Ethics, Rules of Conduct and professionalism Flashcards

Question

Why is PI insurance needed?

Answer 1

* Policy covers legal defense costs, investigation costs, and any damages awarded. * Ensure that the firms’ clients do not suffer financial loss which the firm cannot meet

Answer 2

* Any one claim or aggregate plus unlimited round the clock reinstatement basis. * Wording should be comprehensively written on full civil liability basis (minimum RIC wording) * The minimum level of indemnity based on the firm’s turnover in the previous year. * Cover past and present employees * Underwritten by a listed insurer

Answer 3

* Record recommendation and advice given * Do not advise on a specialism outside your field of experience * Avoid poor management and excessive workloads * Follow RICS rules of conduct

Answer 4

• They provided signed timesheets that were not accounted in their applied amount. As I checked that they were valid, I included them in the amount due

Answer 5

• Clause 54.1

Answer 6

Gifts • Zero Gifts policy but with the exemption that if a Promotional Item is offered bearing a company’s logo and shall and not exceed EUR 20 (twenty euros) per item. • Gifts are allowed if they don’t make the recipient obliged to the giver Hospitality • Hospitality offered or received should serve a business purpose • Employees shall not participate in activated organized solely for entertainment by customers. • The value of hospitality should not exceed 100 Eur per person. • Do not create an obligation to reciprocate.

Answer 7

Stage 1 • Letter of notification /preliminary notice • Must be acknowledged in writing within 21 days of receipt a. We are in receipt of your letter of [date], which is acknowledged. We await a fully compliant Letter of Claim if your clients are intent on pursuing a claim. Any claim will be defended’. Mention ADR • 6 months after, if the person making the claim has not send any further correspondence, they should notify the professional of its intentions i.e weather they should notify the professional of its intentions with regard to the claim or dropping it etc. Stage 2 • Letter of claim (intention for litigiation) • This will detail the chronological summary on the facts on which the claim is based, what the professional done wrong, estimate of the financial loss suffered by the claimant and how it is calculated. • Acknowledgement within 21 days • Reply formally within 3 months • If you respond by trying to settle then you commence negotiation that you try to resolve within 6 months. • If not resolved within 6 months there could be an agreement to within 14 days to extend time • If no, stakeholders review both parties to see if proceeding can be avoided or issues narrow • If not, claimant commences court proceedings Stage 3 • After ADR has been exhausted. Litigation (if it cannot be resolved) • Claim to be valid it needs to be served on a defend within four months of issue. ``` Stage 4 • Before the court starts, they will except a. ADR to be considered b. Understand each other’s position c. Make decision about how to proceed ```

Answer 8

* Statement in a genuine attempt to resolve defense will not be used in court as evidence against the person making the statement * It allows them to speak freely to settle

Answer 9

• It’s the different rules and ethical standards that professionals and firms should follow to be part of the RICS.

Answer 10

• Provide a strong foundation for RICS and its members, helping to protect the public and uphold the reputation of the profession.

Answer 11

• MRICS need to Show how your career experience demonstrates different professional characteristics set out by the RICS a. Champion – Service to RICE, or to another professional body, b. Influencer – diversity and inclusion c. Role model – client care d. Expert – teaching, qualitifcation

Answer 12

* Buying coffee for a client, the same way I would do for any other collogues * Its normal practice * Something that can be reciprocated – does not make the other person feel obliged * I would consider obviously the time of giving the coffee, for example I wont do it during tendering stages etc

Answer 13

• When a sole practitioner has arranged cover i.e. another practitioner to cover his tasks, in the event of him/her not being able to practice his work i.e illness

Answer 14

* Have an email address or telephone number so that they can get in contact * Ensure all staff have access to it and an understanding of it * Record all the complaints in a register * Set up a review process * I would set up timescales that everything needs to be replied to so everything can get replied to quickly * Where the complainant is a consumer, the firm has to signpost to an approved ADR provider. The Ombudsman can accept a complaint eight weeks after the complaint is made to you

Answer 15

* When funds that have be generated through criminal activity , are being made legal. * Under the UK’s Money Laundering Regulations 2007, every company should appoint a person to take that role who oversees the firms anti-money laundering systems.

