ETHICS

Question 1

Why do you want to become a member of RICS?

Answer 1

To show clients and customers that I meet the highest professional standards within the property industry and demonstrate that I am competent and accountable.

Membership signifies adherence to professional standards.

Question 2

What is the role of RICS?

Answer 2

To promote and enforce the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure.

RICS plays a crucial role in maintaining industry standards.

Question 3

What are the key functions of RICS?

Answer 3

• Maintain the highest standards of education and training
• Protect consumers through strict regulations of professional standards
• Be the leading source of information and independent advice on land, property, construction and associated environmental issues.

These functions ensure professionalism in the industry.

Question 4

What is a Royal Charter?

Answer 4

A formal legal instrument granted by the king, on the advice of the Privy Council, which creates or recognises a corporate body and confers specific rights and responsibilities.

It establishes the framework for RICS operations.

Question 5

Who is the current RICS president?

Answer 5

Nick Maclean

The president represents the organization and its members.

Question 6

What do you understand by the term self-regulation?

Answer 6

Self-regulation is where a profession sets and enforces its own standards, rather than being regulated directly by government.

RICS establishes rules, monitors compliance, and disciplines members.

Question 7

What is a Bye-Law?

Answer 7

A rule made under the Royal charter which governs how an institution operates and regulates its members.

Bye-Laws are essential for maintaining order within RICS.

Question 8

Give an example of one of the RICS Bye-Laws.

Answer 8

• Bye-Law 1: Applications and Definitions
• Bye-Law 2: Membership and Registration
• Bye-Law 3: Designations
• Bye-Law 4: Contributions to Funds
• Bye-Law 5: Conduct

There are 14 Bye-Laws in total.

Question 9

The new RICS Rules of Conduct replaced what?

Answer 9

They replaced the 2019 Rules of Conduct for Members and Firms.

Introduced five clear rules for members and firms.

Question 10

Who do the rules of conduct relate to?

Answer 10

Members and Firms

These rules ensure ethical behavior in the profession.

Question 11

What are the 6 ethical principles that the Rules of Conduct are based on?

Answer 11

• Honesty
• Integrity
• Competence
• Service
• Respect
• Responsibility

These principles guide professional behavior.

Question 12

What are the 5 Rules of conduct?

Answer 12

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

These rules are essential for maintaining public confidence.

Question 13

Give an example behaviour for Rule 1.

Answer 13

Members and firms act to prevent others being misled about their professional opinion.

This behavior reflects honesty and integrity.

Question 14

What are the core professional obligations of firms and members to RICS?

Answer 14

THREE Obligations for members:
* Must comply with CPD requirements
* Must cooperate with RICS
* Must promptly provide all information reasonably requested by the Standards and Regulation Board

SEVEN Obligations for firms:
* Must publish a complaints handling procedure
* Must ensure adequate PII cover
* Sole practitioners must arrange for a locum
* Must cooperate with RICS
* Must promptly provide all information reasonably requested by the Standards and Regulation Board
* Must display on their business literature that they are regulated by RICS
* Must comply with the Rules for Registration of Firms

These obligations ensure accountability and professionalism.

Question 15

What disciplinary procedures can the RICS impose?

Answer 15

• Fixed Penalty Notice – for minor breaches
• Regulatory Compliance Order – less serious breaches
• Consent Order - less serious breaches
• Disciplinary Panel Hearing – most serious breaches

These procedures maintain standards within the profession.

Question 16

When did RICS last update their disciplinary panel rules?

Answer 16

Feb 2022

Regular updates ensure the rules remain relevant.

Question 17

What are the different levels of action within these procedures?

Answer 17

• Action by Head of Regulation
• Disciplinary Panel
• Appeal Panel

These levels provide a structured approach to disciplinary actions.

Question 18

What do you understand by the term professional practice?

Answer 18

Carrying out work in accordance with recognised professional and ethical standards.

For RICS members, this includes compliance with the Rules of Conduct.

Question 19

What money laundering regulations or legislation are you aware of?

Answer 19

• The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
• Sanctions and Anti-Money Laundering Act 2018
• Proceeds of Crime Act 2002

These regulations are crucial for preventing financial crime.

