Ethics, Rules of Conduct & Professionalism Flashcards Preview

Josh's APC - Commercial Pathway November 2023 > Ethics, Rules of Conduct & Professionalism > Flashcards

Flashcards in Ethics, Rules of Conduct & Professionalism Deck (54)
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1
Q

Why do you want to become a member of RICS? What is the role of RICS?

A

・MARKS (Market Advantage, Recognition, Knowledge, Status)

・The RICS is a trusted and professional body. I want to gain the trust of my clients as a professional with high ethical standards, thus improving and building on those relationships.
・Be part of a professional body that is recognised across the globe, broadening my horizons in terms of international job opportunities.

2
Q

What are the key functions of RICS?

A

・Regulation
・Training (professional and ethical)

3
Q

What is a Royal Charter?

A

・RICS has a seat on the privy council to advise the Crown (& government)
・Royal Charter requires members to promote a profession for public benefit

4
Q

What are the 5 Rules?

A
  1. Honesty, integrity & compliance with professional obligations
  2. Professional competence
  3. Diligent Service
  4. Respect and diversity
  5. Public interest & responsibility
5
Q

What are the 6 ethical principles that the Rules of Conduct are based on?

A

・Honesty, integrity, competence, service, resepect, responsbility
・(One per rule except for the first which has 2 - honesty and integrity)

6
Q

Give an example behaviour for each Rule of Conduct

A
  1. Not allowing yourself to be influenced by gifts or hospitality
  2. Supervising sub-contractors or lower level employees when they don’t have the necessary experience
  3. Ensuring client requirements and your scope of services are understood by all parties before acting
  4. Do not discriminate on grounds of gender, sex etc
  5. Question practices that you don’t think are right & raise any concerns
7
Q

What are the core professional obligations of firms and members to RICS?

A

・3 for members:
1. Comply with CPD requirements
2. Must cooperate with RICS
3. Must provide all information reasonably requested by the Standards & Regulation Board

・7 for firms:
1. Must publish a complaints handling procedure
2. All work must be covered by PII that meets minimum standards
3. Firms with a sole principal must have appropriate arrangements for their work in the event of death etc
4. Must cooperate with RICS
5. Must provide all information reasonably requested by the Standards & Regulation Board
6. Must denote on business literature that they are regulated by RICS
7. Must report to RICS any matter as required under the rules for registration of firms

8
Q

Give me an example of when you have acted with integrity?

A

Swan Walk, Horsham
・When I received an offer on a vacant unit in Horsham, I reported it to my client in a timely manner and in writing.

9
Q

Tell me about when you have provided a high standard of service.

A

Gateway Retail Park, Banbury
・ I established my client objectives and my scope of services by acquiring a Retail Park unit fot them as per their business plan.

10
Q

Tell me about how you have promoted trust in the profession.

A

・I have refused to act where an instruction is outside of my competence and recommended alternative specialists

11
Q

Explain how you have taken responsibility in your current role.

A

・I take responsbility by making sure the data we hold is kept up to date and is destroyed when no longer needed

12
Q

Tell me about how you treat clients with respect.

A

・I have never discriminated or treated a client differently based on their physical attributes

13
Q

Tell me about how you treat other surveyors with respect.

A

・I listen to their opinions and recommendations
・I don’t discriminate or treat other sruevyors differently

14
Q

Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.

A

・Register firm with RICS
・Arrange a locum policy in case I am incapacitated
・Arrange PII with run off cover in case of death or the practice closing
・Write up a written complaints handling policy with an ADR service

15
Q

If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.

A

・I would decline and report the bribe to my internal compliance officer

16
Q

What would you do if you were asked by a client to reduce a fee proposal to win new work?

A

・I would politely refuse, advising that doing so may impact our ability to provide the best standard of service and considered as fee price fixing.

17
Q

What would you do if you became suspicious that a client was involved in money laundering?

A

・I would send a Suspicious Activity Report (SAR) to the National Crime Agency (NCA)
・I wouldn’t tip off the client

18
Q

What would you do if you became suspicious that a client was involved in terrorist activities?