Answer 16

* It when a party or an individual providing is influenced by an existing relationship with an other party/individual when carrying out its services. * For example, instead of serving the interest of the client you might serve the interest of a family member that owns a construction company. * A conflict of interest can arise when your ability to exercise judgement is seen to be impaired or otherwise influenced by your role in another relationship. * If an existing relationship with a third party makes you are unable to advise and represent each client objectively and independently.

Answer 17

The Ombudsman

Answer 18

Based on your estimated turnover, if it’s something over 2000001 is one million pounds.

Answer 19

It is RICS market facility to provide RICS members PI insurance. It is when RICS firms are unable to get PI insurance but they meet the RICS standard.

Answer 20

• Conflict of interest should be declared at the earliest opportunity to all relevant stakeholders and it is advisable to secure a written agreement to proceed

Answer 21

* Promotes trust * Maintain reputation * Strengthens your professional relationships. * Minimize misunderstandings

Answer 22

* International Standard – Mandatory * Professional Statements – Mandatory * Code of practice – Mandatory or recommended * Guidance notes – Recommended best practice * Information papers / modus – Information only.

Answer 23

* Verify the facts, then politely remind them of their duties as a member of the RICS. * If they persist I would write to the RICS Head of Regulation and inform them

Answer 24

• A written instruction from the RICS to improve/implement corrective procedures for the party in question

Answer 25

• Countering bribery and corruption, money laundering and terrorist financing

Answer 26

* Do not accept, offer, directly anything that could constitute a bribe * ensure that they have adequate knowledge of bribery and corruption to be able to comply with the requirements of this professional statement * report any activity they are aware of that breaches applicable anti-bribery and corruption laws to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager.

Answer 27

* Not facilitate or be complicit in money laundering or terrorist financing * Have systems and training in place to comply with the laws * Report any suspicions of money laundering * Periodic risk assessment * Put measures in place to prevent the risks * Know your client * Verify the identity of their client by undertaking basic identity checks * Record and retain information detailing how the firm has met the ‘countering money laundering’ professional statement

Answer 28

• A group of formally independent good or services whose goals is to increase their collective profits by pushing the price of a product as high as possible.

Answer 29

• When a third party has done satisfactory checks meaning that these checks do not need to be duplicated

Answer 30

• Use of thread of violence to pursue ideological objectives committed by governments, non-state actors

Answer 31

• The solicitation, collection or provision of funds with the intention to support terrorist activity

Answer 32

• A payment made to a government official with the purpose of speeding up a routine administrative action. Such payments are customary and legal in some countries

Answer 33

• An event that necessitates a firm re-evaluating the risk level of a costumer, client, partner, and possibly conducting enhanced due diligence.

Answer 34

* Prepare a written policy for anti-bribery * Have a gift and hospitality policy * Clear policy to be understood by all staff * Carry out due diligence with your costumers

Answer 35

* Declare items to their employer * Attend relevant training provided by their employer * Be familiar and act in compliance with their employer’s policy * If in senior management position , take a leadership role in attempting to prevent bribery

Answer 36

* Written policy * Appropriate governance and systems controls in place, proportionate to the type of work the firm does * Training * Record of suspicion of money laundering and terrorism financing * Identify the beneficial owner of a company/client involved within a transaction * Appoint a senior person to be responsible for ensuring anti-money laundering and counter-terrorist financing policy

Answer 37

* Training * Comply with policy * Keep reports of suspicion of money laundering and terrorist financing activity confidential * Top level commitment

Answer 38

* Risks to be broken down in a risk register * Periodic review is necessary to make sure the risks and the controls are still in line with the assessment * Appointing an ethics champions, who is a senior member with experience of how the business works and with visibility of a department of office. * Note down Politically exposed persons (PEP) client in a position of influence * Whistleblowing procedure

Answer 39

• Collecting standard evidence to verify the identity of different types of clients such as companies, trusts, special purpose, vehicles.

