Legislation, Professional Standards & Penalties Flashcards

Question

What are the penalties for money laundering?

Answer 1

- Tipping off: 5 years prison / unlimited fine - Assisting: 14 years prison / unlimited fine

Answer 2

Serious Fraud Office

Answer 3

10 years prison / unlimited fine

Answer 4

- Resi: £200 for non display - Commercial: 15.5% of RV / £500-5,000 fine for non display on marketing

Answer 5

- Responsible person has a legal duty to assess the external walls and fire doors and complete a Fire Risk Assessment (FRA). Legal requirement. - A Fire Risk Appraisal of External Walls (FRAEW) might then be required if there is a suspected risk from a material used. Legal requiremnet. - An External Wall System (EWS) can then be required for HRB by lenders / mortgage valuers. It's not a legal requirement.

Answer 6

1. Clarify the role of the RICS 2. Make recommendations on its governing structure 3. Proposals for incoming leadership on future culture Created the Standards & Regulation Board, and Management Board

Answer 7

1. Public interest (public interest panel to advise Governing Council) 2. Self-regulation 3. Diversity and Inclusion 4. Focus on younger generation 5. Review of governance every 5 years 6. Simpler governance 7. Greater leadership on sustainability

Answer 8

Use of Social Media: Guidance for RICS Members (2024)

Answer 9

RICS will investigate Social Media if the content is: - Dishonest / misleading - Discriminatory - How closely it is connected to professional life - The way content is expressed - Whether content is confidential / private

Answer 10

Regulations: - Must not advise / represent a client where there is a conflict of interest - Must maintain confidentiality of confidential information - Must have systems in place to ensure their employees can adhere to this guidance - Definitions of CoI (party / own interest / confidential information) Supporting Commentary: - Maintain records - Informed consent can be given if the individual is 1. entirely transparent and 2. ensures the party understands what they are doing - Information barriers (but MUST have informed consent first)

Answer 11

Limitation periods when a negligence claim can be made because a duty of care has been breached: - Contract: 6 years from negligent act - Tort: 6 years the claimant suffered the loss

Answer 12

Professional Indemnity Insurance Requirements (2022)

Answer 13

RICS Professional Standard: Client Money Handling (2019)

Answer 14

Objective is to: - Keep client money safe - Ensure client money is only used for appropriate purposes - Ensure firms have controls and procedures to safeguard client money Guidance around: - Holding client money - Providing info to clients - Providing receipts of client money - Payments from client accounts - Accounting records and controls - Compliance

Answer 15

The Bribery Act (2010)

Answer 16

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations (2017)

Answer 17

Part 1: Intro Part 2: Money Laundering & Terrorist Financing Part 3: Customer Due Diligence - Ch 1: CDD - Ch 2: EDD - Ch 3: Simplified CDD Part 4: Reliance and Record Keeping Part 5: Beneficial Ownership Part 6: Supervision & Registration Part 7: Transfer of Funds Part 8: Investigation Part 9: Enforcement Part 10: Appeals

Answer 18

Two objectives: 1. To enable UK to create own sanctions and issue them, rather than adopting EU / UN ones 2. Make provisions for detection, investigation and prevention of money laundering and terrorist financing Ch 1 - Power to make sanctions regulations (e.g. types of sanctions) Ch 2 - Review by Minister Ch 3 - Temporary powers in relation to EU Sanctions Lists Ch 4 - Court Reviews E.g. Wider sanctions issued in light of geopolitical activities such as Ukraine conflict

Answer 19

To remind firms of their role in ensuring compliance with financial sanctions (particularly in regard to Russia and Ukraine). - Consider risks to business as part of AML procedure, noting the sanctions lists include UK citizens and people who live in the UK - Risk factors and red flags - Software as part of due diligence if a firm is likely to engage with higher risk clients or assets - Checking individual clients of a higher risk against the HM Treasury 'Consolidated List' - Checking existing clients regularly where they present a higher risk (subscribe to HM Treasury's Sanctions Notices) - What to do if client is a match on a sanctions list, including contacting Office of Financial Sanctions Implementation (OFSI)

