Ethics

Question 1

What are the RICS Rules of Conduct? NAME TWO

Answer 1

1. Members and firms must be HONEST, act with INTEGRITY and comply with their professional obligations, including obligations to RICS.
2. Members and firms must maintain their professional COMPETENCE and ensure that services are provided by competent individuals who have the necessary expertise.
3. Members and firms must provide good-quality and diligent SERVICE.
4. Members and firms must treat others with RESPECT and encourage diversity and inclusion.
5. 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 2

Who is the President of the RICS?

Answer 2

Nicholas Maclean is Acting President following the involvement of Justin Sullivan as an expert witness in a case which has gone to the High Court.

Question 3

When was the RICS founded?

Answer 3

1868

Question 4

What are the 4 levels of RICS membership?

Answer 4

1. MRICS (Member)
2. FRICS (Fellow)
3. AssocRICS
4. Trainee

Question 5

What are the 3 role of the RICS?

Answer 5

3 main roles:

1. Maintain high education and training standards
2. Protect consumers through regulations and standards.
3. Leading source of information and advice for the sector.

Question 6

Why do you want to become a member?

Answer 6

I want to be part of a prestigious organisation which allows me to progress in a career I am passionate about.

It will give me status and recognition, enhancing my work with clients by promoting trust in my career.

It will also provide me with professional guidance to develop my knowledge and network.

Question 7

What ethical principles are the RICS Rules of Conduct based upon?

Answer 7

HONESTY, INTEGRITY, COMPETENCE, SERVICE, RESPECT and RESPONSIBILITY.

Question 8

What is integrity?

Answer 8

Doing the right thing, being honest and responsible

Question 9

Please can you give me an example of when you acted with integrity?

Question 10

Example of when you have promoted trust in the profession?

Answer 10

I was approached by a potential client to quote on valuing Almshouses.

I informed them that this was not my area of expertise and therefore was not competent to carry out the valuation. However, I advised I had spoken to my firm’s social housing team who specialise in this industry and would be happy to quote. I put the potential client in contact with the social housing team.

The client thanked me for my honesty and my help in following through.

Question 11

How do you promote trust in the profession in your private life?

Answer 11

I hold and conduct myself in a way which does not bring embarrassment to the RICS.

I ensure, for example on my public social media profiles, that nothing is on there which could in any way show the profession or the RICS in a bad light.

Question 12

What would you do if your friend asked for advice in a social setting?

Answer 12

I would inform them that I am unable to provide any advice without signed terms of business.

Question 13

Example of when you have treated others with respect?

Answer 13

I’ve had an instance where a local agent I contacted was not very friendly and was stand-offish about me seeking local expertise.

Regardless of what he said to me, I remained calm and polite and treated him with respect, thanking him for his time.

Question 14

Example of when you have provided a high level of service?

Answer 14

I was instructed to market a strategic site where the landowners had limited understanding of deal structures and I invited them into the office to explain the offers to them in simple terms. They were very grateful and were able to make an informed decision about how to proceed.

Question 15

Example of when you have taken responsibility?

Answer 15

I always take responsibility for conducting conflict of interest checks on any work that I undertake, so I can be fully satisfied that I can conduct the work objectively.

Question 16

What is the RICS Ethics Decision Tree? And where is it found?

Answer 16

It is available on the RICS website and is a flowchart of questions for surveyors to follow when facing ethical dilemmas.

Question 17

Please can you provide an example of when you acted ethically.

Answer 17

On a loan security valuation job, the Borrower asked me to cut out the bank and send my report directly to them. I informed them that the bank is my client and therefore I am required to send the report to the bank. I advised that if they would like a copy of the report, they will need to request this from the bank. I also called the bank to inform them straight away and made a record on file.

Question 18

What is your firm’s gift and hospitality policy?

Question 19

What is a conflict?

Answer 19

It is anything which would prevent me from acting objectively and independently, in my client’s best interests.

Question 20

What are the different types of conflict and what are they?

Question 21

What are the principles of the Bribery Act 2010?

Question 22

What is money laundering?

Answer 22

It is the process of disguising the origins of illegally obtained money to make it appear legitimate

Question 23

How do you carry out anti-money laundering checks?

Answer 23

For private individual - ask for ID and proof of address, dated within the last 3 months

Companies - review Companies’ House,

Question 24

How do you carry out Conflict of Interest checks?