Answer 40

• Collecting standard evidence to verify the identity of different types of clients such as companies, trusts, special purpose, vehicles.

Answer 41

* Full CDD is not needed due low risk | * EDD – more checking is required to evaluate risks

Answer 42

* You will require a Locum | * Can’t always deal with their own complaint, it requires someone to be objective.

Answer 43

• Complaints handling Rules 2015

Answer 44

* Have a responsible principal role * A contact officer role * RICS Logo * Mandatory text in terms of engagement stating you are regulated by the RICS.

Answer 45

* Firms must submit information on business and staffing * Must disclose nature of clients * Share complaints handling details and records * Share PII * Disclose details about Client money handling and if you do.

Answer 46

* Not conforming to RICS rules * Incompetence * Breaching Professional Statements (Client Money, Complaints, conflicts of interest) * Criminal offence committed * Failing to answer correspondence

Answer 47

• 14 years imprisonment and an unlimited fine.

Answer 48

* Speaks about COP 26 * 85% global energy still comes from coal * Concrete is made from * Suggests greener concrete production (Reducing the use of natural resources such as limestones)

Answer 49

• Act or omission which falls short from the expected reasonable skill that a professional need to have.

Answer 50

* 2021 * New change is that NRM3 has considered whole-life cycle costing in order to enable transfer of cost information from the construction team to the asset management team

Answer 51

• protects professionals when a company ceases to exist

Answer 52

* Proportionality – disciplinary action proportionate to breach * Accountability – if RICS expel someone, they are accountable for that action and must justify it * Consistency – they are consistent in their approach to regulating firms and members * Targeting – identifying areas that require improvement and targeting specific groups * Transparency – being open and transparent about the actions of the RICS

Answer 53

* 1st time – fixed penalty cation stays on record * 2nd time – fixed penalty, fine of £150 and get published to RICS website * 3rd time – referral to Disciplinary Panel which may result in expulsion from membership and likelihood of costs being awarded against the member

Answer 54

* Every RICS professional needs to have it. * Make sure that complies with its RICS regulation and statutory obligations. * Ensure that info provided to RICs is truthful

Answer 55

* Protect firm from financial loss * Protect the insured member or firm the consequences of its liability to pay damages * Ensure firms client do not suffer financial loss.

Answer 56

* Any one claim should be on reinstatement basis * RICS minimum wording * Minimum level of indemnity based on the firm’s turnover in the previous year

Answer 57

Up to and including £500,000 > The greater of 2.5% of the sum insured, or £10,000 Over £500,000> 2.5% of the sum insured

Answer 58

• Underwritten by a listed insurer which can be found on the RICS website • Fully retroactive o Regardless of when the negligence was made it still applies • Cover for past and present employees • Run-off cover o Cover employees, after the firm has ceased to trade. o It needs to be updated on 6-year basis and cover limit of 1m with the day ceased as the start date. o 6-year normal contract, o 12-year deed, o 15-year defect liability period • Fire safety exclusions may vary however from 1 May 2021 any exclusion will not apply to a building four storeys or under.

Answer 59

• It when a party or an individual providing a service is influenced by an existing relationship with another party/individual when carrying out its services.

Answer 60

* Party conflict. When you act for both the client and the contractor * Own interest. When your act for your client and you might think you or your firm can benefit * Confidential information. When you cant provide information to one client without be able to keeping that information confidential for another client.

Answer 61

* Acting for both a developer and contractor | * Acting for competing contractor

Answer 62

• When every party has given their written consent that a professional can proceed with a conflict of interest. • This is only applicable if: o It is in the interest of all those who are or may be affected o Is not prohibited by law. • The fact that clients give you informed consent doesn’t mean that he/she should proceed, must exercise his judgement.

