Ethics, rules of conduct and professionalism Flashcards
(190 cards)
1
Q
What are the 5 rules of conduct?
A
Be honest and act with integrity
Maintain professional competence
Provide a good quality, diligent service
Treat others with respect and promote diversity and inclusion
Act in the public interest and take responsibility
Feb 2022
2
Q
What is the format of the annual 20 hours of CPD once qualified?
A
10 hours must be formal, other 10 can be informal or formal
3
Q
What is rule 1 of the rules of conduct?
A
Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Must not mislead other by their actions or omissions
- Open and transparent about their fees and services
- Processes in place to identify actual and potential conflicts of interest
4
Q
What is rule 2 of the 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.
- Undertake work they have the knowledge, skills and resources to carry out
- Maintain their knowledge and professional development through the required cpd
- Stay up to date on relevant legislation and industry updates
5
Q
What is rule 3 of the rules of conduct?
A
Members and firms must provide good-quality and diligent service.
- communicate with clients and others clearly and in a way they can understand
- understand clients’ needs and objectives before accepting any professional work
- undertake their work in a timely manner; with due care, skill and diligence
6
Q
What is rule 4 of the rules of conduct?
A
Members and firms must treat others with respect and encourage diversity and inclusion.
- respect the rights of others and treat others with courtesy
- do not bully, victimise or harass anyone#
- develop an inclusive culture in their workplaces, support equal access and
opportunity for all, and identify and address unconscious bias
7
Q
What is rule 5 of the 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.
- support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns
- respond to complaints made against them promptly, openly and
professionally - manage their professional finances responsibly
8
Q
Where can you find guidance on conflicts of interest?
A
RICS Professional Standard - conflicts of interest 2018
9
Q
How does the VOA check conflicts of interest?
A
DVS - Checks are undertaken prior to any work and recorded on case control document including competence to complete work. If conflicts are identified then the matter is escalated with line manager.
Other work streams still check for COIs but do not document where there isn’t one only where there is and line manager informed.
10
Q
What are the three types of conflict and what do they involve?
A
Party conflict- relating to work on the same or related instruction for two different parties
Own interest conflict- relating to a personal interest
Confidential Information conflict- relating to work between two parties which is confidential
11
Q
What are some ways to ensure a conflict of interest doesn’t happen?
A
Get informed consent
Information barrier
Do not accept instruction
12
Q
What is an information barrier?
A
Physical and or electronic separation of individuals within the same firm that prevents confidential information passing between them.
13
Q
What is a bribe?
A
An offer to induce an action which is illegal, unethical or a breach of trust
14
Q
A client offers you wine after an instruction what do you do?
A
In VOA refuse the offer as in line with VOA procedures but inform my manager of the offer.
Private practice it needs to be proportionate to the work undertaken in this case I could accept the offer and then also note it under the gifts register of the company.
15
Q
What are the 6 principles of the bribery act 2010?
A
Proportionate procedures
Top level commitment
Risk assessment
Due diligence
Communication and training
Monitoring and review
16
Q
What is a Calderbank offer?
A
without prejudice settlement offer, save as to costs
17
Q
What are the types of bribery under the bribery act 2010?
A
Direct bribery - bribing someone
passive bribery - accepting a bribe
Bribing a foreign public official
A corporate offence of failing to prevent bribery
18
Q
Penalty of breaching the bribery act?
A
up to 10 years imprisonment or unlimited fine or both
19
Q
What RICS document covers bribery and money laundering?
A
RICS Professional Standard Countering Bribery and Corruption, Money Laundering and Terrorist Financing 1st Edition 2019
20
Q
What must firms do in regard to bribery and corruption?
A
Not accept or offer a bribe
Have plans to comply with local laws
Report any activity which breaches laws
Use due diligence to discover what threats the business might face
Record information of how they have complied with the professional standard
21
Q
What must firms do regarding Money laundering and terrorist financing?
