SUMMARY - FINAL Flashcards
1
Q
Ethics - (Role) What is the role of the RICS?
A
- promote and enforce highest professional qualifications and standards
- accountable to both members and the public
- involved in policy inflience and political engagement
2
Q
Ethics - (Regulate) How does the RICS set and regulate standards?
A
- Professional and Ethical Standards - Rules of Conduct 2021
- self-regulated - monitors compliance through Regulatory Board
- compliance - CPD requirements
- Disciplinary Procedures - Disciplinary Panel
3
Q
Ethics - (Rules) What are the 5 rules of conduct?
A
1- members and firms must act with honesty and integrity and comply with professional obligations
2 - members and firms must maintain professional competence and ensure services are provided by competent individuals
3 - members and firms must provide good quality and dilgent services
4 - members and firms must must treat each other with respecct and encourage diversity and inclusion
5 - members and firms must act in the public interest, take responsabilitty, prevent harm and maintain public confidence
4
Q
Ethics - (Rules) What are the 6 ethical principles the rules of conduct are based on?
A
integrity
competence
service
trust
respect
responsability
public interest
5
Q
Ethics - (Trust) How do you promote trust in the profession?
A
Ensure I am competent and provide good quality and diligent services
6
Q
Ethics - (Bribery) What anti-bribery CPD have you completed?
A
Internal CPD seminar by Compliance Officer
7
Q
Ethics - (Bribery) What is the UK Bribery Act 2010?
A
Aims to reduce bribery in UK and abroad
A bribe can be giving, offering, or promising, or receiving of an advantage such as payment or gift
8
Q
Ethics - (Bribery) What are the 6 principles of the UK Bribery Act 2010?
A
- Proportionality
- Top level committment
- Risk assessment
- Due dilligence
- Communication
- Monitoring and review
9
Q
Ethics - (Bribery) What are the 4 offences?
A
- Bribing
- Receiving a bribe
- Bribing a forein public official
- Failing to prevent a bribe
10
Q
Ethics - (Bribery) Who is responsible for corrupt act?
A
- company unless can demonstrate sufficient procedures in place
11
Q
Ethics - (Bribery) Are hospitality events prohibited?
A
- UK Government states no, as long as the gift is proportionate and reasonable and accurately recorded/logged
12
Q
Ethics - (Bribery) What are the penalties?
A
- maximum penalty of 10 years imprisonment
- unlimited fine for companies or individuals
- Policed by serious Fraud Office
13
Q
Ethics - (Bribery) How do you identify a bribe?
A
Excessively generous gifts
cash payments
lavish entertainment, vacations
accommodations that seem to go beyond standard business hospitality.
Language used
14
Q
Ethics - (Bribery) Under Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019), what must RICS regulated firms do?
A
- not offer or accept bribes
- have procedures in place to comply with law
- report suspicious (SAR)
- act with due dilligence (CDD, EDD)
- retain records to show compliance to this statement
15
Q
Ethics - (AML) What is Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019).
A
Mandatory, global requirements to guide its members and firms on how to prevent and address these illegal activities
Works off regulations on Terrorist Financing and Transfer of Funds Regulaions (2017)
Part 1: Bribery and corruption
Part 2: Money Laundering and Terrorist Financing
16
Q
Ethics - (AML) Under Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019), what are firms required to do?
A
- Not facilitate or be complicit in TF or ML
- have systems in place to comply with laws
- report suspicious (SAR) to UK National Crim Agency
- undertake CDD and EDD
- Retain records to show compliance
17
Q
Ethics - (AML) What is Money Laundering?
A
Proceeds of criminal activities are disguised or converted and then realised as legitimate assets
18
Q
Ethics - (AML) What does Terrorist Financing and Transfer of Funds Regulation (2022) mainly cover?
A
- estateagency work and relevant financial business work
key provisions
- written money laundering and terrorist financing risk assessment
- implement systems to mitigate risks
- adopt appropriate internal controls
- provide staff training
- comply with new customer, enahnced, and simplified due dilligence
- comply with requirements relating to PEP’s
- ensure record keeping, policies and procedures
- AML checks to confirm identity and check source of funds before contracts exchanged
- inclusion of high risk factors when assessing need for enhanced due dilligence e.g. high risk countries
19
Q
Ethics - (AML) What are estate agents obligations under Terrorist Financing and Transfer of Funds (2022) regulations?