Answer 20

Law that allows the confiscation or recovery of assets obtained through criminal activity. It also criminalizes money laundering ad failure to report suspected money laundering. Criminalises: - Concealment - Arrangements - Acquisition use / possession

Answer 21

Aims to strengthen UK's fight against economic crime: - Creation of Register of Overseas Entities (ROE) (overseas entities owning land in UK must register beneficial owners on Companies House, which is made public, increasing transparency) - Reforms to Unexplained Wealth Order (UWO) (allows authorities to seize assets if wealth cannot be explained)

Answer 22

Requirements and further guidance for firms on bribery, corruption and money laundering. Bribery Requirements: - Not offer / accept bribes - Procedures in place - Records Money laundering / terrorist financing: - Not facilitate - Systems in place - report suspicions Guidance for both: - Written policy / senior management take control - Code of behaviour - Gifts register - Risk based approach (three 'Ws') - Deadling with PEPs (enhanced DD) - Identify beneficial ownership (such as Certificate of Incorporation / Annual Return)

Answer 23

- A complaint is an expression of dissatisfaction. - Value of Terms of Engagement in reducing complaints. - Requirement to have a Complaint's Handling Procedure. - Effective CHP should be fit for purpose / understood by all staff / ready to be shared / reviewed regularly at senior level. - Ensure there is a Complaint's Log and Complaint's Handling Officer. - Always signpost to an ADR provider. - Complaint's are covered under data protection in the same way other data is. - Complaints also affect the level of PII premium.

Answer 24

Regulated by HSE. Duty of employers to employees. The act requires that employers provide: - Plant and systems that are safe - Use, handling, storage and transport of articles and substances are safe - Any place of work under the employer's control is safe - Working environment is safe The act requires all firms to have a policy: 1. Statement of commitment to managing H&S 2. List responsible people in business 3. Strategy for achieving H&S aims (e.g. risk assessment / training / using safety signs / equipment) The act requires all firms comply with RIDDOR. The act requires the right facilities must be provided: - Welfare - Healthy work env. - Safe workplace

Answer 25

Duty of employers AND employees. 1. Personal responsibilities ('safe person') 2. Assessing risks (Hierarchy of Risk Control) 3. Places of work 4. Occupational hygiene and health 5. Visiting premises or sites 6. Fire safety Employers are required to provide: - Safe working environment - Safe work equipment - Safe systems of work - Competent staff Employers must investigate if 'it all goes wrong'.

Answer 26

Primary duty is to the TRIBUNAL, not a client, where your expert report and evidence must be given. - If you are acting as an advocate and expert witness, you must differentiate at all times. Expert witness: a witness called by a party to give expert opinion evidence by virtue of experience, knowledge and expertise of a particular area beyond that expected of a layperson. The overriding duty of expert witnesses is to provide independent, impartial and unbiased evidence to independent experts − covering all relevant matters, whether or not they favour the client − to assist independent experts in reaching their determination.

Answer 27

Principles: - Object of arbitration is to obtain fair resolution by an impartial tribunal, without delay or expense - Parties should agree how their disputes are resolved - Courts should not intervene

Answer 28

Independent expert: a surveyor appointed either by the President of RICS or by the agreement of the parties to determine a dispute. Unlike both judges and arbitrators independent experts determining a dispute bring their own knowledge to bear on the issues, and are entitled to form a view based entirely on their own expertise, without the need for evidence from the parties. However, some of the advantages of independent expert determination, in particular speed, privacy and the ability to choose the decision-maker (or to have a suitable person appointed by a third party) are shared with arbitration. Expert determination is purely contractual. There is no legislative underpinning, no procedural code and little case law governing the appointment or conduct of a surveyor acting in this capacity, and this note therefore seeks to set out the relevant guidance by analogy where appropriate with cases concerning arbitration and, in other cases, from first principles. Independent expert determination is now classified as a type of Alternative Dispute Resolution (‘ADR’) and is one of the types of ADR suggested by the courts to settle disputes in preference to litigation.