A
Not facilitate or be complicit in it
Have systems and training in place
Report any suspicions to relevant authorities
Undertake risk assessments to identify potential threats
Carry out appropriate checks on clients, including identity checks
Record information of how they have complied with the professional standard
22
Q
Punishment for money laundering?
A
14 years and unlimited fine if complicit
23
Q
What should members and firms adopt to ensure they do not breach bribery and money laundering?
A
Written policy
Appropriate systems
Gifts register
Training
Contactable compliance officer
24
Q
What is the ethics decision tree?
A
a decision-making framework to deal with even the most testing of ethical dilemmas.
25
How often do members need to undertake the ethics module?
Every 3 years
26
What are members professional obligations to RICS?
Comply with CPD requirements
Cooperate with RICS
Provide information requested by standards and regulation board
27
What are firms professional obligations to RICS?
publish CHP
PII cover
Appropriate arrangements for work in event of death or inability to do work
Cooperate with RICS
Provide information requested by standards and regulation board
Display RICS designation to show regulation
report any matter under the Rules for the registration of firms.
28
When are firms required to register with RICS?
When 50% or more are RICS members
Operate in UK
Provide surveying services to public
29
How do you register a firm with RICS?
Contact RICS and obtain company start up pack
Inform RICS and register for regulation
Appoint contact officer
Prepare CHP
Obtain PII
Abide by rules of conduct
Use RICS designation
30
Who is the current president of the RICS
Justin Sullivan stepped down now Nicholas Maclean
31
Who is the CEO of the RICS?
Justin Young
32
Who is the current president elect of the RICS
Nicholas Maclean
33
Who is the current vice-president of RICS?
Maureen Ehrenberg
34
What is the RICS?
Royal Institution of Chartered Surveyors
It is a the global governing body for chartered surveyors
35
When was it founded?
Initially formed as the Surveyors Club in 1792
The surveyors institution was founded in 1868
Incorporated by Royal Charter on 26th August 1881
Became what we know today as RICS on 3rd July 1947
36
What is the RICS motto?
Est modus in rebus
There is measure in all things
37
How is the RICS regulated?
Having Royal Charter mean that the Chartered Surveying profession operates under a model of self -regulation
No government regulation
Internally regulated by RICS through bye-laws and RICS regualtion
38
What is the RICS structure?
Presidential team who work with the CEO and executive team
39
How long is each presidential position held for?
1 year
40
What was the Levitt review?
Alison Levitt carried out a review into RICS governance in 2021.
Review was required following concerns over a financial audit in 2018 and the unfair treatment of 4 non-executive member who raised the issues.
She recommended on governance, Executive remuneration, whistle blowing and legal advice
RICS adopted all the recommendations
Bad time for the RICS but the process has started to build a brighter future
41
can you tell me more about the recommendations suggested by Alison Levitt?
Greater oversight for Governing Council, which should be provided with the Minutes of all Boards and committees.
Updates should be provided by the Chair of the Board or committee, not by the Chief Executive or another senior member of staff.
More frequent meetings of the Management Board, and they should receive Minutes and documents it requests from all other Boards.
Members should be able to raise issues with Governing Council directly.
Financial bonuses at senior executive level should be reviewed to determine if they are appropriate for a professional membership organisation.
The whistle-blowing procedures should be overhauled to allow any complaint against a senior member of the senior leadership team to be referred to an independent third party.
External legal advice should always be given on the basis that RICS is the client, not its senior management. The provision of legal advice to RICS should be determined by competitive tender every three years.h
42
What is the Bichard review?
Commissioned by the RICS Governing Council to review the Institution’s purpose, governance and strategy.
The intentions of his six-month review include returning control of the RICS to its members, re-affirming that it is first and foremost a professional organisation and not a commercial enterprise, and creating a governance structure which is clearer, simpler and more accountable.
43
How many recomendations were there?
36
Senior roles shake-up
A new committee dedicated to improving member services
increase levels of devolution
Fees will be reviewed
Governing council to better reflect geographical location of members
Introduction of professional standards and practice information documents
44
What sort of information do registered firms have to send to the RICS annually?