Question 20

What is a red flag of money laundering?

Answer 20

• Inability or unwillingness of parties to provide identification documents
• Changes to parties involved in transactions
• Unusual transaction features
• Payment in unusual currencies

Recognizing red flags is essential for compliance.

Question 21

What bribery legislation are you aware of?

Answer 21

Bribery Act 2010

This legislation outlines offenses related to bribery.

Question 22

What is a bribe?

Answer 22

A bribe is the offering, giving, receiving, or requesting of something of value in order to improperly influence a decision or gain an unfair advantage.

Understanding bribery is essential for ethical practice.

Question 23

What are the penalties for accepting a bribe?

Answer 23

• For individuals – maximum 10 years prison and/or unlimited fine
• For companies – unlimited fine

These penalties emphasize the seriousness of bribery.

Question 24

What are the penalties for being involved in money laundering?

Answer 24

• For assisting – maximum 14 years prison and/or unlimited fine
• For tipping off – maximum 5 years prison and/or unlimited fine

These penalties reflect the severity of money laundering offenses.

Question 25

What constitutes an **offence under the Bribery Act 2010**?

Answer 25

* Bribing * Receiving a bribe * Bribing a foreign public official * Failing to prevent a bribe ## Footnote These offenses are critical to understand for compliance.

Question 26

What constitutes an **offence under the current money laundering regulations**?

Answer 26

* Concealing criminal activity * Arrangements * Acquisition use and possession ## Footnote These offenses are essential for legal compliance.

Question 27

How long should you keep **anti money laundering records** for?

Answer 27

Minimum of 5 years ## Footnote Record-keeping is vital for compliance.

Question 28

What is **Professional Indemnity Insurance (PII)**?

Answer 28

Insurance cover that protects clients, surveyors and third parties against negligence claims where a duty of care is breached. ## Footnote PII is essential for risk management in the profession.

Question 29

What are the **RICS requirements** in relation to PII?

Answer 29

* All members must ensure that an adequate and appropriate level of cover is in place * All policies must be underwritten by a RICS approved insurer * Must comply with the minimum requirements: * Under £100k turnover: £250,000 cover * £100-200k turnover: £500,000 cover * £200k plus turnover: £1m cover ## Footnote These requirements ensure adequate protection.

Question 30

What is a **PII aggregation clause**?

Answer 30

Allows insurers to treat multiple related claims arising from the same act or omission as a single claim. ## Footnote This can reduce the total insurance available to meet multiple claims.

Question 31

What does ‘**claims made**’ mean in terms of PII?

Answer 31

Claims made means that a PII policy responds to claims made and notified during the period of insurance. ## Footnote Continuous cover is essential for protection.

Question 32

Is a **PII excess** usually paid for per claim?

Answer 32

Yes ## Footnote This is standard practice in insurance.

Question 33

In a negligence claim, what would help to show that you acted with consideration and due process?

Answer 33

* Clearly understand the client's objectives and confirm precise instructions in writing * Ensure you are competent to undertake the instruction * Undertake work in accordance with the relevant RICS advice * Make detailed file notes and photos * Keep up to date market knowledge and legislation and record CPD * Cap the professional liability excess on your PII policy in the terms of engagement ## Footnote These actions demonstrate professionalism.

Question 34

Can good **record keeping** help to provide a defence in a PII claim?

Answer 34

Yes ## Footnote Proper documentation is crucial for defending against claims.

Question 35

If you were providing services outside of your usual scope to a client, what might you need to do in relation to your **PII cover**?

Answer 35

Check that you are competent, check with your PII provider and if necessary apply for additional cover. ## Footnote This ensures compliance and protection.

Question 36

What is **run off cover**?

Answer 36

It is a type of PII that continues to protect a firm once it has ceased trading. ## Footnote This protects against claims arising from past work.

Question 37

What **RICS requirements** are there relating to run off cover?

Answer 37

* Required for a minimum of 6 years post trading * Must comply with RICS minimum requirements: * Under £100k turnover: £250,000 cover * £100-200k turnover: £500,000 cover * £200k plus turnover: £1m cover ## Footnote These requirements ensure adequate protection after trading ceases.

Question 38

Would a dictated report avoid the need to have any **written site notes**?

