50 Hardest Ethics Questions Rev 1.2.00

RICS APC MOCK INTERVIEW PRACTICE
50 HARDEST QUESTIONS YOU MUST KNOW TO PASS
RICS ETHICS
RULES OF CONDUCT
PROFESSIONAL STANDARDS
RICS APC FINAL ASSESSMENT OVERVIEW
• 3-4 minutes - Introduction by the chairperson

- Conflict check
- Fit & Well to Proceed
• 10 minutes - Your case study presentation
• 10 minutes - Case study and presentation questioning
• 25 minutes - Assessors' questioning
• 10 minutes - Chairperson's questioning, with a focus on
mandatory competencies Ethics and Rules of Conduct
• 1-2 minutes - Chairperson closes the interview, including your
opportunity to go back to any questions - you have the last word!
PDF Download Notes, Q&A & RICS Ethics Decision Tree
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MOCK INTERVIEW PRACTICE Q&A
RICS ETHICS, RULES OF CONDUCT & PROFESSIONAL

STANDARDS
Q1) Tell me what you understand about conflicts of interest?
A)
• Where someone in a position of trust has competing personal or professional
interests making it difficult for them to fulfil their duties impartially
• An existing relationship will result in reduced impartiality and Chartered
Surveyors have an obligation to make clients aware of this and if necessary
decline work opportunities where a conflict of interest occurs
Q2) How could the conflict of interest be managed internally if two
separate departments were working for the same client?
A)
• Ensure exclusivity of staff to each department
• Separate communication lines into the client
• Separate geographical locations / secure
office and data storage
• Sign up to confidentiality / non disclosure
agreements
• Monitor the potential conflict and keep the
client updated
RICS ETHICS, RULES OF CONDUCT & PROFESSIONAL STANDARDS
Q3) If the client was insistent that you worked for them despite an
existing conflict of interest, how would you proceed?
A)
• Check the clients understanding around the conflict of interest
• Make them aware of the potential for reduced impartiality
• Seek a letter of instruction from the client to continue
• Talk through working procedures to manage the conflict of interest
• Agree this formally in writing with the client
Q4) What are the minimum levels of indemnity? / How do you determine
the level of PI cover?
A)
• This depends on the firm’s turnover
• If turnover is £100k or less it is £250k
• If turnover is £100 - £200k it is £500k
• If turnover is above £200k it is £1m
Q6) What are the maximum levels of uninsured excess?
A)
• Depends on the level of indemnity

• Up to £500k = greater of 2.5% of insured sum or £10,000
• Over £500k = 2.5% of the insured sum
Q7) What sort of Insurances do Chartered Surveyors need to have?
A)
• Professional Indemnity Cover

• Buildings insurance
• Contents Insurance
• Employers Liability Insurance
• Run Off Cover
Q8) How many Rules of Conduct for Members are there? And what are
they?
A)
• Interpretation
• Communication
• Ethical Behaviour
• Competence
• Service
• Continuous Professional Development (CPD)
• Solvency
• Information to RICS
• Co-operation
Q9/10) How many Rules of Conduct for Firms are there? And what are
they?
• Interpretation
• Communication
• Professional Behaviour
• Competence
• Service
• Training & CPD
• Complaints handling
• Client’s money
• PI insurance (Professional Indemnity)
• Advertising
• Solvency
• Arrangements to cover incapacity / death of a sole practitioner
• Use of designations
• Information to RICS
• Co-operation
Q11) What must a complaints handling procedure include?
• The RICS provides a model form which has two stages

• Stage One
• Acknowledge the complaint as quickly as possible but must be within 28 days
• The complaint should be handled by a senior person or a designated complaints handler
• Stage Two
• If the firm is unable to resolve the complaint internally then the complaint will be taken to an
independent redress mechanism that is approved by the RICS.
• It must be clear, quick, transparent and impartial and free of charge
• All complaints, their progress and outcomes must be recorded
• Note the need to advise PI insurers of a complaint immediately
• Must have two stages as a minimum:
Q12) What are the Main Principles