A
- register with HMRC if let properties more than £10,000/month
- CDD checks for sales and new lettings
- EDD for any red flags (high risk countries, PEP)
20
Q
Ethics - (AML) What are the key requirements under Terrorist Financing and Transfer of Funds (2022) regulations?
A
- limit of £10,000 for acceptance of cash
- client relationships monitored
- compliance manager appointed
- nominated person appointed to report suspicions with a Suspicious Activity Report (SAR) to National Crime Agency
- firm must maintain records for minimum of 5 years
- report to companies house any discrepencies they hold between inhouse data
21
Q
Etrhics - (AML) What is CDD?
A
- identify client (e.g. passport, driving licence)
- check companies house to understand company structure
- name, company number, adress of registerd office
- name of directors
- nature of busines relationship and proposed funding arrangement
22
Q
Ethics - (AML) What is EDD?
A
- additional procedures for ‘high risk third country’ or PEP
- source of funds
- in dpeth document verification
- continuous monitoring
23
Q
Ethics - (AML) What are the penalties for Money Laundering?
A
- 14 years prison sentence / unlimited fine for money laundering
- 5 years prison / unlimited fine for tipping off by informing them that they are under suspicioun for money laundering
24
Q
Ethics - (AML) If asked about AML, what would you consider?
A
- Money Laundering, Terrorist Financing, Transfer of Funds (2022) Regulations
- Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)
- DD procedures (CDD, EDD)
- Professional objectivity, openness and transparency
- Red Flags
- Sactions - see HM Treasury’s OFSI list against people, companies, countries,
25
Ethics - (AML) What are Red Flags relating to AML?
1. not showing identity documents
2. changes to parties involved
3. urgency!
4. unusual currency
5. unusual payment terms
26
Ethics - (AML) - How can you find out about sanctions?
HM Treasury's consolidated list
- can always check existing clients by subscribing to sanctions list to get notified
27
Ethics - (AML) - What to do if client match on sanctions list?
report to Office for Financial Sanctions Implementation (OFSI)
28
Ethics - (AML) -What regulations police money laundering?
Proceeds of Crime Act 2002
- allows authorities recover monies
- also sets criminal offences
Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
29
Ethics - (AML) Talk me through Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 ammended 2022
- CDD
- EDD for PEP's
- SAR - reporting to UK National Crime Agency (NCA)
30
Ethics - (Gifts) What is your companys policy on declaring gifts? (Level 1)
Declare to compliance team:
Who the gift is from or for;
The gift’s monetary value;
Its business purpose;
If and which director/team head has approved the gift;
When the gift was given or received;
Any other additional information that may be relevan
31
Ethics - (Gifts) Talk me through disclosing gifts example? (Level 1)
I was invited to a hospitality event by a supplier trying to win business
as this was a conflict of interest, I informed compliance, and rejected the invitation
32
Ethics - (Gifts) If aasked about the acceptance of cash, hospitality, what do you consider?
- UK Bribery Act 2010
- Organisation's Procedures
- Professional objectivity, openness, transaparency
- Proportionality
- Sanctions
- Employment contract details
33
Ethics - (Misrepresentation) Talk me through avoiding misrepresetaion example? (Level 2)
prior to issuing marketing collateral for an office renovation I ensured the design speciication was accurate the project manager to ensure imagery aligned with design.
34
Ethics - (Misrepresentation) What is the Misrepresentation Act 1967 and what is the offence?
any misrepresentation made to proposed purchaser is regarded as a civil offence, actionable by tort.
can be sued for damages
action can be limited by effective disclaimer clause
35
Ethics - (Misrepresentation) - What are the 3 types of misrepresentation?
Innocent
Negligent
Fraudulent
36
Ethics - (Competence) Talk me through referring a specialist example? (Level 3)
In salisbury, a tenant issued me a written alterations proposal to upgrade their HVAC system and electrical power supply.
I advised the client to appoint a building surveyor and structural engineer to ensure that any changes comply with building regulations and won't negatively affect the structural integrity or functionality of the building.
Rule 2 - maintain professional competence
37
Ethics - (Competence) Why did you appoint a building surveyor and structural engineer?
