Ethics Client & Communication Flashcards

Question

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

Answer 1

* Honesty * Integrity * Competence * Service * Respect * Responsibility

Answer 2

* Act with honesty and integrity * Maintain professional competence * Provide a diligent high-quality service * Treat others with respect and encourage DEI * Act in the public interest

Answer 3

Honesty – When compiling service charge reconciliations for Narbeth, I provided my tenant with the Detailed Expenditure Report and supporting invoices, ensuring the costs were transparent and we were accountable to the tenant when spending their funds. This helped build trust and recovery of historic debt.

Answer 4

Competence – regularly attend networking events and webinars to maintain my current knowledge and expertise, such as the upcoming changes to MEES .

Answer 5

Quality service – I regularly carry out property inspections and actively address minor issues before they turn into H&S risks, such as tenants propping open fire doors or blocking exists with bikes. This helps maintain compliance and reduce liability for the landlord.

Answer 6

Respect – During a dispute over repairing obligations, I remained respectful and polite. I establish the facts by reviewing the lease and completed a repairing obligation matrix for the tenant, which I went through in a Team’s call, to ensure that they were happy with the explanation. No-one had gone through this with them before which had led to avoidable distress and delays to repairs.

Answer 7

Public Interest – I organised for one of our tenants to provide Art Printing Classes to the patients at a local GP surgery, which supported wellbeing and strengthened community ties.

Answer 8

* To act in a professional manner and follow the Rules of Conduct * Maintain CPD (20 hours annually and professionalism module every 3 years) * Engage with the Standards and Regulation Body * To maintain adequate PII and run-over cover * Ensure continuity of service if acting as a sole-trader (locum and run off cover) * Maintain and publish a complaints procedure * Support staff in maintaining their competence (training and supervision)

Answer 9

* Fines, Caution, Consent order, Restrictions on practice or Expulsion * Failure to comply with Rules of Conduct or byelaws, criminal activity or serious misconduct. * Disciplinary action must be proportional, transparent and in the public interest.

Answer 10

RICS Disciplinary, Registration and Appeal Panel Rules Version 8 with effect from 1 October 2019

Answer 11

* Informal Resolution * Caution * Fixed penalty notice * Regulatory compliance order * Impose conditions on membership * Consent order * Referral to regulatory tribunal * Interim measures * Appeals

Answer 12

It is about providing a quality service, competently, ethically and respectfully.

Answer 13

* Businesses must verify customer identities through CDD but it should be noted that for higher-risk customers, Enhanced Due Diligence (EDD) may be required. Submit SAR, where applicable, keep financial and due diligence records for 5 years. * Proceeds of Crime Act 2002 Suspicious Activity Report (POCA) * Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 o Customer due diligence (KYC) o Enhanced due diligence o Record keeping o Risk assessment o Internal controls and training * Economic Crime Act 2022 – declaration of beneficial ownership

Answer 14

* Unusual payment methods (cash or multiple small transactions) * Unwilling to provide proof of ID, source of funds or beneficial ownership (+25% of shares) * Overseas buyer with no clear reason * Unusual transactions (size, frequency or out of character) * Complex or illogical business structures * Behaviour * Political status * Falsified documents * High-risk region * Unusually high fees

Answer 15

Bribery Act 2010,

Answer 16

The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.

Answer 17

The misuse of public office or power for private gain, or misuse of private power in relation to business practice and performance

Answer 18

* Individual - 10 years imprisonment and/or fine * Firm – unlimited fines if there are insufficient controls in place

Answer 19

* 14 years imprisonment * Unlimited fines * Confiscation of assets * 5 years imprisonment for not submitting a SAR to NCA (National Crime Agency)

Answer 20

* Making, receiving or failing to prevent a bribe. * Bribery of a foreign or public official.

Answer 21

* Concealing or transferring criminal property * Laundering money * Failure to apply customer due diligence * Failure to report suspicious activity * Tipping someone off * Providing false or misleading information

Answer 22

5 years from the end of the business relationship/date of transaction.

Answer 23

It is a collective insurance pool managed by a regulatory body or professional association. Design for short term cover and underwritten by insurers on a rotating basis. It's a last-resource insurance mechanism designed to provide temporary cover to professionals who cannot obtain PII in the open market due to factors like: - claims history - poor financial standing - High risk profile - Regulatory issues

Answer 24

* Insurance to protect a professional providing advise in the event of a compliant or negligence claim

Answer 25

* It covers o Negligence: Mistakes or omissions in professional services. o Breach of duty: Failing to meet a professional standard of care. o Misrepresentation: Providing misleading advice or information. o Intellectual property infringement: Unintentionally using copyrighted material. o Defamation: Libel or slander in the course of business. o Legal costs: Covering the cost of defending a claim, even if it's unfounded. * It excludes fraud, contractual obligations, body or property damages.

