Ethics, Rules of Conduct & Professionalism Flashcards
(158 cards)
1
Q
Why do we have a Complaints Handling Procedure?
A
- May protect your firm’s reputation and prevent future complaints.
- Allows the complainant to be heard
2
Q
How can a complaint be received?
A
Four main routes in which a complaint can be received:
- Email/Internet
- Telephone
- In Person
3
Q
What makes an effective Complaints Handling Procedure?
A
- Fit for purpose (Reflect size and structure of the business)
- Made available to all staff
- Understood by all staff
- Readily be shared with complainants or potential complainants
- Regularly reviewed at senior level
- Ensure a firm has the ability to manage all complaints efficiently
- Agreed with PII/Brokers/Providers
- Provide details of access to independant redress if firms cannot resolve the complaint
- Carefully record all complaints or potential complaints at the earliest opportunity and ensure that they are appropriately selected.
4
Q
Complaints Handling Procedure
Who does it protect?
A
Protect your firm’s reputation and prevent future complaints.
5
Q
Complaints Handling Procedure
What are the two stages?
A
STAGE I
- Complaint received in writing
- Dealt with by complaints handler
- Confirm receipt within 7 days
- Full response or update 28 days
STAGE II
- Unable to agree a solution
- Independent redress provider
- Consumer Clients / Business Clients
- Resolution - further action / training for firm
6
Q
Complaints Handling Procedure
What independent redress providers are available?
A
- The Property Ombudsman Limited
- Property Redress Scheme
7
Q
Complaints Handling Procedure
I have issued a complaint to your firm and I am dissatisfied with your response, what is your next course of action?
A
- Pass on to our line manager
- The issue was still resolved, it would then go to his manager (Group Manager)
- It keep going up to Chief Executive and if not resolved the complainant could go to independent redress (Property Ombudsman)
8
Q
Complaints Handling Procedure
What ADR solutions are available?
A
Mediation
Conciliation
Arbitration
9
Q
PII
What is it?
A
- It ensures that should a firm face a claim, it is protected from financial loss that it cannot meet from its own resources.
- Protects the insured member or firm against the consequences of its liability to pay damages to third parties for breach of professional duty
- Ensure that the firm’s clients do not suffer from financial loss, which the firm cannot meet.
10
Q
What are RICS standards for a PII Policy?
A
The insurance must be adequate and appropriate having particular regard to:
- An ‘each and every’ claim basis
- Ensure your policy is written on a full civil liability basis
- The minimum level of indemnity based on the firms turnover in the previous year (Estimated for new firms)
11
Q
PII
Who does it protect?
A
- The firm/surveyor against claims made by clients or third parties.
12
Q
PII
Where can you buy it?
A
RICS has a list of approved insurers on their website.
13
Q
PII
What are the minimum levels/excess?
A
Turnover in previous year: Min. level of indemnity:
£100,000 or less £250,000
£100,001 to £200,000 £500,000
£200,001 to £500,000 £1,000,000
Maximum level of uninsured excess:
Limit of indemnity: Max. uninsured excess:
Up to and including £500,000 < of 2.5% or £10,000
Over £500,000 2.5% of the sum insured
14
Q
PII
What are the requirements for run-off cover?
A
- Should a firm cease to trade, the RICS requires firms to obtain fully retroactive run-off cover.
- The requirement is for a limit of £1,000,000 in all for a period of 6 years.
15
Q
PII
Are you aware of the relevant case law?
A
Hart v Large
Merret v Babb
16
Q
What was the case Hart v Large?
A
RICS Home Survey Standard March 2021:
- Mr Large was found negligent in the advice he gave about damp and damp proofing
- He was negligent in failing to advise the Harts not to proceed with the purchase without a Professional Consultant’s Certificate.
- Had Mr Large given the appropriate advice, the Harts would not have proceeded with the transaction
Mr Large should have been clear on the report about the scope of inspection including limitations, caveats and actions available to the client. He should have recommended further investigation.
17
Q
What was the case Merret v Babb?
A
It was a landmark test case which held that, following the insolvency of his former employer, Mr Babb was personally liable for a mortgage valuation (Advice given) carried out several years earlier.
