Ethics Level 2

Question 1

How do you ensure that you comply with bribery legislation?

Answer 1

If I believe I have been offered or witnesses a bribe, I would report this to a senior member of staff, ensuring an accurate audit trail is kept of my correspondence. I would also refer to the Bribery Act 2010 for clarification and would ensure that I do not accept the bribe.

Question 2

How do you ensure you comply with money laundering regulations?

Answer 2

If taking on a new client or reviewing the suitability of a new tenant, I would review their financial information and request an AML check. I would look out for red flags such as:
* Payment of fees, purchases or rental monies in unusual currencies or from different accounts.
* Changes to parties involved in transactions.
* Inability or unwillingness to provide identity documents.
* Unusual transaction features, such as unexpected urgency required by parties, potential loss-making or an unusual transaction for a client.
I also ensure my training is up to date, for instance I am aware that the RICS have just released a 2nd edition of Professional Standard: Countering Financial Crime, but I’m aware that the 2017 Regulations take precedent. I would also check with my manager that due diligence procedures are undertaken.

Question 3

How do you ensure you comply with your firm’s bribery and gifts policy?

Answer 3

I ensure that if I am offered a gift that I consider the proportionality of the gift and circumstances in which it is being offered. I would never accept a cash gift if offered as this is not permitted under JLL’s gift policy. I would seek approval from my line manager before accepting the gift and disclose it in the gifts register is applicable. If I am offered what I believe to be a bribe I would politely decline and report this to a senior member of staff as this may need to be reported to legal authorities for illegal action.

Question 4

Tell me about an instance of when you have been offered a gift or hospitality by a client.

Answer 4

I was invited to a client dinner during Christmas time, I assessed the situation by which the dinner was being offered in its proportionality, purpose and timing and deemed that it was appropriate to accept the offer. I informed my line manager and requested approval before attending and as this was considered to be normal hospitality there was no requirement to log this in the gifts and hospitality register.

Question 5

Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge.

Answer 5

West End Retail example on scope of expertise – instructed a Building Surveyor and Structural Engineer to ensure compliance with Rule 2 of the Rules of Conduct.

Question 6

Tell me about an instance of when you have handled client’s money.

Answer 6

As part of my role as Property Manager, I am responsible for rent collections. Rent is collected into a separate bank account in my client’s name. Once the funds have been received and allocated to the relevant invoice, the money is paid over to my client by the client accountant. We do not hold rent monies or insurance monies and ensure that any funds received are always readily available to our clients.

Question 7

How would you keep client’s money securely and safely held?

Answer 7

There are numerous procedures of which all Chartered Surveyors need to be aware, including that:
* Client accounts must be kept separately & clearly identifiable
* The word ‘client’ is on the bank account and cheque book
* A client must be able to have their monies on demand
* Payment of interest is agreed with a client and accounts must be kept in credit
* Regular bank reconciliation checking that payments received are transferred to the bank account and expenditure records are checked at least monthly
* Accurate records are kept with a running balance available
* Annual audit and reporting obligations by certified accountant employed by the RICS are met
* Money can only be withdrawn from a client account if properly required
* If cash receipts are made to settle transactions, make sure your records show all cash transactions
* Signatories must be agreed with authorised staff and two signatures should be required
* A discrete account is for a single named client account only
* RICS Regulatory Review Visits of inspection can be undertaken by RICS usually on a routine 3 yearly basis by an accountant employed by the RICS
* All firms handling client money need to display their procedures document on their website (residential agencies handling client money also need to display their scheme membership certificate in their premises)
* Guidance was published in March 2024 for RICS regulated firms regarding the use of appropriately contracted third-party transaction service providers to ensure compliance with RICS’ Professional Standard: Client Money Handling and RICS
Client Money Protection Scheme Rules
RICS also runs a Clients’ Money Protection Scheme for claims from clients which provides last resort protection in instances where an RICS Regulated firm is unable to repay a client’s money. There are limits and exceptions set out in the scheme rules. The scheme is split into two parts for commercial and residential surveying firms

Question 8

Tell me about how you would handle a client complaint.

Answer 8

I would look to resolve the complaint as best I can to prevent any unnecessary escalation, I would also inform my contract director to advise my client of our complaints handling procedures should it be necessary.

Question 9

Tell me about your understanding of your firm’s process for escalating a complaint to Alternative Dispute Resolution (ADR).

Answer 9

Efforts should be made to resolve the complaint internally first. This would start with the contracting party named on the terms or engagement as the Complaints Handling Officer who has 7 days to acknowledge the complaint and 28 days to investigate. The complaint must be in writing and procedures and timescales must be records. The process must also be quick, clear, transparent and impartially implemented.
If the complaint cannot be settled internally, the complaint will be referred externally to a third party resolution service to help settle the complaint. For my area of work the relevant options for ADR include via the RICS (Dispute Resolution Service) or CEDR (Centre of Effective Dispute Resolution)

Question 10

Tell me about a conflict of interest check you have carried out.

