Ethics, rules of conduct and professionalism Flashcards
(208 cards)
1
Q
Why do you want to become a member of RICS?
A
Membership of RICS demonstrates professionalism, ethical integrity, and technical competence.
2
Q
What is the role of RICS?
A
Promoting best practice for members and protecting the public.
3
Q
What are the key functions of RICS?
A
RICS develops and enforces leading international standards, protecting consumers and businesses by ensuring the utmost level of professionalism is employed across the built and natural environment.
4
Q
What is a Royal Charter?
A
A Royal Charter is a formal grant by the monarch, giving RICS the authority to regulate the profession in the public interest.
5
Q
Who is the chair of RICS Wales?
A
Matt Haynes
6
Q
Who is the current RICS president?
A
Justin Sulivan/ Nick Maclean
7
Q
What do you understand by the term self-regulation?
A
Self-regulation means that RICS, as a professional body, establishes and enforces standards without external government intervention, ensuring ethical and professional conduct among members.
8
Q
Can you tell me what you understand by the principles of better regulation?
A
The principles are: Proportionality, Accountability, Consistency, Transparency, Targeted regulation.
9
Q
What is a Bye-Law?
A
A Bye-Law is a rule established by RICS to regulate its members and firms.
10
Q
Give an example of one of the RICS Bye-Laws.
A
One example is the requirement for firms to comply with the RICS Professional Conduct Rules.
11
Q
Explain to me the new RICS Rules of Conduct - what do they replace?
A
They replaced the previous Rules of Conduct for Members and Firms.
12
Q
When do the new rules of conduct take effect?
A
They took effect on 2 February 2022.
13
Q
Who do they relate to?
A
All RICS members (individuals) and regulated firms.
14
Q
What are the ethical principles that the Rules of Conduct are based on?
A
Principles: Integrity, Competence, Service, Transparency, and Trust.
15
Q
What are the 5 Rules?
A
- Members and firms must be honest, act with integrity, and comply with legal obligations. 2. Members and firms must maintain professional competence. 3. Members and firms must provide good service. 4. Members and firms must treat others with respect. 5. Members and firms must act in the public interest.
16
Q
Give an example behaviour for each rule of conduct.
A
- Integrity: Avoid conflicts of interest and disclose any potential issues. 2. Competence: Undertake continuous professional development (CPD). 3. Service: Provide accurate and diligent advice to clients. 4. Respect: Treat colleagues and clients fairly and professionally. 5. Public Interest: Report unethical behaviour and comply with legal requirements.
17
Q
What are the core professional obligations of firms and members to RICS?
A
Obligations include adhering to ethical and professional standards, maintaining CPD, and following RICS guidance.
18
Q
What disciplinary procedures can the RICS impose?
A
Disciplinary procedures range from warnings to fines, suspension, or expulsion.
19
Q
In what circumstances can RICs apply fines and warnings?
A
For breaches of the Rules of Conduct, misconduct, negligence, or failure to meet professional standards.
20
Q
When did RICS last update their disciplinary panel rules?
A
February 2022.
21
Q
What are the different levels of action within these procedures?
A
Preliminary investigation, Consent order (if agreed), Disciplinary panel hearing, Appeals process.
22
Q
What do you understand by the term professional practice?
A
It refers to applying RICS standards, ethics, and technical expertise in daily work.
23
Q
What money laundering regulations or legislation are you aware of?
A
The Money Laundering Regulations 2017 (amended 2019) and Proceeds of Crime Act 2002 apply.
24
Q
What is a red flag of money laundering?
A
A red flag includes transactions with no clear commercial purpose or reluctance to provide source of funds.
25
What bribery legislation are you aware of?
The Bribery Act 2010.
26
What is a bribe?
A bribe is offering or receiving an advantage to influence decision-making improperly.
27
What are the penalties for accepting a bribe?
Up to 10 years’ imprisonment and/or an unlimited fine.
28
What are the penalties for being involved in money laundering?
Up to 14 years' imprisonment and/or an unlimited fine.
29
What constitutes an offence under the Bribery Act 2010?
