L3 - Ethics, Rules of Conduct and Professionalism Flashcards
(186 cards)
1
Q
Why do you want to become a member of RICS? (4)
A
1) Become part of the community in the largest international property organistaion in the world.
2) Obtain elite professional status.
3) Access to technical resources, guidance, information and support.
4) Benefits our Clients.
2
Q
What is the role of RICS?
A
RICS develops and enforces leading international standards to protect consumers and businesses, ensuring the highest level of professionalism.
3
Q
What is a royal charter? Who was it awarded by and when?
A
Maintain and promote usefulness of the profession for public advantage. Awarded in 1881 by Queen Victoria.
4
Q
What are the key functions of RICS? (4)
A
1) Regulate and promote the profession
2) Maintain the highest standards
3) Protect clients and consumers
4) Provide impartial advice, analysis and guidance
5
Q
What does RICS stand for? When was it founded?
A
Royal Institution of Chartered Surveyors – started in 1792
6
Q
Who is the current RICS president?
A
Ann Gray.
7
Q
What do you understand by the term self-regulation?
A
RICS operates within it’s own published regulatory framework, rather than being legislated by Government.
8
Q
Can you tell me what you understand by the (5) principles of better regulation?
A
Proportionality
Accountability
Consistency
Targeting
Transparency
The RICS rules of conduct focus on RICS’ regulatory goals and adopt the 5 principles of better regulation.
9
Q
What is a Bye-Law?
A
Byelaws are local laws made by a local council under an enabling power contained in a public general act or a local act
10
Q
Give an example of 4 of the RICS Bye-Laws (10)
A
Membership and Registration
Designations
Contributions to Funds
Conduct
Account and Audit
11
Q
Explain to me the new RICS Rules of Conduct - what do they replace?
A
The Rules of Conduct are a function of the RICS Royal Charter which aims to maintain the usefulness of the profession for the public advantage. They replace the former RICS Rules of Conduct for firms and for members, and the five global professional and ethical standards.
12
Q
When do they take effect?
A
2nd February 2022
13
Q
Who do they relate to?
A
All members and RICS-regulated firms.
14
Q
What are the 6 ethical principles that the Rules of Conduct are based on?
A
Honesty, integrity, competence, service, respect and responsibility
15
Q
What are the 5 Rules?
A
1) Honest, act with integrity and comply with their professional obligations
2) Maintain their professional competence and relevant expertise.
3) Provide good-quality and diligent service
4) treat others with respect and encourage diversity and inclusion
5) Act in the public interest, take responsibility for your actions and maintain public confidence in the profession
16
Q
Give an example of a behaviour from each of the 5 Rules?
A
1) Deal with gifts, hospitality and bribery (Bribery Act 2010)/ Conflict of Interest.
2) Structured CPD.
3) Work diligently and to timescales agreed with clients/ Data protection act 2013
4) Equality Act 2010
5) Complaint handling procedure
17
Q
What are the core professional obligations of firms and members to RICS? (3 & 7)
A
Members:
1. CPD.
2. Cooperate with RICS.
3. Information to Standards and Regulation Board.
RICS-regulated firms:
1. Cooperate with RICS.
2. Information to Standards and Regulation Board.
3. Complaints-handling procedure
4. PI
5. Locums
6. Designations.
7. Report to RICS any matter as per Rules for Firms.
18
Q
Who and what disciplinary procedures can the RICS impose?
A
Head of Regulation and Disciplinary Panel investigate.
A fine, caution, conditions on the membership or expulsion.
19
Q
Give examples of circumstances when disciplinary procedures be imposed?
A
Highlighted in the Bye-Laws.
- Not completing CPD.
- Not paying your fees.
- Criminal cases
- Incorrect PI
20
Q
When did RICS last update their disciplinary panel rules?
A
1 October 2019
21
Q
What are the different levels of action with RICS disciplinary procedures?
A
Caution
Reprimand
Give one or more undertakings as to future conduct
Stop taking certain actions over a certain time
Conditions to membership
Fine
Costs to RICS
Expulsion
22
Q
What do you understand by the term professional practice?
A
Conduct and work of someone from a profession.
23
Q
What money laundering regulations or legislation are you aware of?
A
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
24
Q
What is a red flag of money laundering?
A
Secretive client
Disguises
Criminal associations
Large cash payments
Unusual transactions
25
What bribery legislation are you aware of?
Bribery Act 2010
26
What is a bribe?
to act in one's favour by a gift of money or other inducement.
27
What are the penalties for accepting a bribe?