Annual return – completed online failure results in a fixed penalty
Type of business and staff
Nature of clients
Training provision
Complaints handling procure
PI insurance details
Whether the firm holds any client money
45
What must a complaints handling procedure include?
The RICS provides a model form
Must include a redress mechanism
Detail should be issured to the client with the terms of business
Must be clear quick transparent and inpartial and free
Names and contact details of the nominated investigating person must be stated.
Complaint must be investigated within 28 days
All complaints, progress and outcomes must be recorded
Note the need to advise PI insurers of a complaint
2 stages as a minimum
Consideration of the complaint by a senior member of the firm
If not resolved, referred to an independent third party with the authority to award redress
46
What does PII stand for?
Professional indemnity insurance
47
What is the purpose of PII?
To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g neglect, error or omission.
48
What benefits does PII provide?
the Professional is protected from financial loss.
- Does not have to meet the claim from their own assets and resources allowing smooth continuity of business
49
What basis should PII be underwritten?
On a claims made basis
50
What does on a claims made basis mean?
This is the insurance policy that is in place at the time the breach is discovered that is claimed.
Not the insurance policy in place when the breach was made
51
Tell me about Merrett v Babb?
Court case in 2001
Babb had done a valuation as an employee of a company for a house purchased by Merrett
Valuation later found to be negligent
Original company no longer existed.
Court ruled Merrett could pursue the individual Babb for the losses
Big shock in the industry
52
What is the significance of the Merrett v Babb case?
Considered if a professional employee was vulnerable to claims brought directly against them for advice given on behalf of their employers
Highlights importance of run off cover
Professional individuals and firms must ensure that run off cover is in place after they leave or their firm’s employment or a firm ceases trading.
Individuals should ensure that their ex company keeps up this cover on their behalf.
53
How long should run off cover be in place for?
Dependant on type of contracts the professional is involved in.
Usually 6 years if contract executed under hand – 12 years if executed as a deed
54
What are the requirements regarding PI by the RICS
Must be made on an ‘each and every’ claim basis
Gives min wording
Sets out minimum levels of indemnity
Sets out minimum level of uninsured excess
Run off cover must be in place for 6 years
Should include cover for past and present employees, directors and partners
55
What are the minimum levels of indemnity? / how do you determine the level of PI cover?
Depends on turnover
If turnover is 100k or less – 250K
If turnover is 100k-200k – 500k
If turnover is above 200k – 1mil
56
What are the maximum level of uninsured excess
Turnover 10 mill or less = greater of 2.5% of insured sum or 10k
Over 10 mill = no limit set
57
What measure should be taken to avoid PI claims, name at least 3
Keep full and detailed records of meetings and conversations
Record recommendations and advice given
Use proper letter of engagement, scope of services and terms of engagement
Don’t advise on specialism outside of experience
Use rics guardance
Avoid poor organisation and high workloads.
58
how many professional obligations to RICS are there for RICS members?
3
Members must comply with the CPD requirements set by RICS
Members must cooperate with the RICS
Member must promptly provide all information reasonably requested by the standards and regulations board, or those exercising delegated authority on its behalf.
59
how many professional obligations to RICS are there for RICS-regulated firms?
7
Firms must publish a complaints-handling procudure which includes an alternative dipute resolution provider approved by RICS and maintain a complaints log.
Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity insurance cover that meets the standards approved by RICS.
Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or ability to work.
Firms must cooperate with RICS
Firms must promptly provide all information reasonably requested by the standards and regulations board, or those exercising delegated authority on its behalf.
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.
Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
60
What are the main Rules for the Registration of Firms?
Firms must have at least 25% principles (RICS Qualified members senior manager, partner or owner)
Regulated firms must designate a ‘Responsible Principal’ who will provide oversight, accountability and engagement with RICS standards and regulation.
61
Who makes the rules for registration of firms?
Standards and regulation board
62
what is the hierarchy of RICS documents?
International standards
Global professional standards
UK professional statements
Guidance notes
Codes of practice
63
what is a whistle blower?
