1
Q
What are the RICS Professional Standards?
A
- PS1 – Compliance with standards and practice statements where a written valuation is provided.
- PS2 – Ethics, Competency, Objectivity, Disclosures.
2
Q
What are CBRE’s Professional Standards?
A
RISE Values
3
Q
What are the RICS Rules of Conduct?
A
- INTEGRITY - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- COMPETENCE - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- SERVICE - Members and firms must provide good-quality and diligent service.
- RESPECT - Members and firms must treat others with respect and encourage diversity and inclusion.
- RESPONSIBILITY - 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.
4
Q
What does Professional Standard 1 entail?
A
It states when a valuation must be Red Book Compliant.
5
Q
What does Professional Standard 2 entail?
A
- Compliance with RICS Global Rules of Conduct
- Act objectively and independently – not influenced by situation that could threaten objectivity.
- Must act with professional scepticism – review data before relying on it.
- Reiterates rules surrounding conflicts of interest.
- Comply with minimum Terms of Engagement (VPS 1) and understand client’s requirements. Must demonstrate professional competence.
6
Q
Why do we have the Rules of Conduct?
A
- These rules set out the standards of professional conduct and practice expected of members and firms registered for regulation by RICS.
7
Q
What is the definition of Ethics?
A
- Conforming to accepted moral standards.
8
Q
If you contravene the Rules of Conduct, what would happen?
A
- Caution, fine, removal of registration, expulsion.
9
Q
What is the Ethics Decision Tree?
A
- Providing a decision-making framework to deal with even the most testing of ethical dilemmas.
- Framework of questions for members to ask themselves when facing a situation.
- Encourages one to ensure consistency with the Rules of Conduct.
10
Q
Why have the Rules of Conduct been updated?
A
- They were updated to respond to new risks and challenges.
o They want to provide one clear framework – simpler structure to provide confidence for clients and the public.
o Provide clear examples alongside each rule.
o Focus on respect, diversity and inclusion.
o Understand evolving technology.
o Tackling global challenges such as sustainable development.-
11
Q
What are the 3 professional obligations that must be followed by RICS members?
A
- Comply with CPD requirements set by RICS
- Cooperate with RICS
- Promptly provide any information reasonably requested by the Standards and Regulation Board.
12
Q
What questions are asked in the Ethics Decision tree?
A
o Question 1 – do you have sufficient facts on the issue?
o Question 2 – is it legal?
o Question 3 – is it in line with RICS Rules of Conduct?
o Question 4 – Have you consulted with appropriate people to make an informed decision?
o Question 5 – Do you have clear reasoning in reaching your decision?
o Question 6 – is your decision informed?
o Question 7 – Would you be content for your actions to be made public – in the newspapers or internet?
13
Q
If you require assistance on an ethical issue, who can you contact?
A
RICS Hotline.
Or CBRE Ethics Helpline
14
Q
What is the ‘ultimate test’ on the ethics decision tree?
A
Ultimate test is whether members would be content to have their decisions made public?
15
Q
What is a conflict of interest?
A
When a member or firm’s independence and impartiality is threatened due to the existence of a conflict between clients.
16
Q
Give examples of a conflict of interest
A
- Financial interest
- Personal interest
- Commercial relationships
- Acting on both sides of a transaction
17
Q
What is the difference between conflict avoidance and conflict management
A
- Conflict avoidance is NOT accepting the instruction.
- Conflict management is when the instruction IS accepted, steps are agreed to manage the conflict (such as information barriers), with written agreement of all parties.
18
Q
What RICS Guidance concerns conflict of interest
A
RICS Professional Standard ‘Conflicts of Interest’ – 1st edition March 2017, effective Jan 2018.
19
Q
What does the RICS document on Conflicts of Interest state?
A
- A member must not advise or represent a client where doing so would involve a conflict of interest or a significant risk of a conflict of interest, other than where all those affected have provided informed consent. Surveyors can only continue is all parties are content, and confirmed in writing.
- Every RICS firm must have effective systems in place to ensure compliance with the guidance.
- All firms must keep records to show compliance.
20
Q
What is informed consent?
A
- Can be given if the person is entirely transparent about material factors and the party affected understands what they are doing/all relevant parties are best served/proceeding is in the interests of all those who are or may be affected (and is not prohibited by law).
- WRITTEN consent.
21
Q
Define the 3 types of conflict of interest
A
- Party Conflict – relating to work on the same instruction for 2 different parties.
- Own Interest Conflict – relating to personal interest.
- Confidential Information Conflict – relating to work between two parties that is confidential.
22
Q
What 3 steps must be undertaken if a conflict of interest arises?
A
- CONFLICT AVOIDANCE
o Consider if conflict is irresolvable because your impartiality is compromised and should be avoided, or whether it can be properly managed maintaining TRANSPARENCY and OPENNESS. - WRITTEN ADVICE TO BOTH PARTIES
If you decide to accept the instruction, set out the following information to both parties covering the three points below:
A. Disclose the nature of the conflict, circumstances surrounding it, set out how the firm intends to deal with the conflict (such as setting up information barrier).
B. Be as clear as possible, ensure both parties can make their own decisions.
C. Request written confirmation from both clients of informed consent that your firm can act in accordance with the procedures proposed. - CONFLICT MANAGEMENT
o Once written consent is received, set up an information barrier in accordance with the provisions agreed with both parties.
23
Q
Can your firm act for two parties where a conflict of interests exists/
A
Yes, if…
- Both clients agree in writing and where the procedure above is followed to ensure an information barrier is in place.
- Reasonable steps must be take to operate an effective barrier
- Surveyors acting on two sides must be different, must be physically separated (e.g. different building, floors, separate support teams).
- All information must be securely stored.