Bribing another person, being bribed, bribery of a foreign official, and failing to prevent bribery.
30
What constitutes an offence under the current money laundering regulations?
Concealing, disguising, converting, or acquiring criminal property.
31
How long should you keep anti money laundering records for?
Five years from the end of the business relationship.
32
What is Professional Indemnity Insurance (PII)?
Insurance covering professional negligence claims.
33
Can you tell me about the RICS requirements in relation to PII?
Firms must have minimum levels of cover set by RICS, including run-off cover for six years.
34
What is a PII aggregation clause?
A clause limiting claims to a single event or series of related events.
35
What does ‘claims made’ mean in terms of PII?
The cover is provided when the claim is made – not the policy when the negligent act was undertaken.
36
Is a PII excess usually paid for per claim?
Yes, unless otherwise stated.
37
In a negligence claim, what would help to show that you acted with consideration and due process?
Detailed records, compliance with RICS standards, and professional advice.
38
Can good record keeping help to provide a defence in a PII claim?
Yes, accurate records can demonstrate due diligence.
39
If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?
Confirm cover with your insurer or arrange additional cover.
40
What is run off cover?
PII cover for claims arising after a firm has ceased trading.
41
What RICS requirements are there relating to run off cover?
Firms must maintain at least six years of cover.
42
What changes did RICS recently make to the Minimum Approved PII Wording?
They clarified requirements for fire safety and cyber cover.
43
Would a dictated report avoid the need to have any written site notes?
No, site notes remain important as evidence of due diligence.
44
Explain PII requirements relating to fire safety cover and cyber cover.
Firms must ensure their PII covers these risks to meet RICS requirements.
45
How long can a PII claim arise after the work is undertaken?
Up to 15 years, depending on the nature of the claim.
46
What is the Assigned Risks Pool (ARP)?
A scheme providing temporary PII cover.
47
Who might need to access the ARP?
Firm struggling to obtain cover.
48
Explain your understanding of the RICS Professional Standard Risk, Liability and Insurance (1st Edition).
The RICS Professional Standard on Risk, Liability, and Insurance guides surveyors in managing professional risks. It emphasizes clear Terms of Engagement (ToE), appropriate Professional Indemnity Insurance (PII), and risk mitigation strategies.
49
Explain when you might agree a liability cap.
Liability caps are agreed in Terms of Engagement (ToE) to limit potential financial exposure.
50
How would set out third party reliance in Terms of Engagement?
Third-party reliance should be expressly stated in the ToE, clarifying: Who may rely on the report, Limitations on liability for third parties, A no-reliance clause for unintended parties, Requirement for written consent before extending reliance.
51
What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?
1. Scope of work – Clearly define responsibilities to manage expectations. 2. Limitations of liability – Include a liability cap where appropriate. 3. Reliance and third-party use – Specify who can rely on the advice.
52
What is an annual return?
An RICS-regulated firm's yearly regulatory submission confirming compliance.
53
Tell me what you understand about Complaints Handling Procedures (CHP).
All RICS-regulated firms must have a CHP that includes: A two-stage complaints process: Internal review and external independent redress scheme, Record-keeping of complaints for at least six years, Firms must inform RICS if complaints escalate to regulatory breaches.
54
When and how can the RICS be involved in a complaint about a firm or member?
RICS may investigate if a complaint: Indicates a breach of Rules of Conduct, Is escalated after the firm’s internal process, Relates to professional negligence or ethical misconduct.
55
Can you tell me about the CPD requirements for members of RICS?
20 hours per year, with at least 10 hours of formal CPD. Must be recorded online via the RICS portal. Mandatory ethics CPD every three years.
56
Why is CPD important?
CPD ensures competence, professionalism, and compliance with evolving RICS standards and industry changes.
57
Tell me about the RICS’ guidance on dealing with Conflicts of Interest.
Conflicts must be identified, disclosed, and managed. Informed consent must be obtained where a conflict exists.
58
What is double dipping (dual agency)?
When an agent acts for both buyer and seller in the same transaction, creating a conflict of interest.
59
Why is double dipping (dual agency) an unacceptable practice?
