ETHICS, Rules of Conduct & Professionalism.

Question 1

Fee negotiations

Answer 1

1. Firms should not be seen to be undercutting
2. Fees should be market based
3. Must be transparent with your client
4. Should always provide a good quality service

Question 2

What are terms of engagement?

Answer 2

In writing, the clients willingness to:
1. Proposed Fee Basis
2. Payment of expenses
3. Most notify the part that you have a complaints handling procedure

Question 3

Before finalising ToE, what should you do?

Answer 3

1. Check you are professionally competent
2. No conflicts of interest or personal conflict
3. Confirm ToE in writing

Question 4

When could you decline an instruction?

Answer 4

1. Not professionally competent
2. Don’t have sufficient facts
3. Client will not sign ToE or engage in AML checks
4. COE or Personal Interest
5. Appropriate PI cover not in place
6. Free advice will not be covered by PI insurance
7. Client is on UK sanctions list
8. Not happy to act, due to image damage - i.e would you be happy for the instruction to make it to the paper?

Question 5

What is a conflict of interest?

Answer 5

Arises when a M/Firms independence and impartiality is effected due to the existence of a conflict between two clients.

Question 6

What are the types of conflicts?

Answer 6

1. Financial Conflict
2. Personal Conflict
3. Confidential Information Conflict

Question 7

What is conflict avoidance?

Answer 7

When you don’t accept an instruction

Question 8

What is conflict management?

Answer 8

Steps are put in place to manage a conflict, such as an information barrier.

Question 9

What RICS document relates to Conflicts of interest?

Answer 9

RICS Global Professional Standard on Conflicts of Interest 2017

Question 10

What is informed consent ?

Answer 10

Has to be given in writing, transparency is key. Should be only be done if it is in the parties best interest .

Question 11

What does the RICS Global Professional Standard on Conflicts of Interest 2017 specify?

Answer 11

1. All conflicts must be managed in accordance with the Professional Standard
2. All RICS firms must have effective systems in place to ensure full compliance and manage conflicts
3. All firms must keep records to show their compliance with the standard.

Question 12

How should you handle a conflict of interest?

Answer 12

STEP 1: Consider if the conflict should be avoided in the first place
STEP 2: Informed Consent - 1. Disclose the nature of the conflict 2. Be as clear as possible 3. Request written confirmation
STEP 3: CONFLCIT MANAGEMENT - i.e information barrier

Question 13

Where have you witnessed a COI?

Answer 13

License - 6 St A
Jesus/College - Christs College who are both of our clients.

Question 14

What is Dual Agency?

Answer 14

Where two agents have a contractual relationship with a seller and buyer at the same time.

Question 15

Multiple Instructions?

Answer 15

Where an agent has competing contractual relationships with several buyers for RE investment opportunities.

Question 16

What is incremental advice?

Answer 16

Where an agent is acting for a seller in relation to a disposal but is approached by the buyer.

Question 17

What is a Own interest Conflict?

Answer 17

Arises when acting for a family member, a close business associate or someone with whom you have a financial or personal interest from.

You must not let a personal interest interfere with or influence your professional judgment.

Question 18

What regard to does the RICS have towards Confidentiality?

Answer 18

1. Client confidentiality must be maintained for all affairs
2. Historic/present information must be kept confidential
3. Surveyors should not use information to their own advantage they have been privy to.
4. All confidential info received in error must be disposed of securely

Question 19

What is the RICS document on Complaints Handling?

Answer 19

RICS Guidance Note on Complaints Handling, 2016.

Question 20

What does the RICS specify over complaints handling?

Answer 20

1. All firms must have a complaints handling procedure
2. You should notify PI insurers when you receive any official complaint.
3. CHP should be issued to the client at the same time as ToB
4. A complaints log should be maintained

Question 21

What should you do if you receive a complaint?

Answer 21

1. In House resolution - Reference Bidwells’ Complaints Handling Procedure
2. Third Party Resolution - CEDR (only if complaint has not been settled internally)

Question 22

What are the member CPD requirements?

Answer 22

1. 20 Hours CPD
2. 10 Hours must be formal
3. Must have up to date knowledge of the Rules of Conduct

Question 23

What is Negligence?

Answer 23

When a duty of care is breached, results in a loss, and damages from a claim.

Question 24

What is the Limitation Act 1980?

Answer 24

Limitation periods for negligence are 6 years from the negligent act Tort - 6 years from the date the client suffered a loss.

Question 25

What steps can you put in place to avoid negligence?

Answer 25

1. Clearly understanding your clients objectives 2. Ensure you are competent 3. Undertake work in-line with RICS GN and Professional Standards 4. Detailed files 5. Ensure appropriate PI cover is in place

Question 26

What is PI cover and what does it do?

Answer 26

It is mandatory for surveyors to have. It protects, clients, surveyors, and third parties against negligence claims where their is a duty of care breached. 1. All PI cover must be underwritten by the RICS 2. Their are minimum amounts

Question 27

PI cover for firm £100k or less?

Answer 27

£250,000

Question 28

PI cover for £100,001 > £200,000

Answer 28

£500,000

Question 29

PI cover for £200,001 or more

Answer 29

£1,000,00

Question 30

Insurance excess for upto £10m

Answer 30

2.5% of the sum insured or £10,000

Question 31

Insurance excess over £10m

Answer 31

No limit

Question 32

What is the RICS Document relating to client money handling ?

Answer 32

RICS Professional Standard ' Client Money Handling: 2019'

Question 33

What are the six main arears of the RICS Professional Standard' Client Money Handling: 2019'

Answer 33

1. Holding Client Money 2. Providing information to clients 3. Receipts of client money 4. Payments from Client Accounts 5. Accounting records and controls 6. Compliance

Question 34

Procedures of RICS 'Professional Standard' Client Money Handling

Answer 34

1. Money must be kept separately 2. The word Client is on bank account 3. A client must be able to have money on demand 4. Payment of interest must be confirmed 5. Accurate record keeping 6. Annual audits should be carried out 7. Money should only be withdrawn from a client account if properly required 8. Signatories must be agreed 9. All firms must have a client money handling procedure 10. Regular reconciliation must be undertaken

Question 35

What should you do if you wish to start a new firm?

Answer 35

1. Complete Firm Details form 2. Appoint Responsible Principle 3. Register with RICS for regulation 4. Arrange PI insurance 5. Set up procedures for CHP 5a) Obtain approval from the RICS on complaints handling procedure. 6. Set up complaints log 7. Plan succession 8. Ensure CPD is logged 9. Ensure completion of Annual Return 10. Register RICS valuer with (VRS) - if undertaking valuations

Question 36

What Statatory Compliance. should firms and members have regard to?

Answer 36

1. Requirement to disclose business name 2. Disability Discrimination (Equality Act 2010) 3. Bribery Act (2010) 4. Appoint a money laundering officer (Money Laundering Regulations 2017) 5. Health and Safety (1974) Act 6. Asbestos Register (2012) 7. Fire Safety Compliance (Regulatory Reform Order, 2005) 8. Ensure Data Protection (Data Protection Act, 2018 ) 9.Ensure compliance with employment law 10. Inform HMRC

Question 37

What should you do when closing a practice?

Answer 37

1. Inform RICS 2. Ensure Clients are informed at the earliest possible chance 3. Return monies held to clients 4. Inform insurers 5. Ensure run off cover exsists 6. Retain client information for a minimum of 6 years.