Ethics, rules of conduct & professionalism Flashcards

Question

What are the penalties for being involved in money laundering?

Answer 1

* Up to 14 years in prison * Large fine

Answer 2

* Concealing, disguising, converting or transferring criminal property * Becoming involved in an arrangement relating to criminal property * Acquisition, use or possession of criminal property * Disclosing/tipping off that a SAR has been submitted

Answer 3

5 years from the date the business relationship ends

Answer 4

Insurance that covers the cost of compensating clients for loss or damage resulting from negligent services or advice provided by a business or individual

Answer 5

* An each and every claim basis or aggregate plus unlimited round the clock reinstatement basis * RICS minimum policy wording or more comprehensive wording. As a minimum, you should ensure that your policy wording is written on a full civil liability basis and the minimum levels of indemnity based on the firms turnover in the previous year (or estimated for a new firm) * Be fully retroactive * Underwritten by an RICS approved insurer * Cover all past and present employees, including all partners, director, members and employees

Answer 6

Inform my line manager and insurers will have to be informed

Answer 7

A document that is submitted by Regulated Firms on an annual basis to RICS. The document contains a number of details such as PI details, levels of staff, nature of work carried out etc.

Answer 8

They are a mechanism held by firms that ensure complaints are effectively managed and dealt with.

Answer 9

RICS generally only investigate matters if they are in the public interest in order to take disciplinary action to protect the public, rather than to punish the professional or firm

Answer 10

Members must carry out a minimum of 20 hours a year. Minimum of 10 must be formal and must ensure they matain a current understanding of RICS ethical standards on a rolling 3 year basis.

Answer 11

We work in an industry that is constantly involving so it is important that we make sure our understanding remains keeps up with changing conditions

Answer 12

Acting for buyer and seller in the same transaction

Answer 13

Its a conflict of interest

Answer 14

* Agree the closure date (with other partners or directors if necessary). * If the firm is insolvent, seek appropriate advice. * Inform staff and take any necessary legal steps to end their employment, or allow them to seek government support if available. * Inform clients of the firm and seek instructions. * Deal with client money outstanding in your client account. * If you have professional indemnity insurance notify your professional indemnity insurers and arrange run off cover. * Make arrangements in respect of files and digital records you are holding to keep them safe and confidential for as long as required. * Notify former clients for whom you are holding leases or other original documents. Confidentially destroy any documents you do not need to keep (bearing in mind the need to retain documents for tax and professional indemnity purposes). * Inform RICS, apply to deregister your firm and ensure your contact details are up to date. * When you have ceased to practise, ensure that anyone trying to contact you will be notified that you have closed. * Consider who else should be contacted about the closure of your practice.

Answer 15

Professional Standard Countering Bribery, Corruption, Money Laundering & Terrorist Financing 1st Edition 2019

Answer 16

Its a Professional Standard so it sets mandatory requirements for members and Regulated Firms

Answer 17

* Must not facilitate or be complicit in money laundering or terrorist financing activities * Have systems and training in place to comply with these laws, and ensure these are followed * Verify the identify of their client by undertaking basic identity checks

Answer 18

Version 7 which took effect from Februrary 2022

Answer 19

Associate - AssocRICS Chartered - MRICS or FRICS

Answer 20

* The Firm provides surveying services to the public * the Firm is operating in Regulated Area A * at least 50% of the Firm’s Principals are RICS Members

Answer 21

* The Firm provides surveying services to the public * At least 25% of the Firm’s Principals are RICS Members

Answer 22

Somebody within a Regulated Firm who is responsible for ensuring that the firm complies with regulatory and statutory obligations

Answer 23

Firms that close in a disorderly way and rapidly re-establish themselves as a new entity

Answer 24

* The RICS logo may only be used by a Member or a Registered Firm, unless otherwise authorised by RICS * The RICS Registered Firm designation may only be used by an RICS Registered Firm

Answer 25

February 2022

Answer 26

* 50% or more of partners or directors are chartered members

Answer 27

Firms must include the chartered by RICS paragraph set out in the guidance

Answer 28

Someone who provides cover in the event of sickess/death of a sole practioner

Answer 29

RICS Professional Standard Client Money Handling 1st Edition 2019

Answer 30

2019 but reissued in October 2022 as Professional Standard

Answer 31

RICS Client Money Protection Scheme

Answer 32

All Regulated Firms who hold clients' money pay a regulatory review fee

Answer 33

* Rent * Service Charge

Answer 34

* Payments received for fees due to the RICS member or RICS-regulated firm against a bill or written notification of costs incurred, which has been given or sent * Money paid in advance in respect of an agreed fee for surveying services (but not property agent work in England)