Breach of impartiality and transparency, Risk of biased advice, Contravenes RICS Conflicts of Interest Statement unless fully disclosed and consented to.
60
How would you close down a regulated firm?
Notify RICS at least 28 days in advance, Arrange run-off PII cover for at least six years, Ensure client records and money are handled properly, Appoint a locum (if applicable).
61
What can you tell me about RICS guidance relating to bribery, corruption or money laundering?
Outlined in RICS Professional Statement: Countering Bribery & Corruption, Money Laundering & Terrorist Financing (2019). Mandatory for RICS members and firms.
62
What status does it hold?
Mandatory – professional standard.
63
What are some of the key principles of this guidance?
1. Know Your Client (KYC) procedures. 2. Enhanced due diligence for high-risk transactions. 3. Record-keeping of AML checks. 4. Reporting suspicious activity (SARs).
64
What must/should firms/members do to comply with the guidance?
Must: Implement anti-money laundering (AML) policies, conduct risk assessments, perform customer due diligence (CDD), and report suspicious activity (SARs). Should: Train staff, appoint a Money Laundering Reporting Officer (MLRO), and maintain clear audit trails.
65
What are the current RICS rules for registration of firms?
A firm must register if: 50% or more of owners are RICS members, or The firm offers surveying services to the public and wants to be RICS-regulated.
66
Who is a ‘qualified member’ of RICS?
A professional who has completed an RICS-accredited qualification and passed the APC.
67
What is a phoenix firm?
A new firm created to avoid liabilities from a failed business, often linked to insolvency fraud.
68
When must a firm register for regulation?
Publicly presents itself as an RICS-regulated firm, Handles client money, Provides surveying services that require compliance with RICS standards.
69
What are the registration eligibility criteria?
Have at least one principal who is an RICS member, Provide professional services within RICS’ scope, Agree to comply with RICS regulations, including ethical and professional standards.
70
Who is a Responsible Principal?
A Responsible Principal is an RICS-qualified senior individual in a firm responsible for: Ensuring RICS regulatory compliance, Overseeing ethics, client money, and professional conduct.
71
What happens if a firm cannot comply with the eligibility criteria?
RICS may refuse or revoke regulation, The firm must cease using RICS branding.
72
What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?
Only RICS-regulated firms can use these. Misuse may result in disciplinary action.
73
Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.
Only RICS-regulated firms can use 'Chartered Surveyors' in their branding. Firms not regulated by RICS must not mislead clients by implying full compliance with RICS standards.
74
What must be included in ToE relating to firm regulation?
Confirmation of RICS regulation, Complaints Handling Procedure (CHP) details, How client money is protected (if applicable).
75
What is a locum and who might need one?
A locum is a temporary substitute for a sole practitioner to manage business operations in their absence.
76
How could a sole trader set up their CHP using a locum?
A sole trader can appoint a locum surveyor to handle complaints in case they become unavailable, ensuring independence and transparency in the complaints process.
77
What RICS guidance relates to handling client money?
RICS Professional Statement: Client Money Handling (2019).
78
When was rice complaint handling procedure professional standard last updated?
November 2019.
79
What do the RICS Rules of Conduct say about client money?
Rule 7: Client money must be held in a designated client account, separate from business funds, with bank protection and regular reconciliations.
80
Explain your understanding of the RICS Scheme Rules relating to client money protection.
Firms handling client money must join a protection scheme.
81
What are the main schemes available to firms?
RICS Client Money Protection Scheme (mandatory for regulated firms).
82
When were the rules of conducts last updated?
2022.
83
What is the current compensation limit?
£50,000 per claim (subject to scheme rules).
84
What does the annual regulatory review fee relate to?
A fee charged by RICS to cover regulatory costs for regulated firms.
85
What might client money include?
Client money belongs to the client and must be held in a segregated account.
86
How does this differ to office money?
Office money is the firm's operational funds.
87
What are some of the key principles of the RICS Professional Standard relating to client money protection?