Employees will be particularly vulnerable if their firm or company:
- is insolvent has otherwise ceased trading and has no run-off cover
- is under-insured and cannot meet the full claim
- is unable to pay the excess due under the policy
- is unable to obtain indemnity from their professional indemnity insurers as a result of a coverage dispute
18
Q
PII
What is the latest update on FIRE?
A
Since 2020, insurers have imposed a blanket safety exclusion on PII terms provided due to concern following high profile fire safety failures.
- Under the new terms, insurers are not permitted without specific dispensation to exclude fire safety claims on a property four storeys or less.
19
Q
PII
What is the latest update on CYBER?
A
There is a new regulatory requirement for for insurers to clarify the cyber cover provided in PII policies
20
Q
PII
What is the latest update on ASSIGNED RISK POOL?
A
The RICS has a market facility ARP for if you are unable to obtain PII.
21
Q
PII
What is the latest update on RETIREMENT?
A
If you are a member who has ceased trading or retired the RICS requires you to maintain PII run-off cover.
- The run-off requirement of RICS requires partners (including members of limited liability partnerships) and directors of a firm to ensure run-off is maintained for ex-partners, directors, consultants and employees.
- Claims can arise at any time up-to 15 years after the work was undertaken by a member
22
Q
You set up your own business but you decide to go off on a skiing holiday for 2 weeks, you break your leg and the doctors say you must have complete bed rest and no access to emails or work phone, what do you need in place to cover this situation?
A
A Locum agreement
23
Q
You see that a colleague is having some unwanted attention from a male colleague and it has happened a few times, what action if any would you take and what is this?
A
Consider this as a potential form of workplace harassment. I would go and speak to the male colleague and tell him its not acceptable behavior, I would also report to my senior.
24
Q
How many different types of RICS document statuses are there
A
- Rules of conduct for members and firms, updated Feb 2022
- International standards
- RICS Professional Statements
- RICS Guidance Note
- RICS Code of Practice
- RICS jJurisdiction Guide
25
What is the status of a RICS professional statement; who does it apply to ?
Mandatory
- RICS Trainees
- Members
- Regulated Firms
26
What information is required by the RICS for registration and in the annual return?
- Type of business and staffing details
- Statutory regulated activities - such as for financial services
- Nature of clients
- Complaints handling procedure and records
- Professional indemnity insurance certificate
- Whether the firm hold clients' money
27
How do you keep up to date with current affairs and topic issues?
On mailing list, office discussion, CPD email group, magazines and publications etc
28
Why do you want to become chartered ?
- Gold standard in my profession
- Offers guidance and support from RICS
- Designation will help my career
- I am committed to lifelong learning
- I want to give back to the up and coming surveyors
29
What are ethics?
Moral principles that govern an individuals behaviour
30
Why are ethics important?
- Act as an anchor to appropriate behaviour and ensure consistency and clarity in the market.
- Allows us to provide the best service for the client and recognise the wider public.
31
What does it mean to act ethically as a Chartered Surveyor?
Acting ethically means complying with standards and ensuring that you are acting on behalf of your clients best interests.
32
What are the three types of due diligence?
1. Simplified Due Diligence – Where you determine the business relationship is low risk of money laundering/terrorism
2. Enhanced Due Diligence – for high risk customers and transactions with greater threat to financial sector
3. New Customer Due Diligence – doing the checks to ensure your client is who they say they are.
33
What are the three benefits of regulation for firms?
C-P-S
CPS:
- Confidence - for client as regulated firms are monitored by RICS regulation
- Professionalism - firms have to provide clear, impartial and expert advice
- Security - firms have to have recognised CHP, access to ADR and PII cover
34
Why doe firms have Terms of Engagement; what should be included in Terms of Engagement?
- Creates a contract with the client and clear definition of what is expected and on what terms etc.
- Sets out the proposed fee basis, payment of expenses and that a copy of the firm's complaints handling procedure is available upon request.
35
How would you close down a practice?
- Inform the RICS
- Inform clients and arrange for them to be handed over to a new firm
- Return any clients' money
- Set-up professional indemnity run-off cover for a minimum of 6 years
- Retain a copy of client files and record for a minimum of 6 years
36
How long should files be kept for?
A minimum of 6 years before disposing and destroying them securely (although can be sued for negligence for up to 15 years)
37
What do the new rules state about the use of the RICS logo and designation?