Unlimited fines and jail sentences.
28
What are the penalties for being involved in money laundering?
14 years in prison and unlimited fine.
29
What constitutes an offence under the Bribery Act 2010?
offer, promise or give an advantage, directly or indirectly, to another person, intending that a person is rewarded for, or induced to, perform a relevant function or activity improperly.
30
What constitutes an offence under the current money laundering regulations?
The possession, concealment, conversion, transfer or making of arrangements relating to the proceeds of crime. This is not limited to money or cash.
31
How long should you keep anti money laundering records for?
5 years.
32
What is Professional Indemnity Insurance (PII)?
Insurance cover in the event of financial loss due to professional negligence.
33
Can you tell me about the RICS requirements in relation to PII?
All regulated firms must be coverd.
Firms turnover £100,000. £250,000 limit of indemnity
Firms turnover £100,001 - £200,000. £500,000 limit of indemnity
Firms turnover £200,000 and above - £1,000,000 limit of indemnity
34
Tell me 2 things about the PII update the RICS published in September 2022? (4)
1) Changes to annual returns to provide better data for RICS.
2) Development of experienced broker list.
3) Scoping and possible delivery of a common proposal form
4) Review of RICS’s minimum policy wording
35
What is a PII aggregation clause?
Allows linked claims to be treated as a single claim.
36
What does ‘claims made’ mean in terms of PII?
Policy covers claims made during period of insurance, regardless of when the act occurred.
37
Is a PII excess usually paid for per claim?
Yes.
38
What are the requirements regarding PII by the RICS? (6)
1) Must be made on an ‘each and every claim' basis
2) Reflects RICS minimum wording
3) Sets out minimum levels of indemnity
4) Sets out maximum levels of uninsured excess
5) Run off cover must be in place for at least 6 years
6) Should include cover for past and present employees, directors and partners
39
In a negligence claim, what would help to show that you acted with consideration and due process? (5)
1) Keep full and detailed records of meetings, conversations etc
2) Record recommendations and advice given
3) Use proper letters of engagement, scope of services and terms of engagement
4) Don’t advise on a specialism outside your field of experience
5) Use RICS guidelines
40
Can good record keeping help to provide a defence in a PII claim?
Yes
41
What is run off cover?
Ongoing PI insurance for firms after cease of trading.
42
What RICS requirements are there relating to run off cover? (2)
Consumer - limit of £1,000,000 in all for 6 years
Non-Consumer - adequate run-off cover for 6 years.
43
What changes did RICS recently make to the Minimum Approved PII Wording? Month & Year?
- Insurers may impose a fire safety exclusion but will be required to make a request to RICS for this. This will not apply to buildings 4 storeys and under.
- Cybercover - reflect the PRA (Prudential Regulation Authority), the minimum terms now exclude claims relating to the use of, or inability to use, a computer system arising from the receipt or transmission of malware, or from so-called 'cyber acts' including damage to or destruction of programs, software or stored data.
RICS is in the process of developing responsible business guidance on cyber risks and cyber security
May 1st 2021.
44
What does 'aggregate basis' mean?
Limit of indemnity insurer's will pay out over a specific time frame.
45
What precedent has caselaw set in terms of keeping adequate notes (and therefore providing a defence in a PII claim)?
Williams Tarr vs Anthony Roylance. Contractor vs Engineer - design a retaining wall and drain. WT thought they had engaged AR personally and not his company wanting to sue him directly. No formal appointment, only emails. Important to retain exact scope of services etc.
46
Would a dictated report avoid the need to have any written site notes?
No. Dictated is a one time draft, notes can be reviewed for accuracy.
47
Explain PII requirements relating to fire safety cover and cyber cover.
Fire - increased PII cover for buildings four storeys and under to protect firms.
Cybercover - must reflect PRA (Prudential Regulation Authority) requirements. Minimum wording now excludes cyber attacks but has published general guidance.
48
What is an EWS1 form?
External wall system fire review certificate.
49
How long can a PII claim arise after the work is undertaken?
6 years but 12 years if the agreement was made by a deed.
50
What is the Assigned Risks Pool (ARP)?
Provides cover for firms that cannot obtain cover.
51
Who might need to access the ARP?
Firms that cannot obtain PI insurance.
52
Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance (1st Edition).
Offers guidance on main risks and liabilities with services offered. Guides negotiations of contracts to avoid pitfalls and risks.
53
What documents does the RICS offer? (5)
1) International Standards
2) Professional Statements
3) Guidance notes
4) Codes of Practice
5) Jurisdiction Guide
54
Explain when you might agree a liability cap.