Answer 35

* Hold all client money in an exclusively controlled client money account * Ensure that the account name includes the word client and the name of the firm * Confirm the bank operating conditions in writing, including confirmation that the bank wil not be set-off or counterclaim against the client money account for any sum owned to it by another account held by the firm

Answer 36

* Population growth * Urbanisation * Sustainability

Answer 37

* We need to be clear and appropriately advise clients on the survey level and scope of inspection, limitations and caveats * We need to recommend justifiable further investigation * We need to consider whether any new information provided after inspecting or reporting affects our original advice, and updating advice if justified to do so

Answer 38

* Lejonvarn was an architect who provided services to Burgess in relation to a landscaping project * Lejonvarn wasn't paid for the services as she was a friend of Burgress and recently started her own practise * Burgess made a claim against Lejonvarn as they claimed their services were negligent * The court decided that Lejonvarn had a duty to use reasonable skill in providing the services and was liable for damages even though she did not receive payment for the services

Answer 39

* Networking * Information sharing * Business generation * Marketing and advertising * Raising awareness * Reaching a wider audience * Gaining reviews and recommendations

Answer 40

* RICS commissioned a Treasury Management audit in 2018 * Four non-exec board members raised concerns that the audit had been suppressed and were subsequently dismissed from the Management Board * RICS Governing Council commissiond the Independent Review in January 2021 * The Review found that the non-exec board members concerns were legitimate and were wrongly dismissed * A key factor was the lack of clarity around the roles and responsibilites of the various boards. This led to a lack of scrutny over the actions of the CEO and COO. This led to a power struggle rather than a cover up.

Answer 41

Sombody that reveals information about activity within an organisation that is deemed illegal or imorral

Answer 42

Processes and institutions that produces results that meet the needs of society while making the best use of resources

Answer 43

* The Pandora Papers are a 2021 leak nearly 12 million documents incriminating hundreds of global politicians and wealthy elite for tax avoidance and corruption. * The papers details how such individuals sheltered money in offshore accounts, shell companies, and real estate investments. * While offshore assets and accounts are not always illegal, hiding assets and avoiding taxation are

Answer 44

* Independent review of the RICS purpose, governance and strategy * Commissioned by Governing Council in December 2021 following the Levitt Review * Aim was to introduce and create a new sense of purpose and direction so that RICS can once more stand tall as an exemplar professional institution, capable of tackling the challenges which will shape the way we all live

Answer 45

* A Diversity and Inclusion Panel should be established to provide advice to the RICS Board and Standards and Regulation Board. * RICS needs to significantly improve its technology. * The RICS should reaffirm its commitment to work in the public interest and for public advantage.

Answer 46

The RICS have published a timeline in which they aim to implement a number of the recomendaitns from the review

Answer 47

* Ethics are principles that guide behaviour * Integrity suggests that we shoudl carry out ethical principles, rather than espousing an ideal then doing something contradictory

Answer 48

* Recruitment, movement, harbouring or receiving of children,women or men through the use of force, coercion, abuse, deception for the purpose of exploitation * Isolation * Restricted freedom of movement * Reluctance to seek help

Answer 49

* Introduced to allow the UK to impose economic and other sanctions, and money laundering and terrorist financing regulations * Allows the secretary of state and the treasuary as the appropriate minister to impose sanctions regulations that would prevent terrorist acts * Be in the interest of national security * Global peace and security

Answer 50

* A list of countries which is published by the government that has details of those designated under the sanctions list * Need to be aware so we do not coopretate with anybody on the list

Answer 51

* Requires overseas entities that own UK property or land to declare their beneficial owners or managing officers * Was introduced in an effort to tackle global economic crime

Answer 52

* Expands provisions in relation to sanctions and financial crime that was fast tracked through Parliment in response to the 2022 Russia invasion of Ukraine * Introduced the Register of Overseas Entities

Answer 53

Mark Devlin

Answer 54

* It shows who controls the decisions of owners or tenants (for more than 20 years) of land and property in Scotland * Need to be aware of it in order to establish who has control of what

Answer 55

* By complying with my firms anti-bribery policy * By refusing anything that is or may be seen as a bribe * By reporting any attemps of bribery to my line manager and if necessary the NCA

Answer 56

* By carrying out anti-money laundering checks on any potential agency clients before entering a business relationship with them

Answer 57

* Behaving honestly and being trustworthy at all times * By refusing any gifts that are not proportiante and timely to the services provided

Answer 58

Bottle of wine at Gilcomston Park

Answer 59

When I was carrying out an inspection of a flat, I was asked by the owner about carrying out a valuation of their shop. I informed them that I did not practise as a commercial surveyor and that would be outwith my area of expertise and experience. I informed them that I could pass their request on to our commercial department who would be able to better assist them

