Ethics L2 Flashcards
How do you ensure that you comply with bribery legislation?
In relation to my role I am aware that it would be an offence under the Bribery Act 2010 to accept ,or request financial or other advantage as a reward for performing a relevant function or action improperly. This might be something as subtle as being improperly influenced on a valuation for a non-monetary reward.
If asked… punishment under the act is unlimited fine and up to 10 years in prison.
How do you ensure you comply with money laundering regulations?
Be aware of my responsibilities in the organisation to…
- Take a risk based approach (unclear beneficial ownership, cash purchase, speedy transactions, unclear source of funds).
- customer due diligence (identification, politically exposed persons, enhanced DD)
- reporting suspicious activity to Nominated Officer then HMRC.
- record keeping
If challenged the key legislation is….Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
How do you ensure you comply with your firm’s bribery and gifts policy?
Report to line manager.
Report all gifts to a partner and seek permission.
Not to be accepted without permission.
Tell me about an instance of when you have been offered a gift or hospitality by a client.
A referral fee paid direct to me in return for me making an introduction. Refused, and advised my manager. ??????????
Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge.
Decline the instruction, and explain to the client why. I would also check to see if there was a more experienced colleague that could pick up the instruction.
Tell me about an instance of when you have handled client’s money.
We regularly hold reservation deposits on behalf of clients. We provide a receipt of funds and that it has been paid to the Client Money Account, it gets paid into the client money account and is correctly attributed to the client when paid in.
Tell me about how you would handle a client complaint.
Listen to what they had to say and acknowlege complaint.
Send a copy of CHP
Ask them to put it in writing to my Senior Manager.
Inform them of the process and that there was a third party redress scheme if they were still not satisfied with the outcome at the end of that process.
If asked… property ombudsman.
Tell me about your understanding of your firm’s process for escalating a complaint to Alternative Dispute Resolution (ADR).
3 Days to acknowledge
15 days to respond (Direct Manager)
If still not happy
3 days to respond
15 Days response (Senior Manager)
If not happy refer to the Property Ombudsman
Tell me about a conflict of interest check you have carried out.
I check for conflicts regularly, often when completing red book.
Check I am competent.
Email front line staff in the business to check for existing relationship.
Check our CRM system and filing to check against property and client.
If you identified a potential or actual conflict of interest, how could you handle this?
Either decline the instruction and explain why.
OR
Obtain informed consent.
8 Astley House – how did you carry out your pre-instruction checks?
- Competent, knowledgeable and experienced.
- Conflicts
- AML
_ VPS 1 Compliant terms of engagement
8 Astley House. How did you agree clear and accurate ToE?
Detailed consultation with client to establish purpose.
Used a template in line with VPS 1 to ensure I gathered the correct information.
8 Astley House. How did you ensure the work was within your scope of experience?
Checked:
Location, purpose, method of val, as well that there were no unusual assumptions or special assumptions.
80 Burford High Street – how did you agree a transparent fee?
I included a fee matrix in the terms which indicated exactly what fee would be due based on the achieved aggregate annual rent after any incentive.
80 Burford High Street. Why did you propose a stepped fee?
The client wanted to make sure that our interests were aligned when letting. They were very focused on the headline rent.
If challenged…I advised that this might involve accepting trade offs in other areas.
