Ethics

Question 1

The 3 main roles of RICS

Answer 1

1. To maintain the highest standards of education and training.
2. To protect consumers and businesses through strict regulation of the profession
3. To be the leading source of independent advice on the Built Environment

Question 2

How does RICS regulate

Answer 2

Self regulatory
*PACTT.

Question 3

5 Principles for better RICS regulation?

Answer 3

1. Proportionality
2. Accountability
3. Consistency
4. Targeting
5. Transparency

Question 4

What is a royal charter?

Answer 4

A formal document granted in 1881. A formal Document issued by the monarch granting a right or power to an individual or a corporate body.

Question 5

What are the 5 ethical Values of the RICS Professional and Ethical Standards

Answer 5

1. Act with integrity, honest and comply with professional obligations and obligations to RICS.
2. Maintain professional competence and ensure services are provided by competent individuals who have the necessary expertise.
3. Members and firms must provide good quality and diligent service
4. Treat others with respect and encourage diversity and inclusion
5. Must act in the public interest and take responsibility for their actions and act to prevent harm and maintain public confidence in the profession

Question 6

How do the 5 ethical standards and bye laws link?

Answer 6

Bye-Law 5 (Conduct). members are to conduct themselves in manner befitting membership of RICS.

Question 7

Deviation from 5 ethical standards?

Answer 7

RICS disciplinary action

Question 8

Ethical Decision Tree?

Answer 8

Yes/No flowchart that helps to determine whether to proceed when faced with an ethical grey area.
1. Do you have sufficient facts?
2. Is it legal?
3. Is it in line with RICS global professional and ethical standards.

Question 9

What else is available when facing an ethical dilemna

Answer 9

Case studies on RICS website.
RICS hotline to discuss.

Question 10

Rules of Conduct for Members 2007 as amended 2020

Answer 10

1. Interpretation of the rules
2. Personal & Prof standards: 7 clear rules:
3. Ethical Behaviour
4. Competence
5. Service- timely manner + quality
6. CPD requirements
7. Solvency
8. Information to the RICS
9. Co-Operation

Question 11

Difference between rules of conduct and ethical standards

Answer 11

1. Rules- clear and instructional
2. Ethical Standards- framework to apply to different situations

Question 12

What is the link between the Ethical Standards and the Rules of Conduct?

Answer 12

Rule 3 (members & Firms) requires members to act with integrity and avoid conflicts of interests.

Question 13

What Happens for not complying with the rules of conduct?

Answer 13

Disciplinary action. Self regulation by RICS.
PACTT.

Question 14

What is L&R’s internal policy on gifts?

Answer 14

Can give/receive gifts of nominal value, as long as the intent behind the gift cannot be misconstrued. Ask yourself if it is appropriate? Permitted allowance of £100 anything above must be declared to the Compliance Officer who will decide if appropriate. Record keeping for gifts received.

Question 15

RICS guidance relates to gifts and inducements?

Answer 15

Countering bribery and corruption, money laundering and terrorist financing.

Question 16

Legislation relating to gifts and inducements?

Answer 16

Bribery Act 2010
Proceeds of crime act 2002

Question 17

What is a bribe?

Answer 17

Something promised in expectation of a change in behaviour.

Question 18

What is the bribery act 2010

Answer 18

Aims to reduce bribery in business in the UK. new corporate criminal offence of failing to prevent bribery; a company will be responsible for employee corrupt acts if they can not show adequate procedures and policies. `

Question 19

What are CPD requirements once qualified

Answer 19

20 hours CPD

Question 20

CPD- formal or informal?

Answer 20

Formal: all forms of structured learning.
Informal: Includes any self managed learning that is relevant or related to your professional role.

Question 21

What is a conflict?

Answer 21

When impartiality is threatened due to a conflict of interest.
Types of interest are financial, personal, commercial relationships, acting on both sides.

Question 22

What guidance is there to deal with a conflict of interest?

Answer 22

UK & Global Professional Statements
-Conflicts of Interest 1st Edition
- Conflicts of Interest- UK commercial property market investment agency

Question 23

Conflicts of interest, 1st edition, March 2017

Answer 23

1. Mandatory rules for COI
2. Principles and how to apply
3. How to meet obligations

Question 24

UK: Conflicts of interest – UK commercial property market investment agency, 1st edition

Answer 24

Dual agency prohibited in UK

Question 25

What is the background of the RICS?

Answer 25

1. Founded in 1868 by John Clutton 2. 130,000 members 3. CEO- Justin Young 4. FRICS, MRICS, Assoc RICS and Trainee 5. President- Anny Gray 6. Self regulatory

Question 26

What is the RICS constitution

Answer 26

1. Royal Charter 2. 10 By laws 3. 10 regulations 4. Rules of conduct

Question 27

Structure of RICS governance?

Answer 27

Governing Council chaired by RICS president. Underpinned by Boards and committees. Management Board and audit committee report to Governing Council

Question 28

Hierarchy of RICS documents

Answer 28

1. RICS rules of conduct 2. International Standards 3. RICS professional statements 4. RICS guidance note 5. RICS code of Practice 6. RICS jurisdiction guide

Question 29

How do you get FRICS

Answer 29

Evidence of 4 fellowship characteristics- 5+ yrs MRICS, leadership role, raising profile of RICS, technical achievement. Portfolio of professional achievement

Question 30

Why do you want RICS

Answer 30

1. Gold Standard Status. 2. Provides client confidence. 3. Professional recognition. 4. Network

Question 31

What are the International Ethics Standard?

Answer 31

Global framework for the built environment sector. 10 Global Ethical Standards.

Question 32

3 benefits of regulation for firms

Answer 32

1. Confidence 2. Professionalism 3. Security

Question 33

What is a firm?

Answer 33

Corporate body or sole practitioner practice. Eligible to register if more than 25% are MRICS. Required to register if over 50%

Question 34

What are 3 levels of disciplinary action

Answer 34

1. Action by head of regulation 2. Disciplinary panel 3. Appeal Panel

Question 35

3 actions available to Head of regs if they consider disciplinary action appropriate

Answer 35

1. Fixed penalty notice 2. Make a consent order 3. Refer the matter to Disciplinary Panel

Question 36

What are the penalties available to the Disciplinary Panel?

Answer 36

1. Issue a consent order 2. Unlimited fine- proportional 3. Impose conditions upon continued RICS registration 4. Expulsion 5. Publication of results of hearing.

Question 37

What is the appeal panel?

Answer 37

Review an appeal against review of a decision at Disciplinary Panel

Question 38

RICS- fee negotiaitons

Answer 38

Market based and agreed on ad hoc basis with clients, aggressive fee cutting is prohibited.

Question 39

When may you have to decline instruction?

Answer 39

You are not competent No signed TOB Conflicted Advice is for a friend and pro bono PII wont cover personal work.

Question 40

What are Bribery Act Principles

Answer 40

1. DD 2. Risk assessment 3. Proportionality 4. Top level commitment 5. Monitoring and review 6. Communication

Question 41

4 Offences and penalties under the Bribery Act 2021

Answer 41

1. Giving a bribe 2. Taking a bribe 3. Bribing foreign public officials 4. failure of an organisaiton to prevent bribery Penalties: max 10 years and/or unlimited fine

Question 42

What are the proceeds of crime act 2002?

Answer 42

Allows recovery of money and other assets deemed to be the proceeds of crime in civil and criminal proceedings.

Question 43

What is money laundering?

Answer 43

When proceeds of criminal activity are disguised or converted, then used for legitimate purposes.

Question 44

Legislation relating to money laundering and the provisons?

Answer 44

MLTF and Transfer of Funds regs 2017 1. required to do written money laundering and terrorist risk assessment for firm. 2. Implement systems, policies 3. Provide training 4. Comply with new DD requirements 5. Ensure record keeping 6. Confirm identity of contracting party

Question 45

What are the requirements of the Money Laundering Regs 2017 for due diligence?

Answer 45

3 Levels of DD: 1. Customer- identify owner through ID, using company number and address. 2. Enhanced - additional chocks for politically exposed person or high risk countries. 3. Simplified- Low risk of ML