of the Bribery Act?
A) Offences:
• Making a bribe
• Receiving a bribe
• Bribery of a foreign public official
• Applies to all UK Entities
• Includes Associated Persons
• Six Principles of Prevention – 1. Proportionate Procedures 2. Top Level Commitment. 3. Risk
Assessments. 4 Due Diligence. 5 Communication. 6 Monitoring & Review.
Q13) Under the Bribery Act, under what
circumstance is a facilitation payment permitted?
A)
• The only circumstance in which it is OK to make a facilitation payment is when you are under
duress
• ie there is a real and present risk or danger to "life, limb or liberty".
• If you or your companions are under immediate physical threat
• You should put safety first, make the payment and report the matter immediately,
• Or as soon as is practicable to your manager or your Ethics/Compliance/Legal contact.
Q14) You are attending a Main Contractor organised business
conference where it is announced the you have been randomly selected
as the winner of this months prize draw. Its an i-pad air. How would you
act in this scenario?
A)
• 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
Q15) You receive an invite to attend the Theatre with some members of
your Project Team but they dropped out due to illness at the last
minute, would you still attend?
A)
• 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
• Since they won't be present, this will not be a genuine business event.
• Consequently I would decline this hospitality at the Project Team's expense.
Q16) You are bidding for a project and the client advises that if you
reduce your fee bid by £3,000 you will be first place and win the tender,
how would you advise the client?
A)
• Unfair competition
• Not treating others with respect
• Not acting with integrity
• Unsustainable to undertake business in this manner
• Avoid Dutch auctions as devaluing the profession
• You would need to reduce scope to achieve same margin, would this provide high standard of service
• This could be interpreted as a bribe
Q17) A client takes you out for lunch after a business meeting, where
they continue to discuss business. The bill for the lunch comes to £200.
What should you do now?
• A)
• This lunch had a legitimate business purpose, so it's fine to accept the hospitality
• But the client should have considered how a £200 bill for a 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
Q18) Tell me about Merrett v Babb case law?
A)
• Court case in 2001
• Babb had carried out a valuation as an employee of a company for a house purchased by Merrett
• Valuation later found to be negligent
• The original company no longer existed
• Court ruled Merrett could pursue the individual – Babb – for the losses
• Big shock in the industry
Q19) What is the significance of it?
A)
• Considered if a professional employer was vulnerable to claims brought directly against them for
advice given on behalf of their employers
• Highlights importance of run off cover
• Professional individuals and firms must ensure that run off cover is in place after they leave their
firm’s employment or a firm ceases trading
• Individuals should ensure that their ex company keeps up this cover on their behalf
Q20) How long should run off cover be in place?
A)
• Depends on the type of contracts the professional has been involved with
• Usually 6 years if contract executed under hand
• 12 years if executed as a deed
Q21) Can you tell me the 5 Global Professional & Ethical Standards?
A)
• Act with integrity

• Always provide a high standard of service
• Act in a way that promotes trust in the profession
• Treat others with respect
• Take responsibility
Q22) Can you tell me which two of the five Global Professional & Ethical
Standards resonate with you the most?
A)
• Act with integrity

• Always provide a high standard of service
• Act in a way that promotes trust in the profession
• Treat others with respect
• Take responsibility
Q23) What are the requirements regarding PI by the RICS?
A)
• Must be made on an ‘each and every’ claim basis

• Gives min wording
• Sets out minimum levels of indemnity
• Sets out maximum levels of uninsured excess
• Run off cover must be in place for at least 6 years
• Should include cover for past and present employees, directors and partners
Q24) What if the loss exceeds the cover provided by the PI insurance?
A)
The professional / firm is liable for the difference – in assets etc

Q25) What measures should be taken to try and avoid PI claims?
A)
• Keep full and detailed records of meetings, conversations etc

• Record recommendations and advice given
• Use proper letters of engagement, scope of services and terms of engagement
• Don’t advise on a specialism outside your field of experience
• Use RICS guidelines
• Avoid poor management and excessive workloads
Q26) A newly appointed project manager working for your Client’s
organisation advises that they are concerned about the terms their
predecessors agreed with you. They state not to expect the same terms
and advise that if you give a 20% discount they won't renew your
contract. How would you respond?
• A)
• Although this client manager is asking for a steep discount, it's more a matter of him 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.
• Were the original fees considered as good value and a fair and reasonable sum / is this devaluing the
profession
• It may not be sustainable and in the clients interests if I cannot provide a high standard of service
• A fee profile and resource schedule would need to be prepared to determine if the saving and adequate
level of service can be offered
• May need to decline if unable to offer required service
Q27) Are you familiar with the term limit of liability and where would it
be used?
A)
• Limit of liability is used to place a cap on the level of exposure a business signs up to
• In the aggregate means as a maximum after many different claims
• If cover is for each and every claim, it is that level for each claim
• Anything not covered by PI insurance can be gone after so assets could be at risk
• As such, companies may try and place a limit of exposure
Q28) Assuming you were successful in getting chartered, how would you
deal with a situation such as a friend who asks you to provide them with
QS advice?
• I could not offer advice on my own without PI insurance.