Segregation – Must be kept separate from business funds, Banking requirements – Held in a Client Money Account (CMA) with a UK-regulated bank, Reconciliation – Regular, documented checks, Transparency – Clear records, statements, and reporting to clients.
88
Explain the key themes from the RICS Futures 2020 Report.
Digital transformation in the built environment, Sustainability and climate change impact, Evolving professional skills for surveyors.
89
Explain the potential implications of the Hart v Large case.
Highlighted the duty of care in surveyor negligence cases, Reinforced the need for thorough risk reporting.
90
Explain your understanding of precedent set in Burgess v Lejonvarn.
Key case on duty of care in professional services.
91
What are the key themes from the RICS Futures 2020 Report?
1. Digital transformation in the built environment.
2. Sustainability and climate change impact.
3. Evolving professional skills for surveyors.
92
What are the implications of the Hart v Large case?
Highlighted the duty of care in surveyor negligence cases.
Reinforced the need for thorough risk reporting.
93
What is the precedent set in Burgess v Lejonvarn?
Key case on duty of care in professional services.
## Footnote
Established that a duty of care can exist in informal advisory roles, even without a contract. Professionals providing advice must act with reasonable skill and care.
94
What does RICS set out as good practice for the use of social media?
1. Act professionally, even on personal accounts.
2. Avoid misleading claims or conflicts of interest.
3. Maintain confidentiality – No client-sensitive information.
4. Adhere to RICS Rules of Conduct.
95
What is the RICS Levitt review?
An independent review by Alison Levitt KC (2022) into governance failures at RICS.
## Footnote
Found issues with lack of transparency in leadership, weak governance structures, and failings in handling financial concerns. Led to major governance reforms within RICS.
96
What is whistleblowing?
The act of reporting unethical or unlawful conduct within an organisation.
97
What does good governance mean?
Accountability, transparency, ethical decision-making, and compliance with regulations.
98
What are the Pandora Papers and the ethical issues raised?
The Pandora Papers (2021) exposed how high-net-worth individuals and corporations used offshore tax havens to hide wealth.
## Footnote
Ethical concerns include lack of transparency in property ownership, potential for money laundering, and questionable tax avoidance practices. RICS professionals must conduct proper due diligence to prevent unethical transactions.
99
What is the RICS Bichard Review?
An independent review (2022) into RICS governance failings that led to governance reforms, including a new regulatory board.
100
What are some recommendations of the Bichard Review?
1. Stronger governance structures within RICS.
2. Improved transparency in decision-making.
3. Greater engagement with members.
101
How will the Bichard Review recommendations be implemented by RICS?
Lord Bichard’s Review (2022) set out reforms to strengthen governance, improve transparency, and increase member engagement.
102
How do professional integrity and professional ethics differ?
Integrity: Acting honestly and responsibly.
Ethics: Following professional and moral guidelines.
103
What is modern slavery and how would you identify red flags?
Exploitation involving forced labour, trafficking, or coercion.
## Footnote
Red flags include unexplained debt, poor working conditions, or restricted movement.
104
What are the implications of the Sanctions and Anti-Money Laundering Act 2018?
Key UK law controlling financial crime with implications for surveyors including checking clients against UK sanctions lists, not conducting transactions with sanctioned individuals or entities, and reporting suspicious activity (SARs) to the National Crime Agency (NCA).
105
What is the Sanctions List?
A list of individuals, companies, and countries subject to UK financial restrictions.
## Footnote
Surveyors must check the list to avoid conducting transactions with sanctioned entities.
106
Why was the Register of Overseas Entities introduced?
Introduced by the Economic Crime (Transparency and Enforcement) Act 2022 to require overseas companies owning UK property to declare their true beneficial owners.
107
What are the six RICS values published as a result of the Levitt review?
1. Respect
2. Integrity
3. Transparency
4. Service
5. Accountability
6. Expertise
108
What is the impact of the Economic Crime (Transparency and Enforcement) Act 2022?
Introduced the Register of Overseas Entities to improve property ownership transparency and strengthened AML enforcement powers.
109
110
What is the meaning of the RICS Motto?
The motto is ‘Est Modus in Rebus’ which translates to ‘there is a measure in all things’.
