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Ethics Flashcards

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1
Q

Why do you want to be a member of the RICS?

A

Status, Recognition, Market Advantage, Knowledge and Network.
For me: You have global status and worldwide recognition and it allows me access to a network of competent professionals

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2
Q

What are the RICS Rules of Conduct?

A

1) Act with honesty and integrity

2) Maintain professional competence

3) Provide good quality diligent service

4) Encourage diversity and inclusion and to treat others with respect

5) Act in the public interest and take responsibility for your actions, maintain public confidence in the profession.

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3
Q

What are the mandatory obligations for members?

A

Cooperate with RICS
Comply with CPD
Provide information when requested

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4
Q

What are the mandatory obligations for firms?

A

Provide the RICS logo on all marketing materials

Provide a complaints handling procedure

Provide appropriate PII cover

Sole practioneer arrangements

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5
Q

What are the 6 principles of the Bribery Act 2010?

A

Proportionality

Risk Assessment

Top Level commitment

Due Diligence

Communication

Monitoring and reviewing

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6
Q

Can you give the definition of a Conflict of Interest?

A

An existing relationship that can hinder your ability to provide impartial advice

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7
Q

Can you give the definition of money laundering?

A

Proceeds of criminal activity which are disguised as legitimate assets

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8
Q

How would you carry out a money laundering check?

A

I would ask them for photographic ID, and also check their proof of funds.

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9
Q

How would you agree a fee?

A

I would ensure that it was in line with the market and be transparent and honest when agreeing

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10
Q

When is it appropriate to decline an instruction?

A

When a conflict cannot be managed or controlled

If you are not competent

If they are on the government sanctions list

If you cannot agree the appropriate PII (professional indemnity insurance) cover

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11
Q

What is the role of the RICS?

A

To promote and enforce the highest professional qualifications and standards in property

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12
Q

What are the 3 main roles of the RICS?

A

Maintain standards of education and training

Protect consumers through regulation of professional standards

Be a leading source of information and independent advice

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13
Q

What are the 3 conflicts which can arise?

A

Party Conflict

Personal Conflict

Confidential Information Conflict

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14
Q

What is the three step process to take when a conflict arises?

A

Conflict avoidance

Written advice

Conflict management

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15
Q

What is conflict avoidance?

A

When the conflict is irresolvable because my impartiality is compromised and should therefore be avoided

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16
Q

What is written advice?

A

When you assume that you wish to proceed with the instruction, you write out:
the disclosure of the conflict and any relevant facts, and also the proposal on how you’re going to manage it

Be clear that the own parties can make their own decision

Request written confirmation of their INFORMED CONSENT that I can proceed in accordance with the provisions of the proposed procedure

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17
Q

What is conflict management?

A

Use of information or ethical barriers to prevent information passing between parties

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18
Q

What are Cluttons policy on receiving a gift?

A

If a gift is under £50 we are allowed to accept it as long as we log it in our gift policy register

We do not accept cash, money vouchers, tickets or invitations to events where the donor is not going to be present

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19
Q

What are the four offences in the Bribery Act 2010?

A

receiving, giving, failing to prevent a bribe and bribing a foreign public official

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20
Q

What are the penalties in the Bribery Act 2010?

A

Max penalty of 10 years in prison and or an unlimited fine

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21
Q

What would you do if you were in a pub and a friend asked you to give them a quick estimated value of their property?

A

I would remain polite and explain that I cannot provide any work or give them any advice until our Terms of Engagements have been signed. (if they ask why: because they could claim for negligence and my companies PII cover would not cover anything if ToE are not signed)

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22
Q

What are the RICS bye laws on confidentiality?

A

States that confidentiality must be maintained for all client affairs, which includes historic information and information provided by a client prior to an instruction.

All files must be held for a minimum of 6 years before they can be destroyed securely

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23
Q

What are the RICS bye laws on confidentiality?

A

States that confidentiality must be maintained for all client affairs, which includes historic information and information provided by a client prior to an instruction.