Answer 60

* Keep it in a seperate bank account that is clearly labelled client account with the name of the client in the account name * I would confirm the terms of the account in writing with the bank and ensure that they are aware its for holding client money

Answer 61

* If its not a full complaint yet and there is the oppurtunity to put something right if appropriate to do so then I would do it. * If the client wants to make a formal complaint I would refer them to the chp

Answer 62

If a client is not happy with the outcome of the complaint investigation they have the option to have it reviewed by somebody else in the firm. If they are still not happy after further investigation then we would raise the complaint with CEDR

Answer 63

Buy-to-let valuation

Answer 64

* Establish whether or not the conflict can be handled and if so how * If deemed appropraite to continue then decision about the conflict and how it was handled would be recorded * If the conflict could not be handled then it would declined

Answer 65

As we did the Home Report for the property. Acting would be a conflict of interest that cannot be mangaged.

Answer 66

Party conflict

Answer 67

Recorded in writing

Answer 68

* Always make the client aware of the full cost of fee ie inclusive of VAT * Make the client aware of any additional fees may be incurred during the process

Answer 69

Refused to increase valuation without sufficient evidence

Answer 70

EPC in Ballater

Answer 71

By always acting ethically. I carry out conflict of interets check and ensure that conflicts are appropriately managed

Answer 72

I take responsibility in my work and ensure that I work hard and produce quality work. I ensure that my site notes are well recorded and comprehensive.

Answer 73

* I am always polite to clients regardless of whether or not they are polite to me * I listen to clients and their needs * I follow through on anything I offer the client * I respect their time and ensure I stick to agreed timescales

Answer 74

I always talk to other surveyors in a professional and respectful manner. I do not talk down upon other surveyors and their professional opinions.

Answer 75

* Contact RICS for guidance and obtain a company start up pack * Inform the RICS and register for regulation * Appoint a contact officer for all RICS communication (which would be myself) * Prepare a CHP * Obtain relevant insurance required * Notify HMRC

Answer 76

I would decline the incentive. I then record the offer and notify my line manager.

Answer 77

Explain to the client that we are unable to reduce the fee. If we reduce a fee then the scope of work will also have to be reduced.

Answer 78

Submit a SAR

Answer 79

Submit a SAR

Answer 80

* PI * Employers Liability * Public Liability * Buildings insurance for workplace

Answer 81

I explained that valuations have to be backed up by relevant and justifiable information and rationale. I talked the client through my comparables and rationale.

Answer 82

I explained my comparables and valuation. I also informed the client that I checked the value with several colleagues.

Answer 83

Made a file note that client tried to push value

Answer 84

If the information was relevant, verifiable and suggested a different opinion of value then yes

Answer 85

I informed the client that I was appreacitive of the offer but could not accept it

Answer 86

The timing was inappropraite as I had just finished the inspection and key stages of the instruction such as valuation and reporting was still to be carried out. Accepting the gift now could impede my ability to act impartially throughout the remainder of the instruction.

Answer 87

If the instruction was fully done and dusted and there was no further work to be required. For example, the property has sold and there is still no requirement to provide a transcript to a lender.

Answer 88

I made a note of it for the file

Answer 89

* Honesty * Integrity * Responsibility

Answer 90

I turned down a BTL MVR instruction as my firm carried out the Home Report on the property

Answer 91

Regulate and enforce the highest qualification and standards in the surveying industry

Answer 92

* Associate member - obtained after completing associate assessment * Chartered member - applies to MRICS & FRICS

Answer 93

* Professional Standard * Practise Information * Professional Statements * Guidance Notes * Code of Measuring

Answer 94

* Rules of Conduct for Members * Rules of Conduct for Firms * Global & Ethical Standards

Answer 95

* Previous versions had been in place since 2007 * New version provides a simpler structure to follow and aims to tackle global challenges such as sustainability

Answer 96

* Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS * Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise * Members and firms must provide a good-quality and dilligent service * Members and firms must treat others with respect and encourage diversity and inclusion * Members and firms must act in the public interest, take responsibilty for their actions and act to prevent harm and maintain public confidence in the profession

Answer 97

* Rule 5 - Investigating complaints * Rule 1 - Checking and managing Conflicts of Interest

Answer 98

* Honesty * Integrity * Competence * Service * Respect * Responsibility

Answer 99

* Accepting it would be acting in a COI

Answer 100

* Written response recording reason for decline saved

Answer 101

* Travel fees * Reinspection fees * Additional services (floors plans)

Answer 102

* Client wasn't happy with my valuation and tried to persuade me to value it higher. I informed them that valuations are prepared objectively and that there was no evidence to support the higher value.