Answer 24

I carry them out on my firm’s internal database and send out company wide e-mails for colleagues to confirm if there is a conflict by a set date.

Question 25

What would you do if there was a conflict?

Answer 25

Review it and decide if it is manageable or not. If not, I would decline the instruction. If it was manageable, I would make my client aware and would set out how it would be managed with information barriers. I would ensure I had signed informed consent from my client before proceeding. The client would be in the right to not instruct me if they were not happy to proceed.

Question 26

In your Essex agency example, you say accepting the sailing day could be perceived as affecting your impartiality. How could this be perceived?

Answer 26

If photos were taken and posted on LinkedIn and my client saw, they could perceive that I'm not working in their best interests even if I remained impartial.

Question 27

Would you have accepted the sailing day invite if that instruction had completed?

Answer 27

No, as not proportional to the instruction.

Question 28

A borrower asks if they can be sent a copy of the valuation report. They remind you that they have paid your fee. How do you respond?

Answer 28

Inform that the bank is my client and advise them to contact the bank for a copy of the report. (Or confirm I cannot provide a copy until I have written approval from the bank)

Question 29

You have run a Conflict of Interest check and have found a conflict. You decline the instruction but the client insists that you proceed. How do you respond?

Answer 29

I would review the conflict to see if it manageable or not manageable. If it was not manageable, I would confirm I am unable to accept the instruction. If it was manageable, I would let my client know what the conflict was, the processes in place to manage it such as information barriers and would request signed written informed consent from them before I accept the instruction. I would save this on file.

Question 30

You have quoted £10,000 for a piece of work. The client asks you to cut your fee by 50%. How do you respond? The same client tells you that CBRE have quoted £8,000 for the same piece of work. How do you respond?

Answer 30

I would inform them I am unable to cut the fee. I am aware RICS members' have professional obligations to discourage undercutting to avoid unsustainable low bids and therefore I would decline to reduce my fee or review with a more senior colleague.

Question 31

Your client is refusing to provide ID for AML checks. What do you do?

Answer 31

I would confirm to them that AML checks are a legal obligation and that I am unable to proceed with the instruction without completing the checks. If I was suspicious of money laundering, I would: - File a suspicious activity report to my firm's Money Laundering Reporting Officer (Christine Cox) who will decide weather to alert Police / HMRC - Not disclose suspicions to persons involved or any other colleagues

Question 32

You have provided a consultancy report to a client but they have asked you to make lots of changes, which will be time consuming. What do you do?

Answer 32

If it meant a change to the scope which was agreed, I would inform my client that I would need to charge a fee.

Question 33

You are undertaking an inspection of a property for a valuation. The client offers you lunch at a cafe nearby afterwards. What do you do?

Answer 33

I would review if the lunch would be time sensitive and proportional to the instruction. I would pay for myself.

Question 34

You have just completed on the sale of a large development site and the purchaser asks to take you out for dinner at a Michelin starred restaurant to celebrate. What do you do?

Answer 34

- Decline - Suggest a less expensive restaurant Timing and proportionality!

Question 35

Your client wants to a large amount in cash. What do you do?

Answer 35

I would confirm my firm does not accept cash and would ask them to pay via bank transfer. I would also log that they wanted to pay cash and report to line manager. RICS limit to accept cash is 10,000 euros, however my firm does not accept any cash.

Question 36

What are the four criminal offences under the Bribery Act?

Answer 36

1. Active bribery - offering a bribe 2. Passive bribery - accepting a bribe 3. Foreign Public Official bribery - offering a bribe to a FPO 4. Corporate offence - failure of firms to implement adequate procedures to prevent bribery

Question 37

What are the penalties of breaching the Bribery Act?

Answer 37

Individuals - up to 10 years imprisonment and unlimited fines Companies - unlimited fines

Question 38

What are the CPD requirements for RICS members post-qualification?

Answer 38

20 hours per year with at least 50% being formal. Must include CPD on RICS ethical standards, sustainability, and AI/data/technology - rotating every 3 years.

Question 39

Are there any specific ethics CPD requirements?

Answer 39

Must be completed every 3 years

Question 40

How is the RICS regulated?

Answer 40

It is self-regulated

Question 41

What are the disciplinary consequences if you do not adhere to the Rules of Conduct?