Answer 29

When acting as a surveyor-advocate you owe duties to your client. However, you also owe an overriding duty to the tribunal to act properly and fairly as set out in this professional statement. As a surveyor-advocate you must: (a) take personal responsibility for the conduct and presentation of your client’s case, and act in the best interests of your client (b) advance the case you are presenting by all fair and proper means (c) act promptly, diligently and competently in all respects (d) not allow your integrity or professional standards to be compromised (e) not deceive or mislead the tribunal or any opposing party (f) take reasonable steps to ensure that the tribunal has before it all relevant decisions and legislative authorities; and (g) have adequate and appropriate professional indemnity insurance cover

Answer 30

- Right to be informed - Right to access - Right to rectification - Right to erasure - Right to restrict processing - Right to data portability (to use for their own purposes) - Right to object - Rights to automated decision making and profiling (as undertaken by insurance companies)

Answer 31

- Public body must tell any individual requesting the info if it holds it - Required to supply info in 20 days - It can charge

Answer 32

RICS Professional Standard: The RICS Responsible Use of AI Open for consultation until April 2025

Answer 33

- Controls how your data is used by organisations and the government - UK's implementation of GDPR (EU initative that was readopted after Brexit into the Data Protection Act). Under GDPR, implemented by the Data Protection Act (2018): - Data protection principles (used fairly, lawfully, transparently, adequate, relevant and limited, specified purposes, up to date, kept no longer than necessary, stored properly) - Strong data protection on genetics, religion, health, sexual orientation, criminal conviction - You have right to see how data is being used (informed, access, corrected, erased, object, up to date)

Answer 34

9 protected characteristics: - Gender reassignment (still one of the 9 protected characteristics, unlawful to discriminate against) - Sex - Sexual orientation - Age - Disability - Race - Religion / belief - Marriage / partnership - Pregnancy / maternity

Answer 35

- Direct - Indirect - Harassment - Victimisation

Answer 36

- Supplements IVS 'Development Property' - Stipulate if assumption or special assumption - Comparative method should be cross checked with residual method, don't rely on one method if possible - For lengthy projects, DCF might be best used - Risk analysis so scenarios can be modelled, risk and return levels should be explicitly stated in the valuation report - When valuing land, determine land plus costs, and completed development minus costs - check against each other - Valuation reported as single figure

Answer 37

Relationship between Red Book and UK National Supplement - Came into effect May 2024 - Reflects outcomes of review by Peter Pereira Gray - The National Supplement expands on the RB and is not a substitute - Specific requirements for members on application of RICS Valuation - Global Standards

Answer 38

- Review by Peter Pereira Gray to futureproof practises - All recommendations implemented 13 recommendations: - Commissioning and receiving of valuation reports - Rotation of valuers for regulated purpose valuations - Valuation of profession should incorporate the use of DCF as the principal model applied in preparing property investment valuations - Valuation audit trails - Valuation Assurance Committee

Answer 39

Published 31st January 2024 Effective 31st January 2025 Key changes: - Alignment with updated IVS (also published on 31st January 2024 and effective from 31st January 2025) - Incorporate changes from the RICS Valuation Review - Futureproof valuation practise in evolving areas such as technology and ESG - New content relating to modelling and methods - Help valuers to provide the highest standard of service - Simplify and clarify guidance for valuers - Build public trust in valuations provided by RIVS Registered Valuers

Answer 40

IVS: - Red book structure was revised to align with updated IVS ('ve always learnt the new way with the 6 x VPS's) - VPS 5 'Valuation Models' is new - VPGA 1 'Valuations for financial reporting' has been rewritten (to mention IFRS) - Added VPGA 11 Relationship with Auditors Models and methods: - New coverage on these topics that encourages analytical approaches, but maintaining the valuer's choice and judgement (e.g. where AI is used in automated valuations, the outputs are only considered to be a written valuation if a valuer has applied their professional judgement to it' Technology and ESG: - Amended PS1 (Compliance) around automated valuation models, and incorporated new standards covering automation, AI and ESG (e.g. built into valuation guidance such as in ToE, inspection, investigations, recordings and reporting)

Answer 41

- Minor UK specific terms added to the glossary - UK VPGA 1 'financial reporting - Minor amends - UK VPS 3 'valuation approaches and methods' - Addition of mandatory rotations for valuers: - Max single valuer period of 5 years - Max single firm period of 10 years - Min 3 year break after rotating off the above

Legislation, Professional Standards & Penalties Flashcards

(65 cards)