Answer 26

* RICS-regulated firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS’

Answer 27

* Minimum Indemnity Limits (based on turnover): o Up to £100,000 → £1/4m o £100,001–£200,000 → £1/2m o Over £200,000 → £1m * Uninsured Excess up to £10m: Capped at 2.5% of the sum insured or £10,000 (whichever is greater). Or unlimited if over £10m

Answer 28

* This clause defines when multiple claims are treated as one for the purposes of the insurance limit.

Answer 29

* This means that the policy covers claims that are first made against the insured during the period of insurance regardless of when the negligent act occurred. So cover is based on claim date not work date.

Answer 30

* Yes per claim

Answer 31

* Duty of care, breach of duty, causation, and foreseeability

Answer 32

* RICS professional statements such as Professional indemnity insurance requirements July 2025 PS and Risk, Liability and Insurance, 1st edition Guidance Note April 2021 and PG Complaints handling 1st edition, July 2016 * Good record keeping * Demonstrating professional judgement * Clear communication * Training and CPD * Complaint handling and ADR policy

Answer 33

* Yes it’s a strong defense, as it helps to evidence due diligence and that a duty of care has been undertaken. It helps show a timeline of events and what has been agreed and communicated between the parties and the decision-making process.

Answer 34

* Update your cover and policy wording

Answer 35

* Retroactive insurance cover for after the business cesses * must be in place for 6 years after the business ends

Answer 36

* Any one claim/aggregate claims both allowed * Change to insurance cancellation clause o 30 days grace to pay overdue invoice o 30 days’ notice period to end insurance * Firms must have replacement cover in place if they cancel their insurance (30 days notice) * 6 year run off cover for consumers. BtoB arranged separately but expected to be 6 years. * Fire safety cover includes internal fire safety components * Fire safety cover only includes negligent acts, errors, or omissions

Answer 37

· No, as a dictated reports should be supplementary to the written report.

Answer 38

The UK government has introduced the English Devolution and Community Bill 10 July 2025 to Parliament which will if passed introduce a ban on upwards-only rent. It will only apply to new leases or on renewal.

Answer 39

· Fire safety up to 4 storeys there is no change. · 5+ storey – fire safety insurance required. · Cladding cover cannot be excluded for buildings up to 18m (4 storey) if signed over by expert · Cyber attacks are now covered by Insurers (IUA 04-018), who aren’t allowed apply blanket exclusions

Answer 40

· 6 years from action, or 3 years from client becoming aware up to 15years from action (longstop) as set out in the Limitation Act 1980

Answer 41

· An Assigned Risk Pool (ARP) in the context of Professional Indemnity Insurance (PII) is a last-resort insurance mechanism designed to provide temporary cover to professionals (often in regulated industries like law or architecture) who cannot obtain PII in the open market · An Assigned Risk Pool is: o A collective insurance pool managed by a regulatory body or professional association. o Funded and underwritten by participating insurers who are typically assigned risks on a rotating basis. o Designed to provide short-term cover (usually 1 year) at high premiums and under strict conditions.

Answer 42

o Claims history o Poor financial standing o High-risk profile o Regulatory issues

Answer 43

· 2021 changes o Insurance policies have greater fire safety cover o Buildings under 4 storeys cannot be excluded by the Insurers · 2025 changes o Both any one claim and aggregate coverage retained o Cancellation period extended (30 days to pay and 30 days notice and 30 days to notify RICS) o consumer run-off provisions – 6 years – automatically. B2B separate cover needed. o Fire safety cover clarified - civil liability cover for buildings 4 or less storeys, and negligence cover for buildings 5+. o Defence costs covered

Answer 44

· e/d April 2021, it aims to help firms & members & their clients to understand the risks and liabilities of in the delivery of their services.

Answer 45

· At Oaks Park, I was managing a lease renewal involving two tenants: BHF, an existing tenant reducing their footprint, and Spamedica, a new healthcare occupier taking over the remaining space. During the legal review, I noticed that the solicitor had drafted both licences for a year only, even though only Spamedica wanted a shorter lease. Despite pressure from Spamedica to turn around the legals quickly, I flagged the error with my manager and BHF. I negotiated a revised lease for 6 years with a 3-year break. This provided BHF with greater security of tenure and strengthened our income stream. To avoid delaying Spamedica’s occupation, I arranged a TAW for BHF. This solution ensured both tenant’s needs were met, avoided delays in occupation, and secured a longer-term income for my firm. This demonstrated integrity by doing the right thing, even under commercial pressure.