Answer 10

I carried out a conflict of interest check for my Brompton Road valuation instruction, to do this I looked up the parties and property addresses involved on a database with consideration of past and present instructions to determine if I had any personal interest. The wider conflict on interest checks are carried out by contract directors or our compliance team so I checked with my manager that these were carried out before accepting.

Question 11

If you identified a potential or actual conflict of interest, how could you handle this?

Answer 11

1. Conflict avoidance – I would first consider based on the full facts whether the conflict was irresolvable due to a compromise of impartiality and whether it should be avoided or if it can be managed through transparency and openness and make a decision as to whether to accept or decline the instruction
2. If I chose to accept I would set out the following 3 points in writing:
   a. Disclose nature of conflict, the circumstances, and relevant facts and set out a proposal to dealing with the conflict including information/ethical barriers
   b. Be as clear as possible to ensure the parties can make an informed decision and inform them to seek independent advice if needed
   c. Request written informed consent if the proposed procedure can be implemented.
3. Set up information barriers as agreed

Question 12

How do you create an inclusive environment?

Answer 12

I ensure I am polite, welcoming and helpful wherever I can. An example of this is during workplace mentoring where I make an effort to include new members or staff in as much as possible and ensure they feel comfortable asking me for help or advice.

Question 13

What company policies do you go through and why is it important to make them aware of these policies?

Answer 13

There are several company policies that must be adhered to, this ranges from office etiquette and use of IT equipment, to gifts and hospitality policies, how to recognise and respond to a bribe or general codes of conduct and ethics.
These are important as policies range between different companies and it ensures that all employees have the knowledge and resources to produce the same high quality service and remain compliant with guidance and regulations.

Question 14

Why are TOE important?

Answer 14

To prevent any future dispute regarding the scope of works, fee basis and payment of expenses if this is agreed in writing prior to accepting the instruction. It also ensures that the client is aware of the Complaints Handling Procedure should they need it, it agrees PII cap and uphold RICS standards, for instance:
To ensure compliance with the RICS Rules of Conduct (Rule 2: competency), and RICS Conflicts of Interest as these checks must be carried out before terms of engagement are agreed.

Question 15

What are the risks of not having correct and signed TOE in place?

Answer 15

There is a risk of dispute regarding any of the key factors that should be agreed in a ToE such as scope of works or fees. It could open up PII liability risks if a cap on liability is not agreed before and it could risk non-compliance with RICS Standards or legislation if all facts are not considered and agreed.

Question 16

JLL’s standard terms or engagement:

Answer 16

CONTENTS
1. DEFINITIONS 4
2. INTERPRETATION 9
3. APPOINTMENT 9
4. AGENCY 10
5. JLL’S DUTIES 10
6. CLIENT’S DUTIES 11
7. TERM AND TERMINATION 12
8. EMPLOYMENT OF STAFF 13
9. FEES AND OTHER PAYMENTS 18
10. FEES FOR NEW PROPERTIES AND RESTRUCTURING 19
11. EXCLUSIONS 20
12. LIABILITIES AND INDEMNITIES 21
13. INSURANCE 24
14. DUTY OF CARE AGREEMENTS 24
15. INTELLECTUAL PROPERTY 25
16. PUBLICITY 25
17. CONFIDENTIALITY 26
18. AUDIT ACCESS 26
19. GOVERNING LAW AND JURISDICTION 27
20. CONFLICT OF INTEREST 27
21. WAIVER 27
22. DISPUTES 27
23. NOTICES 28
24. NON-RESIDENT CLIENTS 28
25. MISCELLANEOUS PROVISIONS 28
26. FORCE MAJEURE 29
27. SEVERANCE 30
28. ENTIRE AGREEMENT 30
29. VARIATION 30
30. COUNTERPARTS 30
31. DATA PROTECTION 31
32. CLIENT’S COMPUTER SYSTEM 33
SCHEDULE 1: DESCRIPTION OF THE PROPERTIES 34
SCHEDULE 2: FEES 35
SCHEDULE 3: STANDARD SERVICES 38
SCHEDULE 3A: SERVICES PROVIDED BY FACILITIES MANAGEMENT STAFF 43
SCHEDULE 4: ADDITIONAL SERVICES 46
SCHEDULE 4A: ADDITIONAL FACILITIES MANAGEMENT SERVICES 48
SCHEDULE 5: OPTIONAL SERVICES 50
SCHEDULE 6: LIMIT to the AUTHORITY OF JLL 54
SCHEDULE 7: NON-RESIDENT CLIENTS 55
[SCHEDULE 8 Client’s COMPUTER SYSTEM] 56
SCHEDULE 9: BANKING CHARTER 61
SCHEDULE 10: List of Transferring Employees 62

Question 17

Specific amendments:

Answer 17

Parties name and property details, Scope of services to be provided, responsible competent person, commencement date, initial term, PII and liability cap, fee amount (fixed fee basis, or additional fees for certain instances).