RICS recommends using a liability cap to ensure a fair allocation of risk and reward between yourself and client.
55
How would you set out third party reliance in Terms of Engagement?
Agree with the Client on an informed basis.
56
What does the RICS recommend about third party reliance?
RICS recommends members should include a clause in their engagement letters that prevents third party reliance.
57
What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?
1) Scope
2) Fee calculation
3) Liability cap
58
What is included in an RICS annual return? (5)
1) Type of business and staffing
2) Nature of clients
3) CHP and records
4) PI insurance details
5) Whether the firm holds clients’ money
59
Tell me what you understand about Complaints Handling Procedures (CHP) (3).
RICS rule for firms that dictates all firms must have a CHP, maintain a log of complaints and offer a alternative dispute resolution approved by RICS. This CHP should be approved by PI insurance provider.
60
When and how can the RICS be involved in a complaint about a firm or member?
When it is escalated from the senior members of the firm.
61
What are the stages of complaints handling?
1) Written complaint, acknowledged within 7 days and responded by 28.
2) complaint reviewed by independent redress. One for consumer and one for business to business
62
Can you tell me about the CPD requirements for members of RICS? When renew?
20 hours CPD per year via the system (10 hours formal). RICS ethical standards every 3 years. Renew 31 December.
63
Why is CPD important?
Keeps my skills and knowledge up to date.
64
What does CPD stand for?
Continued Professional Development.
65
What is informed consent?
A risk of conflict of interest has arisen but all parties are happy to continue. Parties must act impartially and the Client approves.
66
What is a conflict of interest?
Where a person in in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
67
Name the types of Conflict of Interest? (3)
1) Party Conflict
2) Own Interest Conflict
3) Confidential information Conflict.
68
What is a party conflict? Example also.
Act on a duty owed to a Client that conflicts with that of another client/ party. For e.g. multi disciplinary firms acting on the same assignment carrying out different roles. Information could be skewed and the clients best interests not adhered too.
69
What is own interest conflict? Example also.
Act on a duty owed to a Client that conflicts their own interests. For e.g. employed as QS on the construction of a high speed rail line through a village that you live in and have been demonstrating against.
70
What is confidential information conflict?
Provide information to a client whilst holding a duty to keep that same information confidential from another client.
71
Tell me about the RICS’ guidance on dealing with Conflicts of Interest.
Professional statement outlining how to avoid conflicts of interest and how to deal with conflicts of interest. Informed consent must be approved by all parties, sometimes with the aid of Information barriers.
72
What is double dipping (dual agency)?
Acting for both buyer and seller.
73
Why is double dipping (dual agency) an unacceptable practice?
Banned by the RICS.
74
How would you close down a regulated firm? (8)
1) Agree date
2) Seek advice if insolvent
3) Inform staff; redundancies etc.
4) Deal with any outstanding monies (as per RICS guidance)
5) Notify PI insurers - run-off cover
6) Inform RICS
7) System of anyone contacting you is notified of closure
8) Inform bank, HMRC, accountant, solicitor, landlords etc.
75
What can you tell me about RICS guidance relating to bribery, corruption or money laundering (4)?
Professional Statement to firms and members. Details what shouldn't be done and what plans to have in place if it happens. i.e.
1) refuse
2) policies in place to comply with laws
3) report any activity
4) act with due diligence & retain information how the firm has followed the professional statement.
76
N/A
N/A
77
How much is it to register a firm with the RICS?
£Free!
78
When did the RICS rules for registration of firms change?
1 April 2020.
79
What were the key changes when the RICS rules for registration of firms changed? (6)
1) Firms MUST register for regulation if they supply surveying services in UK and 50% of principals are MRICS.
2) 25% principals to be registered.
3) Firms can be supervised by a RICS regulated firm.
4) Responsible Principal.
5) Use of RICS logo for only regulated firms
6) Firms must include in T&C's explaining what regulated by RICS means.
80
What is a phoenix firm?
When firms close in a disorderly way and the principals re-establish a new firm quickly,
81
When must a firm register for regulation?
Surveying in Regulated Area A (UK) and 50% RICS principals.
82
What are the registration eligibility criteria for firms? (3)
1) Offering surveying services
2) 25% firms principals MRICS
3) Agree to abide by the Rules of Conduct for Firms.
83
Who is a Responsible Principal?
Ensure the RICS professional, technical and ethical standard are applied, upheld and supported by an appropriate assurance framework within a registered firm, and for ensuring corporate co-operation with our regulatory processes.