Building surveyor - ensure functionality / compliance with buildings regs
Structural surveyor - structural integrity
38
Ethics - (Integrity) Talk me through lease disposal, bishop auckland example? (Level 3)
My duty was to determine the market rent for a retail unit in Bishop Auckland, after liasing with the agent, and coming to an estimation, the client was dissatisfied as the Market Rent was lower then the previous tenants rent.
Rule 1 - must be honest, act with integrity
39
Ethics - (Integrity) What would you do if your client continued to pressure you on the Market Rent in Bishop Auckland?
If the client insisted on increasing the rent despite my advice, I would reiterate the potential risks of doing so, such as the property being overvalued and possibly remaining vacant for longer.
I would document my advice in writing to protect both the client and myself, ensuring it was clear that I had provided professional advice based on market evidence.
I would inform my client that advising on an increase would breach the rules of conduct, so would not increase the market rent.
40
Client Care - How do you uphold a high standard of care to all clients?
read PMA / AMA
understand deliverables
ensure timely and accurate report
41
Client Care - How would you establsh KPI's?
Can be set by the client in the terms of engagement
Set in the business plan
Set dynamically during instruction
42
Client Care - What is NOI and how is it calculated?
NOI=Gross Operating Income−Operating Expenses
before tax, amortisation, depreciation etc
43
Client Care - What is you fiirms Complaints Handling Procedure?
in line with Complaints Handling (2016) Guidance Note
Step 1 (in-house)
- written complaint issued to director (nominated person)
- acklowedgement of complaint issued within 7 days
- formal response in 28 days
Step 2 (Extenal)
- take complaint to independant redress provider, approved by RICS Regulatory Board
Centre for Effective Dispute Resolution (CEDR) - business
RICS Dispute Resolution Panel (DRP) - consumers
44
Client Care - How do you maintain a complaints log?
- notify compliance officer of complaint who registers the complaint
45
Client Care - What is PII?
Professional Indemnity Insurance
Protection against negligence claims
PII is crucial as it safeguards them from potential financial losses arising from legal action or compensation claims made by clients or third parties.
46
Client Care - What is adequate PII?
Turnover proceeding year min. indemnity required for each and every claim
up to £100k £250k
£100-200k £500k
£200k or more £1m
Turnover proceeding year maximum uninsured excess
up to £10m 2.5% of sum insured or £10k (whicher greater)
Over £10m no limit
47
Client Care - How would you estimate PII if you are a new company?
Estimate turnover
Once you have turnover info, revise PII cover in-line with turnover
48
Client Care - How is a PII policy implemented?
minimum level of indemnity required based on turnover
also consider likely risk profile when deciding on level of insurance
policies must be under-written by RICS approved insurer
49
Client Care - Talk me through Asset Management Reporting example (Level 2)
Asset management reportig for a mandate called HSPI
- detailed asset management initatives
- leasing updates
- measurement against KPI's
- terms of engagement required reports to be delivered 1 week before quarter end
50
Client Care - What is NOI and how is it calculated?
Net Operating Income
= Gross operating income - operating expenses
operating expenses (maintenance, utilities, marketting etc)
51
Client Care - How do you measure against KPI's?
- budget v actual performance against business plan
- rents, void, noi etc
52
Client Care - How do you know when quarterly reports are due?
- AMA typically 2-week post quarter end
53
Client Care - What's included in an AMA terms of engagement?
- date
- client
- firm responsable
- fees
- additional expenses
- scope of work / responsabilities
- term
- termination
- KPI's
- reporting
- CHP
- dispute resolution
54
Client Care - Talk me through lease disposal, Kensington example (Level 2)
For client care retail disposal, I took part in leasing strategy workshop with client to understand their objectives.
This included understanding their vision for the asset and the type of occupier. I prepared schedules of interest , reported on offers etc.
I understood my client wanted a minimum term of 10 years, and to target a fashion retailer to compliment the current tenant mix.
I adjusted the marketing to concentrate on the retail elements of Kensington.
- market analsysis
- understand competition
- tailor brochures and HTML's
- direct outreach to shoe retailers
- highlight property features that attract shoe retailers (good frontage, back of house storage
- highlight tenant mix
- highlight synergies to F&B operators
55
Client Care - What is a schedule of interest?
schedule of interest is a chart that reflects current interested parties and their requirements
56
Client Care - What were your clients requirements and long term objectives for lease disposal, Kensington example (Level 2)
- target shoe retailer
- long term objective was capital preservation
- long hold
- good covenant
57
Client Care - How did you tailor the leasing strategy to target relevant tenants?