Answer 41

It would depend on the seriousness of the breach. Minor breaches can be dealt with through self-correction or firms' processes Major breach could lead to fines, conditions or removal of the member from the RICS

Question 42

What are the principles of the Bribery Act? NAME TWO

Answer 42

 Proportionality  Top-level commitment  Risk assessment  Due diligence  Communication  Monitoring and review

Question 43

Why is bribery bad?

Answer 43

- illegal - damages personal and firm's reputation - damages client trust - not in line with RICS Rules of Conduct

Question 44

What is required for a firm to register with the RICS?

Answer 44

1. Type of business / staffing details 2. Statutory regulated activities 3. Nature of clients 4. Complaints handling procedure 5. Professional indemnity insurance 6. Whether the firm holds clients' money

Question 45

Are you aware of any hot topics within the industry?

Answer 45

Building Safety Levy: - Due to come into effect in Autumn 2026 under the Building Safety Act - Will be charged on all resi development sites - Calculated on floorspace via rate per sq m - Money to be spent on high risk building safety remediation - Came about from Grenfell Tower and buildings being unsafe - Exceptions include sites of less than 10 units to protect small developers and not charged on affordable housing - Impact to development & vals = may be a rush of sites being completed before it comes in and extra cost to include in appraisals. Ultimately, land values will decrease Renters Right Bill: - Expected to come into effect in early 2026 - Greater protection for tenants - Section 21 will be abolished and landlords will only be able to evict tenants under certain grounds - Tenants cannot be evicted for first 12 months of tenancy - Tenants will need to be given 4 months notices - All tenancies will become periodic (rolling tenancies) - Tenant will need to service 2 months notice to end tenancy - Landlords cannot accept offers of higher than marketed rent - Greater rights for tenants to have pets - Impact on the market = smaller landlords may sell their rental properties, corporate landlords will be less effected

Question 46

What is an appropriate reason for declining an instruction? Name two

Answer 46

1. Not competent 2. Insufficient facts 3. Client refuses AML / TOE 4. Conflict of interest (which is not manageable) 5. Professional indemnity cap not agreed 6. Client is on government sanction list 7. Would you be happy for your actions to be made public?

Question 47

What are the RICS Professional Indemnity Insurance requirement thresholds?

Answer 47

Based on the turnover of the firm. £100,000 or less turnover = £250,000 PII cover £100,001 - £200,000 =£500,000 PII cover £200,001 + = £1m PII cover

Question 48

What would you consider when deciding whether to accept a gift from a client?

Answer 48

Proportionality Timing

Question 49

Are you aware of any enhanced conflict of interest requirements for a bank?

Question 50

What might you have done if you had identified a conflict of interest?

Answer 50

Reviewed the conflict to decide if it was manageable or non-manageable. If non-manageable, would decline and inform my client why. If manageable, I would inform my client and seek signed informed consent (client may decline and go with another surveyor due to conflict)

Question 51

For Adderbury, please can you tell me how you'd respond if a buyer said that if they acquired the site, they would instruct your new homes team to sell the completed properties.

Question 52

What would you do if a client refused to comply with AML checks and said that they would go and use another firm to market the site?

Answer 52

I would confirm that any other firm would also have to carry out AML checks as it is a legal requirement.

Question 53

Why does the RICS have Rules of Conduct?

Answer 53

To provide a framework that members can all work to and so clients know they are getting a set level of service.

Question 54

When might a firm be required to register with the RICS?

Answer 54

- At least 50% of the firm's principals are RICS members

Question 55

When is a firm eligible to register?

Answer 55

- provides surveying services to the public - at least 25% of the firm's principals are RICS members

Question 56

What is Professional Indemnity Insurance?

Question 57

What law relates to money laundering?

Answer 57

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 [as amended]

Question 58

What is the current base rate?

Answer 58

3.75%

Question 59

When will the Bank of England next review the base rate?

Answer 59

30th April 2026

Question 60

What is the current inflation rate? What is the inflation target?

Answer 60

3.0% Target: 2%

Question 61

How often is the base rate reviewed?

Answer 61

Every 6 weeks

Question 62

What is a bribe?

Answer 62

A bribe is the corrupt offering or giving of something of value, such as money or gifts, to influence the actions of a person to do something against their proper duty.