ETHICS

Question 1

What are RICS regulated firms professional obligations?

Answer 1

Publish a complaints handling procedure, including an ADR provider
Ensure that all work is covered by adequate PII
Cooperation with RICS
Report to RICS any matter they are required to report under the Rules for the Registration of Firms

Question 2

When was the RICS Founded

Answer 2

1868

Question 3

When did the RICS recieve its royal charter

Answer 3

1881

Question 4

What are the levels of RICS membership

Answer 4

FRICS
MRICS
AssocRICS
RICS Student

Question 5

What is the role of the RICS

Answer 5

To maintain the highest standards of education and training
To protect consumers throught strict regulation of training and standards
To be the leading source of infomation and independent advice on land, property, construction and assosiated envirnomental issues.

Question 6

What is the Bichard review

Answer 6

An independent review of the RICS’ purpose, governance, and strategy to create a renewed sense of direction.

The RICS Governing Council accepted the recommendations and is working to implement them through phased changes.

Question 7

Why do you want to be an RICS member

Answer 7

Status
Recognition
Market advantage
Knowledge
Network

Question 8

What are RICS firms requirements for registration

Answer 8

Public service provider: The firm must provide surveying services to the public.
Regulated area: The firm must be operating in a Regulated Area (like the UK).
Principal ratio: At least 50% of the firm’s principals are RICS Members.
Responsible Principal: You must designate a “Responsible Principal” who will provide oversight and accountability for the firm’s compliance with RICS standards.

Cooperation with RICS

Question 9

Infomation required for by the RICS for registration

Answer 9

Type of Business and staffing details
Name of the Responsible Principle
Stautory regulated activities
Nature of clients
CHP
PII details
Whether the firm holds clients money (C&Co does not)

Question 10

The five RICS Rules of Conduct

Answer 10

1) be honest, act with integrity, and comply with professional obligations;
2) maintain professional competence;
3) provide good quality and diligent service;
4) treat others with respect and encourage diversity and inclusion; and
5) act in the public interest, take responsibility for your actions, and maintain public confidence.

Question 11

What are RICS members Mandatory professional obligations

Answer 11

Comply with CPD
Cooperate with RICS
Provide all infomation reasonably requested by the Board

Question 12

What are RICS firms Mandatory professional obligations

Answer 12

Publish a CHP
Ensure adequate PII
Ensure arrangements for professional work to continue in the event of incapacitation/death
Cooperate with RICS
Comply with CPD
Provide all infomation reasonably requested by the Board
Report to RICS

Question 13

What are the levels of disciplinary action

Answer 13

Action by head of regulation
Displinary Panel
Appeal Panel

Question 14

What can steps can the Head of Regulation take

Answer 14

Serve a fixed penalty
Make a regulatory compliance order
Refer to the Regulatory tribunal
Refer directly to a discipnary panel

Question 15

What can steps can the Disciplanary Panel take

Answer 15

Issue a Regulatroy compliance order
Reprimand
Caution
Fine
Impose conditions
Expulsion
Publicise the results of the hearing

Question 16

What will the appeal panel do?

Answer 16

Consider a member or firms appeal against a displinary panel
Review and possibly allow the appeal and vary the penalty imposed
Consists of lay member

Question 17

What guidance has the RICS published relating to Social Medial

Answer 17

Use of Social Media : Guidance for RICS members, 2024

Question 18

What are the RICS Professional standards

Answer 18

These are a set of REQUIREMENTS & EXPECTATIONS for RICS members and firms about how they provide their services

Question 19

What should you do before issuing a Terms of Engagement

Answer 19

Check professional competancy
Confirm no conflicts of interest
Confirm ToE in writing and get written approval BEFORE you start work

Question 20

When should you decline an instruction

Answer 20

• You are not compentant
• You do not have sufficent facts
• The Client will not sign ToE or complete AML
• There is a conflict of interest or personal interest
• PII can not be agreed
• The advice is for a friend or on a Probono basis
• Client is on the UK sanctions list
• Would you want you actions to be made public?

Question 21

What is a conflict of interest?

Answer 21

A conflict of interest arises when a member or firms independence or impariality is threatened

Question 22

What are examples of when conflicts of interest can arrise?

Answer 22

• Any financial interest
• A personal interest
• Commercial relationships
• Acting on both sides of a transaction

Question 23

What are the types of conflicts of interest?

Answer 23

• A party conflict
• An Own interest conflict
• A confidentail infomation confict

Question 24

What action can be done when a conflict of interest is acknowledged but still agrees to instruct an RICSregulated firm or RICS member to proceed

Answer 24

Informed consent
* This can only given in writing by the party if the person explaning the position is transparent about any material factors and ensure that the party affected understands what they are doing
* This should only be done if it satisfies all the relevent parties.

Question 25

What barriers can be put in places to manage a conflict?

Answer 25

Use of infomation/ethical barriers * Virtual IT barriers * Physical seperation of employees * Clear audit trail * All infomation is securely stored

Question 26

What are RICS member CPD requirements?

Answer 26

* 20 hours formal CPD per annum * 10 of which require to be Formal * All members must undertake relevant understanding of the RICS Rules of Conduct every 3 years * Record their CPD activity by 31st January each year

Question 27

What is Christie & Co's Complaints Handling Procedure?

Answer 27

Step One - Write or send an email to the Compliance Officer, who will refer to senior members of the firm (acknowledge receipt of your complaint within 7 working days and issue a full response (or if that is not possible, provide you with an update) within 28 working days) Step Two - contact our Global Managing Director Step Three - we will agree to the referral of your complaint to: the Centre for Effective Dispute Resolution (an organisation that will help arrange mediation)

Question 28

How to avoid acts of Negligence?