All files must be held for a minimum of 6 years before they can be destroyed securely

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24
Q

Why were you breaching professional competence when someone asked you to carry out a valuation in Cornwall?

A

Because I am not a registered valuer

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25
Tell me, how would you go about setting up your own practice?
I would start by informing the RICS by completing a Firms Detail Form Appoint a responsible principle Do the statutory regulated activities State nature of clients Arrange complaints handling procedure details and records Arrange PII cover Set up clients money handling State whether the firm holds clients money
26
If you were to then close the practice down, how would you do this?
Inform the RICS Ensure clients are aware at the earliest opportunity Return any monies held by clients Inform insurers and procure PII run off cover for a min of 6 years Retain a copy of the clients files and records for a min of 6 years
27
What is a sanction?
Fine or restriction on a person or company, applied to legal entities and countries
28
How does Cluttons handle client money?
We hold it in line with the guidance note, and we have pooled accounts which are labelled CLIENT and within those accounts we have discretionary accounts which have the clients NAME as well as my companies name and the word client. Our accounts are always signed off by 2 authorised members of staff and their money always remains in credit
29
Who are the client accounts regulated by?
By the Financial Conduct Authority - ensures that the accounts are separate and specific from my companies
30
You have identified a COI, and the client wants to proceed. What do you do?
I would inform them that I would not be able to proceed with the instruction until they have given me written informed consent which would be stated in the ToE
31
What is the definition of unconcious bias?
Thoughts and beliefs from previous experiences, that you might not be aware of that could lead to unethical decisions
32
Why does a firm want to be accredited by the RICS
Confidence Professionalism Security
33
What are the regulations for Money Laundering?
Money Laundering Terrorist Financing and Transfer of Funds Regulation 2017
34
What are the RICS requirements for PII cover for regulated firms?
Under £100K turnover = £250K no less £100 - £200K turnover = £500K anything over £200K = £1m My firms is confidential but is between £5-£10mil
35
What are your complaints handling procedure?
My company always adhere to the Complaints Handling RICS Guidance Note I would acknowledge the complaint within 72 hours I would pass the complaint on to my complaints handling officer (if it was a claim for negligence I would let the PII insurers know) They would then have 7 days to acknowledge the complaint and would need to have it investigated within 28 working days. If the client wanted to take the complaint further they would go to my companies property redress scheme the Property Ombudsmen. Which would provide alternative dispute resolutions
36
When was the RICS founded?
1868 it got its royal charter in 1881
37
What are the 3 disciplinary actions?
Action by head of regulation Disciplinary panel - issue regulatory compliance order, can fine you, expel you from RICS Appeal panel - can consider whether its fair or they disagree with the disciplinary panel
38
What is the RICS guidance on social media?
Use of social media guidance for RICS members 2021. It reminds members of the high standards of professional behaviours expected from RICS members. RICS is likely to investigate social media posts about discrimination, dishonesty and abusive behaviour
39
What are the levels of membership?
FRICS MRICS AssocRICS Trainee / Student
40
Why do the RICS have regulations and bye laws?
To set out the governance of the institution
41
What is the governance structure of the RICS?
RICS bound by its royal charter Managed by the governing council which is 21 members Chaired by the current president who is Anne Gray Governing council is responsible for the management and strategic direction of the RICS There are also various regional boards. I am aware of the current review of the governance structure following the Bichard review
42
What has been a result of the governance elections?
RICS has appointed a head of DEI to help implement the Bichard recommendation on encouraging diversity and inclusion
43
What is the RICS Global Governance Structure?
There are 17 specialised groups and that the current CEO is Richard Collins and the new president is Anne Gray who took over from Clement Lau
44
What is the RICS UK Structure?
4 National Associations 10 Regional Boards Local Associations
45
Can you accept a gift that's over £50?
Depends, I would measure the proportionality and assess whether it was an acceptable gift. If I was unsure I would consult out compliance officer.
46
Why were the rules of conduct updated?