Answer 103

* Finished inspection for Home Report and client tried to give me a bottle of wine. I declined the gift and informed them that I was unable to accept the gift as the timing was inappropriate.

Answer 104

* Timing wasn't appropriate

Answer 105

* We had just finished the inspection and a large proportion of the work was still to be carried out

Answer 106

* If it was appropriate timing and proportiante then yes

Answer 107

I would inform the client of the offer and allow them to make the decision on whether they would happy to consider it or not

Answer 108

* If the gift is proportinate and appropriately timed then I would consider accepting it * If I accept it I would do so in accordance with policy and ensure to inform my line manager and complete the gift register

Answer 109

* Ensure the work is carried out by an individual whos impartialness wouldn't be affected

Answer 110

* Anything that may impede, or perceive to impede, the impartiality of an individual or firm * Acting for buyer and seller in the same transaction

Answer 111

* £1,000,000 * Meritt v Babb

Answer 112

Goes on firms turnover in the preceding year: * £100,000 or less - £250,000 * £100,001-£200,000 - £500,000 * £200,001 and above - £1,000,000

Answer 113

* Ensure that if the firm faces a claim, it is protected from financial loss that it cannot meet from its own resources * Protect the insured member or firm against the consequences of its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activity * Ensure that the firms clients do not suffer financial loss, which the firm cannot meet

Answer 114

* Employers Liability * Public Liability * Buildings insurance for workplace * Vehicle Insurance

Answer 115

* Contact RICS for guidance and obtain a company start up pack * Inform the RICS and register for regulation * Appoint a contact officer for all RICS communication * Prepare a CHP * Obtain relevant insurance required * Contact HMRC and potentially companies house

Answer 116

* Charlotte Sqaure in Edinburgh

Answer 117

* Birmingham

Answer 118

* Parliment Square in London

Answer 119

* Depends on the context of the question * If he is asking general questions about the market as a whole then there would be no obstruction not to answer * If its specific, personal advice relating to his own circumstances then I would advise him to contact the office and we can arrange for something formal to occur

Answer 120

* There is no limit to cash that can be accepted * If the cash payment is 10,000 euros or more then there is the requirement to be registered with HMRC as a high value dealer

Answer 121

* If the bottle of wine is proportianate and timed appropraitely then I would accept it but do so in accordance with our policy

Answer 122

* Means they are a DPB under the Financial Services & Markets Act 2000 * DOB are required to cooperate with the FCA in a number of ways, including information sharing, in order for the FCA to be able to perform its functions

Answer 123

* Tina Pailett

Answer 124

* At least 20 hours a year, 10 of which of which must be formal

Answer 125

* Valuer Registration Scheme * It is a risk monitoring and quality assurance programme which checks compliance with the RICS Red Book

Answer 126

* The physical and/or electronic separation of individuals within the same firm that prevents confidential information passing between them * Used when there is a need to maintain confidentiality within an organisation to prevent conflicts of interest * An example would be password protecting documents

Answer 127

* Inform my line manager * Inform somebody higher up to establish whether they will take action * They may decide to report the offence or leave it up to myslef to report * If the latter I would inform the RICS & Serious Fraud Office

Answer 128

* Bribery Act 2010 * Proceeds of Crime Act 2002

Answer 129

* They promote and enforce the highest ethical standards within the industry

Answer 130

* Structured learning that has clear learning outcomes

Answer 131

* Early career community designed to support students, apprentices, trainees and those who are newly qualified (up to 10 years), as they move into the industry

Answer 132

* Someone who provides cover in the event of sickess/death of a sole practioner * If you are a sole practionert

Answer 133

* Its the same levels of cover but it goes by estimated turnover rather than previous turnover

Answer 134

* Formal is structured learning that has clear learning outcomes whereas informal is unstructured learning that members carry out in their own time

Answer 135

* Only Regulated Firms can use the RICS Designation & Logo * The Logo must be displayed in certain ways and cannot be altered * Regulated Firms must display the Regulated by RICS status on official documents

Answer 136

6 years from date of enrollment in APC

Answer 137

Less than 2 years PQE - £354 Over 2 years PQE - £539

Answer 138

* AssocRICS - obtained after completing the associate assessment * MRICS - obtained after completing the APC * FRICS - obtained after completing application that has to demonstrate various characteristics

Answer 139

www.rics.org

Answer 140

* Consider whether or not I should go about the inspection * If I feel the relationship is a potential to impede my impartialness then I would advise them that I can't go about the survey because of the conflict and would need to get a colleague to return to carry out the survey

Answer 141

* Name * Photograph on an official document which confirms their identity * Residential address and date of birth

Ethics, rules of conduct & professionalism Flashcards

(166 cards)