84
What happens if a firm cannot comply with the eligibility criteria?
1) Appropriate plan in place to secure compliance
2) Supervised by another RICS registered firm
85
What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?
1) Members and firms only allowed to use it
2) Must be used by firms to display 'Regulated by RICS' on business literature
86
When did these rules last change?
2 February 2022
87
What is a locum and who might need one?
Sole practitioner.
Someone who will stand in for the surveyor if they are unable to work.
88
How could a sole trader set up their CHP using a locum?
Use the locum as their CHP to act impartially and fairly.
89
What RICS guidance relates to handling client money? When last updated?
Professional Statement. Client money handling. 1 January 2020.
90
What do the RICS Rules of Conduct say about client money? (6)
Professional Statement - Client money handling. 1 January 2020.
1) Paid into client money account that only firm has control of and is of only the clients money
2) Name the account 'client' and name
3) Receipt paid in to clients money account
4) Readily available
5) Account for interest to the client
6) Pay unidentified monies to a charity after 3 years after owner not identified - obtain a receipt and indemnity if an owner is later identified
91
Explain your understanding of the RICS Scheme Rules relating to client money protection.
Covers Clients when an RICS regulated firm cannot pay the money back.
92
What are the main schemes available to firms in relation to RICS Scheme Rules relating to client money protection? (2)
1) 'General money protection' - surveying activities.
2) 'Residential agency activity in England protection' - Property Agents
93
When were the RICS Scheme Rules relating to client money protection updated?
June 2020
94
What is the current compensation limit RICS Scheme Rules relating to client money protection?
£50,000 per claim
95
What might client money include? (5)
1) Rent
2) Service charges
3) Interest
4) Arbitration fee
5) Money to be paid to Contractors
96
What are some of the key principles of the RICS Professional Statement relating to client money protection? (6)
1) Holding Client money appropriately - Client named account
2) Information to Clients - account details, disclosures, firms procedures.
3) Receipts
4) Payments - only use for client matters
5) Accounting records
6) Anti-money laundering legislation and rules for RICS members
97
Explain the key themes from the RICS Futures 2020 Report.
The main theme was regarding being more environmentally friendly:
1) Roads built from plastic
2) Helping China urban plan
3) Drone technology
4) Protecting cities from Climate change
98
Explain the potential implications of the Hart v Large case.
Home Buyer Report by Mr Large missed significant damp and drainage problems. Mr&Mrs Hart sued for negligence. Damages applied from Watts v Morrow. Damages assessed at £750k but reduced to £374,000 out of court. Appeal launched.
Implications:
1) Advise clearly on scope of inspection and limitations
2) Recommend further investigations
3) Consider later found information and update advice in line.
99
Explain your understanding of precedent set in Burgess v Lejonvarn.
L Architect & PM for B landscaping. L not paid because she was a friend of B. B stated L was negligent and claimed. Court stated no contract agreed but a duty of care was responsible by L and is liable for negligence even though no payment made. Each act of negligence was thrown out of court due to no contract only duty or care.
100
What do RICS set out as good practice for the use of social media in their Regulation document (June 2021)? (5)
1) Non abusive
2) Non bullying
3) Non discrimitary.
4) Non dishonest
5) Retaining public trust in the profession.
101
Date and explain your understanding of the RICS Levitt review
- Alison Levitt QC (Author)
- Issues at Governance level.
- 2 boards (Government Council & Management Board)
- January 2021
- Articles published in The Times
- Management board quarterly meeting
- Meeting papers extend overdraft from £4m - £7m for 45 days due to inaccurate cashflow forecasting.
- Management board learned internal audit concluded a no confidence of internal controls
- 4nr management board members wrote a letter to president concerning lack of transparency
- 4 members dismissed from the management board
- Levitt review commissioned following audit committee request
- Interviews and consultation carried out.
- RICS published report.
- Power struggle between boards.
- Rules not broken, just bent.
- Governing council should have more oversight and briefed by Management board not just CEO.
- Consideration of bonuses.
- Whistle Blowing procedure bettered.
- Legal advice should go to RICS rather than individuals.
- Transparency the key, don't cover up issues and don't prevent from telling anyone.
- President stepped down - Kathleen Fontana.
- Ann Gray.
102
What recommendations came from RICS Levitt review? (6)
1) Wide ranging external review of purpose, governance and strategy (Bichard Review).
2) Whistle blowing policies change to allow third parties to act against senior members
3) Greater oversight of Governing council, publishing agreements
4) More Management board meetings
5) Review bonuses at board level
6) Legal advice to RICS to be treated as Client, not senior management.