Guidelines for the personal use of the RICS logo and designations by RICS-qualified professionals
With effect from 1 April 2019
- Use of the RICS logo has been restricted to members and regulated firms only
- The 'regulated by RICS' designation must be displayed clearly to ensure visibility
- Prescribed text that must be included in the terms of engagement
- Companies are only allowed to use 'chartered surveyor(s)' designation in trading name and not company name
38
How would you limit the risk of working with a client or contractor who may be financially unstable?
Screening process:
- Dun & Bradstreet credit check
- Company search (Account information from Companies House)
- Internet search (Client website for additional information judgement on reliability)
39
You are a junior surveyor and have been working for a company for six months. You’re given a project that is far above your level ofcompetency, and you are concerned that you may make mistakes due to inexperience. You’re also keen to make a good impression andhave been looking for work that will challenge you and develop your skills. What ethical issues does this situation present?
- Competency
- Honesty
- Taking Responsibility
- Competency is relevant because you lack the level of competency required for the job.
- Honesty and taking responsibility are relevant because you must tell the truth and take ownerships of the decision to inform your senior colleagues.
40
You have a contract with a client. Halfway through the work, your firm changes its terms of engagement, charging more for certain services.When the contract is complete, your finance department bills the client, who pays promptly. Six months later you notice that they billed themat the new rate instead of the old one. Which of these possible responses are in accordance with the RICS Rules of Conduct?
Contact the client and explain the error, apologise, and arrange for the extra payment to be reimbursed.
41
You are one of two RICS members working on a project. It comes to your attention the other member is invoicing the developer for a number of days’ work when you know he was not at the site. What ethical issues does this situation present?
The case raises all of these concerns:
- As per 'honesty/deception', your colleague is not being honest.
- As per 'Clients best interests' this goes against the client's best interests
- As per 'acting in a way that promotes trust in the profession', this threatens to undermine trust in the profession.
- As per 'whistleblowing' this raises the question of whether you should blow the whistle.
42
If your client asked you to lower your fees because of their limited funding, what would you do?
The client would have to pay the required price for the level of service required or reduce the scope of works involved. I could consider if the scope of work could be reduced however on the client request i would not just lower my fees.
43
How do you know you are competent?
(SKATE)
SKATE
* Skills
* Knowledge
* Attitude
* Training
* Experience
44
Can you advise somebody as an individual?
- If you have the correct insurances in place
- So long as there is not a conflict of interest
45
If faced with a situation that you felt was unethical, how would you proceed?
Using the decision tree:
- Do I have sufficient facts?
- Is the matter legal?
- Is it in line with RICS Professional and Ethical Standards?
- Have I consulted with appropriate people?
- Do I have clear reasoning in reaching my decision?
- Would I be content for my actions to be made public?
If answered no to any of the above, I would not proceed with the situation alone and would consult senior staff with direction on how to proceed.
46
What are the CPD requirements?
- Qualified/MRICS member – 20 hrs per year, min 10 hours formal
- Student member – 48 hrs per year (Min 24 formal)
47
What is the difference between formal and informal training?
Formal has a learning objectives and a defined learning outcome, I could reference the CPD decision tree for further guidance.
48
What is a complaints handling procedure?
A procedure to allow and define the procedure for clients to raise a complaints. This may include ADR and relevant timescales for the process.
49
What options are available if you couldn’t resolve the complaint?
- Property Ombudsman
- RICS Dispute Resolution
- Escalation etc
50
What is the property ombudsman?
- Free, Impartial & Independent
- Independent government approved body who provides redress to consumers whose complaints are considered on a case by case basis.
- They are not regulators and have no authority to take legal action or dictate action.
51
Where would you find the RICS requirements for professional indemnity cover?
- Professional indemnity insurance requirements
- Regulation Document Version 9 with effect from 1 April 2022
52
In relation to professional indemnity insurance, what is the minimum limit of indemnity for turnover under £100,000 (in the preceding year)?
£250,000. This is dependent on predicted turnover based on the previous year’s turnover
The RICS defines 3 levels of cover:
- up to £100,000 = £250,000
- £100,001 - £200,000 = £500,000
- £200,001 + = £1,000,000 of cover
53
How many years after an instruction has been completed can a Professional Indemnity claim be made?
15 years (Limitations Act)
54
What type of cover would you need to cover a claim brought after a firm or member ceases to trade?
