Ethics, Rules of Conduct and Professionalism (Checked) Flashcards

Question

When might the RIC+01S0 investigate social media?

Answer 1

- Discrimination - Dishonesty - Abuse / threats - Bullying / harassment - Concerning communications - Ignoring advice / warnings

Answer 2

- Professional standards (formerly professional statements and guidance notes) (set requirements) - Practise information (best practise) - Practise alerts (upcoming risks)

Answer 3

- Avoid price fixing - Market based / ad hoc - Can enter into future fees if submitted initial proposal - No undercutting - Transparent if receiving referral fee

Answer 4

When a members / firms impartiality and independence if threatened due to the existence of a conflict between two clients

Answer 5

- Avoidance is declining instruction - Management is accepting but put information / ethical barrier in place (with written agreement of all parties)

Answer 6

RICS Global Professional Standard: Conflicts of Interest (2017)

Answer 7

- Party (same instruction for two different parties) - Own Interest (personal) - Confidential Information (work between two parties that is confidential)

Answer 8

Given in writing if person explaining position is transparent and all parties are best served by doing so

Answer 9

1. Conflict avoidance 2. Written advice for informed consent (1. nature of conflict, 2. clear drafting, 3. written confirmation) 3. Conflict management (information barrier)

Answer 10

- Firm can act for two parties if in place - Must be different surveyors and physically separated in different floors / buildings - Virtual IT barrier - Securely stored info - Audit trail - Compliance Officer must oversee

Answer 11

- Selling plot of land on Project - Appointed CBRE to sell it - They informed me other CBRE team were acting for a potential investor - I provided informed consent as the two teams were in separate offices so there was an information barrier in place

Answer 12

RICS Professional Statement: Conflicts of Interest - UK Commercial Property Market Investment Agency (2017)

Answer 13

- Agent acts for both seller and buyer - Not allowed

Answer 14

When an agent has multiple buyers - Exclusive: Can only act for one buyer - Non-exclusive: Can act for multiple buyers as long as information barrier is in place

Answer 15

Agent approached to provide advice that is incremental to existing instruction (acting for seller to sell but approached by buyer to provide valuation) Can only do this if informed consent given and an information barrier in place

Answer 16

- If a third party wants access to client info, must get clients approval (unless police/HMRC) - Files held for 6 years then destroyed - If overhear confidential info, report to firm's compliance officer and disposed

Answer 17

- Must have CHP - CHP in TOE - Notify PII if complaint - Details of CHP issued to client at Terms of Business - Complaint's log - Must include ADR in CHP

Answer 18

Step 1: 1. Details of CHP issues when complaint received inc. The Complaints Handling officer 2. Complaint made in writing 3. Acknowledged in 7 days 4. Investigated within 28 days Step 2: 1. If not happy refer to redress schemes such as RICS Dispute Resolution Scheme

Answer 19

- 20 hours pa - 10 hours formal - Understand Rules of Conduct during a 3 year period Formal: Structured / clear objectives Informal: Self managed

Answer 20

- When a duty of care if breached - Leads to loss - A claim for damages arises (negligence claim)

Answer 21

Exists to clients and third parties, using 'reasonable care and skill'

Answer 22

Yianni v Edwin Evans & Sons (1981) - Case established that a resi valuer instructed by a mortgager lending institution could owe a duty of care in tort to a mortgage purchaser relying on a valuation 1. Yianni's decided to buy a £15k house if they could get a £12k loan 2. Applied for a loan from the building society who procured a valuation from Edwin Evans & Sons 3. They valued the house and said it was suitable for the £12k loan so the Yianni's were loaned £12k 4. Edwin Evans and the building society knew that these people would not get an indepent valuation done and would rely on the one from the building society 5. They bought the house but found cracks in foundations, the cost to repair was £18k 6. Brought action against Edwin Evas & Sons arguing that for damages for negligence as they didn't see the cracks 7. Edwin Evas & Sons argued they owed no duty of care to the Yianni's, only the building society, and that the Yianni's were negligent for not reading the building society's advice about getting an independent survey 8. Conclusion - Edwin Evans & Sons did owe the Yianni's a duty of care

Answer 23

Limitation periods: - Contract: 6 years from date of negligent act - Tort: 6 years from the date the claimant suffered the loss