103
What is whistleblowing?
Disclosing details of an RICS member or firm (or yourself) when they/you have breached RICS standards to protect the reputation of the profession.
104
What are the processes of governing the institution? (5)
Process of governing the institution.
1) Transparently
2) Responsibly
3) Accountably
4) With participation
5) With responsiveness
105
Explain what the Pandora Papers are and the ethical issues raised within them.
Link to King Abdullah II secretly building a £70m property portfolio around the world. These relate to the RICS' members to carry out appropriate checks in relation to money laundering.
106
Explain what you understand by the RICS Bichard Review (3).
Review of governance, purpose and strategy and recommended urgent changes including engaging with younger members and focusing on diversity and inclusion.
107
Explain some of the recommendations of the Bichard Review (4/36)
36 recommendations
1) Increased focus on the public interest remit of RICS
2) Maintain self-regulation
3) Focus on diversity and inclusion
4) Renewed focus on younger members through regional boards
5) Hand decision making to members
6) RICS activities should be focussed around being an advantage to the public.
7) 5 working groups involved to implement changes
8) Matrics - give younger members a voice
9) Improve technology
10) Diversity and Inclusion panel - already done.
11) Make it clearer for Clients seek redress - already done.
12) Senior Independent Governor to be appointed to oversee relations between Governing Council, Management Board and Executives - Lord Michael Bichard appointed.
108
How do professional integrity and professional ethics differ?
Professional Integrity is being transparent, trustworthy and not taking bribes.
Professional Ethics are the principles that govern behaviour.
109
What is modern slavery and how would you identify red flags of it (8)?
Governed by Modern Slavery Act 2015. Includes human trafficking, forced labour and slavery.
1) Business trading in risky areas
2) Businesses tone from the top
3) No policies in relation to anti slavery
4) No supply chain business map
5) No monitoring of suppliers
6) Financial indicators
7) Recruitment policies
8) Whistle blowing policies
110
What is the Anti-Money Laundering Sanctions List and why should you be aware of it?
UK government released list of people, entities and ships under sanctions. This is prevalent with the Russia and Ukraine war currently. Should I be found to deal with monies linked to the anyone from the sanctions list I should report it to OFSI (office of financial sanctions)
111
Why was the Register of Overseas Entities introduced?
Following Russia's invasion of Ukraine the register helps the UK government and asks all overseas identities that own UK property or land to declare the ownership and to buy, sell or transfer would need to be registered with Companies House.
112
Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022
Reform role of Companies House and improve transparency to strengthen business environment, support national security and combat economic crime.
113
How do you ensure that you comply with bribery legislation? (2)
1) Follow my companies anti bribery and corruption policy.
2) Report any act of bribery.
114
How do you ensure you comply with money laundering regulations?
1) Have a 'KNOW YOUR CUSTOMER process in place.
2) Report suspicious activity.
3) Set up policies.
115
How do you ensure you comply with your firm’s bribery and gifts policy? Tell me about an instance of when you have been offered a gift or hospitality by a client.
Use the RICS decision tree and gauge proportionality. Register these on a register.
Horse racing event during a tender process. Declined and gave the reason as it could be seen as a bribe even if it is not.
116
Tell me about what you would do if you felt that an instruction was outside your scope of exclperience or knowledge.
1) Inform the Client.
2) Check with PI insurance cover.
3) Raise internally.
4) Not act until resolved.
117
How would you keep client’s money securely and safely held?
Follow the RICS standards. Covered by RICS Protection Scheme if registered.
118
Tell me about the complaint handling procedure (3)
Log complaint.
1) Frontline Resolution - line manager and head of division notified and try resolve within 7 days.
2) Internal investigation - nominated party investigate, acknowledgement letter issued within 7 days stating timescale and definitive answer provided within 28 days. If not satisfied, complaint to be escalated to MD and responded to within 14 days.
3) Refer to independent redress approved by RICS. Business RICS dispute resolution service/ Consumer ombudsman.
119
Tell me about your understanding of your firm's process for escalating a complaint to Alternative Dispute Resolution (ADR).
Inform PI company.
Clients - To be referred to an RICS approve redress
Consumer - Ombudsman.
120
Tell me where you would look for a conflict of interest check.
- database checks
- advisory emails to staff to enquire about any individual involvement
- existing record searches
- staff declarations
121
If you identified a potential or actual conflict of interest, how could you handle this? (3)
1) Report to the Client in writing
2) State that you cannot act impartially
OR 3) Acquire Informed Consent should the Client approve.