Run-off cover
55
In general, what cover do you need?
PII - Public Indemnity Insurance
PLI - Public Liability Insurance
ELI - Employers Liability Insurance
BI - Building Insurance (Own premises)
56
When closing down a practice what sort of insurance should you take out?
Run off cover
- Run off cover must also be held for a minimum of 6 years for a limit of £1million.
57
According to the PII Policy Document, if your firm turned over £137,500 in the previous year, what is the minimum level of insurance required this year?
£500,000
58
What if the loss exceeds the cover provided by the PII insurance?
The professional / firm is liable for the difference – in assets etc
59
How long should run off cover be around for?
Contract under hand = 6 years, a deed - 12 years, 15 years under the limitations act
60
How can you avoid the chance of claims?
- Keep full and detailed records of meetings, conversations etc
- Record recommendations and advice given
- Use proper letters of engagement, scope of services and terms of engagement
- Don’t advise on a specialism outside your field of experience
- Use RICS guidelines
- Avoid poor management and excessive workloads
61
What is meant by the term 'maximum level of uninsured excess'?
The part of each claim the firm must pay itself
62
What should you do in case of a potential claim on your PII?
Must notify insurer in the event of:
1. An actual claim
2. A written or verbal threat of a claim
3. Any circumstance that the firm has reason to believe may result in a claim
4. Any complaint notified via the firm's CHP
63
What year did the Money Laundering Regulations come into force in the UK?
1994
64
In the RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing February 2019 - RICS Members and Firms must do what in relation to bribery and corruption ?
- Not offer or accept, directly or indirectly, anything that could constitute a bribe.
- Have plans in place to comply with applicable laws governing bribery and corruption.
- Report any activity they are aware of that breaches anti-bribery and corruption laws to the relevant authorities (as specified in local legislation); where there is no local legislation the activity should be recorded and, if possible, reported to a senior manager
- Act with due diligence to perform periodic written evaluations of the risks that face the firm and that may lead to the facilitation of bribery or corruption.
- Retain information detailing how the firm has met the requirements of this professional statement.
65
Can you name any Money Laundering Red Flags?
- Cash-only buyers
- An unusual sale price (too low or too high)
- Payments from multiple/different source to counter party
- Funds provided by unknown third parties
66
What due diligence do you apply in relation to money laundering?
- Air on the side of caution
For example as a business do not accept cash or cheque payments. Any red flag would be raised suitably
67
What is money laundering?
Concealing the source of proceeding of criminal activity to disguise there illegal origin. This may take place through hiding, transferring and or recycling illicit money or other currency through one or more transactions, or converting criminal proceeds into seeming legitimate property
68
Client comes into your office with £10k cash to pay builder, what can you do?
- I would politely decline as under RICS guidance, one should not facilitate or complicit any money laundering acts.
- Should I be concerned if there is money laundering then this should be reported to local legislation.
- Under the Money Laundering Act 2007 (updated 2017), under HMRC guidance, which advise that necessary due-diligence should be completed to ensure the money is clean. HMRC advise that these checks should be done if these transactions are occasional and of a value of £10k and you are not registered high value dealers.
- A high value dealer is a firm who has registered with the HMRC as they receive regular high value payments of £10k or more in cash for goods. Companies such as jewellers or car dealers.
- Such due-diligence checks include; checking who they say they are, financial statements, where the money came from.
69
How would you advise the client to deal with the £10k cash?
I would advise that the money needs to be put into the bank and proof of where the money was obtained will also need to be shown to their bank as banks can become suspicious of irregular payments of large amounts.
70
Why is real estate a money laundering risk?
Money laundering through real estate transactions integrates black funds into the legal economy while providing a safe investment. It allows criminals to enjoy assets and derived funds having camouflaged the origin of the money used for payment
71
If you ran your own firm who would you report suspicious activity to?
* National Crime Agency (NCA)
* HMRC
* The Police
72
Can you rely on someone else's due diligence?
No. Tt is your responsibility to ensure the checks are suitable and sufficient.
73
Give me some examples of how your firm might comply with the Money Laundering Regulations?
- We report cash payments over £10K.
- Carry out risk assessments to make sure that we take the necessary procedures when working with clients from high risk countries or high risk sectors.
74
Would you accept a gift from a contractor?