A

・I would send a Suspicious Activity Report (SAR) to the National Crime Agency (NCA)

19
Q

If you were to set up in practice on your own, tell me about the types of insurance you would need.

A

・PII
・Public liability insurance
・Buildings insurance
・Contents insurance
・Employer liability cover
・Director and officers cover
・Business interruption insurance

20
Q

How do you ensure that you comply with bribery legislation?

A

I ensure the 6 principles of anti-bribery laid out in the Bribery Act 2010 are followed: (PTR CDM)
・Proportionality
・Top-level commitment
・Risk assessment
・Due diligence
・Communication
・Monitoring and review

・Policy - I have read and understood my firm’s anti-bribery policy (if you have doubts, would you mind it becoming public knowledge, refer to your immediate manager etc)
・I have attended training provided by my firm on bribery & corruption
・I declare gifts & hospitality in our register

21
Q

How do you ensure you comply with money laundering regulations?

A

・I ensure I keep up-to date with current training & regulation
・I attend semi-regular AML training from our AML officer
・I have read and comply with my firm’s AML policy
・I know to keep reports of any suspicious activity (SAR) and report this to the NCA

22
Q

How do you ensure you comply with your firm’s bribery and gifts policy?

A

・Do not accept bribes
・If I were to receive a gift - input on firm’s gifts and hospitality register

23
Q

Tell me about an instance of when you have been offered a gift or hospitality by a client.

A

・I was given a bottle of wine by a client for Christmas as a thanks for my work.

24
Q

Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge.

A

・I would defer to a colleague if they were able to undertake the work. If not, I would decline the instruction or refer them to an external specialist.

25
Q

How would you keep client’s money securely and safely held?

A

・I would ensure accounts are kept separate from other client accounts and were clearly identifiable, with the client’s name on the account
・I would ensure monies were available on demand
・I would ensure an annual audit was carried out by an RICS accountant

26
Q

Tell me about how you would handle a client complaint.

A

・If the complainant is unhappy with the initial response, I would suggest mediation or conciliation
・If they are still not happy, they would be referred to a consumer redress mechanism (SHW use the Centre for Effective Dispute Resolution (CEDR))
・If they were still dissatisfied, it would be referred to the Surveyors Arbitration Scheme

27
Q

Tell me about a conflict of interest check you have carried out.

A

・Whenever I intend to take on a new agency instruction, I circulate this information on our intranet to all fee earners requiring that they confirm there is no conflict of interest with their obligation to the same client or a related party

28
Q

If you identified a potential or actual conflict of interest, how could you handle this?

A

・Identify what the conflict is
・Inform the client of the conflict and decline the instruction

29
Q

How do you act ethically in terms of offers put forward? Why do you not disclose the offers to other parties?

A

Act ethically by reporting offers in a timley and professional manner.

DO not disclose offers as this is unethical and promotes gazumpering

30
Q

What money laundering regulations or legislation are you aware of?

A

・RICS professional statement: Countering Bribery and Corruption, Money Laundering & Terrorist Financing 1st Edn. 2019
・UK Money Laundering Regulations 2017
・Proceeds of Crime Act 2002

31
Q

What is a red flag of money laundering?

A

・Large cash payments
・Speedy sales
・No reason behind the purchase
・Paying more than market rate
・Reluctance to provide AML info
・Refusing to sign ToE

32
Q

What bribery legislation are you aware of?

A

・Bribery Act 2010

33
Q

What is a bribe?

A

・The offer or acceptance of an advantage as an iducement for an action that is illegal, unethical or a breach of trust

34
Q

How long should you keep anti money laundering records for?

A

・5 years from date of business relationship ends or transaction completes

35
Q

Can you tell me about the RICS requirements in relation to PII?

A

・Minimum cover is dictated by turnover of the firm:
・<£100,000 = min £250,000 cover
・£100,000 - £200,000 = min £500,000 cover
・>£200,000 = min £1mil
・SHW’s cover is £10 million

・Maximum uninsured excess also dictated by turnover:
・£10mil or less = the greater of 2.5% of the sum insured, or £10,000
・£10mil or more = No limit set

36
Q

What is a PII aggregation clause?