121
If you identified a potential or actual conflict of interest, how could you handle this?
1) Report to the Client in writing
2) State that you cannot act impartially
OR 3) Acquire Informed Consent should the Client approve.
122
How did you explain your appointment nature and fees to your client?
Explain how the fee was put together in relation to time allocated and rate used. Talk them through the scope of service to be delivered.
123
How did you formalise your instruction (appointment)?
Follow up in writing to confirm terms and conditions, fee and scope of service.
124
Explain the quality assurance procedures you comply with (6)
RICS Rule of good and diligent service.
1) Checking for COI
2) Customer due diligence
3) Checklist for checking files
4) Data handling and security
5) Client Feedback process
6) CHP
125
Give me an example of when you have acted with integrity (2) (rule 1).
1) I have been open and honest with a Client in regard to the appointment and fee structure. The Client was not familiar with the process as they were a private Client doing their first project therefore it was important they had a clear understanding of the process.
2) Not accepting gifts and hospitality when inappropriate.
126
Tell me about when you have provided good and diligent standard of service (4) (rule 3).
1) Ensure I understand the Clients objectives and requirements.
2) Inform the Client of any scope change requiring a change to the proposed professional fees.
3) Keep records of decisions and agreements made.
4) Act within the scope of my service.
127
Tell me about how you have promoted trust in the profession (4) (rule 5)
1) Maintain a CHP in the workplace.
2) Take responsibility for my actions.
3) Inform management of health conditions that could affect work they're doing
4) Manage finances properly.
128
Explain how you have taken responsibility in your current role (rule 5).
Whilst issuing a Cost Plan to a Client, I noticed a mistake within the build up. I informed the Client immediately and took ownership of the mistake. I revised the Cost Plan to suit and re-issued.
129
Tell me about how you treat clients with respect (4) (rule 4)
1) Open mindedness
2) By not discriminating
3) Checking supply chains do not involve modern slavery.
4) Listening to the Client and working cooperatively.
130
Tell me about how you treat other surveyors with respect (4) (9) (rule 4)
1) Do not discriminate despite age, disability, gender reassignment, marriage, pregnancy, race, religion, sex or sexual orientation.
2) Do not bully or victimise.
3) Report abusive behaviours.
4) Develop a diverse culture.
131
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying (9)
1) Inform RICS and register for regulation
2) Appoint contact officer
3) CHP
4) Obtain PII, Employers Liability, Public Liability and particular insurances to suit (office insurance etc.)
5) Abide by RICS rules
6) Correct use of designation (new changes)
7) Abide by data protection act and money laundering regs.
8) Abide by Handling Clients Money
9) Provide staff training
132
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying (9)
1) Inform RICS and register for regulation
2) Appoint contact officer
3) CHP
4) Obtain PII, Employers Liability, Public Liability and particular insurances to suit (office insurance etc.)
5) Abide by RICS rules
6) Correct use of designation (new changes)
7) Abide by data protection act and money laundering regs.
8) Abide by Handling Clients Money
9) Provide staff training
133
What would you do if you were asked by a client to reduce a fee proposal to win new work? (3)
1) Explain how the fee has been built up to accommodate for the required resources for the works and deliver a good service.
2) Avoid entering an auction with the other Consultant.
3) Offer to review scope of service to reduce the fee.
134
What would you do if you were asked by a client to reduce a fee proposal to win new work? (3)
1) Explain how the fee has been built up to accommodate for the required resources for the works and deliver a good service.
2) Avoid entering an auction with the other Consultant.
3) Offer to review scope of service to reduce the fee.
135
What would you do if you became suspicious that a client was involved in money laundering? (2)
1) Raise it internally.
2) Report it to National Crime Agency.
136
What is the RICS motto?
Est Modus in rebus - there is measure in all things.
137
What address are the RICS registered at?
12 Great George Street, Parliament Square, London.
138
What is Lionheart?
Independent charity run by RICS professional offering advice to past and current RICS members and their families.
139
What is Carsburg Report 2005? (5)
1) Carried out a review of RICS regulatory framework.
2) Review came from suggestions public expectation had changed and there was evidence members were unhappy.
3) Recommended separate regulatory and conduct boards.
4) RICS to regulate firms as well as members.
5) Simpler disciplinary actions.
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What is the RICS governing council?
Set strategy, direction and manages the royal charter obligations.
141
What is RICS Black Book?
Suite of guidance notes that define good technical standards.
142
What should employers do to create an ethical environment? (5)
1) Establish whistle blowing procedures.