A worker who reports wrongdoing in the public interest such as fraud or the company breaking the law.
64
Can you lose your job for blowing the whistle?
You are protected by law if you unfairly lose your job.
You can take a case to employment tribunal if your treated unfairly because you’ve blown the whistle.
65
What is a tribunal?
A court that settles certain types of disputes.
66
What are RICS bye-laws?
Principles underpinned by the rules and regulations
67
what are RICS regulations
Regs that Build on the by-laws with further detail on areas such as fees and membership.
68
Define RICS
The Royal Institution of Chartered Surveyors incorporated by Royal Charter
69
Define Surveyor
A person who provides a service related to the profession of a surveyor as set out in the Charter.
70
what does RICS having royal charter mean?
RICS has a seat on the privy council to advise the crown (his majesties government).
71
what does the royal charter require members to do?
Promote the profession for public benefit.
72
Tell me about the RICS professional standard 2 in the red book.
Ethics, competency, objectivity and disclosures
In keeping with the integrity of the valuation process, all members practicing as valuers must have the appropriate experience, skill and judgement for the task at hand.
Members must always act in a professional and ethical manner free from undue influence (bribe), bias or conflict of interest.
73
What would you do to set up your own firm in terms of RICS compliance?
RICS firm details form
Appoint contact office for RICS comms
Register for RICS REGULATION
Register for RICS valuer scheme
Send PII details to RICS
Get RICS approval for complaints handling procedure
Make arrangements for succession (if sole practitioner)
Set up procedures for clients’ money
RICS logo kit
Complete RICS annual return at end of each year
74
What would you do to set up your own firm in terms of Statutory compliance?
Equality act 2010 compliance (disability discrimination compliance)
Bribery act 2010 compliance
Register for data protection (GDPR and DPA)
Appoint a money laundering reporting officer (Money laundering regulations 2017)
Inform HMRC for VAT and Tax registration.
Ensure compliance with current employment law (living wage, hours, pension etc)
BEM DIE
Bribery
Equality
Money laundering officer
Data protection registration
Inform HMRC
Employment law
75
What do you know about RICS registered valuer scheme?
Valuer Registration scheme is a risk monitoring and quality assurance programme which checks compliance with the RICS Red Book.
Ensures that members always meet the highest valuation standards.
Becoming a Registered Valuer therefore offers protection and confidence both to you and your clients.
When you sign up for Valuer Registration, you agree to be audited by our team of Regulatory Surveyors. They will check that you are complying with all stated mandatory professional standards and following best practice guidelines
As a Registered Valuer, you can use the RICS Registered Valuer designation. You can also use the accreditation logo.
76
firms are required to register with RICS if what?
Firm provides surveying services to the public
Firm operates in Regulated Area A
At least 50% of the firms principles are RICS Members
77
what is regulated area A?
UK
78
why is regulation required of the RICS?
To inspire confidence in the professional leadership of the RICS.
79
tell me about the structure of the RICS
3 Levels under the Privy Council
Led by the governing Council
Then standards and regulation board, management board etc
Then finance committee and advisory panels.
80
why would you close down a firm?
Insolvency
Retirement
Merger
Or closure part of strategic decision
81
why does a firm need to be closed down properly?
Avoid issues of non-compliance with the RICS rules of conduct
To reduce risk of future legal or professional negligence claim.
82
steps to closing a firm (name at least 5 things you would do)
1 – agree closure date and seek advice on insolvency
2 – inform staff and deal with redundancies
3 – inform clients – could another firm take on the work?
4 – deal with outstanding client money – in line with RICS professional statement Client money handling
5 – Tell PII to arrange run off cover
6 – arrangements for hard copy and electronic files – keep for 15 years (as long as required)
7 – Get hard copy original documents being held by clients
8 – inform RICS and complete firm de-registration form
9 – set up contact notices to notify no longer practice
10 – inform legals (insurances, bank, HMRC, accountant, solicitor, information commissioner for data protection purposes)
83
What is a Phoenix firm?