111
What is the mission statement of RICS?
To qualify and equip their members to offer the highest standards of professional service, promote and enforce standards, and lead solutions to major challenges facing the built environment through professional expertise.
112
When was the RICS founded?
1868
113
How is the RICS structured?
The RICS was founded in 1868, with the royal charter granted by the Privy Council in 1881. It is self-regulated and internally monitored, meaning it is not regulated by the government or external parties. The bye-laws determine how RICS is regulated, and the governing council manages and agrees on the strategy for the RICS.
114
What are the RICS 5 principles of better regulations?
Proportionality, Accountability, Consistency, Targeting, Transparency.
115
What is the difference between RICS ethics and rules?
Ethics are a set of moral values, while rules of conduct are a framework that we work to.
116
When did the rules of conduct last change?
2nd February 2022
117
What are the new rules of conduct?
1. Members and firms must be honest, act with integrity, and comply with their professional obligations, including obligations to RICS. 2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals. 3. Members and firms must provide good quality and diligent service. 4. Members and firms must treat others with respect and encourage diversity and inclusion. 5. Members and firms must act in the public interest, take responsibility for their actions, and maintain public confidence in the profession.
118
Why did the previous rules of conduct change?
Previous rules had been in place since 2007. They were changed after research and consultation to provide a single document for greater clarity for RICS members and firms, focusing on clearer examples of behaviors, understanding evolving technology, and tackling climate change.
119
What are the professional obligations of members?
Members must comply with CPD requirements of 20 hours per calendar year (10 hours formal), cooperate with RICS, and promptly provide all information reasonably requested by the Standards and Regulation Board.
120
What are the professional obligations of firms?
Firms must publish a complaints-handling procedure, ensure adequate professional indemnity cover, make arrangements for professional work continuity, cooperate with RICS, and display their RICS designation on business literature.
121
Why does the RICS have rules of conduct?
To provide a framework for consistent service levels and serve as a professional guide for individual members.
122
What would you do about someone working outside the RICS Rules of conduct?
I would verify the facts and confront them, reminding them of their duties as a member of the RICS, and inform RICS specifying my relationship to the person.
123
In case of a breach of a rule of conduct, what is the procedure?
Not every shortcoming will necessarily lead to proceedings. A formal investigation by the head of regulation is the first step, and members must cooperate fully with all inquiries.
124
How can a disciplinary proceeding be triggered?
By someone complaining to RICS, an allegation by a client or third party, or information received or established by RICS.
125
What three actions can be imposed after the end of the investigation stage?
Fixed penalty, consent order, disciplinary panel.
126
What are fixed penalties?
A fine imposed by RICS.
127
What are consent orders?
A written agreement between RICS and a member or firm concerning a disciplinary issue, which may require corrective action or payment of a fine.
128
When is a disciplinary panel applicable?
For more serious breaches of conduct, usually held in public, with the burden of proof on RICS.
129
What sort of breaches would expulsion be suitable for?
Gross, persistent, or wilful failure to comply with RICS rules, fraud, dishonesty, serious criminal convictions, gross incompetence, or misappropriation of client money.
130
What procedures must you follow if you are starting up a new practice?
Contact RICS for guidance, inform RICS, appoint a contact officer, prepare a complaints handling procedure, obtain professional indemnity insurance, abide by the rules of conduct, and use the designation 'regulated by RICS' on all materials.
131
Would you advertise your new company in the press?
Yes, as long as it is done in a trustworthy and responsible manner in line with the Rules of Conduct for firms.
132
What insurances would you need if you were starting up your own firm?
Professional indemnity insurance, employers liability, public liability, and building insurance for office premises.
133
What sort of information do registered firms have to send RICS annually?
An annual return including type of business, staffing, nature of clients, training provision, complaints handling procedures, PI insurance details, and whether the firm holds client money.
134
What process do regulated firms need to put in place when handling clients' money?
Preserve security of client money, set clear segregation of duties, ensure competent staff, maintain secure accounting systems, and keep client money separate and identifiable.
135
What are the different types of client money accounts?
