ETHICS

Question 1

What are the three main roles of the RICS?

Answer 1

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

Question 2

Who is the current president of the RICS?

Answer 2

Tina Paillet FRICS

Question 3

When was the RICS founded?

Answer 3

1886

Royal Charter was granted by privy council in 1881

Question 4

5 benefits of being an RICS member

Answer 4

1. Status - Your professional credentials provide unrivaled client confidence
2. Recognition - Promotion of your professional excellence to governments and markets
3. Market Advantage - RICS stats and standards gives you a competitive advantage
4. Knowledge - International practice standards, professional guidance, CPD and knowledge sharing
5. Network - Access to professionals worldwide

Question 5

What are the 5 Rules of Conduct?

Answer 5

1. Honest and act with integrity
2. Maintain their professional competence
3. Good-quality and diligent service
4. Respect and encourage diversity and inclusion
5. Public interest - maintain public confidence in the profession

Question 6

What is Rule 1 (RoC)?

Answer 6

Members and firms must be honest, act with integrity and comply with their personal obligations to RICS

Question 7

What is Rule 2 (RoC)?

Answer 7

Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.

Question 8

What is Rule 3 (RoC)?

Answer 8

Members and firms must provide a good quality and diligent service

Question 9

What is Rule 4 (RoC)?

Answer 9

Members and firms must treat others with respect and encourage diversity and inclusion

Question 10

What is Rule 5 (RoC)?

Answer 10

Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession

Question 11

What is the RICS Decision Tree?

Answer 11

A framework of questions available on the RICS website which members should ask themselves when facing a situation in which they are asked to act in a potentially unethical manner or situation.

Question 12

What are the three levels of disciplinary action in the RICS?

Answer 12

1. Action by Head of Regulation
2. Disciplinary Panel (drawn from the independent regulatory tribunal)
3. Appeal Panel

Question 13

What are the four displinary actions Head of Regulation can initiate?

Answer 13

1. Serve a fixed penalty notice
2. Make a regulatory compliance order
3. Refer the matter to a single member of the Regulatory Tribunal for consideration
4. Refer the matter directly to a disciplinary panel

Question 14

When would you receive a fixed penalty for a disciplinary?

Answer 14

Procedure used for breaches of the Rules relating only to the supply of information to the RICS by firms and members.

Question 15

When would you receive a Regulatory Compliance Order for disciplinary procedures?

Answer 15

For low level breach of the Rules, such as some minor breaches which could be easily corrected.

It’s a written document which states a member or firm must take or desist from taking certain actions in a specific time period, and an agreement to pay a fine.

Question 16

What happens if a disciplinary procedure is actioned by a disciplinary Panel?

Answer 16

For more serious breaches of conduct.
1. Issue a Regulatory Compliance Order

2. Reprimand (formal expression of disapproval)
3. Fine
4. Impose an unlimited amount of fine per breach but it must be proportionate to the offence
5. Impose condition upon future continued RICS registration
6. Expulsion from membership or remove a firm
7. Require publication of the results of the hearing in the RICS Modus Magazine, on the RICS website and in the local newspaper where the firm or member is based.

Question 17

What is an Appeal Panel in relation to disciplinary procedures?

Answer 17

Where you can consider a member of rims appeal against review of a decision relating to the above levels of disciplinary procedure.

Question 18

What should you consider when negotiating fees?

Answer 18

1. Avoid price fixing, aggressive fee cutting or collusion with competitors
2. In line with market-based fees
3. Consider the amount of time and resources required and that you have the appropriate expertise.
4. You should not be seen to be undercutting another firm
5. That you are transparent with your client and consumers that you may be in receipt of or offering a referral fee and state this in the ToE

Question 19

What must be included in your ToE?

Answer 19

1. Must state in writing the client’s agreement to the proposed fee basis
2. Payment of expenses (and how calculated)
3. That a copy of the firm’s complaints handling procedure is available upon request

Question 20

What are the three steps to follow on a new instruction?

Answer 20

1. Check professionally competent
2. No conflicts of interest or personal interest
3. Confirm terms of engagement in written and get written approval from the client before you start work on the instruction

Question 21

For agency work, what legislation do you also need to consider for an instruction?