Where an RICS registered firm closes in a disorderly way and then reregisters quickly as a new entity.
Relates to firms who want to form partners
Where a firm is insolvent or closes without sufficient run off cover in place
84
How can Phoenix firms be dealt with at RICS?
Refusing registration of new firm
Holding registration until outcome of pending disciplinary
Risk mitigation measures
License measures
Monitored closely on an ongoing basis
Additional staff training imposed on issues concerned
85
what would you do if you became suspicious a client was involved in money laundering?
Complete an enhanced due diligence check
Inform senior person responsible for money laundering at my firm
Document all stages and events
Report any suspicions of money laundering to the relevant authorities
86
what is a locum?
Arrangements to cover the incapacity or death of a sole practitioner.
Another professional who is appointed to stand in for the surveyor if they are unable to work i.e illness, prolonged absence or death.
87
who can be a locum?
Typically another chartered surveyor
Could also be a solicitor or accountant by trade (trusted professional)
88
why does the RICS have rules of conduct?
Provide a frmanwork to work to and so clients know they are getting a set level of service
Useful professional guide for the RICS and its members
89
What are the RICS 5 principles of better regulation?
Proportionality
Accountability
Consistency
Targeting
Transparency
90
What is the role of the RICS
To promote and shape the development of suryerors in the professional sharing rules, guidance and practices to best self-regulate the profession for the benefit of its members, clients and wider public.
91
Key functions of the RICS?
Regulate
Apply legislation
Training / educate
Guidance
Rules / governance
Royal charter
92
who can use the designation “Chartered Surveyor”?
Sole practitioner who is a chartered surveyor.
Partnership if 50% or more of partners are chartered members (provided no Partner has been expelled and not re-admitted)
Company carrying out surveying services if 50% of principles are chartered.
This is defined in the bye-laws
93
What is the VOA Complaints Handling Procedure?
VOA has its own Complaints investigation team, we publish details of it and report it so clients are aware of it.
2 stages
VOA has Tier 1 (Business Stream); Tier 2 (Agency CIT); then as a govt body certain matters can be referred to an Ombudsman
94
where do you get indemnity insurance from?
List of approved insurers on RICS website
95
what is the clients money protection scheme?
Run buy the RICS
Provides for any member of the public to be reimbursed for their direct loss of funds
Provided through RICS insurance policy
96
What is the RICS professional statement that refers to client money?
RICS Professional Statement Client Money Handling
97
What is client money?
Any cash, cheque, draft or electronic transfer which an RICS regulated firm holds for or receives on behalf of another person.
98
What must firms do with holding client money?
Hold it in account which it has exclusive control.
Only hold client money
Account must include the word client with name of client.
Money is immediately available.
99
What are the requirements for run off cover?
£1,000,000 for 6 years.
100
What steps you must take when handling client’s money?
Clients must always have access to funds.
Client money must be kept separate and clearly identifiable.
Include ‘Client’ in account name
Interest on the account must be agreed with the client.
Maintain client ledger or running balance of any transactions.
Agree the terms and advise client on bank details.
Must not be overdrawn
101
How do you set your fees if you are in private practice?
Must avoid price fixing, aggressive fee cutting and collusion with competitors. Fees must be market based, agreed on ad-hoc basis with client, must make clients aware if receiving referral fees and state in TOE.
## Footnote
Four Somerset estate agents prosecuted and fined by Competition and Markets Authority for collusion in setting minimum commission rates in March 2017.
102
What are the Terms of Engagement?
TOE are official conditions that someone must agree to before they can start appointment/instruction. The purpose is to ensure clients have a clear understanding of the service to be provided and members recognize the importance of understanding their client’s needs.
## Footnote
Members must check if professionally competent, ensure no conflicts of interest, and confirm Terms of Engagement agreement in writing.
103
What is Conflict of Interest and how do you avoid it?
Conflict of Interest arises when member independence/impartiality is threatened due to conflicts between clients. Avoidance involves not accepting instruction, while management involves accepting instruction with agreed written steps.