Answer 46

· I was on site at Sturminster to inspect vacant space, I was approach by a tenant to deal with FM issues. I agreed to meet with him at the end of my AM visit to understand his concerns in detail. He the lift light was out posing a clear health & safety risk to customers. I immediately called our Facilities Management team to ensure it was addressed urgently. I document his additional concerns which I shared with the PM the next day. Before leaving I provided the tenant with both my contact information and the PM’s details for any necessary follow up.

Answer 47

· A work experience student joined our team for a short placement to gain insight into the surveying profession. I gave them a high-level overview of key RICS professional standards, including Surveying Safely, the International Property Measurement Standards (IPMS), and the Code of Measuring Practice. Once they had a basic understanding of the standards, I guided them through a real-life measurement example of the office, under close supervision, to maintain a safe and appropriate learning setting. This allowed them to apply the principles in a controlled and professional context, reinforcing the importance of accuracy, safety, and ethical conduct in our work. Ensuring he had a meaningful and professional introduction to the industry, while maintaining safety, accuracy, and compliance with RICS standards.

Answer 48

· A café tenant at Argle Medical Centre was experiencing financial difficulties and proposed expanding their business to include hot desking, external seating, and hosting craft markets. I carefully reviewed the proposals to assess their impact on other occupiers and any potential risk to Assura or the other tenants. I supported the initiatives that aligned with the wider interests of the centre. For example, I approved limited external seating directly outside the café, having first confirmed that there were no rights or restrictions affecting that area and that the GPs had no objections. I declined the craft market proposal due to its potential to disrupt GP parking and cause noise and nuisance. I also approved the hot desking arrangement, but only under strict conditions to avoid inadvertently creating periodic tenancies. Throughout the process, I communicated my decisions clearly and respectfully, using plain English and ensuring all rationale and agreements were properly documented. This approach ensured transparency, protected stakeholder interests, and maintained a professional and respectful relationship with the tenant.

Answer 49

· In my asset management role, I was involved in lease negotiations and portfolio initiatives that directly affected properties managed by our Property Management team. I involved them at the earliest opportunity, to avoid any operational issues for the PM and aid our joint decision-making process. For example, Maria had a tenant that was surrendering their lease, but they wanted to retain a licence for three parking spaces. I was negotiating a lease renewal with the MP who no longer needed their spaces. Through open dialogue and partnership were able to accommodate the additional licence and gain £2,500 pa in additional income. More importantly, it reinforced a strong working relationship between Asset and Property Management teams, based on trust, transparency, and respect for each other’s expertise and responsibilities.

Answer 50

· Inform RICS, comply with RICS regulations · Arrange a designated responsible principle (me if I am a sole trader) · Secure PII, building, public liability, employer’s insurance, including run-off cover · Arrange locum cover for when I am ill or on leave. · Create and publish a complaints procedure · Set up discrete named accounts, if I will be handling client’s money · Ensure I and my staff or competent and supervised as needed

Answer 51

· I would decline this and explain why, report it to my supervisor and document it.

Answer 52

· I would review the scope of services to ensure the original fee was true reflection of the time, expertise and risk involved. · If there was flexibility without compromise, then I would potentially look to negotiate with the client. · If not, I would decline, as I will not compromise quality to undercut the competition.

Answer 53

· I would not approach them, or tip them off. · I would document any evidence and concerns I had and escalated it internally. · The money laundering reporting office would potentially complete a SAR to the NCA (National Crime Agency). · Pause the transaction.

Answer 54

· I would not approach them, or tip them off. · I would document any evidence and concerns I had and escalated it internally. · The money laundering reporting office would potentially complete a SAR to the NCA. · Pause the transaction.