- direct outreach to shoe retailers
- highlight property features that attract shoe retailers (good frontage, back of house storage
- highlight tenant mix
- highlight synergies to F&B operators
58
Client Care - How did you negotiate offers to align with your clients stratefgy?
- understood business plan strategies and negotiated to them
59
Communication and Negotiation - What are some different methods of communication?
written, visual, verbal
60
Communication and Negotiation - How do you avoid conflicts and misunderstanding?
- ensure clear and precise communication
- avoid ambiguity
- clear terms of engagement
61
Communication and Negotiation - What did you learn on the 4-day negotiation course?
- importance of win win outcomes
- never agree to any terms until all terms are agreed
- take breaks
- negotiate in teams
62
Communication and Negotiation - How do you negotiate a win-win outcome?
- only give something away if you can get something back
63
Communication and Negotiation - How did you identift a tenant was in debt? (Trowbridge)
- credit control meetings
- arrears reports off propman
64
Communication and Negotiation - Why did you advise a tenant payment plans (Trowbridge)
- no rent deposit
- less aggressive than CRAR
- tenant informed intention of wanting to pay
65
Communication and Negotiation - How did you create a tenant payment plan?
- template payment plan
- include tenant details
- arrears amount
- duration
- t&c's etc
66
Communication and Negotiation - On your quarterly client meeting example, how did you report on portfolio performance against benchmarks?
- Bishop Auckland Client Meeting
- report on rent collection, NOI, rents achieved against ERV's, voids etc
67
Communication and Negotiation - Whats the process for taking and issuing meeting minutes?
- write meeting minutes in meeting
- revise minutes
- issue minutes to all parties
68
Health and Safety - What is the Health and Safety at Work Act (1974)?
Regulations governed by HSE
69
Health and Safety - What are the obligations for employees and employers under Health and Safety at Work Act (1974)?
Employers are required to ensure, as far as is reasonably practicable, the health, safety, and welfare of their employees. This includes:
- Providing and maintaining safe work environments, equipment, and systems of work.
- Ensuring safe handling, storage, and transportation of goods and substances.
- Offering appropriate information, training, and supervision to employees.
Employees must take reasonable care for their own health and safety and that of others who may be affected by their actions. Cooperate with their employer to comply with legal obligation
70
Health and Safety - What is your firms Health and Safety policy?
?
71
Health and Safety - What is Surveying Safely (2018)?
- must ensure safe working environment
- safe working equipment
- safe systems of work
- competent staff
72
Health and Safety - How would you undertake a health and safety Risk Assessment?
Firstly, all organisations with more than 5 staff require one
Secondly, conducting my own when visiting site
- identify hazards
- identify who might be harmed
- evaluate risk
- evaluate severity
- record and implement them
73
Health and Safety - What is a health and safety policy?
required for firms with more than 5 staff
- details commitment to health and safety
- details organisations H&S structure
- risk assessment detailing risks in workplace and preventative measures
- details of control measures
74
Health and Safety - What risks does Surveying Safely (2018) seek to mitigate?
any harm when inspecting
75
Health and Safety - What is the Occupiers Liability Act 1957 and 1984?
Duty of care owed to visitors and tresspasses
76
Health and Safety - What is your firms lone working procedure?
- charge mobile
- inform colleagues
- update calender
- inform of attendees
77
Health and Safety - How did you inspect safely at Victoria?
Acting in accordance with Surveying Safely, 2018
- desktop risk assessment (current state, is there asbestos, is there scaffolding)
- lone working procedures
- check date tag of scaffolding
- non slip shoes
- hardhat
- read and sign health and safety form
- high vis jacket
- safe to inspect alone? no - so guided by building surveyor
- sign in and out of the building
78
Accounting - What are financial statements?
required to submit annually to companies house and HMRC
- balance sheet
- income statement
- cash flow statement
79
Accounting - What are profit and loss accounts?
summary of a businesses income and expenditure
focus to demonstrate if company made profit or loss
80
Accounting - What are balance sheets?