2) Include ethical standards into hiring.
3) Ensure there is ethical training.
4) Become chartered with RICS.
5) Promoting CPD.
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Once a firm has been registered for regulation, what does the firm need to do to comply? (5)
1) Comply with the rules for firms.
2) Act within the rules set our in RICS' Royal Charter.
3) Inform of any finding against it
4) Inform of insolvency.
5) Inform within 7 days of a material change to the firm.
144
What does the Royal Charter show?
Defines the powers of the RICS so it can govern its own affairs.
145
What is the Bribery Act 2010?
Covers criminal law relating to bribery.
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What are the 4 main offences within the Bribery Act 2010?
1) Offering a bribe
2) Being bribed.
3) Bribing a foreign official.
4) Failing to prevent bribery by persons associated with relevant commercial organisations.
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What are the 6 principles of Bribery Act 2010?
1) Proportionality - risk and size
2) Top level commitment - those at the top to ensure bribery doesn't occur.
3) Risk Assessment - Shows nature or extent of exposure
4) Due Diligence - who you deal with
5) Communication - training and communicate policies to staff and other who perform services
6) Monitoring and Review - regular checks as businesses change
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Who is Chair of the Standards and Regulation Board? 2023
Dame Janet Paraskeva
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A Client asks you to take responsibility for making interim payments to the Contractor. The Client gives you half a million pounds in cash to make the payments. What would you do in this situation? (2)
1) Not accept the cash and request the Client pays it into a bank account (responsibility on the bank to check).
2) Report any concerns to the National Crime Agency.
150
What is corruption?
Abuse of power where a company or person are dishonest or conduct a criminal offence for their benefit.
151
What is a fixed price cartel?
A group of producers who agree to raise their prices to drive their collective profits.
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What is terrorist financing?
The collection or provision of funds to support acts of terror.
153
Who would you report modern slavery too?
Home Office or Modern Slavery Helpline.
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PII - Merrett vs Babb (2011)
- Babb done valuation for house purchase
- Valuation found later to be negligent
- Original company no longer existed and PII cancelled.
- Court rules Merrett could pursue Babb individually for losses.
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PII - what is the maximum level of uninsured excess (the part of each claim the firm must pay itself)?
Indemnity up to £500,000 - the greater of 2.5% or £10,000
Indemnity above £500,000 - 2.5% of sum insured.
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What measures should be taken to avoid PII claims?
1) Keep full detailed records of advice, recommendations, meetings etc.
2) Prepare and use proper engagement letters
3) Remain within scope of service
4) Follow RICS guidance and rules of conduct
5) Follow company procedures
157
What would you do if you became suspicious that a client was involved in terrorist activities?
Inform the authorites.
158
If you were to set up in practice on your own, tell me about the types of insurance you would need (7)
1) Professional Indemnity
2) Public Liability (indemnifies against claims from public)
3) Employers Liability (indemnifies against claims from employees)
4) Buildings Insurance (offices and the like)
5) Directors and Offices Cover (protects personal assets of the Directors)
6) Contents Insurance (protect business equipment and possessions)
7) Business Interruption insurance
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If you were to set up in practice on your own, tell me about the types of insurance you would need (7)
1) Professional Indemnity
2) Public Liability (indemnifies against claims from public)
3) Employers Liability (indemnifies against claims from employees)
4) Buildings Insurance (offices and the like)
5) Directors and Offices Cover (protects personal assets of the Directors)
6) Contents Insurance (protect business equipment and possessions)
7) Business Interruption insurance
159
Why do you avoid sharing tender queries?
I wouldn't - all tenderers will see all queries raised as per RICS Tendering Strategies Guidance.
160
How do you follow RICS guidance for tendering? How do you ensure tenders are run fairly?
Ensure all Contractors receive the same information and are all under the same time restrictions.
161
If a junior surveyor over certifies a Valuation, what should you do?
1) Inform the Client
2) Withdraw and re-certify if agreed with all parties
3) Failing the above, rectify next month.
4) Have processes and checks in place to make sure this does not happen again.
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What is the RICS Rules of Conduct?
The Rules of Conduct support positive change in the built environments, through
promoting and enforcing the highest ethical standards.
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What are the RICS ethical principles?
1) honesty
2) integrity
3) competence
4) service
5) respect and responsibility.
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Tell me about 4 example behaviours under Rule 1 for Members and firms?
Must be honest, act with integrity and comply with their professional obligations, including Obligations to RICS.
1) Identify actual and potential conflicts of interest
2) Are open and transparent with clients about their fees and services.