Answer 55

· PII (including cyber & fire cover) · Building · Public liability insurance · Employers’ liability insurance

Answer 56

Proceeds of Crime Act 2002 Serious organised crime act 2005 *Money laundering terrorist financing and transfer of funds (information on the payer) regulations 2017 The terrorism act 2000 and 2006 *Money laundering regulations 2019

Answer 57

Client characteristics (repeat, institutional, high net worth, PEP, cash intensive) Geographical location (FAFT grey list, Transparency International, overseas (Latin America, parts of Asia) Product and services Delivery channels (Face to face or never meet them) Proliferation funding (nuclear supplies and products)

Answer 58

1. Must have Firmwide proportional (siz & complexity) ML Risk Assessment informs 2. policy and 3. procedures (mandatory). High, medium and low risk. 4. Nominated officer MLRO (report, Risk assessment,

Answer 59

* Developing a long-term client relationship helps to build trust and aids communication and customer retention. * It means that I can anticipate issues, such as voids, by getting to know the client and how their business is functioning, for example the Café at North Ormesby.

Answer 60

* I deal with a wide range of internal and external stakeholders including tenants, superior landlords, contractors, sub-contractors, facilities co-ordinators, H&S experts, management, finance, HR, Directors, agencies, district valuers, ICB and chartered surveyors.

Answer 61

* I tailored my lease renewal offer to Age UK, at York Hospital offering stepped rents, in a bid to retain their tenancy in a hard to let unit.

Answer 62

* Objectives provide direction, clarity and personal growth. My objectives combine business targets, such as achieving 8% ROCE on deals, ESG targets (including green leases) and personal development targets (to lead on more complex high value lease renewals).

Answer 63

* I have a duty to act with integrity, provide a competent and diligent service. I ensure accurate reporting, compliance with legalisation and transparent communication.

Answer 64

* As I work for Assura directly I do not issue TofE, however I am aware of the importance of ensuring I act within my area of expertise and have adequate supervision for any stretch work. * I understand that importance of outlining my competency on the ToE.

Answer 65

* As I work for Assura directly I do not set fees. I am aware that they are based on the complexity and scope of the work within market parameters. * These must be transparently documented on the ToE.

Answer 66

* Not personally but I am aware of them and that they provide clarity and legal protections for both parties and are tailored to the client and project.

Answer 67

* scope of services * fee structure * Duration and termination clause * Liability and insurance provisions * Dispute resolution * Confidentiality and data protection

Answer 68

* PII (including cyber & fire cover) * Building * Public liability insurance * Employers’ liability insurance

Answer 69

* Through project scoping, client briefings and stakeholder mapping.

Answer 70

* I would start with the lease to ensure that they were the named parties. * Then I would consider their influence and interest on decision making. For example, GPs are our tenants but their rent is reimbursed by the ICB so they need to be engaged in lease negotiations along with the District Valuer (who assess the rent level).

Answer 71

* Dashboards * Review meetings * Emails and mailshots * MS Teams and Landmark

Answer 72

examples include: * Service level agreements for the PPM & reactive work. * Occupancy rates (Gledhow) * Rent recovery * Tenant satisfaction * Lease renewals trackers * Project checklists

Answer 73

* Talk with the client to understand the purposed and objective of the task. For lease renewals I conduct desktop surveys, an inspection, spot measurement and gather comparable data from external and internal sources. I also review leases, titles and planning history.

Answer 74

* I approach them ethically, fairly and transparently. * I ensure I prepare in advance to understand any restrictions and the firm’s objectives, the market and any legal or RICS regulations. * I aim for a collaborative outcome, through active listening and an understanding of the bargaining position.

Answer 75

* Good communication comes from being responsive, taken ownership of issues, delivering on promises and managing expectations.

Answer 76

* I recently negotiated a lease renewal (Coldharbour) where we had to incorporate a service charge after 9 years. I clearly explained how the error had come about and why it was being changed at this stage. I calculated the potential costs, so that the tenant could understand the limited impact it would have on their budget. By demonstrating transparency and reasoning for the change, I secured a 5-year renewal that satisfied both parties.

Answer 77

* I prepared a GMS Feasibility report for a Housing Development Firm, analysing their schemes to identify potential sites for Assura to develop a new surgery or neighbourhood centre. * I began with an executive summary which highlighted most promising sites supported by a high-level rationale. * The main body was structured under consistent headings with recommendations. This allowed the client to easily compare sites and understand the rationale.

Answer 78

* I act ethically, transparently and professionally with thorough preparation. * I always consider the commercial context including market trends, asset performance and the client’s strategic goals. * I ensure that my communication is clear and evidence-based and follow RICS guidance on ethical conduct.

Answer 79

* I prepared a GMS Feasibility report for a Housing Development Firm, analysing their schemes to identify potential sites for Assura to develop a new surgery or neighbourhood centre.