A

・Governs what happens if there is more than one claim in the same year

37
Q

What is a PII aggregation clause?

A

・Governs what happens if there is more than one claim in the same year

38
Q

What does ‘claims made’ mean in terms of PII?

A

・It is the policy in place at the time of the claim, not neccesarily the policy in place at the time of the incident pays out

39
Q

Is a PII excess usually paid for per claim?

A

・Depends if the policy was ‘any one claim’ or an aggregate basis

40
Q

In a negligence claim, what would help to show that you acted with consideration and due process?

A

・Provide records of meetings and conversations
・Show evidence of recommendations and advice

41
Q

Can good record keeping help to provide a defence in a PII claim?

A

・Yes - if you provide evidence of how you came to conclusions this can help defence

42
Q

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?

A

・Get your PII insurance updated by the provider
・Cannot act when not covered by PII

43
Q

What is run off cover?

A

・Covers work undertaken by a firm after it ceases to operate

44
Q

What RICS requirements are there relating to run off cover?

A

・Firms must have run-off cover for a minimum of 6 years
・Must have an aggregate limit of £1m

45
Q

What changes did RICS recently make to the Minimum Approved PII Wording?

A

・Removal of the maximum uninsured excess for larger firms (over £10m turnover)

46
Q

Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance (1st Edition).

A

“・Sets out guidance for managing the risk associated with undertaking professional work:
・Breach of contract and negligence claims
・PI

47
Q

Explain when you might agree a liability cap.

A

・Wording should state limitation on liability if the surveyor’s work is used for another purpose other than the one intended
・Proportionate liability clauses may be included in terms of engagement to transfer the risk of a related party to a claim not being able to contribute financially to a loss and their share thus transferring to you.
・E.g both you and conveyancing solicitors provide advice to a client in respect of a property purchase. If a negligence claim is made against both of you but the solicitors’ firm goes insolvent, you are liable for the whole claim unless the contract stated a proportionate liability clause

48
Q

What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?

A

・RICS ‘Risk, Liability & Insurance, 2021’ states these should always be included in terms of engagement:

・Scope of work
・Fee basis
・Liability cap

49
Q

Tell me what you understand about Complaints Handling Procedures (CHP).

A

・Every firm must have a CHP
・Must acknowledge in 7 days & respond in 28 days
・If the complaint can’t be dealt with in-house, should consider mediation/conciliation, then ADR before litigation
・Must have a ‘redress system’ (usually the Property Redress Scheme) that complaints can be escalated to rather than going to the courts

50
Q

When and how can the RICS be involved in a complaint about a firm or member?

A

・If the complaint is from a consumer, the firm must signpost to an Alternative Dispute Resolution provider approved by RICS

51
Q

What is whistleblowing?

A

・Where an employee reports or reveals information about activities deemed illegal, immoral, illicit or unsafe

52
Q

Explain what you understand by the RICS Bichard Review.

A

・Independent review into the RICS’s purpose, governance and strategy following the Levitt Review, which damaged RICS’ reputation

53
Q

How would set out third party reliance in Terms of Engagement?

A

・Should include a clause preventing third party reliance as standard.
・The more people that are permitted to rely on e.g the valuation, the more risk there is to claims by third parties under tort of negligence and thus, more risk
・Sometimes disclaimers seeking to remove third party reliance are not held up in court if it is not fair and reasonable to apply them (under the Unfair Contract Terms Act 1977) e.g precedent set in [Smith v Bush 1990] is that valuers acting for the lender owe a duty of care to the borrower for the purchase of a residential property regardless of disclaimers

54
Q

How long can a PII claim arise after the work is undertaken?

A

・6 years for breach of contract or negligence under the Limitations Act

・PII is agreed on a ‘claims made’ basis so it is the policy in place when the claim is made rather than when the services were provided that covers the work. Policies are usually fully retroactive so will cover the all previous work by the firm.