I would take into account the proportionality and timings. If I did It would be logged in our gifts handling record.
75
If you were offered a bottle of wine at xmas what would you do ?
Consider the proportion and circumstances of the gift, including the timings. In some cases this maybe include being aware of cultural differences.
76
When would accepting or providing hospitality be acceptable?
- Once all the works are complete on site and the final account agreed and there is no conflict of interest.
- Also consider the scale, time and suitability of the hospitality and or gift
77
What is the RICS mission statement?
- To be recognised in key worldwide markets as the leading body that sets and enforces standards.
- Offers access to the most sought after professional status in land, property and construction.
78
What are the 5 principles of better regulations?
(PACTT)
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
79
What parts are there to the RICS?
(GREMP)
- Governing Council
- Regulatory Board
- Management Board
- Executive Team
- President Team
80
What act covers discrimination?
The Equality Act 2010
81
What is the Bribery Act?
The Bribery Act 2010 details the 4 offences as:
- Giving a bribe
- Receiving a bribe
- Bribing an official
- No procedure in place
82
Are you familiar with any RICS Guidance on Money Laundering?
RICS Counter Bribery, Corruption, Money Laundering and Terrorist Financing. 1st Edition - February 2019
83
Why is real estate in generally attractive to potential money laundering?
Safe investment, good return on investment, fixed abode for further activities, good reputation
84
Which factors did you take in consideration to make your decision regarding the gift? (RICS decision tree)
My company's policy is that you can except up to £5.00
However, my personal option is to accept nothing to avoid any form of bribery.
- Checked the cost of the gift
- Check if it was given to just me or the company and at an appropriate time?
- Is it reasonable?
- Is it a bona fide expenditure?
85
What steps would you need to take to set up a proactive regulated firm by the RICS?
- Inform RICS
- Appoint a contact officer
- Register with RICS for Regulation
- Arrange suitable insurance (PI, PII, specific item insurance etc)
- Set up client business account for client money
- Complaints handling procedure
- CPD training
86
What is a Contact Officer?
A designated person to liaise between company and the RICS.
87
What is a conflict of interest?
A conflict of interest occurs when an individual's personal interests – family, friendships, financial, or social factors – could compromise his or her judgment, decisions, or actions in the workplace
88
How would you proceed if a client was insistent that you continued to work for them despite a conflict of interest?
- Check their understanding of reduced impartiality
- Seek letter of instruction to continue
- Agree working procedures to manage the conflict
- Keep them updated of any risks
- Seek informed consent
89
What are the RICS Bye-Laws?
(AD-MR-D-C-C-GC-SB-P-AA-G)
1. Application and definition
2. Membership and Registration
3. Designations
4. Contributions to funds
5. Conduct
6. Governing Council, officers and staff
7. Subordinate Boards, committees and groups
8. Procedure for general meetings
9. Accounts and audit
10. General
90
What are the penalty's for non compliance with the RICS?
- Fixed Penalties
- Regulatory Compliance Orders
- Regulatory Sanctions, which may be imposed by a Disciplinary or Appeal Panel (the ‘Panels’) or a Single Member of the Regulatory Tribunal
91
Do all firms need to be regulated by the RICS?
- Any firm where 50% of its partners and directors are RICS members must be regulated.
- A firm with less than 50% may still register if they wish.
- If there are no RICS members the firm cannot be registered.
92
What is a regulatory compliance order?
An agreement between rics and member that they are liable for a disciplinary action could be from falling Short of standards such as CPD
93
What is a fixed penalty?
Administrative fine issued by RICS when a member fails to provide the information requested, remains upon members record for a defined period
94
What are the new RICS Rules of Conduct? (HIP - PE - QD - RID - PIRA)
Rule 1 – Honesty, Integrity, Professionalism
Rule 2 – Professional Competence, Expertise
Rule 3 – Quality, Diligent Service
Rule 4 – Respect, Diversity, Inclusion
Rule 5 - Public Interest, Responsibility for Actions
95
Have you ever been involved with Client accounts?
No. We have specialist financial and payments department.
96
What do you have to do if you are handling clients’ money?
- Separate bank account
- Client have access to money on demand
- Accurate records must be kept. Agree interest with client
- Use only in agreed draw down amounts
- Check where it comes from – not money laundering
- Can implement RICS Client Money Protection Scheme (£50k recoverable)
97
Can you give me some examples of clients money?