Answer 21

Compliance with Section 18 of the Estates Agents Act 1979 and money laundering checks (Money Laundering Regulations 2018 as amended)

Question 22

How long is the cooling off period on Terms of Engagement what legislation goes with it?

Answer 22

14 days from the date of agreement

The Consumer Rights Act 2015

Question 23

When would it be appropriate to decline an instruction? 8 options

Answer 23

1. Not competent to undertake the work (outside limitations)
2. Do not have sufficient facts on the issue
3. Proposed client will not sign your ToE or complete AML checks
4. There is a conflict of interest
5. A professional indemnity insurance liability cap cannot be agreed
6. Advice is for a friend or on a pro bono basis and your PI will not cover work on a personal basis
7. The potential client is included in the UK Governments sanctions list
8. Would you be content for your actions to be made public

Question 24

What is the difference between conflict avoidance and conflict management

Answer 24

Conflict avoidance is when you do not accept the instruction

vs

Conflict management which is when the instruction is accepted and steps are agreed and put in place to manage the conflict

Question 25

What would be a step you could put in place for conflict management to reduce the conflict?

Answer 25

information / ethical barrier, with the written agreement of all parties

Question 26

What does the RICS Global Professional Standard: Conflicts of Interest 2-18 state?

Answer 26

A member must not advise or represent a client where doing so would involve a conflict of interest or a significant risk of conflict of interest other than where all those who are, or may be affected have provided their informed consent

Question 27

What is a 'Party Conflict'

Answer 27

A party conflict relates to the work on the same or related instruction for two different parties

Question 28

What is an 'Own Interest Conflict'

Answer 28

An own interest conflict relates to a personal interest

Question 29

What is a 'confidential information conflict'

Answer 29

relates to work between two parties that is confidential

Question 30

How do you handle a conflict of interest? 3 steps

Answer 30

STEP ONE: Conflict avoidance - Consider whether the conflict is irresolvable and whether this can be properly managed - Decide if you want to accept or decline the instruction from Client A or B STEP TWO: Written advice to both parties - Set out in writing as soon as possible disclosing the conflict, clearly and inform that they should seek independent advice if needed and, request written confirmation from both clients with their informed consent STEP THREE: Conflict Management - Set up an information barrier in accordance with the provisions agreed with both clients.

Question 31

What is incremental advice? Provide an example

Answer 31

Where an agent selling the property is approach by another party to provide advice, for example a valuation, building insurance or planning, relating to the purchase. The RICS must only provide such incremental advice if consent is given and information barrier is put in place before providing advice to the prospective buyer

Question 32

How long should you hold files of information?

Answer 32

A minimum of 6 years before being disposed of and destroyed securely

Question 33

What would would you do if a surveyor finds out a confidential piece of information?

Answer 33

The client should be advised of the error and the matter should be recorded in a note to the firm's compliance officer.

Question 34

What is formal CPD?

Answer 34

Includes all forms of structured learning that has clear learning objectives and outcomes.

Question 35

What is informal CPD?

Answer 35

Any self-managed learning that is relevant to your professional role. Example: private reading, training and informal seminars / events

Question 36

Give a case law example of negligence and duty of care

Answer 36

Scullion v Bank of Scotland plc (t/a Colleys) (2010) relates to a breach of the duty of care owed to Mr Scullion in relation to a valuation report prepared for a flat in Cobham. The Court of Appeal held that a surveyor who provides advice on value to a lender in respect of a buy to let purchase does not owe a duty of care to the borrower who is seeking funding to purchase the property.

Question 37

How can you avoid negligence? 6 options

Answer 37

1. Clearly understand the client's objectives 2. Ensure you are competent to undertake the instruction 3. Undertake the work in accordance with the relevant RICS advice, to include Professional Standards and Practice information 4. Make detailed file notes and take photographs 5. Keep up to date with market knowledge and legislation 6. Cap the professional liability excess on your PII policy in the ToE

Question 38

Why do you need Professional Indemnity Insurance? PII

Answer 38

To protect clients, surveyors and third parties against negligence claims where there is a duty of care breach and a claim for damages arises

Question 39

If you were starting a new practice, what would you need to do / send to the RICS?

