Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

RICS APC - Valuation Pathway > RICS, Ethics, Rules of Conduct & Professionalism > Flashcards

RICS, Ethics, Rules of Conduct & Professionalism Flashcards

(83 cards)

Start Studying
1
Q

Who’s is the current RICS President?

A

Tina Paillet from 01 Jan 2024

142nd RICS President

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

RICS Conflict of Interest guidance?

A

Professional Standard: RICS Conflicts of Interest 1st Edn.
Effective 01 January 2018

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

3 types of conflict?

A
  1. Professional conflict
  2. Personal conflict
  3. Confidential Information conflict
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When was RICS founded?

A

1868

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

When was RICS Royal Charter Granted?

A

1881

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does RICS stand for?

A

Royal Institution of Chartered Surveyors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How many RICS members are there globally?

A

over 135,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The types of RICS membership

A
  1. Associate members (AssocRICS)
  2. Professional members (MRICS)
  3. Fellow members (FRICS)
  4. Honarary Members (HonRICS)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

RICS Valuation - Global Standards Structure

A
  • Professional Standards (PS) - Mandatory
  • Valuation Technical & Performance Standards (VPS) - Mandatory
  • Valuation Practice Guidance - Applications (VPGA) - Advisory
    AKA Valuation Applications
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Name the different parts of the RED Book
RICS Valuation - Global Standards

A

Part 1: Introduction
Part 2: Glossary
Part 3: Professional Standards (PS)
Part 4: Valuation technical and performance standards (VPS)
Part 5: Valuation Applications (VPGA)
Part 6: International Valuation Standards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Name the RED Book professional standards?

A

PS 1: Compliance with standards where a written report is provided.
PS 2: Ethics, competency, objectivity, and disclosures (CODE)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Name the RED Book valuation technical and performance standards?

A

VPS 1: Terms of engagement (scope of work)
VPS 2: Inspections, investigations and records
VPS 3: Valuation reports
VPS 4: Basis of value, assumptions and special assumptions
VPS 5: Valuation approaches and methods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Name the RED Book valuation applications?

A

Valuation for…
VPGA 1: …inclusion in financial statements
VPGA 2: …interests for secured lending
VPGA 3: …busnesses and business interests
VPGA 4: …individual trade related properties
VPGA 5: …plant and equipment
VPGA 6: …intangible interests
VPGA 7: …personal property, including arts and antiques
VPGA 8: …real property interests
VPGA 9: Identification of portfolios, collections and groups of properties
VPGA 10: Matters that may give rise to material valuation uncertainty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Leading document for Rules of Conduct?

A

RICS Rules of Conduct - Global edition.
Effective from 02 February 2022

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Which ethical principles are the RICS Rules of Conduct based on?

A
  • Honesty
  • Integrity
  • Competence
  • Service
  • Respect and responsibility
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Why is behaving ethically important?

A

It is at the heart of what it is to be a professional and distinguishes professionals from others in the marketplace.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Allison Levitt report.

A

Criticism of RICS governance as a result of poor financial controls. Reputational damage. Apologies for wrongful dismissal of 4 non-executives who raised concerns. Review of internal governance, advice to increase board members.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Reason for Lord Bichard review.

A

Comissioned by governing council in December 2021 following recommendation in Levitt Review that a ‘wide-ranging examination of purpose, governance and strategy’ should be conducted by an external viewer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Rule of Conduct #1

A

Members and firms must…
be honest, act with integrity, comply with professional obligations, including to RICS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Rule of Conduct #2

A

Members and firms must…
maintain professional competence, ensure services provided by competent individuals who have necessary expertise.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Rule of Conduct #3

A

Members and firms must…
provide good-quality and diligent service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Rule of Conduct #4

A

Members and firms must…
treat others with respect and encourage diversity and inclusion.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Rule of Conduct #5

A

Members and firms must…
act in the public interest, take responsibility for their actions, act to prevent harm and maintain public confidence in the profession.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Professional obligations for RICS Members?

