality.

80
Q

If you were to set up in practice on your own, tell me about the types of insurance you would need.

A
  • Professional indemnity insurance (PII)
  • Public liability insurance
  • Employer’s liability insurance
81
Q

What are the three pillars of dispute resolution?

A
  1. Negotiation
  2. Mediation
  3. Adjudication
82
Q

What is the RICS motto & what does it mean?

A

‘Est Modus in rebus’ which means ‘There is measure in all things

83
Q

What is the mission statement of the RICS?

A

-To equip their members to offer the highest standard of proffessional service
-To promote and enforce standards
-To lead solutions to major challenges faced by the industry

84
Q

When was the RICS founded?

A

1868

85
Q

How is the RICS structured?

A
  1. Privy council -awards grants & royal charter
  2. Governing council - manage the strategy for the rics
    3-Regulatory board, management board & audit commitee- execute strategy
86
Q

What are the RICS 5 principles of better regulation?
PACTT

A

-proportionality
-Accountability
- Consistency
-Targeting
Transparency

87
Q

What are ethics?

A

Moral values

88
Q

What are the steps of the ethics decision tree?

A
  • Do you have sufficient facts
    -Is it legal
    -Does it comply with the rules of conduct?
    Have you condulted the appropriate people?
    Do you have clear reasoning?
    Would you be content for your actions to be made public?
89
Q

Why does the RICS have rules of conduct?

A

To provide a frameworkthat we can all work toand so the client knows he is getting a set level of service
-As well as being an important tool for the institution, the rules of conduct are also a useful professional guide for individual institution members.

90
Q

In the case of a breach of a rule of conduct what is the procedure?

A

-Not every shortcoming will neccesarily give rise to proceedings
-A formal investigation by the Head of regulation
-RICS can request information and nvestigate compliance
-members must cooperate fully with any enquireies

91
Q

How can a disciplinary proceeding be triggered?

A

Someone complaining to the RICS
An allegation by a client or third party
Information recieved or established by the RICS

92
Q

What are the three actions that can be imposed after the investigation stage?

A

-fixed penalty
-consent order
-Disciplinary panel

93
Q

What are fixed penalties?

A

A fine set by the RICS

94
Q

What are consent orders?

A

A written agreement between the RICS and a memeber containing corrective actions and restrictions from taking certain actions.

95
Q

When is a disciplinary panel applicable?

A

More serious breaches of conduct, usually held in public, a balance of probabilities is used.

96
Q

What breaches would explusion be suitbale for?

A

persistent failure to comply with RICS rules of conduct, Fraud, Dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, missappropriation of a clients money.

97
Q

Can you advertise your new company in the press?

A

Yes in a responsible manner

98
Q

What was the MERITT V BABB case?

A

-2001
-surveyor sued for negligence by former client
-Highlights the importance of having run off cover
-surveying firm was no longer in existence so the individual survyeyor was pursued for damages succesfully

99
Q

What must a complaints handling procedure include?

A

-RICS provide a model form
-must include a redress mechanism
-details of the policy should be issued with the terms of business
-must be clear, quick and transparent
-Complaint must be investigated within 28 years
- Whole process must be recorded
-PI insurers must be informed of any complaints
-Must have 2 stages

100
Q

What is an independent redress scheme?

A

-consumer scheme designed to handle small issues that would be expensive to take to court
-RICS firms must specify which redress scheme they want to use e.g. ombudsmon or arbritation

101
Q

What benefits does PII provide to a professional?

A

The professional is protected from financial losses
The firm does not have to meet the claim from their own assets

102
Q

What benefits does PII provide the client?

A

They are able to recover their financial losses

103
Q

On what basis is PII underwritten in the uk?

A

On a claims made basis

104
Q

What does claims made basis mean?

A

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

105
Q

What are the requirement for professional indemnity set by the RICS?

A

The policy cover must be made on an ‘each and every’ claim basis
The RICS sets out the minimum levels of indemnity
The rics sets out the maximum levels of uninsured exess
Run off cover must be in place for at least 6 years
The policy should include cover for past and rpesent employees, director and partners

106
Q

What articles do you read?

A

Recent article in the RICS UK Residenital Market update 2024
-market starting to settle - sales expectations improving slightly

107
Q

What recent articles have you read from the RICS?

A

Example

108
Q

How do you keep up to date with topical issues?

A

Follow updates on the RICS modus and journals, Conversation within the workplace with colleagues, Undertake research on topics that interest me or directly impact my line of work

109
Q

What are the main elements included within a fee proposal?

A

Terms and conditions, scope of services, exclusions, assumptions

110
Q

Once you and your client agree the services that are to be provided verbally what should you do next?

A

Follow up with a formal letter with the terms and conditions, fess and scope of works to be provided.

111
Q

What are money laundering red flags?

A

Cash buyers, unusual prices, Payments from multiple sources.