## Footnote
RICS Global Professional Statement on Conflicts of Interest 2017 mandates that members must not advise clients where conflict exists unless informed consent is obtained.
104
What are the 6 principles of Bribery Act 2010?
1. Proportionality 2. Top level commitment 3. Risk assessment 4. Due diligence 5. Communication 6. Monitoring and review
105
What are the 4 offences under the Bribery Act?
1. Bribing 2. Receiving a bribe 3. Bribing a foreign official 4. Failing to prevent bribery
106
What are the penalties for offences under the Bribery Act?
Maximum penalty of 10 years in prison and/or unlimited fine.
107
Is there an RICS professional Statement on bribery?
Countering bribery, corruption, money laundering and terrorist financing 2019
## Footnote
Certain forms of corporate entertainment can be bribes; however, lunches, sports tickets, etc. can be considered proportionate hospitality.
108
What is Money Laundering?
Money laundering is where proceeds of crime are disguised or converted and then realized as legitimate assets. The Money Laundering Regulations 2017 include requirements for risk assessment and compliance.
## Footnote
Key provisions include implementing systems, policies, and controls to prevent money laundering.
109
Why do we need due diligence checks?
Due diligence checks are necessary to verify the identity of clients and ascertain who they are. This can involve simple checks or deeper investigations.
## Footnote
Levels of Due Diligence Checks include Customer Due Diligence and Enhanced Due Diligence.
110
Why do RICS need to follow Proceeds of Crime Act 2002?
The Proceeds of Crime Act 2002 allows authorities to recover money and assets from proceeds of crime and creates offences to combat money laundering.
## Footnote
RICS Professional Statement on Countering bribery, corruption, money laundering, and terrorist financing outlines compliance requirements.
111
How many hours of CPD are required as a chartered member?
Members must undertake 20 hours per annum, with at least 10 hours being formal CPD.
## Footnote
Members must maintain a relevant and current understanding of RICS Professional and Ethical Standards on a 3-year rolling period.
112
Why is client’s confidentiality important?
RICS Bye Laws state client confidentiality must be maintained at all times, including historic information provided by the client.
## Footnote
Confidential material received in error should be securely disposed of.
113
What do you know about complaints handling procedure?
The firm's written complaint handling procedure must be approved by RICS and should be issued to clients in TOE. Complaints must be logged and investigated promptly.
## Footnote
Stage 1 involves in-house investigation, while Stage 2 involves independent redress schemes.
114
What is negligence and how to avoid it?
Negligence occurs when a duty of care is breached, leading to potential claims for damages. To avoid it, ensure clear TOE and undertake work in accordance with RICS Standards.
## Footnote
Burgess v Lejonvarn (2020) established that professionals owe a duty of care even when providing services pro bono.
115
Why do we need PII?
Professional Indemnity Insurance (PII) protects against negligence claims. Minimum cover is based on the firm's turnover.
## Footnote
RICS requires firms to maintain adequate insurance and report it annually.
116
What is the maximum level of uninsured excess required by RICS for liability up to £500,000?
The greater of 2.5% of the sum insured or £10,000.
117
What is the maximum level of uninsured excess required by RICS for liability over £500,000?
2.5% of the sum insured.
118
What is the RICS Assigned Risk Pool?
Insurance available at cost for members who cannot arrange cover.
119
What is the minimum run-off cover for consumer claims after cessation of trading?
Minimum cover of £1,000,000 over a minimum of 6 years.
120
What must firms decide regarding run-off cover for commercial claims?
Firms must decide cover, minimum of 6 years.
121
What can firms unable to obtain run-off cover apply for?
RICS Run-off Pool.
122
What significant change did RICS secure in the 1st Edition Guidance Note on Risk, Liability, and Insurance?
Lifting the 12-month fire safety exclusion from PII.
123
What is the requirement for insurers regarding fire claims on properties of 4 storeys or less from 1st May 2021?
Insurers must provide cover for fire claims.