- Money collection from service charge
- Money collect from ground rent
- Money collected from rent.
98
Having an RICS Clients' Money Protection Scheme in place allows what?
Allows firms to offer their clients the security of knowing their money is protected
99
What are the objectives of the RICS clients money protection scheme?
- To keep client Money safe
- To ensure client money is only used for appropriate purposes
- To ensure RICS regulated firms have appropriate controls and procedures in place to safeguard client money
100
What steps must you take for the handling of clients money?
- Clients have access
- Clients in the account name
- Separate and clearly identifiable
- Interest agreed by the clients
- Maintain a log of transactions
- Agree the terms
- Never allow account to be overdrawn
101
What advice would you give to a client who would like to pay for your fees in advance?
I can accept the money if I was sure that it did not facilitate money laundering and I would need to comply with the RICS professional statement for handling clients money.
I would inform the client that the money would not be protected by the RICS client money protection scheme which doesn’t cover payment of services in advance.
102
If your company started to deal with clients money, would you need to notify the RICS and why?
If you hold clients money, you must join the protection scheme as part of the rules of registration.
103
What is an escrow account?
It is a separate holding account controlled by an independent third party that releases the payment subject to agreement from both parties consenting.
104
Can you pick one of the 5 principles of better regulation and explain your understanding of it?
Proportional
These measures implanted are suitable to the size of the business and the nature of its employees.
105
What are the 5 professional/ethics standards?
STIRR
1. High standard of Service
2. Act in a way that promotes Trust in the profession
3. Act with Integrity
4. Treat others with respect
5. Take responsibility
106
Have you ever had to deal with a complaint?
I have never had to deal with complaint which led to the complainant using the CHP.
However, I am aware of my employers Complaints Handling Procedure.
107
What are the potential penalties for money laundering?
- 14 years in prison
- Unlimited fines
108
What are the principles of the Bribery Act 2010?
P-TLC-RA-C-DD-MR
- Proportionality
- Top Level Commitment
- Risk assessment
- Communication
- Due Diligence
- Monitor and Review
109
What are the rights under GDPR? (ROAR-BED)
The right to rectification
The right to erasure
The right of access
The right to restrict processing
The right to be informed
The right to data portability
The right to object
Rights in relation to automated decision making and profiling.
110
What are the principals of GDPR? (LFT - ADSPAS)
- Lawfulness, fairness and transparency
- Accuracy
- Data minimisation
- Storage limitation
- Purpose limitation
- Accountability
- Security / Integrity and confidentiality
111
What do/can the RICS impose on members and firms for non compliance?
- Fixed penalty - Minor breach - Non compliance such as CPD
- Regulatory compliance order - Consent notice - Do something
- Disciplinary panel - Serious breach can be appealed
112
Why were the rules for firms and members updated?
- Last update 2007
- Following consultation
- Provide expected behaviours
- Ensure clarity
113
What is the period you must submit your CPD?
CPD activities must be completed by 31 December and recorded online by the following 31 January.
114
Who would you report modern slavery to?
National Crime Agency (NCA)
- There is also a freephone helpline
115
What are the tell tales of modern slavery ?
- Under the control of someone else
- Reluctant to talk to strangers
- Appear frightened
- Few belongings
- Language barrier
116
Can you name some recent modus articles you have read?
117
What are the common issues firms face with clients money?
1 - Reconciliations – General bank accounts
2 - Lack of review and approval of reconciliations
3 - Overdrawn client ledger balances
4 - Authorisation of client account electronic payments by non-Principals
5 - Insufficient verification of changes to payee bank details
6 - Reconciliation issues – old uncleared reconciling items and differences
7 - The word ‘client’ not appearing in the bank statement title
8 - Written client money handling issues
9 - Suspense Accounts
10 - Reconciliations not being completed on a regular basis
118
What is the Client Money Protection Scheme?
CMP schemes protect client money (such as rent and deposit monies) which is received by agents. Their schemes make sure landlords and tenants are compensated if an agent cannot repay their money, for example if an agent goes into administration. Membership of a CMP scheme is a legal requirement from 1st April 2019.
119
What are the two general categories of money?