112
Q

What is money laundering?

A

Concealing the source of criminal activity to disguise illegal origin

113
Q

What is the status of a rics professional statement?

A

mandatory to all rics - members and firms, including trainees

114
Q

What are the different RICS documents?

A

Rules of conduct
professional statements
Guidance notes
Code of practice
Jurisdiction guides

115
Q

Why do you want to become chartered?

A
  • best standard of my profession
  • guidance and support from rics
    -commited to continued learning and development
    -Help other surveyors become chartered
116
Q

How many years after an instruction can a PI claim be made?

A

15 years

117
Q

Why are ethics important?

A

Ensure consistency, clarity and ensure appropriate behaviour

118
Q

Who is the RICS president?

A

Tina Paillet

119
Q

When did the RICS recieve royal charter?

A

1881

120
Q

What is Royal Charter?

A

Method of incorporation granted by the Queen.

121
Q

What are the 4 levels of membership?

A

MRICS
FRICS
AssocRICS
Trainee

122
Q

How do you become a fellow?

A

5+ years as MRICS
Leadership role
Professional/technical achievement
Raised the profile of the RICS

123
Q

What is the Governance Structure of the RICS?

A

Privy Council
Governing Council
Standards & Regulatory Board / Management Board / Audit Committee
Management Board comprises 17 professional groups

124
Q

What is the role of the Privy Council?

A

Grants awards and Royal Charter

125
Q

What is the role of the Governing Council?

A

Governing Council is the highest governing body, setting global strategy and ensuring RICS fulfils its Royal Charter obligations.

126
Q

What is the role of the Standards and Regulatory Board?

A

They are responsible for exercising the standards and regulatory functions of the RICS.

127
Q

What is the role of the Management Board?

A

To direct RICS affairs under delegated authority from Governing Council.

Comprised of non-members (independent), members of RICS, and RICS Executives.

128
Q

What is the role of the Audit Committee?

A

The Audit Committee operates independently of Governing Council, the Management Board and the Standards and Regulation Board.

Each year it reports to Governing Council on how it has discharged its duties.

Comprises member and non-members.

129
Q

What is the role of the Regulatory Tribunal?

A

regulates the RICS
fair and independent judicial body
consists of lay members and RICS members

130
Q

What do you know about the RICS Guidance Note: Complaints Handling (2016)?

A

A firm’s written CHIP must be approved by the RICS.

Notify PII insurers as soon as possible if a compliant arises.

Details of CHP issued same time as ToB.

Complaints log must be maintained showing details and status.

CHP must include an RICS approved Alternative Dispute Resolution

131
Q

What are the RICS minimum procedures for Complaints handling procedure?

A

Acknowledge a written complaint within 7 days
Respond within 28 days
Refer to independent redress provider if unresolved
Log in a complaints log

132
Q

Are you aware of any new RICS guidance on insurance?

A

RICS Guidance Note: Risk, Liability and Insurance 2021

RICS has secured new insurance terms, lifting the 12 month fire safety exclusion from PII.

From May 2021, insurers must provide cover for fire safety claims on a property 4+ storeys

133
Q

What money laundering checks do you need to do for private limited companies?

A

Certificate of incorporation
Full name
Registered Office
Registered number
Business address
Name of all shareholders with over 25% stake.
(report discrepancies to Companies House)

134
Q

How many rics members are there?

A

134,000 +

135
Q

Who is the RICS CEO?

A

Justin Young- as of 5th July 2023

136
Q

What are the major challenges currently facing the RICS and initiatives to address these?

A

Diversity & Inclusion: Started to collect demography data in UK & Ireland for benchmarking and target setting

Sustainability:
Granted observer status for COP28 in Dubai

Rebuilding trust in the professional for both members and public. Appointments of Tina Paillet and Justin Young recognise the importance of respecting tradition but evolving with the times.

137
Q

What do you know about The Bichard Review?

A

Independent Review in 2021 found internal governance failings at the RICS.

Following consultation, Bichard made seven recommendations to create a clearer and more simplified structure including creation of Management Board and Standards & Regulation Board.

138
Q

Why do you want to become a Chartered Surveyor?

A

I would like to become a member of the Royal Institution of Chartered Surveyors because it would provide me with increased credibility in the eyes of my clients, help me maintain and further my professional competency, and provide me with access to a network of 140,000 property professionals worldwide

139
Q

What are the 5 benefits of being an RICS member?

A
  1. Status
  2. Recognition
  3. Market Advantage
  4. Knowledge
  5. Network
140
Q

What must you include in the Terms of Engagement prior to starting work on an instruction?

A

There must be a written agreement with the client on:

  • The fee due
  • How expenses are to be treated, including how they are to be calculated
  • A copy of the firm’s complaint handling procedure will be available on request.
141
Q

Where would it be stated the level of Professional Indemnity Cover that you intend to offer your client?