General accounts that hold money for multiple clients and discrete accounts that reference a single named client.
136
What is meant by the term negligence?
A failure to provide the duty of care owed to clients, which may result in claims for damages or professional indemnity insurance claims.
137
Tell us about the Merrit v Babb case law.
A 2001 case highlighting the importance of having run-off cover, where a surveyor was sued for negligence after their firm ceased to exist.
138
What limitations period are associated with underhand and deed forms of contract?
6 years when executed under hand, 12 years when executed as a deed.
139
What must a complaints handling procedure include?
A redress mechanism, clear and quick process, names of investigating persons, investigation within 28 days, and recording all complaints and outcomes.
140
What is an independent redress scheme?
A consumer scheme designed to handle small issues that would be expensive to take to court, with binding decisions based on the scheme's judgment.
141
What do you do if you receive a letter of complaint?
Acknowledge receipt, forward it to the firm's designated complaint handler, and inform the PI insurance provider immediately.
142
What is a clients money protection scheme?
A scheme operated by RICS to reimburse members of the public for direct loss of funds when using a RICS regulated firm.
143
What is the purpose of the joint names on a client account?
For the purpose of dual authorization.
144
What are CPD requirements?
Members must undertake and record appropriate lifelong learning and provide evidence upon request by RICS.
145
How many hours must you do for CPD?
A minimum of 20 hours per calendar year, with at least 10 hours being formal.
146
What sort of activities are included in CPD?
Activities with clear learning objectives relevant to the role, including formal training and informal learning.
147
What types of articles do you read?
The RICS journal, Modus, and updates from the RICS website and Estates Gazette.
148
How do you keep up to date with topical issues?
By subscribing to mailing lists, exchanging articles with colleagues, and conducting regular web research.
149
What is your CPD strategy?
Meeting with my manager twice a year to review my career development plan and building a CPD strategy around objectives and interests.
150
What does PII stand for?
Professional indemnity insurance.
151
What is the purpose of Professional indemnity insurance?
To provide financial cover in the event a client suffers financial loss due to a breach of professional duty.
152
What benefits does it provide for the professional?
Protection from financial losses and the firm does not have to meet claims from their own assets.
153
What benefits does it provide for the client?
Clients can recover their financial losses.
154
On what basis is it underwritten in the UK?
On a claims made basis.
155
What does this mean?
The insurance policy in place at the time the breach is discovered is responsible for providing indemnity.
156
What are the requirements regarding Professional indemnity insurance set by the RICS?
The policy must cover 'each and every' claim, meet minimum indemnity levels, have maximum uninsured excess, and include run-off cover for at least 6 years.
157
What are the minimum levels of indemnity and maximum levels of uninsured excess?
Minimum indemnity levels vary by turnover, with a maximum uninsured excess based on the sum insured.
158
What is the minimum indemnity for turnover of £100k or less?
Minimum indemnity = £250,000
159
What is the minimum indemnity for turnover between £100,001 and £200k?
Minimum indemnity = £500,000
160
What is the minimum indemnity for turnover of £200,001 and above?
Minimum indemnity = £1,000,000
161
What is the maximum uninsured excess for turnover of £10,000,000 or less?
Maximum uninsured excess = the greater of 2.5% of the sum insured or £10,000
162
What is the maximum uninsured excess for turnover of £10,000,001 and above?
Maximum uninsured excess = no limit set
163
What measures should be taken to avoid PI claims?
Keep full and detailed records of meetings and conversations, record recommendations and advice given, use proper letters of engagement, avoid advising outside your field, use RICS guidelines, and avoid poor management and excessive workloads.
164
What should you do if you made a mistake in your cost plan?
Notify your insurance company and comply with any conditions & procedures set out in the insurance policy.
165
Can a client claim damages if an estimate prepared by a QS is incorrect?
An incorrect estimate alone does not provide a right of redress; the client must demonstrate that the QS warranted accuracy or lacked reasonable skill and care.
166
How can you limit your liability when agreeing terms of appointment with a client?