- Keep a clear audit trail of the conflict check process and all written/oral communication.
- Firm’s compliance officer must oversee all actions.
24
Q
When have you seen Conflict of Interest in workplace?
A
- CBRE Valuation team carrying out loan security valuation, and CBRE Capital Markets team acting to sell site for client. Conflict was managed via separate surveyors/teams/floors, clients informed.
25
What other RICS guidance is available for agents regarding conflicts of interest
- RICS Professional Statement ‘Conflicts of interest – UK Commercial property market investment agency’ – 1st edition, 2017.
26
What does RICS Professional Statement ‘Conflicts of interest – UK Commercial property market investment agency’ say about dual agency?
- Where an agent has a contractual relationship with both buyer and seller at the same time, this practice must NOT be undertaken in any circumstances by RICS members (from 1st Jan 2018)
27
What does RICS Professional Statement ‘Conflicts of interest – UK Commercial property market investment agency’ say about multiple introductions
- This is where an agent has competing contractual relationships simultaneously with several buyers.
- Agent must be clear if acting on exclusive or non-exclusive basis.
- If exclusive, other buyers who the agent was acting for must be informed the agent can no longer act for them.
- If non-exclusive basis, agent must obtain informed consent from the client(s) subject to the necessary barriers being in place.
28
What does RICS Professional Statement ‘Conflicts of interest – UK Commercial property market investment agency’ say about incremental advice?
- Incremental advice is where an agent is approached by another party to provide advice, to include valuation/building surveying/planning for a purchase/disposal that is incremental to the existing instruction.
- E.g. an agent is acting for a seller but is approached by the buyer for a valuation.
- RICS member can only provide this incremental advice if consent given and information barrier is in place.
29
What does RICS Professional Statement ‘Conflicts of interest – UK Commercial property market investment agency say about personal interest?
- You must not let a personal interest interfere with or influence your professional judgement.
- Transparency is required.
- Section 21 of Estate Agents Act 1979 declaration for agency work.
30
What is CBRE's internal conflict check system?
We have a system where you are able to check if there are any active jobs with the client. Can also check for any historic work and access contact details. Any confusion, we have a compliance team.
31
What 3 things must be included in standard Terms of Engagement?
- The client’s agreement to the proposed fee basis
- Payment of expenses (and how it is calculated)
- Copy of the firms complaints handling procedure upon request
32
What 3 steps should be followed before starting an instruction?
1. Check professionally competent.
2. No conflicts of interest or personal interest
3. Confirm ToE and get written approval from client, BEFORE working on instruction.
33
What Compliance Standards/Acts must be followed?
- Compliance with Section 18 of Estate Agency Act 1979 and money laundering checks (Money Laundering Regulations, 2017) required for agency work.
- Consumer Rights Act 2015 allows cooling off period of 14 days from date of the agreement.
34
Why might you decline an instruction?
1. You are not competent to undertake the work
2. You do not have sufficient facts on the issue
3. Proposed client will not sign your terms of engagement and/or complete AML checks
4. There is a conflict of interest or personal interest
5. A professional indemnity insurance liability cap cannot be agreed
6. The advice is for a friend or on a pro-bono basis (e.g. free of charge for charity), and professional indemnity insurance will not cover work carried out on a personal basis.
7. Potential client is included in UK Government sanctions list.
8. Would you be content is actions were made public?
35
What RICS framework can aid if an instruction should be agreed?
RICS Ethics Decision Tree
36
What RICS document concerns CHP?
RICS Guidance Note ‘Complaints Handling’ – 1st edition, July 2016
37
Does a firm’s complaints handling procedure need to be approved by RICS?
Yes
38
If there is a complaint, do you notify PII insurers?
Yes – notify PII insurers as soon as possible if there is a complaint as this could lead to a claim for negligence.
39
When should CHP be issued to the client?
At the same time as the Terms of Engagement
40
Do you need to track complaints?
Yes – a complaints log must be maintained to show details, progress, and outcome of any complaints.
41
What must be included in CHP?
An approved Alternative Dispute Resolution (ADR) mechanism in the CHP.
42
What is a NDA?
Legal contract that binds a party to confidential information.
43
What is the Red Book?
A comprehensive set of global standards, mandatory rules, and best practices published by RICS
44
What are the RICS Rules of Conduct?
- INTEGRITY - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- COMPETENCE - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- SERVICE - Members and firms must provide good-quality and diligent service.
- RESPECT - Members and firms must treat others with respect and encourage diversity and inclusion.
- RESPONSIBILITY - 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.
45
Should clients historic information or information provided prior to instruction be confidential?
Yes – RICS Bye Laws state ‘client confidentiality must be maintained for all client affairs’.
46
Can you give third-parties client information?
- No. Unless you receive client approval first.
- Or, if you are subject to statutory duty overriding client confidentiality rights, such as police or HMRC.
47
How long should old files be held for?
- 6 years before disposal and destroyed securely.
48
What should you do if you receive an email/information that is confidential and supposed to be for another party?
1. You cannot use the information for your own purposes.
2. Client and sender should be informed of the error.
3. Matter to be recorded in a note to the firm’s compliance officer.
4. Any confidential material received in error should be disposed of securely.
APC SOE
flashcards
Decks in class (15)
# Cards
-
SOE Ethics48
-
SOE Client Care31
-
SOE Communication + Negotiation18
-
SOE Health and Safety12
-
SOE Accounting Principles and Procedures9
-
SOE Business Planning4
-
SOE Conflict Avoidance1
-
SOE Data Management9
-
SOE Diversity, Inclusion and Teamwork6
-
SOE Inclusive Enviroments7
-
SOE Sustainability11
-
SOE Inspection4
-
SOE Valuation68
-
Purchase and Sale56
-
Legislation and Theory1