A

In the terms of business, that are to be agreed before the instruction is undertaken.

142
Q

What did the RICS publish on Conflicts of Interest?

A

The RICS published a global professional statement: “RICS Professional Statement on Conflicts of Interest (2017)”

143
Q

Mentioned in submission

What RICS Professional Statement recently got Produced on the topic of Money Laundering? And from when is it Effective?

A

RICS Professional Statement – Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019). Effective from 01 September 2019

144
Q

Mentioned in submission

What is the penalty for bribery?

A

Up to 10 years in prison.

145
Q

What is a PEP, and what are you required to carry out when working with one?

A

A politically exposed person. You are required to undertake further checks or “Enhanced Due Diligence” EDD when working with one. They present a higher risk of being involved in bribery or corruption due to the nature of their position.

146
Q

What piece of UK legislation covers money laundering in relation to estate agency work and ‘relevant financial business work’?

A

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

147
Q

Mentioned in submission PTRDCM

What are the 6 Key Principles of the Bribery Act (2010)

A

1) Proportionality
2) Top Level Commitment
3) Risk Assessment
4) Due Diligence
5) Communication
6) Monitoring

148
Q

What is the RICS documentation on handling client money?

A

RICS Professional Statement on Client Money Handling 2019

149
Q

What is the RICS Requirement for Run-Off Cover once a firm closes?

A

The RICS requires that for consumer cover, a firm maintains at least £1,000,000 of cover for 6 years. For commercial firms, the firm should decide what level of cover is appropriate for 6 years after. The RICS recommends that you have cover in place for longer, as you are liable for negligent acts for up to 15 years under section 14A of the Limitations Act (1980).

150
Q

What are the Three Objectives of Client Money Handling (2019)?

A
  1. Keep Client’s Money Safe
  2. Client accounts are used appropriately
  3. RICS – regulated firms have appropriate procedures in place to ensure best practice
151
Q

What would you consider if you were invited to a sporting event?

A

I would consider the value of the gift, the situation in which I was being entertained (not alone) and the scope of ongoing and future works with that client. I would consider whether it was appropriate for me to attend and whether it would impact on my integrity as a practitioner. I would ensure that any gift accepted would not be during a current instruction and any fees payable would already made.

152
Q

If you had valued the site next door would you be conflicted?

A

No, not necessarily. You would in fact be well placed to inform on the value of that property.

153
Q

When starting a new practice what would you do in regard to VAT?

A

You must inform HMRC for VAT and Tax registration – current threshold is £90,000 p.a. in turnover.

154
Q

What are the 5 exceptions from Red Book Global valuations?

A

In VPS 1 – Compliance with standards and practice statements where a written valuation is provided.

E-A-S-I-N

(1) Expert Witness work.
(2) Agency and Brokerage work.
(3) Statutory work – e.g. for a tax return.
(4) Internal Purposes – no third party reliance.
(5) Negotiations or Litigation

155
Q

What are the 3 benefits to being a regulated firm?

A

Confidence - clients and firm are monitored by RICS Regulation

Professionalism - firms are obligated to provide clear, impartial, expert advice

Security - firms have to have a complaints procedure, access to free independent redress and PII cover

156
Q

What are the SIX ethical principles on which the Rules of Conduct are based?

A

Honesty
Integrity
Competence
Service
Respect
Responsibility

157
Q

What is the Ethics Decision Tree?

A

It is a decision making tool to help members make reasoned ethical decisions.

Decisions need to be based on the facts, legal and in line with Rules of Conduct

158
Q

Can you outline what you include in your terms of engagement?

A

The Client name
The Property name
The purpose of the valuation
Date of valuation
Bases of valuation
Tenure
Conflicts
Relevant PII cover
How expenses are treated
Fee value
Information on CHP

159
Q

Can you outline how you calculate fees

A

Size and complexity of the job dictates fee level.

Market Appraisal fixed fee which gets taken from percentage of sale price.

160
Q

What document covers conflicts of interest?

A

Global Professional Statement Conflicts of Interest 2018

161
Q

Mentioned in summary of experience

How would you handle a complaint?

A

Send a copy of the CHP to the complainant advising that

  1. Complaint will be acknowledged by the Compliance Officer within 7 days and responded to within 28 days. Notify PII insurers of the complaint
  2. If not resolved at this stage, it can be escalated to our Global Managing Director for further review
  3. If this is still not satisfactory, referral to our third party ADR
162
Q

What is your company policy on accepting gifts, entertainment and hospitality?

A

Gifts up to £100 and Entertainment/Hospitality up to £250 are OK to accept.

Anything above this must be recorded on the gift register.

Gifts exceeding £200 and Entertainment/Hospitality exceeding £500 need prior authorisation before they can be accepted

Any gift above £500 must be auctioned off for charity

ANNA - RICS Spring 2024 Revision (29 decks)

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