Answer 24

- Understand client's objectives and confirm in TOE - Competent - In accordance with RICS Professional Standards / Practise Information - File notes / photos - CPD - Cap liability on PII

Answer 25

Mandatory for surveyors, protects clients, surveyors and third parties against negligence claims when duty of care is breached Works on a claims basis, policies cover claims in that period

Answer 26

£1000,000 less = £250,000 £100,011 - £200,000 = £500,000 £200,001 + = £1,000,000 Up to £10m = The greater of 2.5% of sum insured / or £10,000 (excess) Over £10m = No set limit

Answer 27

Required following cessation of trading Consumer claims: £1,000,000 required over 6 years Commercial claims: Firms decide RICS Run-off Pool

Answer 28

RICS Professional Standard: Client Money Handling (2019) 1. Holding client money 2. Providing information to clients 3. Receipts of client money 4. Payments from client accounts 5. Accounting records and controls 6. Compliance

Answer 29

- Secure and identifiable account - 'Client' on bank account - Have money on demand - Interest agreed and accounts kept in credit - Monthly checks on reconciliation (received and expenditure) - Accurate records with running balance - Annual audit - Money can be withdrawn if properly required - Records must show all transactions - Signatories must be agreed with authorised staff - RICS Regulatory Review Visits(3 yearly basis) - Display procedures on website

Answer 30

1. Inform RICS (Firm Details Form) 2. Appoint a Responsible Principle 3. Register with RICS for regulation of the firm 4. PII and send to RICS 5. Client handling money (inc. protection scheme) 6. Register for RICS Valuer Registration Scheme (VRS) if Red Book Global Valuation 7. CHP and get it approved 8. Complaints log 9. Complaints handling officer 10. Logo kit 11. Plan for future running of business if sole practitioner 12. CPD logged 13. Annual return completed

Answer 31

- Disclose business name Comply with: - Disability discrimination - Financial services compliance - Bribery act - Money laundering - H&S - Asbestos - Fire safety - Data protection - Estate agency compliance - Inform HMRC for tax - Employment law - Insurance compliance

Answer 32

Giving, offering, promising or receiving of an advantage such as a payment, gift or service

Answer 33

- Inform RICS of closure and deregister - Inform clients - Return monies - Inform insurers (run-off cover for 6 years) - Client files for 6 years

Answer 34

1. Proportionality 2. Top level commitment 3. Risk assessment 4. Due diligence 5. Communication 6. Monitoring and review

Answer 35

1. Bribing 2. Receiving a bribe 3. Bribing a foreign public official 4. Failing to prevent bribery

Answer 36

Take steps: - Identify risks - Staff training - Clear policies - Regular reviews

Answer 37

Polices by Serious Fraud Office 10 years prison / unlimited fine for individuals, unlimited for firms

Answer 38

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

Answer 39

Proceeds of criminal activity are disguised / converted and realised as legitimate assets

Answer 40

- Risk assessment - Systems, policies, controls, procedures to address money laundering and terrorist financing - Internal controls - Staff training - Due diligence - Comply with PEP requirements - Appropriate record keeping - AML checks to check source of funds - Include high risk factors when assessing need for enhanced due diligence (third world countries / high risk people)

Answer 41

- Register with HMRC if let property for more than 10,000 euros/month - CDD checks on vendors, purchasers, landlords and tenants - EDD checks if red flags (high risk countries / non face to face)

Answer 42

- Large - Unusual pattern - No economic / legal purpose

Answer 43

- Identify client and identity (passport / driving license) - Identify beneficial owners of client (Persons of Significant Control) - Company name, number, address - Names of directors (unless listed on LSE) - Info on business relationship and proposed funding

Answer 44

- Additional procedures for 'high risk third country' or 'PEP - politically exposed person' (prominent public function, higher risk by virtue of their profession) - More detailed examination of background, purpose of transaction and increased monitoring

Answer 45

- Limit of 10,000 euros for acceptance of cash - Monitor relationship with client - Record keeping of procedures - Senior staff / board member must be appointed to take responsibility - Money Laundering Reporting Officer must be appointed to report any suspicions with a Suspicious Activity Report (SAR) to the National Crime Agency - Maintain record for 5 years and to report to Companies House any discrepancies between information the firm holds with info on Companies House