Provide a simple and clear structure and to set example behaviours to each rule of conduct
47
What is bribery?
Gift or incentive that impairs professional judgement
48
Benefits of being an RICS regulated firm
Confidence Security Professionalism
49
Why was the bichard review commissioned?
Clarify the purpose of the RICS including its responsibility to act in the public advantage
50
When would a disciplinary be triggered?
By someone complaining to the RICS Allegation by a client or third party Information received or established by the RICS Eg Not doing your CPD
51
What are the RICS core materials?
International standards Professional Statements Guidance notes Code of practice
52
Can you give me an example of a professional statement that you have used n practice?
Conflict of Interest Checks 2017
53
What is the guidance note on complaints handling?
RICS Guidance Note on Complaints Handling 2016
54
What is your companies complaints handling procedure?
Stage 1: Business unit head (3 days and 10 days)  Stage 2: Separate review by Managing partner (10 days)  Stage 3: Independent redress scheme – Consumers The Property Ombudsman / Businesses Arbitration 
55
CPD requirements once chartered?
20 hours, 10 must be formal. eg structured learning like eg seminar Every 3 years must have cpd relating to the rules of conduct
56
What can cause a negligence claim?
Breach of duty of care which can lead to a claim of loss or damages
57
How do you prevent a negligence claim?
Understanding clients objectives Ensuring I am competent to undertake work Undertake work in accordance with relevant standards and guidance notes Make detailed file notes and take photographs
58
What are UK government sanctions and how can they impact the role of the surveyor?
59
What's currently happening within the RICS and how may it affect you?
60
Why is ethics important?
61
What is a Bye Law?
Rule made by a company or society to control its actions of its members
62
What information is required for a firm to be regulated by the RICS?
Complaints handling procedures Handling Clients Money PII cover Type of business and staffing deets Name of the responsible principle
63
When can a firm regulate with the RICS?
If 50% of their principles are MRCIS. Can choose to if 25% are members of the RICS
64
Give me an example when you have used the RICS Rules of Conduct?
Competence - someone wanted me to do a valuation in Cornwall and I am not a registered valuer. Market appraisal - Mooregreen House
65
What is the minimum level of run off cover?
£1million and has to be for 6 years
66
What is run off cover?
Cover for negligence once you have ceased trading
67
What if you cant afford run off cover?
Apply to the RICS assigned risk pool
68
What is negligance?
A loss caused due to a breach of duty of care and can be done for
69
What is wrong doing?
Can't be done for unless you are in the margin of error
70
What are the levels of due diligence?
Customer and enhanced
71
What's the process of CDD?
Verify the identity of individuals by requesting 2 forms of evidence one being photographic one being a bank statement Send to compliance officer to check and further verify. If you want to source someone's wealth you need to do EDD
72
Who do you report suspicious activity to?
I would report to our MLRO (Money Laundering Regulation Officer) then they then report it to the national crime agency. Must keep a record of AML checks for a minimum of 5 years
73
What can be put in place for managing a conflict?
Physical and technological barriers. Physical = being on separate floors, technological = password protected files
74
Why is it important for the RICS members to remain solvent?
So they don't become susceptible to bribery and taking clients money
75
What are ethics?
Moral principles that govern someone's behaviours
76
What is a bribe?
A gift of incentive that may affect someone's professional judgement
77
What's an example of unethical behaviour?
Being susceptible to bribery Money laundering Proceeding with an instruction where there is a conflicts of interest Acting outside of your competence Providing dishonest info
78
If you refuse a gift but the party insists you take it what do you do?
Still refuse
79
What are the areas of good practice when handling clients money?
Always ensure the name client is written on the account Ensure accounts are separate Ensure it is never overdrawn Ensure annual audits take place Ensure client can access as and when they require it
80
What are the anti money laundering checks and penalties?
5 years for tipping off 14 years and unlimited fine for assisting
81
What is a bye law?
Rules set by a company or society to govern its members
82
What are the AML for a property?
Look at the owner and request their cdd or edd If it was a business i would check...
83
Can you work for free?
Yes, as long as there are signed terms of engagement in place, and this type of work us called pro bono
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