Base the appointment on reasonable care and skill, request clauses limiting the appointment to reasonable skill and care, ensure run-off cover is in place, and execute the appointment under hand for a reduced liability period.
167
What are the main elements included within a fee proposal?
Terms and conditions, scope of service, exclusions, assumptions.
168
What should you do if you realize you have under forecasted your resources a couple of months into the job?
If project requirements have increased, request a fee increase; if the scope remains the same, additional work must be carried out without requesting extra fees.
169
What should you do after agreeing services with a client verbally?
Follow up with a formal letter including terms and conditions, fees, and scope of services.
170
What should you do if a client gives you a lump sum fee before going on holiday?
Place the funds in a separately identified client account and agree on a drawdown of monies against the services provided.
171
What is a conflict of interest?
A situation where someone in a position of trust has competing personal or professional interests, making it difficult to fulfill duties impartially.
172
How can a conflict of interest be managed internally if two departments work for the same client?
Implement procedures for staff exclusivity, ensure separate communication lines, provide secure office and data storage, and monitor the potential conflict.
173
How should you proceed if a client insists on working with you despite a conflict of interest?
Check the client's understanding of the conflict, inform them of potential reduced impartiality, and seek a letter of instruction to continue.
174
What are the main principles of the Bribery Act?
The offences include making a bribe, receiving a bribe, bribery of a foreign public official, and failure to prevent bribery. Six principles of prevention include proportionate procedures, top-level commitment, risk assessments, due diligence, communication, and monitoring.
175
Under what circumstances is a facilitation payment permitted under the Bribery Act?
Facilitation payments are permitted only when under duress, such as a real and present risk to life, liberty, or limb.
176
How do you ensure that you comply with bribery legislation?
Adhere to the Bribery Act 2010, which prohibits bribery in both the UK and abroad.
Do not accept or offer gifts, hospitality, or inducements that could influence professional decisions.
Report any suspicious activity in line with the firm’s anti-bribery policy.
Maintain transparency in all transactions and decision-making processes.
177
How do you ensure you comply with money laundering regulations?
Conduct Customer Due Diligence (CDD) on all clients before transactions.
Verify the source of funds and client identity in compliance with AML regulations.
Report any suspicious activity via a Suspicious Activity Report (SAR) to the MLRO.
Follow the firm’s AML training and ensure all documentation is properly recorded.
178
How do you ensure you comply with your firm’s bribery and gifts policy?
Declare all gifts and hospitality over the threshold set by the firm.
Obtain senior approval before accepting any gift or entertainment.
Keep records of all received gifts to demonstrate transparency.
179
Tell me about an instance of when you have been offered a gift or hospitality by a client.
I was offered beer in return to waiver a fee for a licence for alteration which I declined.
180
What would you do if you felt that an instruction was outside your scope of experience or knowledge?
Inform the client that I do not have the necessary expertise to act independently.
Seek advice from a senior colleague or refer the matter to a suitably qualified professional.
Ensure compliance with RICS Global Professional & Ethical Standards, particularly ‘Competence’.
181
Tell me about an instance of when you have handled client’s money.
Managed a deposit for a commercial lease transaction, ensuring funds were held in a designated client account.
182
How would you keep client’s money securely and safely held?
Ensure funds are held in a separate client account compliant with RICS Money Handling Regulations.
Keep full records of all transactions for transparency and auditing.
Ensure no personal or business funds are mixed with client money.
183
Tell me about how you would handle a client complaint.
Follow the firm’s Complaints Handling Procedure (CHP), acknowledging the complaint within the required timeframe.
Attempt to resolve the issue through internal discussions and a written response.
If unresolved, refer to an independent Alternative Dispute Resolution (ADR) service.
184
Tell me about your understanding of your firm's process for escalating a complaint to Alternative Dispute Resolution (ADR).
If a client is dissatisfied with the firm’s internal response, they can escalate the complaint to an independent ADR provider, such as the Property Ombudsman or RICS Dispute Resolution Service.
185
Tell me about a conflict of interest check you have carried out.
Conducted a conflict check before acting for both landlord and tenant in a lease negotiation.
Found a potential conflict as another team member was advising the landlord.