Answer 46

- 14 years prison / unlimited fine for assisting - 5 years prison / unlimited fine for tipping off

Answer 47

London Stock Exchange listing

Answer 48

Government ownership / control

Answer 49

- Certification of incorporation - Full name - Registered number - Registered office - Business address - Names of directors and shareholders with 25% or more holding - Identify higher risk client - Report discrepancies to Companies House

Answer 50

- Valid passport or driving license with photo - Copy of bank statement - Credit card bill - Council tax statement / utility bill for address (no more than 3 months old)

Answer 51

- Inability of parties to provide identity documents - Changes to parties in transactions - Unusual transaction features (unexpected urgency / loss making) - Payment in unusual currencies

Answer 52

- Wider sanctions issued in light of geopolitical activities such as Ukraine conflict - HM Treasury's Office of Financial Sanctions Implementation (OFSI) provides regularly updated guidance

Answer 53

Reminder about sanctions and estate agents role: - Consider risks to business as part of AML procedure, noting the sanctions lists include UK citizens and people who live in the UK - Risk factors and red flags - Software as part of due diligence if a firm is likely to engage with higher risk clients or assets - Checking individual clients of a higher risk against the HM Treasury 'Consolidated List' - Checking existing clients regularly where they present a higher risk (subscribe to HM Treasury's Sanctions Notices) - What to do if client is a match on a sanctions list, including contacting Office of Financial Sanctions Implementation (OFSI)

Answer 54

- Concealing criminal property (conceals, disguises, converts or transfers criminal property) - Arrangements (person enters into or becomes concerned in an arrangement which they know facilitates the acquisition, retention, use or control of criminal property) - Acquisition use and possession (acquires, uses or has possession of criminal property)

Answer 55

- Measures for a beneficial ownership register of overseas entities owning property in the UK - Strengthens the investigation powers regarding unexplained wealth orders (UWOs) - Allows easier prosecution of those involved in sanctions-busting inability or unwillingness of parties to provide identity documents

Answer 56

Divided into 3 parts: 1. Mandatory requirements 2. Guidance for good practise 3. Supplementary guidance

Answer 57

Bribery and Corruption: - Not offer or accept a bribe - Procedures in place to comply with law - Report suspicion to relevant authority - Act with due diligence to perform periodic written evaluations of the risks the firm faces - Retain records to show how the firm has met the requirements of this Professional Statement Money Laundering and Terrorist Financing: - Not facilitate or be complicit in ML and TF - Systems in place to comply with laws - Report suspicion - Evaluate and review risks presented to the firm - Use third party reliance for checks only where there is a level of confidence for the quality of the info provided by the third party - Appropriate measures to understand the client and purpose of instruction - Verify client by undertaking basic ID checks - Retain records to show how firms have met requirements of the Professional Statement

Answer 58

- Written policy in place and for senior management to take control of the procedures - Code of behaviour for staff and staff training - Encourage transparency - Gifts register - Up to date with legislation

Answer 59

- 'Risk based approach', consider three W's (who you act for, what you are doing, why you are being asked) - Dealing with PEPs (higher risk as they hold positions of influence and enhanced DD is required) - Identify beneficial ownership of a company (requesting Certificate of Incorporation or Annual Return for a company)

Answer 60

- Governing Council (20 members) - Standards and Regulations Board - Management Board

Answer 61

1- Honesty and integrity 2 - Competent 3 - High level diligent service 4 - Promote D&I 5 - Act in public interest

Answer 62

Honesty and integrity Honest - I do not accept gifts / hospitality / bribes Integrity - I do not misuse client money

Answer 63

When a members / firms impartiality and independence is threatened due to the existence of a conflict between two clients

Answer 64

Receive informed consent Given in writing if person explaining position is transparent and all parties are best served by doing so

Answer 65

Avoidance is declining instruction Management is accepting but put information / ethical barrier in place (with written agreement of all parties)

Answer 66

Framework of questions which members should ask themselves when facing a situation in which they are asked to act unethically

Answer 67

Step 1: 1. Details of CHP issues when complaint received inc. The Complaints Handling officer 2. Complaint made in writing 3. Acknowledged in 5 days 4. Investigated and keep informed Step 2: 1. If not happy refer to redress schemes such as RICS Dispute Resolution Scheme

