RICS Rules of Conduct
- Be honest, act with integrity and uphold professional standards.
- Maintain professional competency and ensure that services are provided by competent individuals with the relevant expertise.
- Good quality and diligent service.
- Treat others with respect and encourage diversity and inclusion.
- Act in the public interest and take responsibilities for your actions, maintain public confidence in the profession.
What is a conflict of interest?
An existing relationship which impedes a professionals ability to provide impartial advice.
What are the six principles of the Bribery Act 2010?
Proportionality
Top Level Commitment
Risk Assessment
Due Diligence
Communication (inc. training)
Monitoring
Why do firms want to be accredited by the RICS?
Confidence - monitored by RICS.
Professionalism - clear, impartial and expert advice.
Security - recognised procedure including complaints handling and PII cover.
Why do you want to become a member of the RICS?
Status, Recognition, Market Advantage, Knowledge and Network.
Example behaviour of when I have acted honestly?
I acted honestly when I was asked to provide advice on a Clients property which they were hoping to let out. I advised them that it wasn’t up to standard and numerous works would be required, including a building survey to identify these.
Core professional obligations that RICS members must adhere to?
CPD - 20hrs (10 Formal).
Co-operation with RICS.
Promptly provide all info requested.
Core professional obligations that RICS firms must adhere to?
-Complaints Handling Procedure.
-PII cover.
- Sole practitioner future arrangements.
- Cooperate.
- Promptly provide.
- Business literature (display in accordance with RICS).
- Report - matters to the RICS.
What disciplinary procedures can the RICS impose?
- Action by the Head of Regulation.
- Regulatory Tribunal.
- Appeal Panel.
What money laundering regulations are you aware of?
Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
and
Proceeds of Crime Act 2002
What is Money Laundering?
Where the proceeds of criminal activities are disguised as legitimate assets (such as property).
What bribery legislation are you aware of?
Bribery Act 2010
What does the Equality Act 2010 do?
The Equality Act consolidates the Disability Act of 1995 and the Discrimination Act of 2005 to provide a simple and easy to follow structure which aims to eliminate discrimination in business.
What does the Proceeds of Crime Act 2002 do?
This act sets out criminal offences to assist with the combatting of money laundering.
What is a red flag of money laundering?
The red flags are:
- Inability to provide identification.
- A change in parties during CDD.
- Unusual currencies.
- Unusual transactions (cheap/quick etc)
Penalties for accepting a bribe?
Up to 10 years imprisonment and unlimited fine.
What are the 4 types of offence?
- Receiving a bribe.
- Making a bribe.
- Bribing a Foreign Public Official
- Failure to prevent a bribe
How do you carry out AML checks?
- Initially I would Identify the Client using Customer Due Diligence Checks. (requesting 2x forms of identity, 1x photographic.
- I would save the evidence and send to our internal due diligence team to carry out further investigations and confirmations.
- For companies I would identify the company name, number address and any director details.
- I would highlight any red flags / third countries and if required carry out Enhanced Due diligence.
When would you carry out EDD?
High risk third country
PEP (Politically exposed person)
To request source of wealth.
PII - what is it?
It protects surveyors, clients and third parties against claims for Negligence.
PII - brackets and what is it based on?
Based on turnover.
Turnover is £100k or less then PII cover is £250k
Turnover between £100k - £200k then cover is £500k
Turnover over £200k then PII cover is £1mil
What would you do if you received a complaint?
Initially I would sincerely apologise for any inconvenience. I would then determine some realistic timescales for completion (responding within 7 days). I would request the complaint in writing. I would notify my line-manager and Complaints Handling Officer (who would aim to respond/resolve in 28 days). I would notify my PII insurers.
If a client continues to disagree then I would refer them to ADR procedures. (Such as RICS Dispute Resolution Service - for appointment of an arbitrator).
What is the RICS guidance for dealing with a conflict of interest?
RICS Global Professional Statement, Conflicts of Interest 2017.
How would you identify/deal with a conflict of interest?
Initially I would check our internal systems to ensure that there are no conflicting records of the party. I would then submit the information to be circulated around the firm via email, to ensure no conflicting relationships.
I would then make a judgement on whether it is in both parties best interests to proceed with the instruction. If it is, then I will notify them both of the conflict and make them aware of the process for management. If both parties wish to proceed, regardless of the conflict then I would request their informed consent in writing and seek to set up information barriers as set out prior.