- assets and liabilities
assets = cash, property, debtors
liabilities = loans, creditors
81
Accounting - What are cash flow statements?
cash inflows and outflors
shows liquidity
82
Accounting - What is IFRS 16?
leases must be incorporated into balance sheets
as assets (right to use something)
liabilities (the lease payments)
83
Accounting - What accounting standards does your company report under?
UK GAAP
Parent company reports unde IFRS
84
Accounting - How do you assess covenant strength?
CreditSafe (0-100 test)
Profit test (3x rent)
85
Business Planning - What is your firms future strategy?
Sector agonostic
Grow AUM to £2b
Growth in different sectors
86
Business Planning - What is the 3 horizon model?
Core business: 1-2 years
Emerging: 2-5 years
Transformative: 5 years +
87
Conflict Avoidance - What is Conflicts of Interest (2017)?
Professional Standard on identifying conflicts
88
Conflict Avoidance - What procedures do members and firms need to follow should a conflict arise?
1. Identify
2. Disclose
3. Obtain informed consent
4. Withdraw
5. Manage
6. Document
89
Conflict Avoidance - How would you manage a conflict?
Information / ethical barriers
Agreed in writing first
- ensure no information can pass between parties
- take reasonable steps to operate
- seperate surveyors (physically) and seperate support teams
- securely held information
- keep clear record of conflict audit trail
- firms compliance officer should overee
90
Conflict Avoidance - Talk me through a time where you have managed a conflict?
91
Conflict Avoidance - What does Conflict of Interest (2017) say about conflicts?
Adhere to Conflict of Interest (2017)
must not represent or advise a client where doing to would involve a conflict of interest or significant risk - unless informed consent provided
informed consent must be given in writing - only obtained when totally transparent and all parties are best served by proceeding
92
Conflict Avoidance - What is ADR?
Alternative Dispute Resolution
93
Conflict Avoidance - What is mediation?
?
94
Conflict Avoidance - What is arbitration?
95
Conflict Avoidance - What is adjudication?
96
Conflict Avoidance - What is litigation?
?
97
Conflict Avoidance - How do you ensure clear Terms of Engagement, talk me through the process?
98
Conflict Avoidance - What is Complaints Handling (2016)?
?
99
Conflict Avoidance -What is your firms CHP?
?
100
Data Management - What is the Data Protection Act 2018
101
Data Management - What is the General Data Protection Regulations (UK) 2021?
?
102
Data Management - What are the fines under GDPR and Data Protection Act (2018)?
4% global turnover
or £17.5m
103
Data Management - If you identify a data breach, what would you do?
Report to ICO (Information Comission Officer) within 72 hours of breach
Report to compliance team
104
Data Management - How do you protect sensitive information?
?
105
Data Management - What are the limitations of third party databases?
?
106
Diversity - What is the UK Equality Act 2010?
Regulations that governs equality in the UK
107
Diversity - What are the 9 grounds under the UK Equality Act 2010?
- sex
- seual oritentation
- gender
- race
- religion
- age
- disability
- pregnancy and maternity
- marriage or civil partnership
108
Diversity - What does your DEI committee do?
promote and encourage DEI in workplace
Rule 4 of Code of Conduct 2021
e.g. maternity package
109
Diversity - What is REB?
Real Estate Balance
110
Inclusive Environments - How do you consider user needs in the built environment?
- ramps
- lifts
- brail
- rails
- autmatic doors?
111
Inclusive Environments - How and why would buildings be altered?
enable access from all user needs
112
Inclusive Environments - How do you ensure inclusivity throughout the property lifecycle?
design - ensure accessibility is considered from various user needs perspectives, physically and socially, aligned with UK Equality Act 2010
during occupancy - owners, occupiers, managers must ensure potnetial users can reasonably do so despite disabilities
113
Inclusive Environments - What legal requirements impact inclusivity?
- Building Regulations 2020
- Equality Act 2010
- NPPF?
- Health and Safety at Work Act 1974
114
Sustainability - What are the three pillars of sustainability?
- economic
- environmental
- social
115
Sustainability - What is the definition of sustainability ?
- Brundtland report 1987 - meeting the needs of the present without compromising the ability of future generations to meet their own needs
116
Sustainability - What are EPC's?
energy performance certificates
117
Sustainability - What is MEES?
minimum energy efficiency regulations
118
Sustainability - What did you learn from the CPD seminar on MEES?
new white paper on MEES windows
119