Answer 28

* Understanding clients objectives * Ensure competance * Work in accordance with RICS advice * Detailed file notes and photos * Record CPD * Cap the PII in the Terms letter

Question 29

When might a claim of negligence occur?

Answer 29

When a duty of care is breached resulting in a loss. Then a negligence claim may arise

Question 30

What are good practice measures when handling client monies, set out in RICS Professional Standard : Client Money Handling 2019

Answer 30

* Holding client money * Providing infomation to clients * Recepits of client monies * Payments from client monies * Accounting records and controls * Compliance

Question 31

RICS Compliance for starting a new practice

Answer 31

* Inform the RICS * Appoint a Responsible Principal * Register with RICS * Arrange adequate PII * Client money handling protections * Register for RICS Valuer Registration Scheme (VRS) * RICS approval of CHP * Set up a complaints log * Appoint a Complaints handling office * Ensure CPD * Complete RICS annual return at the end of each year

Question 32

Statutory compliance for starting a new practice

Answer 32

* Bribery Act 2010 Compliant * Equality Act 2010 compliant * Appoint an AML officer * H&S compliant * Asbestos * Fire Safety * GDPR compliant * Estate agency compliant * Inform HMRC for VAT and Tax registration * Ensure employer and public liabiliy insurance * Ensure employment complaince (NLW, Gender pay gap, etc)

Question 33

What should you do when closing an RICS practice

Answer 33

* Inform the RICS * Ensure clients are made aware * Return any monies from client accounts * Adequate run off cover * Retain a copy of files for a minimum of 6 years.

Question 34

# PTRDCM What are the main principles of the Bribery Act 2010

Answer 34

* Proportionailty * Top level commitment * Risk Assessment * Due Dilligence * Communication * Monitoring

Question 35

Offence under the Bribery Act

Answer 35

* Bribing * Recieving a bribe * Bribing a foreign public official * Failing to prevent Bribary

Question 36

Who polices the Bribery Act

Answer 36

Serious Fraud Office

Question 37

Penalties for breaching the Bribery Act

Answer 37

* Maximum penalty of 10 years imprisonment * Unlimited fine for individuals * Unlimited fine for companies

Question 38

Key updates in the Countering bribery, corruption, money laundering and terrorist financing, 2nd edition

Answer 38

* the emergence of artificial intelligence (AI); * risks associated with bribery and corruption; * the increasing presence and use of digital currencies; and * changes as to the material that poses money laundering risks.

Question 39

Provisions to adhere to regarding AML

Answer 39

* Written AML Risk assessment * Implemention of control measures and procedures * Internal controls * Staff training * Comply with customer, simple and enhanced DD * Appropriate record keeping * AML checks

Question 40

What does Customer Due Dilligence entail? (CDD)

Answer 40

* Verification of identity * Identification of benefical owners * Purpose of purchase * Proof of funds

Question 41

What does Enhanced Due Dilligence entail? (EDD)

Answer 41

* Required if a person of business is from a 'high risk country' or 'politcally exposed person' * Christie & Co have a set level of questions to answer when carrying out EDD

Question 42

Penalties for breaching AML regulations

Answer 42

* Max. 14 years prison sentance and/or unlimited fine for assisting with AML * Max. 5 years prison sentance and/or unlimited fine for TIPPING OFF

Question 43

Red flags assosiated with Money Laundering

Answer 43

* Inabilty or unwillingness to provide proper documentation * Changes to parties in a transaction * Unusual behaviours - unexpected urgency, potential loss-making, unusual transaction for a specific client * Unusual currencies

Question 44

What are three offences under the Proceeds of Crime Act 2002

Answer 44

* Concealing criminal property * Arrangements made in regard to criminal property * Acquistion use or possession of criminal property

Question 45

# Linthorpe Pharmacy Middlesbrough L2 - Why did you not disclose the level of offers?

Answer 45

I have a duty of confidentiality to my client to ensure all offers are confidential.

Question 46

# TPG Ventures L3 - Explain how you handled the valuation of the pharmacy portfolio located around Leeds and West Yorkshire

Answer 46

* It was a portfolio of 8 LH pharmacies * Our anticipated MV was above the Bank's Expectation * We met with the Bank's Customer in person to dissect the financials. * We recieved pressure throughout the instruction to provide indivative figures to the Bank's Customer. * I sent in an email to the Bank and their customer ' we are unable to provide figures to their customer prior to sharing with the Bank as this may implicate us as being 'LED'. * After disclosing with the Bank, we conducted a transparant meeting with the Bank and their customer. * Values differed as the Customer had include a 'Proforma Pharmacy Funding Adjsutment' with their management accounts. This was an estimation of increased income from a funding agreement which had not yet been confirmed. * We disregarded this from the Valuation and openly discussed this with the Bank and their Customer.

Question 47

# Croft Shifa L3 - Why were you conflicted on the valuation of a pharmacy in Rochdale

Answer 47

The C&CO agency team were currently marketing the Property on the market. We had no prior fee earning relationship with the Bank's Customer but as an SSRA had been signed and was still active we were unable to offer independence.

Question 48

What should you if you are offered a bribe?

Answer 48

**Refuse the bribe**: Politely but firmly refuse the offer. **Report the incident**: Immediately inform your senior manager or the designated person within your firm as outlined in your company's anti-bribery policy. **Document everything:** Keep a clear, written record of the incident, including who, what, when, and where it happened.