3) Keep client money safe and have appropriate accounting control
4) Do not facilitate any financial crime including money laundering, tax evasion, bribery or corruption
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Tell me about 3 example behaviours under Rule 2 for Members and firms?
Maintain their professional competence and ensure that services are provided by competent individuals.
1) Only undertake work that they have the knowledge, skills and resources to carry out competently.
2) Maintain and develop knowledge and skills throughout their careers. identify development needs, plan and undertake continuing professional development (CPD) activities.
3) Reflect on the work they have undertaken and its impacts, and consider
how they might apply what they have learned to their future work
166
Tell me about 3 example behaviours under Rule 3 for Members and firms?
Provide good-quality and diligent service
1) understand clients’ needs and objectives before accepting any professional work
2) agree with clients the scope of the service to be provided and its limitations, and timescales for the work
3) Ensure that any referral or introduction they make for a client is in the best interests of the client and inform clients about any financial or other benefits from a referral or introduction
167
Tell me about 3 example behaviours under Rule 4 for Members and firms?
Treat others with respect and encourage diversity and inclusion
1) Respect the rights of others and treat others with courtesy
2) Treat everyone fairly and do not discriminate against anyone including age, disability, gender reassignment, marriage, pregnancy or maternity, race, religion or belief, sex or sexual orientation.
3) Firms check that supply chains do not involve modern slavery or other abuses of the workforce.
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Tell me about 3 example behaviours under Rule 5 for Members and firms?
Act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
1) Respond to complaints made against them promptly, openly and professionally - CHP
2) Support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns - WHISTLE BLOWING.
3) Ensure that public statements do not undermine public confidence in the profession - SOCIAL MEDIA GUIDANCE.
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Name 3 obligations for members from Appendix A within the Rules of Conduct?
1) Complete CPD
2) Members must cooperate with RICS
3) Provide information to the Standards and Regulation Board
170
Name 3 other obligations for firms from Appendix A within the Rules of Conduct?
1) Publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and complaints log - WHAT IS MADE UP IN THE CHP?
2) All previous and current work is covered appropriate PI - PI LIMITS.
3) Sole practitioners must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work - LOCUMS.
171
What is Money Laundering?
Processes used to convert illegal funds obtained from criminal activities into other assets in such a way as to conceal a fund's true origin
172
How do you become a fellow?
1) 5 years post qualification
2) Managerial responsibilities
3) Prove you’ve made a significant contribution to the profession through academic study or specialist skills and promoted the profession by undertaking RICS activities.
173
What would you do if the contractor invites you to a football match?
Politely decline - I would not want to accept any hospitality that may appear to reduce my impartiality.
174
What would you do if a contractor offered to take you out for lunch?
Accept but point out that I would reciprocate at a later date so as to refrain from appearing unethical
175
What do you do if a contractor offers you a crate/ bottle of whiskey/ diary at Xmas?
Kindly thank them but decline the offer- acceptance would be against professional conduct.
May be acceptable to receive gifts of low value (£50) or for marketing purposes and hospitality received in the course of a business meeting that can be reciprocated like a working lunch. Anything that affects professional opinion is not acceptable.
176
Assuming you were successful in getting chartered, how would you deal with a situation such as a friend who asks you to provide them with QS advice?
I could not offer advice on my own without PI insurance. If I did have my own PI insurance I would ensure that the information given was subject to the thorough checking process given to all information prior to issue regardless of who it was to. Inform them they can contact you during working hours to discuss T&Cs of appointment.
177
Who elects the RICS President?
Governing Council
178
Describe the structure of the RICS?
1 - Governing Council
2a - Standards and Regulation Board
2b - RICS Management board
2b.1 - Audit, risk and finance committee
2b.2 - Nominations and remuneration committee
2b.3 - World Regional Boards & Market advisory panels
179
Why become MRICS? (4)
- Personal professional excellence and credentials gained.
- MRICS gives me an competitive edge in the market.
- Standards, guidance and support offered by RICS.
- Join a community of 134,000 professionals.
180
Who is Chair of the RICS Management Board?
Martin Samworth
181
How is Governing Council made up? (6)
- President
- President Elect
- Senior Vice-President
- Senior Independent Governor
- 4 strategy seats (Academia and Education; Capital Markets and Valuation; Land; Research and Development; Residential; Urbanisation and Planning etc.)
- 14 Market Seats from across the world
182
Who makes up the Management Board?
RICS members, non-members & executives.
183
Who is the President Elect?
Tina Paillet
184
Who is Senior Vice President?
VACANT.