Answer 38

No ## Footnote Written documentation is essential for clarity and compliance.

Question 39

How long can a **PII claim** arise after the work is undertaken?

Answer 39

Longstop date of 15 years ## Footnote The standard period is 6 years from the date of negligence.

Question 40

Explain your understanding of the **RICS Practice Note Risk, Liability and Insurance (1st Edition)**.

Answer 40

Provides guidance on how professional liability arises and how surveyors can manage and limit that risk. ## Footnote This guidance is essential for risk management.

Question 41

Give me an example of when you have acted with **integrity**.

Answer 41

In the letting at Unit 7 Drome Road. Whilst accepting a cheque may have been easier and avoided any conflict with the tenant, I ensured that the transaction complied strictly with my client’s AML policy. This demonstrated that I prioritised compliance, transparency and professional standards over convenience, which I believe reflects acting with integrity. ## Footnote This reflects prioritizing professional standards.

Question 42

Tell me about when you have provided a **high standard of service**.

Answer 42

The advice given on Unit 12 & 14 Central Trading Estate shows a high standard of service as I did not advise on immediate spend of capex as this brought associated risks. I considered the market conditions, capital risk and demand before advising on timing, by revisiting the strategy at the appropriate time, it led to the vacancy rate reducing to 5%. ## Footnote This demonstrates diligence and client focus.

Question 43

Tell me about how you have promoted **trust in the profession**.

Answer 43

At unit 6, Bromfield, I identified that the brochure was incorrect. Upon spotting this, I reached out to my marketing team to correct the brochure to ensure transparency and avoiding any potential misrepresentation. At unit 6, Bromfield, I corrected an incorrect brochure to ensure transparency. ## Footnote This action prevents misrepresentation.

Question 44

Explain how you have taken **responsibility** in your current role.

Answer 44

Unit 15 Drome Road, I proactively identifying and progressing an outstanding rent review, I protected my client’s income position and ensured the lease provisions were fully enforced. I took ownership of the process from review of the lease through to formal documentation, which I believe demonstrates taking responsibility within my role. ## Footnote This demonstrates ownership of the process.

Question 45

Tell me about how you treat clients with **respect**.

Answer 45

By being honest and open, keeping a constant dialogue to inform them. ## Footnote Respectful communication is key to client relationships.

Question 46

Tell me about how you treat other surveyors with **respect**.

Answer 46

By being honest and open with them, and not undermining them. ## Footnote Professional respect fosters collaboration.

Question 47

Explain the key steps you would take if you decided to set up in practice as a **sole trader** after qualifying.

Answer 47

* Inform RICS of the new practice by completing a Firm Details Form * Inform RICS that I am the responsible principal * Register with RICS for regulation of the Firm * Arrange PII and send details to RICS * Set up procedures for client money handling if applicable * Provide a copy of my complaints handling procedure and obtain approval from RICS * Set up a complaints log * Appoint an external surveyor as my complaints handling officer * Plan for succession/future running of the business * Ensure CPD is logged * Complete an online RICS Annual Return ## Footnote These steps ensure compliance and professionalism.

Question 48

If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.

Answer 48

I would treat this as an attempt to improperly influence the transaction and document it. ## Footnote Transparency is crucial in maintaining ethical standards.

Question 49

What would you do if you were asked by a client to reduce a **fee proposal** to win new work?

Answer 49

I would not agree to a reduced fee if it compromises quality or creates unacceptable risk. ## Footnote Maintaining service quality is essential.

Question 50

What would you do if you became suspicious that a client was involved in **money laundering**?

Answer 50

I would report it to our anti money laundering officer for review. ## Footnote Prompt reporting is crucial for compliance.

Question 51

If you were to set up in practice on your own, tell me about the types of **insurance** you would need.

Answer 51

* PII Insurance * Public Liability Insurance * Employers’ liability insurance * Cyber and Crime cover ## Footnote These insurances protect against various risks.

Question 52

What are the **benefits** of being an RICS Member?

Answer 52

* Status * Knowledge * Recognition * Market Advantage * Network ## Footnote These benefits enhance the professional standing and opportunities for members.

Question 53

When was the **RICS** founded?