Implemented a conflict management plan, including information barriers and client consent.
186
If you identified a potential or actual conflict of interest, how could you handle this?
1. Disclose the conflict to all parties involved.
2. Seek informed consent from both parties.
3. Implement Chinese walls (information barriers) if appropriate.
4. If unresolvable, decline to act for one or both parties.
187
Unit 19, Victoria Centre - what was included in the NDA?
Confidentiality clause preventing disclosure of sensitive information.
Non-disclosure obligations for both parties.
Details on permitted use of information.
Duration and penalties for breach.
188
Unit 19, Victoria Centre - why are NDAs used?
Protect commercially sensitive data during negotiations.
Prevent competitors from gaining confidential insights.
Ensure discussions remain private until a transaction is concluded.
189
Unit 19, Victoria Centre - what happens if an NDA is broken?
The affected party may seek legal action for damages.
Possible injunction to prevent further disclosure.
Termination of negotiations or loss of business relationships.
190
1 Glan-y-Mor Road - what is a Licence for Alterations?
A formal document granting tenant permission to undertake physical changes to a leased property.
Specifies the scope, conditions, and reinstatement obligations.
191
1 Glan-y-Mor Road - what is your company's gift policy?
Prohibits gifts above a certain threshold without prior approval.
Requires all gifts and hospitality to be recorded in a register.
Ensures compliance with the Bribery Act 2010.
192
1 Glan-y-Mor Road - how did you ensure you adhere to the gift policy?
Declared all gifts and hospitality in the company’s register.
Declined any offers that could be perceived as influencing professional judgment.
Followed internal approval processes before accepting invitations to corporate events.
193
1 Glan-y-Mor Road - would there be an example where you could accept the beer?
If the beer was a promotional giveaway at a networking event rather than a personal gift.
If it was under the firm’s policy threshold and reported in the gift register.
If accepting would not create a conflict of interest or compromise professional integrity.
194
Give me an example of when you have acted with integrity?
I once declined an internal valuation instruction where the client wanted an inflated market value.
I explained my duty to provide an independent, RICS-compliant report.
195
Tell me about when you have provided a high standard of service.
I managed a lease renewal negotiation, ensuring compliance with the Landlord and Tenant Act 1954, and obtained the best terms for the client.
196
Tell me about how you have promoted trust in the profession.
I provided objective and transparent internal valuation reports, ensuring compliance with RICS Red Book.
197
Explain how you have taken responsibility in your current role.
Led a property inspection, ensuring health and safety risks were reported and mitigated.
198
Tell me about how you treat clients with respect.
Ensuring clear, professional communication and responding promptly.
199
Tell me about how you treat other surveyors with respect.
Sharing knowledge and best practices, and respecting differing professional opinions.
200
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.
1. Register with RICS as a regulated firm.
2. Obtain Professional Indemnity Insurance (PII).
3. Set up a Client Money Account if handling funds.
4. Make Locam arrangements.
201
If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.
Politely decline the offer and report the matter to senior management.
202
What would you do if you were asked by a client to reduce a fee proposal to win new work?
Assess whether a discount is commercially viable.
Maintain transparency and avoid undervaluing professional services.
203
What would you do if you became suspicious that a client was involved in money laundering?
Conduct enhanced due diligence.
If concerns persist, file a Suspicious Activity Report (SAR) with the NCA.
204
What would you do if you became suspicious that a client was involved in terrorist activities?
Report immediately to senior management and the NCA under the Terrorism Act 2000.
205
If you were to set up in practice on your own, tell me about the types of insurance you would need.
Professional Indemnity Insurance (PII)
Employers’ Liability Insurance (if hiring staff)
Public Liability Insurance.
206
4a Harmony House - what information did you request from the potential tenant and why?
Proof of identity, financial references, and business accounts to assess risk.
207
4a Harmony House - what anti money laundering procedures did you adhere to?
Conducted ‘know your customer’ and ‘source of funds’ checks in line with AML regulations.
208
4a Harmony House - did you follow any RICS guidance?
Yes, followed the RICS Professional Statement on AML (2019).