A

Must…
1. comply with CPD requirements set by RICS;
2. co-operate with RICS; and
3. promptly provide all information reasonably requested by Standards Regulation Board, or authorities acting on their behalf.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Professional obligations for RICS-regulated firms?
*Must...* 1. Publish complaints handling procedure; 2. All work covered by adequate personal indemnity insurance approved by RICS; 3. Sole principle must have appropriate arrangements for professional work in event of inability to work; 4. Co-operate with RICS; 5. Promptly provide all information reasonably requested by Standards and Regulation Board, or authorities acting on their behalf; 6. Display RICS designation on all business literature in line with RICS published policy; and 7. Report to RICs any matter required to report under Rules for the Registration of Firms.
26
Six principles of the bribery Act (2010)?
1. Proportionality; 2. Top level committment; 3. Risk assessment; 4. Due dlilgence; 5. Communication; 6. Monitoring and review.
27
Make up of RICS SRB?
SRB Chair 5 RICS members 5 independents
28
What is the function of RICS Standards and Regulation Board?
* **Uphold** sector leading **standards**; * **Develop** a consistent, global **strategy**; and * **Overseeing implementation** across all work regions.
29
RICS Standards & Regulation Board Chair?
Nigel Clarke
30
Purpose of RICS Board?
Direct RICS affairs under delegated authority from Governing Council.
31
Make up of RICS Board
* Non-members (independents) * Members of RICS, and * RICS Executives.
32
Current RICS Board Chair?
Chair: Martin Samworth
33
Current RICS Board CEO
Justin Young
34
Make up of RICS Governing Council
***RICS President - Tina Paillet FRICS *RICS President Elect - Justin Sullivan FRICS *RICS Senior Vice President - Nicholas Maclean FRICS** *6 professional group seats *13 geographic seats *Next-gen seat *Senior independent governor *Independent member *Co-opted seats x3 All members are RICS professionals with exception of Senior Independent Governor & Independent Member
35
What is the RICS Governance Structure?
* Governing Council; * RICS Board; and * Standards and Regulation Board
36
What are the 5 rules of conduct?
1. Honesty and integrity 2. Professional competence 3. Good quality and diligient service 4. Respect, diversity and inclusion 5. Act in the public interest
37
What are the RICS CPD requirements?
All members (AssocRiCS, MRICS, FRICS) must complete a minimum 20 hours of CPD each year (Jan to Dec). At least 10 hours should be formal. Must be recorded online by 31st January. Global Professional and Ethical Standards every 3 years.
38
What is the purpose of the Red Book?
To provide an effective *framework within the rules of conduct* so that users of valuation services have confidence that the valuation of a RICS member is consistent with IVSC internationally recognised standards. *Concerns quality assurance compliance*
39
What does the Red Book not do?
* Instruct members how to value in individual cases * Prescribe a particular format for reports but they must meet the mandatory requirements.
40
What are the RICS Global Valuation Technical & Performance Stanards
**TOE>INSP>Reports>Bases>Methods** **VPS 1** - Minimum terms of engagement **VPS 2** - Inspections and investigations **VPS 3** - Valuation reports **VPS 4** - Basis of value, assumptions and special assumptions **VPS 5** - Valuation approaches and methods
41
What is the Civil Service Code?
**Core values** to support good government and ensure the achievement of the **highest possible standards in the Civil Service**.
42
What are the core values of the Civil Service Code?
**IHOI** * Integrity * Honesty * Objectivity * Impartiality
43
What does integrity mean in the civil service code?
Putting **obligations of public service above** your **personal interests**.
44
What does Impartiality mean in the Civil Service Code?
Acting solely on the **merits of the case** and **serving equally well governments** of different political persuasions.
44
What is Bribery?
Giving someone a financial or other advantage to encourage that person to perform their functions or activities improperly or to reward that person for already having done so.
44
What does Honesty mean in the Civil Service Code?
Being truthful and open.
45
What does Objectivity mean in the Civil Service Code?
Basing **advice** and **decisions** on **rigorous analysis** of the *evidence*.
45
What is a bribe?
Giving, offering, promising, or receiving a gift, payment or service for an action which is illegal or a breach of trust.
46
What are the 6 (prevention) principles of The Bribery Act 2010
**P**e**T**e**R** **D**e**C**i**M**al 1. **P**roportionality 2. **T**op level committment 3. **R**isk assessment 4. **D**ue diligence 5. **C**ommunication 6. **M**onitor and review
47
Bribery Act - Proportionality
Actions you take are proportionate to the risks you face & size of business.
48
Bribery Act - Top level committment
Those at the top of the organisation are in the best position to ensure organisation conducts business without bribery.
49
Bribery Act - Risk assessment
Think about the bribery **risks you might face**.
50
Bribery Act - Due diligence
Know exactly **who you are dealing with** can help **protect your organisation** against those who are **less trustworthy**.
51
Bribery Act - Communication
Communication policies and procedures to staff and others
52
Bribery Act - Monitoring and review
The **risks** you face and **effectiveness** of procedures **may change over time**.
53
The 4 bribery offences
1. **Bribing** 2. **Receiving** a bribe 3. Bribing a **foreign official** 4. Failing to **prevent** bribery
54
Bribery penalties
Maximum 10 years imprisonment and/or unilimited fine
55
What is money laundering?
Where **proceeds of crime** are **disguised or converted** and then realised as **legitimate assets**.
56
The 3 parts of PS Countering bribery, corruption, money laundering and terroist financing 2019
1. **R**equirements 2. **G**uidance 3. **S**upplementary guidance
57
Principle legislation for money laundering
The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
58
What does the Money Laundering Regs 2017 do?