All money held or received in the course of practice can be categorised as either client money or office money
120
How could you proceed even in a Conflict of Interest is present?
Informed consent
Informed consent occurs when a party who might be adversely affected by a conflict of interest acknowledges the existence of that risk but still agrees to instruct an RICS- regulated firm or RICS member to proceed with the assignment
121
Who deals with complaints for your employer?
The Responsible Principal
122
Who deals with escalated complaints for your employer?
Property Ombudsman
123
How would a sole trader deal with escalated complaints given there is no one else in the company to refer the complaint to?
They would have a named third party to initial manage this, this could fall under the locum agreement
124
What do you understand is the role of a locum in respect of surveying practices and give me an example of when one might be appointed?
An arrangements to cover the incapacity or death of a sole practitioner. Specifically, it requires ‘a Firm which has a sole principal (i.e. a sole practitioner or a sole director in a corporate practice) to have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absences’.
A locum is effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work, e.g. in the event of an accident/illness, unforeseen circumstances, prolonged absence (e.g. holiday or a sabbatical) or death.
125
Explain how your employer deals with Freedom of Information requests?
Freedom of information (FOI) gives you the right to ask any public sector organisation for information they hold. Anyone can request information. You can also ask for information about yourself under data protection legislation.
126
Explain the contents of the letter of engagement?
- Address
- Client details
- Scope of involvement
- Fee basis
- Details of the complains handling procedure
- Exclusion
- Inspection date
127
Why is it important to agree your appointment in writing?
To have an accurate, defined and dated record of the agreement in the event of future disagreement
128
How does your organisation gather post project feedback?
- Standardised feedback form
- KPI
129
What is the RICS Ethics Decision Tree?
A flowchart to help with day to day ethics decisions
130
What would you do if your boss increases your workload to the point it is unmanageable?
Be realistic with timescales, raise to manage first then senior managers
131
Can you expand on what the Lion Heart Charity is?
LionHeart is an independent charity run by our professionals, for our professionals. Through a volunteer network, this benevolent fund offers confidential advice, information and other support to past and present members of the organisation who, for whatever reason, find themselves in difficulty.
132
What do the RICS say about gift handling?
RICS members should follow these rules:
- Only offer or accept gifts and hospitality that are customary, proportionate and reasonable in terms of value and frequency
- Never offer or accept any gift or hospitality if it may improperly influence your decisions/judgement or give the appearance of doing so (e.g. consider the timing of the gift)
- Only offer or accept gifts and hospitality that you would be happy for others to know about
- Follow the policies and procedures of your employer in relation to gifts, hospitality and promotional expenditure - e.g. record in company's gifts and hospitality register
- Report any concerns about bribery to your employer or to RICS Regulation
133
How would you manage a unhappy client?
Try and understand why they are not happy, try and reach a solution, refer back to CHP
134
Can you tell me how you demonstrated one of the five RICS professional and ethical standards within your case study?
Rule 2 - Competence and Expertise
I provided the client with reasoned advice for the replacement of the lost teaching space. I also displayed a high level of expertise when advising on the method of construction.
135
Why is trust in the profession important?
To ensure the longevity of the profession
136
Explain why the Bribery Act is important to professionals working in the construction industry?
It to prevent acts of bribery from small gifts to serious donations which could lead to a culture of endemic corruption, for the sole purpose of increasing your own revenue.
137
Explain, in detail, how your employer’s Complaints Handling Policy works?
Employer specific. Request from PK.
138
If you were undertaking a building project at your own home, would you consider asking a contractor who has worked for you professionally to undertake the work - discuss the implications?
I would consider using a contractor that I have professionally appointed. However, I would ensure to make it clear that this project, prices etc will have no bearing on my ability to act impartially and in the interest of my client.
139
Assuming you are successful at interview and become a chartered surveyor, you then decide to set up your own practice, what would you need to do to comply with RICS guidance and regulations?
- Register with RICS
- Create CHP
- Register for and have procedures for clients money
- PII Insurance
- Appoint a contact officer
- Appoint a responsible principal
- Potential locum agreement
- Ensure min 25% MRICS principals
- Training and CPD policy
140
Inflation and material shortages (September 2021). Outline some of the key factors to consider in terms of material shortages and inflation?
That the market is particularly volatile and these can increase and decrease, this has an impact of tender prices and timescales attached to this
141
Domestic reverse charges (September 2021). Explain what domestic reverse charges are and when they apply?