124
What does RICS recommend to manage risks of professional work?
Use of liability caps.
125
What does client’s money include in private practice?
Rent, service charges, holding deposits.
126
What are the 6 areas of good practice outlined in the RICS Professional Statement Client Money Handling?
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.
127
What must client accounts be?
Kept separately and clearly identifiable.
128
What must be on the client account?
The word 'Client'.
129
Can clients have their money on demand?
Yes, money can only be withdrawn for proper uses.
130
What must be agreed with the client regarding interest?
Payment of interest.
131
What must be kept regarding client money?
Accurate records and a running balance available.
132
What are the annual obligations for firms handling client money?
Annual audit and reporting obligations by a certified accountant employed by RICS.
133
How often do RICS Regulatory Review Visits occur?
Usually every 3 years.
134
What is the RICS Client Money Protection Scheme?
For claims where RICS regulated firm is unable to repay client’s money.
135
What must you do to start a new practice according to RICS Compliance?
Inform RICS of new practice for regulation by Regulatory Board.
136
What must be appointed for all RICS communication when starting a new practice?
Responsible Principal.
137
What must be arranged when starting a new practice?
PII and send cover details.
138
What must be set up regarding client’s money handling procedure?
Set up client’s money handling procedure.
139
What must you register for if undertaking Red Book valuations?
RICS Registered Valuer scheme.
140
What must be obtained regarding complaints when starting a new practice?
Approval for Complaints Handling Procedure.
141
What must be set up regarding complaints?
Complaints log.
142
Who must be appointed for handling complaints?
Complaints Handling Officer.
143
What must be obtained from RICS when starting a new practice?
Logo kit.
144
What must be planned for if you are a sole practitioner?
Plan for succession.
145
What must be logged online?
CPD.
146
What must be set up regarding staff training?
Staff training plan.
147
What must be completed annually?
RICS Annual Return.
148
What is a requirement regarding business name when starting a new practice?
Requirement to disclose business name.
149
What must be complied with regarding statutes?
Bribery Act 2010, Money Laundering Regulations 2017, Health and Safety Act 1974, Employment law, Fire Safety Compliance, Data Protection Act 2018.
150
What must be informed to HMRC when starting a new practice?
VAT and Tax registration.
151
What is the turnover threshold for VAT registration?
Currently £85,000 pa.
152
What must be ensured regarding insurance when starting a new practice?
Compliance with employer and public liability insurance.
153
What must you do to close a practice according to RICS Compliance?
Inform RICS of closure.
154
What must be done regarding clients when closing a practice?
Inform clients and hand over arrangements to new firm.
155
What must be returned when closing a practice?
Client money.
156
What must be arranged with insurers when closing a practice?
Run off cover for a minimum of 6 years.
157
What must be retained regarding client files when closing a practice?
Copy of client files and records for a minimum of 6 years.
158
What is RICS?
RICS is a professional organisation that establishes and enforces standards for the valuation, operation, and development of various types of property.
159
When was RICS established?
RICS was established in 1868 by a group of surveyors in London.
160
How many countries does RICS operate in?
RICS has spread to over 140 countries.
161
What are the designations for qualified RICS members?
Qualified RICS members are recognised by designations such as FRICS for fellow, MRICS for members, and AssocRICS for associate.
162
Where is the RICS international headquarters located?
The RICS operates from its international headquarters in London.
163
What is the size of the RICS organisation?
The organisation consists of around 140,000 accredited professionals.
164
What is one of RICS's primary priorities?
One of the group's primary priorities is responsible, conscientious development with a focus on sustainability and preservation.
165
What are the four levels of RICS membership?
The four levels of membership are FRICS, MRICS, AssocRICS, and Trainee/Student.
166
What is the RICS Governance structure?
The governance structure includes a Privy Council, a Governing Council, a Regulatory Board, a Management Board, and various committees.
167
Who is the Chair of the Governing Council?
The Chair of the Governing Council is Martin Samworth.
168
What is the Royal Charter?