Answer 39

1. Complete a Firm Details Form for the RICS 2. Appoint a Contact Officer for all RICS communication 3. Register with the RICS for regulation of the firm 4. Arrange PII and send details to RICS 5. Register for RICS Valuer Registration Scheme (if undertaking Red Book Global valuation work) 6. RICS approval for complaints handling and set up a complaints log and appoint a complaints handling officer 7. Use a logo kit from the RICS 8. Ensure CPD logged online on the RICS CPD Management system 9. Ensure completion of an online RICS Annual Return at the end of each year

Question 40

If you were starting a new practice, what would you need to do / send to the RICS? Statutory compliance

Answer 40

1. Disclose business name 2. Compliance with: Disability discrimination (Equality Act 2010), Financial services, Bribery Act 2010, Money Laundering Regulations 2017, Health and Safety 1974, Asbestos register, Fire Safety Compliance, Data Protection, Estates Agency Compliance 3. Inform HMRC for VAT and Tax Registration 4. Ensure compliant with current employment law ( national living wage, working hours etc

Question 41

What is a bribe?

Answer 41

A bribe can be the giving, offering, promising or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust.

Question 42

What are the four offences of the Bribery Act 2010?

Answer 42

1. Bribing 2. Recieving a bribe 3. Bribing a foreign public offical 4. Failing to prevent bribery

Question 43

What penalty could you get for not complying with the Bribery Act 2010?

Answer 43

A maximum penalty of 10 years imprisonment and for an unlimited fine for individuals and companies.

Question 44

What is the definition of money laundering?

Answer 44

Money laundering is when proceeds of criminal activities are disguised or converted and then realised and legitimate assets.

Question 45

What is the penalty if you fail to comply with Customer or Enhanced Due Dilligence?

Answer 45

Maximum 14 years prison sentence and or unlimited fine for assisting with money laundering Maximum 5 years prison sentence and or unlimited fine for tipping off a person by informing them that they are under suspicion for money launder or failing to report suspicion

Question 46

If you are asked about the acceptence of any cash, gift or hospitality in your interview, consider the following:

Answer 46

Bribery Act 2010 RICS Professional Standard Organisational Procedures Professional objectivity, openness and transparency Proportionality Sanctions

Question 47

If asked about AML in your interview, consider the following

Answer 47

Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 The RICS Professional Standard Government Guidance Due Diligence procedures Professional objectivity, openness and transparency Red Flags

Question 48

What are some red flags for money laundering?

Answer 48

- Inability or unwillingness to provide identity documents - Changes to parties involves in transactions - Unusual transaction features, such as unexpected urgency, potential loss-making - Payment of fees, purchase or rental monies in unusual currencies

Question 49

What is the RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing 2019

Answer 49

Sets out the mandatory, globally acceptable requirements for RICS members and regulated firms in relation to bribery, corruption, money laundering and terrorist financing

Question 50

What are the three main parts of the RICS Professional Standard: Countering bribery, corruption, money laundering and terrorist financing, 2019

Answer 50

1. Mandatory requirements for anti-bribery, corruption, anti-money laundering and terrorist financing 2. Guidance setting out supporting good practice for the above. EG have a written policy in place, and publish a code of behavior for staff 3. Supplementary guidance on some of the concepts set out in Parts 1 & 2 EG establish a risk-based approach

Question 51

What are the 9 protected characteristics of the Equality Act 2010?

Answer 51

- gender reassignment - sex - sexual orientation - age - disability - race - religion or belief - marriage and partnership - pregnancy and maternity

Question 52

In April 2024, the RICS provided further guidance to Rule 4 RoC - what did this include?

Answer 52

Actions for firms of different sizes. Example: Ensure your offices are more accessible for visitors, challenge behaviour that is exclusionary, diversity your supply chain

Question 53

What is unconscious bias?

Answer 53

Relates to the associations we hold which are deeply ingrained and outside our concious awareness or control

Question 54

What are some of the key skills useful for effective team working?

Answer 54

Listening to Discussing Persuading Respect Helping Sharing Participating Communication Reflection

Question 55

What is an inclusive environment?

Answer 55

One which is designed and managed to allow people with a diverse range of need and abilities to access and use it

Question 56

Provide an example that ensures environments are inclusive and applies throughout the property lifecycle

Answer 56

During design and / or refurbishment, ensure accessibility is consisted from various users perspectives, physically and socially