Answer 53

1868 ## Footnote The Royal Institution of Chartered Surveyors was established to promote and enforce professional standards.

Question 54

When did the RICS receive its **Royal Charter**?

Answer 54

1881 ## Footnote This charter granted RICS the authority to regulate its members.

Question 55

How many **members** are there in RICS?

Answer 55

142,000 members ## Footnote This number reflects the global reach and influence of RICS.

Question 56

How is the RICS **structured**?

Answer 56

* Privy Council * Governing Council * Standards and Regulation Board * Management Board * Audit Committee ## Footnote This structure ensures governance and oversight of RICS operations.

Question 57

How many **specialist groups** are there in the RICS?

Answer 57

18 ## Footnote These groups focus on various areas of surveying and related professions.

Question 58

Can you tell me about **Lionheart**?

Answer 58

Independent charity run by our professionals for our professionals ## Footnote It provides confidential advice, information, and support for members in difficulty.

Question 59

What is the RICS **motto**?

Answer 59

Modus est Rebus – there is measure in all things ## Footnote This motto reflects the importance of measurement and standards in surveying.

Question 60

What is the **Bichard Review**?

Answer 60

A review following the Levitt Review, aimed to clarify RICS's purpose, governance, and strategy ## Footnote It sought to enhance RICS's accountability and public responsibility.

Question 61

What were the key **recommendations** of the Bichard Review?

Answer 61

* New simplified governance structure * Greater leadership on societal issues * Increased focus on diversity and inclusion * Return control of RICS to members * Increase value placed on younger members * Re-introduce professional communities ## Footnote These recommendations aimed to modernize and improve RICS's effectiveness.

Question 62

What are the **benefits** of firms being regulated by RICS?

Answer 62

* Confidence for clients * Professionalism in advice * Security with complaints procedures and PI cover ## Footnote Regulation ensures firms adhere to high standards of practice.

Question 63

What information is required by RICS for **regulation**?

Answer 63

* Type of business and staffing details * Name of the Responsible Principal * Statutory regulated activities * Nature of clients * Complaints handling procedure details * Professional indemnity insurance * Whether the firm holds clients' money ## Footnote This information helps RICS monitor compliance and standards.

Question 64

If you are faced with a decision in which you are unsure how to act, what could you do?

Answer 64

Refer to the RICS Ethics Tree, consult with my line manager ## Footnote This approach ensures ethical decision-making.

Question 65

What are the **mandatory professional obligations** for Members?

Answer 65

* Comply with CPD requirements * Cooperate with RICS * Provide information requested by the Standards and Regulation Board ## Footnote These obligations maintain professional standards and accountability.

Question 66

What are the **mandatory professional obligations** for Firms?

Answer 66

* Publish a complaints handling procedure * Ensure adequate PII coverage * Ensure professional work continuity arrangements * Cooperate with RICS * Provide information requested by the Standards and Regulation Board * Display business literature in accordance with RICS policy * Report required matters to RICS ## Footnote These obligations ensure firms operate transparently and responsibly.

Question 67

What must you include in the **Terms of Engagement** prior to starting work on an instruction?

Answer 67

* Must be in writing with the client * Express due fee and expense treatment * State availability of complaints handling procedure ## Footnote Clear terms protect both the client and the firm.

Question 68

What three things should you do prior to undertaking an **instruction**?

Answer 68

* Check professional competence * Conflict of interest check * Confirm terms of engagement ## Footnote These steps ensure readiness and compliance before starting work.

Question 69

When would it be appropriate to **decline an instruction**?

Answer 69

* Not competent to undertake the work * Insufficient facts * Client won't sign terms of engagement * PII liability cap cannot be agreed * Advice is for a friend or pro bono * Potential client is on the UK Government’s sanction list ## Footnote Declining ensures ethical and professional integrity.

Question 70

What is a **conflict of interest**?

Answer 70

When a firm’s/individual’s independence is threatened due to a conflict between two clients ## Footnote Managing conflicts is crucial for maintaining trust and integrity.

Question 71

What guidance does the RICS provide on **Conflicts of Interest**?

Answer 71

Professional Standard: Conflicts of Interest 2017 ## Footnote Members must not advise clients where a conflict exists without informed consent.