The Royal Charter is a grant issued by the Monarch to maintain and promote the usefulness of the profession for public advantage.
169
What are RICS Bye-Laws?
RICS By-Laws provide the power for the Head of Regulation and Regulatory Tribunal to make disciplinary and regulatory decisions.
170
What are the main roles of RICS?
RICS maintains the highest standards of education and training, protects consumers through strict regulation, and serves as a leading source of information.
171
What are five benefits of being an RICS member?
Benefits include status, recognition, knowledge, network access, and market advantage.
172
What does PACTT stand for in RICS Regulation?
PACTT stands for Proportionality, Accountability, Consistency, Targeting, and Transparency.
173
What are the key principles of RICS Regulation?
Members and firms must be honest, act with integrity, and comply with their professional obligations.
174
What is the Professional and ethical standards decision tree?
It encourages members to consider the legalities of actions and their consistency with RICS Global and Ethical Standards.
175
What are the International Ethics standards?
These standards include accountability, confidentiality, conflict of interest, financial responsibility, integrity, lawfulness, reflection, standard of service, transparency, and trust.
176
What are the Rules of Conduct for Members and Firms?
Rules include honesty, maintaining professional competence, providing good-quality service, treating others with respect, and acting in the public interest.
177
What are the levels of disciplinary action for breaking RICS rules?
Levels include action by the Head of Regulation, Regulatory Tribunal, and Appeal Panel.
178
What is the RICS Hierarchy of Publications?
The hierarchy includes Rules of Conduct, International Standards, Professional Statements, Practice Statements, Guidance Notes, and Codes of Practice.
179
What is the motto of RICS?
The motto of RICS is 'Est modus in rebus' which translates to 'There is measure in all things'.
180
How to manage a conflict of interest:
Conflict Avoidance – do you accept or avoid
Written Advice to Both Parties
Disclose nature of conflict and set our how firm wishes to deal with conflict (information barrier)
Be clear – ensure parties make own decision (suggest independent advice)
Request written informed consent to act in accordance with procedure proposed
Conflict Management – set up procedure agreed in informed consent (information barrier)
181
What are the VOA's values?
The VOA’s core values are:
Professionalism
Integrity
Respect
Innovation
182
What is AI?
An AI system is a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments. Different AI systems vary in their levels of autonomy and adaptiveness after deployment.
183
How is AI used within the built environment?
AI is allowing certain types of properties to be valued automatically using automated valuation models (AVMs)
In planning and development, AI is bringing together disparate and previously disconnected datasets to help land acquisition, automate the appraisal process and to manage the complex set of documents involved in planning applications.
184
How is the profession using AI responsibly?
duty to use AI where it is appropriate
manage the risks to their clients, the public and the reputation of their organisation and the wider profession.
185
How is the RICS tackling this?
RICS is developing a new professional standard: the responsible use of AI.
The new standard will focus on the following areas:
how AI, technology, and data should be referenced in professional engagements
communication and transparency with clients regarding the use of AI
considerations around the reliability of AI outputs
issues related to privacy, and confidentiality
knowledge requirements to use AI responsibly
governance and risk management
procurement and due diligence.
186
RICS Structure
187
What is the civil service code of conduct?
Integrity
Honesty
Objectivity
Impartiality
188
What is the VOAs policy on gifts?
must not accept benefits of any kind from a third party, except:
isolated gifts of a trivial nature such as calendars or diaries
occasional conventional hospitality, such as working lunches on official visits, or invitations to annual dinners of large organisations with which you are in day-to-day contact
invitations to you (and to a partner) to annual dinners of large organisations with which you are in regular contact as a representative of the Agency
189
What is the policy for reporting and recording gifts?
All offers of gifts, hospitality or other benefits must be reported immediately.
You must also report and record any significant single offer or inducement (worth £25 or more) or repeated offers of inducement that you have declined.
If you have been given permission to accept an offer of a gift or hospitality, (for example, invitations to working lunches and dinners), you must record the details on the gifts and hospitality reporting form.
190