Answer 68

- Lawsuits / court action (associated legal costs) - Pay for financial damages

Answer 69

CDD: - Individual: - Firm: Name of firm, company number, registered address EDD: MUST: - As far as reasonably possible, examining the background and purpose of the transaction - Increasing the degree and nature of monitoring of the business relationship in which the transaction is made to determine whether that transaction or that relationship appear to be suspicious SHOULD: - Obtain additional info on the customer and customer's beneficial owner - Obtain additional info on intended nature of business relationship - Obtain info on source of funds and source of wealth of the customer and the customer's beneficial owner - Obtain additional info on the reasons for the transaction - Obtain approval of senior management for establishing or continuing the business relationship - Conducting enhanced monitoring of the business relationship by increasing the number and timing of controls applied, and selecting patterns of transactions that need further examination

Answer 70

- Bribing someone - Accepting a bribe - Bribing a foreign public official - Failing to prevent bribery

Answer 71

Serious Fraud Office 10 years prison / unlimited fine

Answer 72

- Managed tender for DSO due to commence Stage 2 - Reviewed LL and RICS PII requirements - Requested all tenderers send their PII certificates

Answer 73

Minimum limit of indemnity: 100k or less = 250k 100,001k - 200k = 500k 200,001 or more = 1m Maximum level of uninsured excess: - Up to 500k = Greater of 2.5% of sum insured, or 10k - Over 500k = 2.5% of sum insured

Answer 74

RICS Professional Indemnity Insurance Requirements (2024)

Answer 75

0 - 25k fee = £2.5m / £10m 25k - 100k = £5m / £10m 100k + = £10m / £20m Depends on whether low or high risk

Answer 76

- Appointed a consultant through PSA - I had tendered and got tenders back, which included experience, so I was confident they were competent - Undertook CoI check - Set out Scope, Fee, Payment Schedule & CHP - PSA executed

Answer 77

Complaint's handling procedure

Answer 78

- Internal database where you can search building name and see appointments / plot and associated appointments / consultants and appointments - Send an email around

Answer 79

- NDA for Project Manager - Access to confidential info like other consultant fees - ADVISED to sign NDA - Terms agreed and executed by both parties

Answer 80

- Lawsuit - Pay financial damages / could be sued for damages - Pay legal costs (NDAs are civil contracts so it's not a crime to break one technically)

Answer 81

- Worked with the Transport Consultant to prep a response note to statutory consultee TfL regarding their comments on HPA - Wanted details of management of deliveries - Transport Consultant wanted to know if this should be in response note or revised Delivery and Servicing Management Plan - Advised this was not my area of expertise - I liaised with Planning Consultant to confirm - I ADVISED they should be in the response note

Answer 82

Required by law to consult with a specific body

Answer 83

Nick Maclean is the Acting President while Justin Sullivan is under investigation. - Justin Sullivan was an expert witness in High Court Proceedings. - He was acting for the defendant (a couple) who paid £32.5m for mansion in Ladbroke Grove which they found to be infested with moths. - The judge was unimpressed by Justin's exercise of judgement, which seemed flawed, and his approach to answer questions. - Justin has claimed he was acting in accordance with the RICS Professional Guidance: Surveyors Acting as Expert Witnesses (4th Ed., 2023). - Justin has referred himself to the Standards and Regulatory Board for them to undertake a review.

Answer 84

Knowledge: Access to networks and knowledge sharing. I am passionate about creating safe and sustainable communities. Opportunities: Being RICS Accredited is globally recognised and will help me progress within my career.

Answer 85

Rule 1 - Honesty and integrity I always declare conflicts of interest Rule 2 - Competence I update my knowledge by keeping up to date with CPD / ensuring I am having career conversations Rule 4 - Treat others with respect, and promote diversity and inclusion I organised LL COP where I spoke about Unconscious Bias, ensure that my colleague's are aware of there biases and can be more inclusive

Answer 86

There is concern in relation to confidence in the profession: - Lack of transparency in how member income is used - Declining member trust - Concerns around the relevance of RICS qualifications in changing markets

Ethics, Rules of Conduct and Professionalism (Checked) Flashcards

(118 cards)