Answer 63

• Firms might ask employees to declare any potential interests in property at the time of joining the organisation and update the register on regular basis

Answer 64

* Let parties know immediately in writing | * Get ‘informed consent’ if they would like to proceed

Answer 65

* Establish confidential procedure for whistle blowing, independent of the normal chain of command * Include ethical evaluation into formal performance appraisals * Help people to join RICS

Answer 66

* Ethics is the general morals of a professional | * Integrity is one aspect of that which means you are honest, transparent and have strong morals

Answer 67

* Have at least 25% principals RICS * Offer professional services in surveying disciplines to professional, corporate, institutional clients * CPD * PI insurance * Register with RICS

Answer 68

* Comply with the Rules of Conduct for firms * Act in accordance with the obligations set out in RICS Royal charter * Inform RICS for any disciplinary body * Notify the head of regulation within seven days if there is a material change regarding the firm and provide full details

Answer 69

* Public Liability * Employers liability * Employer liability cover * Directors and officers cover * Contents insurance * Business interruption insurance

Answer 70

* Would not affect gifts that might suggest an improper obligation * However, gifts and hospitality can be accepted in some circumstances after you have consulted the ethics decision tree.

Answer 71

* Value of the gift * Time * Proportionate to a working relationship * Will it affect my ability to act impartially? * Is it in line with the RICS ethical standards?

Answer 72

• Physical o electronic separation of individuals within the same firm that prevents confidential information passing between them

Answer 73

* If its needed or required by law | * Informed consent

Answer 74

* No common directors, partners or employees in common between firms * No direct or indirect fee sharing between the firms * No access to information or common internal data sharing arrangements relating to the area of conflict.

Answer 75

* In RICS website and the app | * By 31st January every year

Answer 76

* Formal training that has a clear learning objective such as professional training course * Informal training: self-managed learning that is relevant to your professional role

Answer 77

* Weak areas * Topical issues * Future project and project requirements

Answer 78

* Client money is kept safe | * Used for appropriate uses only

Answer 79

* Bank account that you have exclusive control * Not mixed with other sums * Not fixed with office money * Naming the account : Name of firm, Name of Client, Client * Immediately available even at sacrifice of interest unless other arrangement have been made in writing

Answer 80

* Information will be held in a bank account that the RICS firm has an exclusive control over * Advice should be in writing to clients that pay in advance as this is not covered by client money protection scheme * Disclosure of all commissions earned by the firm while managing their property * How unidentified funds are dealt with * Copy of the firms written procedure for handling client money

Answer 81

• Ensure that is paid into the client account promptly

Answer 82

* Keep records and accounts * Appropriate systems to deal with client instructions * Regular client bank account reconciliations * Publish written procedures for handling money * Is not overdrawn * Systems have relative security such as firewalls backups etc

Answer 83

* Compliance with anti-money laundering legislation * Bribery law * Ensure any breach is investigated * Inform RICS, client and insurers of RICS immediately if client money is misappropriated by any person

Answer 84

* Anti-money laundering legislation * Follow client handling procedures * Make appropriate disclosures to a senior member of the firm

Answer 85

• Need to try to locate from who the funds are from by contacting the last engaging firm

Answer 86

* Three-way reconciliation. Compare bank statement, with cashbook and ledgers * Record keeping. Records needs to be signed off by senior members * Bank account and cashbook should never show a negative position * Only suitable senior people sign off * If there are changes to a payee, you need to double check through robust verification measures that they are correct * Reconciling items should not be greater than 3 months old except for cheques for 6-month checks * Regular conciliations

Answer 87

* If there is any money that cannot be identified, you will hold the surplus money in a clients suspense account for 3 years, * If after 3 years you haven’t found the true claimant, the money is to be donated to a charity * Get a receipt and the charity should offer indemnity to enable the firm to recover a donation in the event of a claim.

Ethics, Rules of Conduct and professionalism Flashcards

(112 cards)