Answer 80

* For a lease surrender (Padarn), I established a strategy that balanced the landlord’s financial interests with the tenant’s operational needs. * I begin by analysing the lease obligations, including reinstatement clause and the schedule of condition. * I assessed the marketability of the unit, recommending the retention of certain tenant improvements to maximise the future rent and appeal. * I engaged with the tenant to negotiate an early settlement figure, which covered the lease obligations and the Landlord void costs. * To protect future income, I engaged an agent early in the process, to minimise void risk.

Answer 81

This could be manged by putting the following measures in place:- -Ensuring exclusivity of staff to each department. -Ensure separate communication lines are reporting back into the client. -Separate the geographical locations of each department. -Sign team members up to non disclosure agreements. -Monitor the potential conflict and keep the client updated.

Answer 82

I would firstly check the clients understanding around the conflict of interest to ensure they understood the implications regarding the potential risk for reduced impartiality. A letter of instruction to continue would be required from the client. I would then discuss the working procedures to manage the conflict of interest and agree this formally in writing with the client.

Answer 83

1. Proportionate Procedures 2. Top-Level Commitment. 3. Risk Assessments. 4 Due Diligence. 5 Communication. 6 Monitoring & Review.

Answer 84

I would be extremely uncomfortable accepting the prize in this scenario. The prize is of a significant value and could be interpreted as a bribe. Furthermore due to working on a project with the Main Contractor at the time of this scenario, accepting the prize would have been highly inappropriate and could be interpreted as having an affect on my business conduct during the project. I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity of the Main Contractor’s choice. I am aware that bribes are commonly distributed as random prizes and due to the seriousness of this incident I would report this to my line manager.

Answer 85

In the first instance I would declare this hospitality on my companies gifts and hospitality register. Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the Project Team dropping out at the last minute as this would no longer be classed as a genuine business event.

Answer 86

This is an extremely sensitive issue in that this offer, if accepted would result in an unfair competition and would not be acting with integrity or with respect of competing firms. Taking a long term view, it is not sustainable to conduct business in this manner and would also devalue the services of the profession if repeated. I could advise that I would need to reduce my scope of services so that this is reflective of the fee reduction but in the first instance this offer from the potential client could also be interpreted as a bribe.

Answer 87

This lunch had a legitimate business purpose, so it’s fine to accept the hospitality however the client should have considered how a £200 bill for lunch could be perceived and have chosen a more modest restaurant. Given the size of the bill, it must be declared on the hospitality register and I would make my line manager aware immediately afterwards. I would offer to reciprocate but ensure this is carried out in a more modest manner as the lavishness of the restaurant could be interpreted as inappropriate and disproportionate.

Answer 88

Although this client is asking for a steep discount, it’s more a matter of them trying to renegotiate contract terms with us so this can’t be classed as a bribe. I would advise that we would consider offering the saving but the level of service and resource would need to be reviewed inline with the reduction. I would also evaluate if the original fees can still be considered as good value and a fair and reasonable sum. Providing this is still the case then any significant fee reduction would result in a devaluation of my services and profession. It may also not be sustainable and in the clients interests if I cannot provide a high standard of service that is required. A fee profile and resource schedule would need to be prepared to determine if the saving and adequate level of service can be offered. I may need to decline this opportunity if I am unable to offer the required level of service.

Answer 89

I could not offer advice on my own without PI insurance being in place. If I did have my own PI cover I would ensure that the information and advice provided was offered at the same level and subject to thorough checking processes as is the case under a regular client appointment regardless of this being for a friend. If I am not comfortable acting for them, I would advise them to use the RICS ‘find a surveyor scheme’.

Answer 90

The client may not be soliciting a bribe here however as a tender is in progress, any sponsorship made could be perceived as an undue influence and a bribe. In the first instance you would explain this to the client and decline to make a donation. To ensure transparency, you would also report the request to your line manager. Depending on advise from Senior Management it may be appropriate to escalate this to our firms whistleblowing policy.

Answer 91

Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against Company policy and could be an offence under the UK Bribery Act. If this were the first time, it would be OK just to decline and explain that such an invitation is inappropriate. However if the contractor is persistent and there is a red flag in that he wants to discuss things that he cannot put in writing, I would report this infringement.

Answer 92

In this scenario I would need to ensure that I do not lower my level of services despite the fees being expended. I would look to investigate why all the fees have been spent and determine any errors in our fee calculations. Measures should be put in place to ensure this does not happen again however if it is due to additional services being provided, I would provide all the relevant details to my director to prepare a claim for additional fees. I would ensure that I keep track of all fee spending and of all works not included in our scope of services.

Ethics Client & Communication Flashcards

(116 cards)