- Came into force 1st March 2021
- Subcontractor puts on their invoice to the main contractor that VAT will not be charged. Instead it's written on the invoice that the main contractor must deal with the VAT on their own VAT return by applying the domestic reverse charge.
- It's an addition to the Construction Industry Scheme (CIS) to ensure VAT is correctly being reported correctly by workers in the construction sector and stops suppliers from avoiding paying HMRC, also known as missing trader fraud.
- Applies to work that is subject to VAT at either 5% or 20%
- Doesn't apply when when the supply consists only of materials (must be an element of labour)
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Complaint Handling Procedure
What is Escalation?
If the complainant feels that the problem has not been satisfactorily resolved, the complainant can request the complaint to be escalated and assigned to the appropriate member of the senior management team, either an office manager, a country manager, and up to the chief executive officer (CEO).
143
What is the Levitt Report?
The Levitt Report was commissioned by the RICS following a Treasury Management audit in 2018
- Prior to audit, RICS had to extend its overdraft facility by circa £3m due to inaccurate cashflow forecasting
- Treasury Management audit offered a 'no assurance verdict' on RICS internal financial control procedures and following this the Levitt Report was commissioned as an independent review
Conclusion:
Levitt Report alluded to an internal power struggle due to its two board structure made up of Management and Executive Board
https://www.building.co.uk/focus/independent-review-into-the-rics-scandal-key-findings/5113637.article
144
What were the recommendations accepted by the RICS following the Levitt Report?
- The RICS Governing Council are to have more oversight over internal dealings of the RICS
- The RICS Governing Council are to be briefed by the Management Board as opposed to a single CEO
- RICS Council are to oversee executive management bonuses
- Greater transparency as the CEO could have involved the management board in order to rectify the treasurer issues
- No evidence of improper of illegal conduct was discovered.
145
What is the RICS Covid-19 Recovery Business Plan?
Incorporating the Levitt Report Recommendations:
- More open and transparent with the public about operations of the institution including decision making and finances.
- Developing and implementing effective, internal whistleblowing arrangements.
- Reviewing the arrangements for senior executive reward.
Immediate Financial Priorities
- Utilise any surplus in cash generation to pay back furlough monies received via the UK Governments Coronavirus Job Retention Scheme.
- Reduce RICS' need to access external financial support.
- Reduce any funding deficit in the close Final Salary Pension Scheme.
146
How did the RICS restructure following the Levitt Report?
- Appointed a new leadership team and named Richard Collins as the new interim chief executive.
- Acting chair of the governing council Nick Maclean has also been appointed chair of the governing council, Isobel O'Regan has been appointed has been appointed as interim chair of the management board.
- All three members will stay in the posts up to 12months to lead the RICS in carrying out the reforms recommended by Levitt in her report.
147
How can a disciplinary proceeding be triggered?
- Someone complaining to the RICS
- An allegation by a client or third party
- Information received or established by the RICS
148
What three actions can be imposed after an investigation by the RICS?
- Fixed penalty
- Consent Order
- Disciplinary Panel
149
What are fixed penalties?
A fine by the RICS
150
When are fines by the RICS applicable?
Minor breaches:
- Failure to provide the RICS with required information (annual returns, CPD)
151
What are consent orders?
A written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS rules.
152
When is a disciplinary panel applicable?
Used for serious breaches of conduct such as illegal activity.
153
What insurances do you need for starting up your own business?
- Professional Indemnity Insurance
- Employers Liability
- Public Liability
- Building Insurance (Office/Premises)
154
What information must a firm provide the RICS with annually?
- Type of business and staffing
- Nature of clients
- Training provision
- Complaints handling procedures details and records
- Professional Indemnity Insurance
- Whether the firm holds clients' money
155
Money Laundering Regulations 2007
Money Laundering:
- Exchanging money or assets that were obtained criminally for other money/assets that are 'clean'
156
Proceeds of Crime Act 2002
The act applies to everyone
- Confiscation assets involved with money laundering
157
Terrorism Act 2006
The legislation which makes it an offence to encourage or glorify terrorism or disseminate terrorist publications through internet activity.
158
Limitation Act 1980
In a contract: 6 or 12 years (under hand or under deed)
