Ethics, Rules of Conduct and Professionalism Flashcards

Question

What happens to Client's Money if a firm goes insolvent?

Answer 1

Client Money should be kept in a discreet or general account that is labelled with 'Client'.

Answer 2

* That client accounts are being correctly reconciled * That firm 'Principals' are involved in the reconciliation process * That client accounts are never overdrawn * That checks are carried out when client's change details e.g. telephone checks. * Accounts are properly named

Answer 3

* A Party Conflict - duty to act for one client conflicts with duty to act for another. * An Own-Interest Conflict - a duty to act for a client conflicts with your own interests/firm's interests. * A Confidential Information Conflict - a duty to provide information to one client with a duty to disclose that same information to another client.

Answer 4

* If Informed Consent has been given - see RICS sample form for obtaining informed consent. * And only if you consider all parties interests will be served by you doing the work. * If any chance your actions could be perceived as lacking integrity, you MUST NOT proceed. * 'Information Barrier' within a firm may assist with a client decision to give 'Informed Consent'.

Answer 5

* Related to concept of 'Dual Agency' - agent has contractual relationship with both seller and buyer of property. * This is not allowed by the latter statement but allowed as a last resort by the former...

Answer 6

* Identify and manage C of I's * Keep records of decisions made in relation to whether to accept or continue assignments, obtaining informed consent and measures taken to avoid C of I's.

Answer 7

* Sets a customer's reasonable expectations. * Sets scope and nature of services and limitations to these. * Define circumstances in which a complaint may be made and managed. * Some types of work (e.g. Valuation), have mandatory requirements for T of E. * Transparency about fees and timescales.

Answer 8

* Provides a decision-making framework to guide through difficult decision. * Do you have enough information? * Is it legal? * Is it in line with the RICS' Rules of Conduct? * Have you consulted with appropriate people? * Do you have clear reasoning? * Is your decision informed? * Would you be content to have your actions made public?

Answer 9

* Must comply with CPD requirements set by RICS * Must cooperate with RICS * Must promply provide all information reasonably requested by Standards and Regulation Board

Answer 10

* Must publish a Complaint's Handling Procedure that includes an ADR provider approved by RICS and maintain complaints log. * Must ensure PI cover that meets RICS standards is in place for current and previous work, inc 'run-off' cover for possibly up to 15 years (Merrett Vs Babb 2001 for mortgage valuation given 7 years earlier). * Firms with Sole Principal must make arrangements for work to continue in event of their death, incapacity etc. * Must cooperate with RICS * Must provide all info to the Standards and Reg board * Must display designation logo on business literature. * Must report to RICS any matter required under Rules for Registration of Firms

Answer 11

1. It's a RICS Regulation - updated Feb 2022. 2. Sets out which firms are required and which are eligible to be regulated. 3. Required = Provides surveying services to the public in the UK and at least 50% of Principals (Directors) are RICS members (chartered or non-chartered). 4. Eligible = PRovides surveying services to public and 25% of Principals are RICS members, or is implementing a plan to achieve this or is supported by a RICS regulated firm.

Answer 12

* Firm details * Nature of work (services to public) * Principal details * Employee details * STandards and Regulation requirements = Complaints Handling Procedure, PI Insurance, Sole Principal (locum arrangements), RICS logo.

Answer 13

* Comply with RICS Rules of Conduct * Act in accordance with Royal Charter and Bye-laws * Inform RICS of any disciplinary matter, insolvency, material change, dishonesty or fraud, professional misconduct, matter causing reputational damage.

Answer 14

* New CEO for RICS from 5th July - Justin Young * Ann Gray - President * Tina Paillet - Senior Vice President * Chris Alder - Senior Exec Officer

Answer 15

* Simplified Due Diligence – Where you determine the business relationship is low risk of money laundering/terrorism * Enhanced Due Diligence – for high risk customers and transactions with greater threat to financial sector * New Customer Due Diligence – doing the checks to ensure your client is who they say they are.

Answer 16

* When engaging higher-risk clients e.g. off-shore entities, or those based in countries with known links to organised crime or money-laundering e.g. Russia. *When clients are using a Special Purpose Vehicle (SPV) for a large purchase e.g. the name of the entity they are using for the purpose is not the same as the name of their firm.

Answer 17

*RICS had a large budget defecit due to innacruate cashflow forecasting - 2018. * Levitt found inefficiencies due to Board Structure - Management vs Executive board. * Levitt made recomendations - more oversight by governing council of exec board. * No evidence of improper or illegal conduct

Answer 18

*turnover less than £100k = £250k min cover *turnover between £100-£200k = £500k min cover * turnover Over £200k = £1m min cover

Answer 19

* RICS Professional Indemnity Insurance Requirements - RICS Regulation! Updated 2022. * must be retroactive - covers for all previous events from date insurance taken out. * must follow RICS wording. * past and present employees * from a RICS approved insurer. * run-off cover in place.

Answer 20

Commissioned by Rics governing council to review institutions purspose, governance and strategy. Recommended activities are centred on public advatage and to hand decision making to members. Also recommended clearer, more accountable governance structure, more leadership and influence on global issues like climate change.

Ethics, Rules of Conduct and Professionalism Flashcards

(44 cards)