(1)Prevent the **laundering** of illegally gained money into legitimate enterprises and (2) prevent the **funding of terrorism**.
59
What do you need to do under the Money Laundering Regs 2017
* Conduct a **risk assessment** * **Create and implement** systems, controls, policies and procedures * Provide **staff training** * Comply with separate requirements when doing **business with Politicians** * Ensure **record keeping and data** protection systems meet requirements * Comply with separate requirements if you are a **Trustee** of a Trust.
60
Money Laundering red flag indicators - client
* secretive or evasive about who they are * uses an intermediary * avoids personal contact without good reason * refuses to provide information about the transaction * has criminal associations * has unusually high level knowledge about money laundering * is a Potentially Exposed Person (PEP) or subject to sanctions
61
Money Laundering red flag indicators - parties
* representatives reside in or are incorporated in high risk country's * transactions are connected without an apparent reason * has connections of family or other business in nature which causes doubts * appear multiple transactions in a short space of time * executing the transaction is unusual.
62
Why register firms for RICS regulation
**CPS** **Confidence** - for clients that firm is subject to RICS regulation/supervision **Professionalism** - firm required to give clear impartial advice **Security** - recognised complaints procedure, free independent redress, approved PII *provides gold standard of quality control for clients*
63
What RICS statement is useful for registration of firms?
Regulation statement: Rule for the regulation of firms (v8 - 02 Feb 2022)
64
A firm is eligable to register for regulation by RICS if...
* Firm provides surveying services to the public; and * At least 25% of Firms Principles are RICS members.
65
Firm is required to register for regulation by RICS if...
* Firm provides surveying services to the public; * Firm is operating in the UK * At least 50% of the Firm's Principles are RICS Members.
66
What steps must be taken if you are closing a firm?
(5 steps) * **Inform RICS** of closure * **Inform clients** and ensure **hand over arrangements** to new firm are made * **Return client money** * **Inform insurers** and arrange run off cover for a minimum of 6 years * **Retain copy of client files and records** for minimum of 6 years
67
RICS definition: bribery
The offer, promise, giving or demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.
68
RICS definition: corruption
The **misuse** of **public office power for private gain**, or misuse of **private power in relation to business practice** and performance.
69
RICS definition: money laundering
Concealing the source of proceeds of criminal activity to disguise their illegal origin.
70
How is money laundering concealed?
Through hiding, transferring and/or recyling illicit money or other currency through one or more transactions, or converting criminal proceeds into seemingly ligitimate property.
71
RICS definition: terrorist financing
The solicitation, collection or provision of funds with the intention that they may be used to support terroists acts or organisations. Both directly or indirectly.
72
What RICS compliance is requried when staring a new practice/firm?
* Inform RICS - for regulation by Regulatory Board * Appoint Responsible Principle (Contact Officer) for all RICS communcations * Arrange suitable PII and send cover details to RICS * Set up clients's money handling procedure * Register for RICS Registered Valuation scheme - for RED BOOK reports. * Set up and obtain RICs approval for Complaints Handling Procedure * Set up complaints log * Appoint Complaints Handling Officer * Obtain logo kit from RICS, comply with designation 'Regulation by RICS' * Plan for succession if sole practitioner * Set up staff training plan * Ensure completion of RICS Annual Return
73
What statutory compliance is required when starting new practice/firm?
* Business Names Act 1985 & Companies Act 1985 * Equality Act 2010 * Financial Services Acts (2000, 2012) * Bribery Act 2010 * Money Laundering Regulations 2017 - appoint Money Laundering Reporting Officer * Health & Safety Act 1974 (as amended) + fire + Asbestos Regs * Employment Law - living wage, working hours, pensions. * GDPR 2018 * Estate Agents Act 1979 * Misrepresentations Act 1967 * Consumer Protection Regulations 2008 * Inform HMRC for VAT registriation (taxable turnover threshold currently >£85,000 pa) * Ensure compliance with employer and public liabilty insurance
74
What are the 5 RICS Professional Statements
1. Rules of Conduct (Global) - 02 Feb 2022 2. (UK) Client Money Handling - 1st Edition, October 2019 3. Conflicts of Interest - 1st Edition, January 2018 4. Risk, Liability and Insurance (UK) - 1st Edition, April 2021 5. (Global) Countering Bribery and corruption, money laundering and terrorist financing - 1st Edition, February 2019
75
How is RICS governed?
Through its constitutional documents: * Royal Charter * Bye-laws * Regulations * Standing Orders
76
RICS Governance Bodies
**Governing Body = Governing Council** * Delegates responsibilities to RICS Board Oversees effectiveness of RICS Board and Standards & Regulation Board*
77
Purpose of RICS Board
* Delivery of business plan * Oversight of operations (exc. Standards & Regulation Board)
78
Purpose of Standards & Regulation Board
* Exclusive responsibility for exercising RICS regulatory functions. Includes *stratergy *governance structure policy operational oversight*
79
Benefits of being a RICS member?
**Status** - develop expertise & earning potential **Recognition** - demonstrate higher professional and ethical standards **Knowledge** - enhance skills and employability **Network** - connect with peers globally, explore trends and seek new opportunities **Market advantage** - having say in market surveys and leading consultations
80
What does the Royal Charter mean in practice?
Important changes to RICS constitution - its bye-laws - have to be ratified by the UK government, through the privy council even after they have been approved by RICS members.

RICS APC - Valuation Pathway (18 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions