Ethics Flashcards

Question

What is the central purpose of the RICS?

Answer 1

"1. To maintain the highest standards of education and training 2. To protect consumers through strict regulation of professional standards 3. To be the leading source of information and independent advice on land, property, construction and associated environmental issues"

Answer 2

"Mandatory (Information standards, professional statements) Recommended best practice (RICS guidance note, Code of practice) Information only (RICS information paper, RICS insight, RICS economic report, research)"

Answer 3

"Head of Regulation at the RICS investigates claims of misconduct. They have the power to: 1. Serve a Fixed Penalty notice 2. Make a Regulatory Compliance Order 3. CPD sanctions 4. Refer to a Disciplinary Panel Member has right to appeal decision made at a Disciplinary Panel by going to an Appeal Panel"

Answer 4

"- I want to become a member of an internationally recognised and respected professional group. - It will provide me with significant career opportunities, continuous professional development and networking possibilities."

Answer 5

The Royal Institution of Chartered Surveyors

Answer 6

"Tina Paillet Nicholas Maclean Justin Sullivan Justin Young

Answer 7

LionHeart is an independent charity specifically designed for past, present and future RICS professionals and their families.

Answer 8

"Their aim is to support members through difficult times, whether personal or professional, from the beginning of their career as an APC candidate or apprentice, right through to retirement. Support is offered through: - Finance - Health & Wellbeing - Family related support - Work-related support and many more."

Answer 9

"- Privy Council: Which grants and awards the royal charter. Makes any changes to the Royal Charter and Bye-Laws - Governing Council: meets twice a year to discuss strategy and exercise oversight. Delgate to the Standards & Regulation Board. - Management Board: implement day to day performance and delivery of the business. Also includes the Knowledge board, finance committee, world regional boards and remuneration committee. - Regulatory board: Reports solely to the governing council on its activities."

Answer 10

"- Quantity Surveying & Construction - Project Management - Building Surveying"

Answer 11

Est modus in rebus (there is measure in all things)

Answer 12

Land, Property & Construction

Answer 13

"Founded in 1868 RICS has a Royal Charter, granted by Privy Council in 1881 RICS Regulations and Bye-laws set out the governance of the institution"

Answer 14

Parliament Square, London.

Answer 15

"FRICS MRICS AssocRICS Trainee/Student"

Answer 16

"A fixed penalty is an administrative fine and/or caution issued by RICS when a Regulated Member fails to provide us with information that we have requested. This information can include: a firm or value submitting their annual return record, updating CPD records or payment of regulatory fees."

Answer 17

1) Caution 2) Reprimand 3) A requirement that the Regulated Member gives one or more undertakings as to future conduct 4) A requirement that the Regulated Member takes or stops taking certain actions within a specified period of time 5) Conditions on the Regulated member’s continued membership of RICS 6) Conditions on a Regulated Members registration for regulation 7) A requirement that the Regulated Member pays a fine."

Answer 18

"- Formal written agreements between the RICS and members / firms that require the member / firm to refrain from taking actions for a specific period - Used for minor breaches and can be applied when the member / firm does not contest the complaint"

Answer 19

"- They can be a fine up to £2,000 per breach and/or costs - Include o Caution o Unlimited fine o Expulsion from RICS"

Answer 20

"CPS: 1. Confidence - for client as regulated firms are monitored by RICS regulation 2. Professionalism - firms have to provide clear, impartial and expert advice 3. Security - firms have to have recognized CHP, access to ADR and PII cover"

Answer 21

"The regulatory functions of RICS are delegated from RICS’ Governing Council to the independently led Standards and Regulation Board (SRB) The role of the SRB is to build and maintain trust and confidence in the profession for the public advantage"

Answer 22

The exchange of something of value in return for someone doing or agreeing to do something improper in a business context

Answer 23

A maximum 10 years’ imprisonment and/or an unlimited fine

Answer 24

"RICS corporate members should follow the 6 principles in preventing bribery practices: 1. Proportionate procedures - procedures should be proportionate to the bribery risks the company faces 2. Zero tolerance to bribery 3. Risk assessment - the company should periodically assess the internal and external risks of bribery 4. Due diligence - systematically investigate employees and business partners (the level of which should be informed by the risk assessment) 5. Communication (including training) - communicate policies, operate confidential whistle-blowing service, provide training 6. Monitor and review - periodically review procedures and make improvements where necessary"

Answer 25

"Only offer or accept gifts and hospitality that are customary, proportionate and reasonable in terms of value and frequency. Never offer or accept any gift or hospitality if it may improperly influence your decisions/judgement or give the appearance of doing so (e.g. consider the timing of the gift). Only offer or accept gifts and hospitality that you would be happy for others to know about. Follow the policies and procedures of your employer in relation to gifts, hospitality and promotional expenditure."

Answer 26

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

Answer 27

"1. Bribing 2. Receiving a bribe 3. Bribing a foreign public official 4. Failing to prevent bribery"

Answer 28

"- Should be dealt with by implementing openness and transparency. - Declare any conflicts of interest clearly to all parties ASAP and offer to stand down from acting for any party. All parties can then decide how they wish to proceed and if there are any objections you must stand down"

Answer 29

"- Acting for two different parties with competing interests at the same time - Financial interests (e.g. gaining over and above your normal fee) - Personal relationship - Confidential Information."

Answer 30

"UK regulation surrounding combating Slavery. Introduced in 2015."

Answer 31

As the industry is fragmented through the use of numerous supply chains and high demand for migrant workers

Answer 32

A situation which effects the impartiality of one party. Anything that impedes or might be perceived to impede an individual’s or firm’s ability to act impartially and in the best interest of a client.

Answer 33

"- Party conflict: duty of an RICS member or firm conflicts with a duty owed to another client in relation to the same or a similar professional assignment - Own interest conflict: Duty of an RICS member or firm to act in the interest of a client conflicts with the interests of that same RICS member or firm - Confidential information conflict: Conflict between the duty of an RICS member to provide information to one client, while also keep that same information on behalf of a different client"

Answer 34

Goldman Sachs - Holding equities and being forthcoming with that information.

Answer 35

"Consent willingly given by the parties affected by a conflict of interest that demonstrates that they understand: o A conflict exists or is at risk of existing o The facts that are material to the conflict o What the conflict is or might be o That the conflict may affect the ability of the member or regulated firm to advise or act fully in the interest of the client"

Answer 36

"Professional Indemnity Insurance (PII): Protects firms & individuals against losses resulting from professional negligence, errors and/or omissions which cause financial loss to a third party Ensures a firm’s clients do not suffer financial loss which the firm cannot meet"

Answer 37

"Commercial decision based on the opportunity and risk Never proceed without the sufficient level of PII"

Answer 38

"Professional Indemnity insurance Public Liability Employer’s liability Building Insurance"

Answer 39

"The policy at the time the claim is made will respond, not the policy in place at the time of the negligence. Insurer will only pay out if the policy was within the period of the insurance, not after, unless there is run off cover."

Answer 40

obligations are mandatory to RICS-regulated firms - Must ensure all work is covered by PII and that cover meets standards approved by RICS.

Answer 41

"1) Must be on a claims made basis 2) Must be on an each and every claim basis 3) Policy wording is written on a full civil liability basis 4) Underwritten by a listed insurer 5) Covers past and present employees 6) Run-off cover 7) Minimum level of indemnity required by the RICS"

Answer 42

Should be for a minimum of 6 or 12 years, depending on how the contract was executed, however negligence claims can be made up to 15 years after work was undertaken - advice from an insurance broker should be sought as to whether to maintain for the full 15 years

Answer 43

Should be for a minimum of 6 or 12 years, depending on how the contract was executed, however negligence claims can be made up to 15 years after work was undertaken - advice from an insurance broker should be sought as to whether to maintain for the full 15 years

Answer 44

1) Material damage 2) Theft 3) Personal injury 4) Damage to third party property 5) Work carried out prior to the inception of the policy 6) Insured v insured claims (i.e. a company suing an employee for professional negligence) 7) Insolvency"

Answer 45

"1) £100,000 or less turnover = min. £250,000 indemnity 2 )£100,001 to £200,000 turnover = min. £500,000 indemnity 3) £200,001 and above turnover = min. £1,000,000 indemnity"

Answer 46

Must notify insurer in the event of: An actual claim A written or verbal threat of a claim Any circumstance that the firm has reason to believe may result in a claim Any complaint notified via the firm’s CHP

Answer 47

"It is the uninsured amount, so if the company was to make a claim they would have to pay this amount. RICS provide guidance: - if the insured amount is £500k or less, the excess should be 2.5% of the insured amount of £10k (whatever is more). - If the insured amount is £500k or more, the excess should be 2.5%"

Answer 48

"- Each and every claim - The full amount of insurance can be claimed on every claim"

Answer 49

Dependent on the way that the contract is executed. If under hand then prudent to maintain run off cover for longer, and if executed as a deed then 12 years but prudent to maintain run off cover for minimum of 6 years and maximum of 15 years after cessation of practice.

Answer 50

"Run off cover is a PI policy which comes into effect when a business stops trading and any claims made under it will relate to work carried out before trading stopped. Reduces over time, the first year will be the same as the previous, but decreases around 15% per annum."

Answer 51

"1) Insurance facility for regulated firms that find themselves unable to obtain PII in the normal market 2) Firms can remain in the ARP for a maximum of 3 years, where they will be audited and guided in how to amend their business procedures/practices ready to obtain market PII again"

Answer 52

It is a commitment by all RICS members to continually update their skills and knowledge, in order to support them with remaining professionally competent and in touch with the changing needs of the fields they operate in

Answer 53

Minimum of 20 hours of CPD per year, of which at least 10 hours must be formal

Answer 54

"Formal - any form of structured learning that has clear learning objectives and outcomes, Informal - self-directed learning that's relevant to a professional role and contributes to a person's skills and knowledge"

Answer 55

"- Money to be held in a separate account - Robust book keeping practice - Client should have access to the bank account - Money should be deposited into the bank account within 3 days of receipt"

Answer 56

"Yes – it ensures that the client’s money is protected from o Insolvency o Misappropriation o Death of a sole practitioner o Transfer to another organization"

Answer 57

"- We may receive money for fees in advance, or may hold it for future payments to a contractor - Within 3 days of receipt of funds they should be deposited into the account"

Answer 58

"- Client’s money should only be handled by trained and competent staff - There should be a strict accounting procedure in place - Money should be deposited into the bank account within 3 days of receipt"

Answer 59

Money laundering is the concealment of origins of illegally obtained money

Answer 60

"- Money must be tracked at all times - Should not be kept with any other money"

Answer 61

"- If the client is secretive or evasive about who they are or the source of the funds - If the parties or representatives reside in a high risk country - If a transaction has unusual features such as size, nature, frequency or manner of execution"

Answer 62

"- Conduct a money laundering and terrorist financing risk assessment - Implement systems and policies to address money laundering"

Ethics Flashcards

(86 cards)