Question 72

How do you check for **conflicts of interest**?

Answer 72

* Detail the entity and address * Send internal email for perceived conflicts * Assess highlighted conflicts and react appropriately ## Footnote This process helps identify and manage potential conflicts.

Question 73

What are the types of **conflict of interest**?

Answer 73

* Party Conflict * Own interest Conflict * Confidential Information Conflict ## Footnote Understanding these types aids in conflict management.

Question 74

What is **informed consent**?

Answer 74

Clearly explaining the conflict, risks, and safeguards, with client agreement in writing ## Footnote Informed consent is essential for ethical practice.

Question 75

How long should you retain **client files** prior to securely destroying them?

Answer 75

6 years ## Footnote This retention period ensures compliance with legal and professional standards.

Question 76

What are the key provisions of **money laundering, terrorist financing, transfer of funds 2017**?

Answer 76

* Written risk assessment * Implement systems and controls * Adopt internal controls * Provide staff training * Comply with due diligence requirements * Ensure record keeping ## Footnote These provisions aim to combat financial crime.

Question 77

How does your firm deal with **AML checks**?

Answer 77

Carries out checks in line with Money Laundering Regulations 2017 ## Footnote This includes verifying identity and beneficial ownership.

Question 78

What are the levels of **Due Diligence checks**?

Answer 78

* Stage 1 – Customer DD * Stage 2 – Enhanced DD ## Footnote These stages help assess risk levels in client relationships.

Question 79

What are your company’s policies on **bribery**?

Answer 79

Unacceptable to bribe or receive a bribe ## Footnote Gifts over £100 and hospitality over £250 must be declined.

Question 80

What are the **6 key principles** of the Bribery Act?

Answer 80

* Proportionality * Top level commitment * Risk assessment * Due diligence * Communication * Monitoring and review ## Footnote These principles guide organizations in preventing bribery.

Question 81

What needs to have occurred for a **negligence claim**?

Answer 81

When a duty of care is breached => loss => damages ## Footnote Understanding this is crucial for risk management.

Question 82

What do we mean by **‘clients’ money’**?

Answer 82

Includes holding deposits, rent, service charges, and retentions ## Footnote Proper handling of client money is essential for trust.

Question 83

What is the RICS advice in relation to handling **clients’ money**?

Answer 83

* Holding client money * Providing information to clients * Receipts of client money * Payments from client accounts * Accounting records and controls * Compliance ## Footnote These practices ensure transparency and accountability.

Question 84

What are the procedures which all surveyors should be aware of when handling **clients money**?

Answer 84

* Client accounts must be separate * 'Client' on bank account * Clients can demand their money * Payment of interest agreed with clients * Regular bank reconciliation * Accurate records kept * Annual audit obligations met * Withdrawals only as required ## Footnote These procedures protect client funds and ensure compliance.

Question 85

If you pass your APC and decided to set up on your own, what are the **requirements**?

Answer 85

* Inform RICS of new practice * Appoint a Responsible Principal * Register with RICS * Arrange professional indemnity insurance * Set up client money handling procedures * Obtain RICS approval for complaints handling procedure * Set up a complaints log * Appoint a complaints handling officer * Use RICS logo kit * Plan for succession * Log CPD online * Complete RICS Annual Return ## Footnote These requirements ensure compliance and professional standards.

Question 86

What are the requirements for **closing a practice**?

Answer 86

* Inform RICS of closure * Inform clients and arrange handover * Return client monies * Inform insurers and procure PII run-off cover * Retain client files for 6 years ## Footnote Proper closure procedures protect clients and ensure compliance.

Question 87

What are included in a **Terms of Engagement** for agency instructions?

Answer 87

* Fee proposal & timescale * Agency basis * Agency Rights * Anti-money laundering procedures * Complaints handling procedure * Confirm no conflicts * PII / liability * Marketing costs & Disbursements * Client * Property * Payment of fees & disbursements ## Footnote Clear terms protect both parties in agency relationships.

Question 88

Would you accept a **gift from a client**?

Answer 88

Yes, if reasonable and proportionate, registered in the gifts and hospitality register ## Footnote Gifts over £100 and hospitality over £250 must be declined.