• If I did have my own PI insurance I would ensure that the information given was subject to the
thorough checking process given to all information prior to issue regardless of who it was to.
• Inform them they can contact you during working hours to discuss T&Cs of appointment.
• If you are not comfortable acting for them, advise them to use the RICS “find a surveyor scheme”
• Adhere to rules of conduct
Q30) Tell me how you have demonstrated two of the 5 Global
Professional & Ethical Standards on your case study project?
A)
• On my project I aimed to exceed the clients expectations by agreeing the final account ahead of the
agreed deadline – High Standard of Service
• When undertaking a valuation I approached the project manager after witnessing an unsafe working
procedure – Taking Responsibility
• Treating others with respect
• Acting with integrity
• Acting in a way that promotes trust in the profession
Q31) A tender is in progress for which you have submitted a bid. You get
a call from the client who advises that they are involved as a parent in a
junior theatre group. The client says they have read about your firm’s
community initiatives and ask you to sponsor their annual performance.
They say are desperately short of funds and that they have donated
money themselves. How would you advise the client in this scenario.
• A)
• The client may not be soliciting a bribe here
• Nevertheless, 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
Q32) A contractor invites you to lunch to a restaurant and advises
they've got two Michelin stars and a wine list second to none. They say
they are keen to discuss the details of their tender they are about to
submit for the project you are working on. How would you respond?
• A)
• 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, this supplier is persistent, and there is a red flag in that he wants to discuss things that he
cannot put in writing, so we should report this infringement.
• Unfair competition
• Not acting with integrity or respectful to fellow contractors
Q33) What was the Carsberg Report, 2005?
• A)
• This was a thorough internal and external review of the regulation of RICS
• A response to members’ general dissatisfaction with aspects of RICS regulation
Q34) What were some of the key recommendations of the Carsberg
Report?
A)
• A conduct board should be established to operate the disciplinary structures
• The RICS should regulate firms as well as members
• A review of existing CDP requirements and compliance should be initiated
Q35) What are the 5 Principles of better regulation?
A)
• Proportionality
• Accountability
• Consistency
• Targeting
• Transparency
Q36) What is the purpose of the 5 Principles of Regulation?
A)
• The RICS is a self regulated professional body that has a duty
to the public interest.
• The 5 Principles of better regulation set out how the RICS
regulates itself internally to maintain the highest standards of
professionalism and integrity in the benefit of the public
interest
Q37) Pick two of the 5 principles of better regulation and explain what
they mean to you?
A)
Proportionality - meaning RICS should only intervene when necessary and any remedies imposed should be
proportionate. For example late payment of RICS fees by a member may be dealt with by a verbal warning
whereas continued failure to pay fees would result in expulsion.
Accountability - regulators must be able to justify their actions under public scrutiny to promote complete
fairness – Clearly explain why decisions have been taken
Consistency – complete fair and level playing field treat everybody the same
Targeting – Focussed on the problem and minimise side effects from a scattergun approach, also be
unambiguous on any regulations that are introduced
Transparent – keep regulations simply and user friendly, to be effectively communicated- assist back in line with
regulation rather than a heavy handed approach
Q38) The partner says you have spent all the fees on the job, the final
accounts are still to be agreed and some areas are still to be re-
measured according to the contractor, what should you do?
A)
• I do not lower my level of services.
• I investigate why all the fees have been spent.
• If it is an error in our fee calculation, I put in place measures to ensure that it does not happen
again.
• If it is because we have provided additional services I give all the details to my director to prepare a
claim for additional fees.
• I ensure that I keep track of fee spending and of all works not included in our scope of services.
Q39) Name some topics on which the RICS publishes help sheets and
policy documents?
A)
• CPD
• Handling clients’ money
• PI insurance requirements
• Complaints handling procedures
• Maintaining professional and ethical standards
• Procurement & Tendering
• Cashflow Forecasting
Q41) Why does the RICS have Rules of Conduct?
A)
• To provide a framework that we can all work to and so the client knows he is getting a set level of
service.
• As well as being an important tool for the Institution, the Rules of Conduct are also a useful
professional guide for individual Institution members.
Q42) What steps would you need to take when setting up in Practice?
• Inform RICS
• Appoint a Contact Officer
• Register with RICS for Regulation
• Arrange Professional Indemnity Insurance
• Set up Client Account for handling Client Money
• Set up a complaints handling procedure
• Set up Staff training and CPD
Q43) What steps must you take for the handling of clients money?
• I Clients must always have access to funds

• Client money must be kept separate and clearly identifiable
• Include ‘Client’ In account name
• Interest on the account must be agreed with the client
• Maintain client ledger or running balance of any transactions
• Agree the terms and advise client on bank details
• Must not be overdrawn
Q44) What is the ‘Clients’ Money Protection Scheme?
• Run by the RICS

• Provides for any member of the public to be reimbursed their direct loss of funds
• This is provided through RICS insurance policy
Q45) If a client was prepared to pay you in advance for services you were
providing, how would you ensure this was dealt with?
• Set up a separate client account this is properly named and clearly identifiable.
• Provide the client with a statement of account.
• Inform and agree drawdowns.
• Prior to drawing monies send a statement of how much is to be withdrawn and what services and
associated fees are made up of, send updated statements of account
• Once complete, show a final statement, ensure everything is complete and transparent.
Q46) What sort of information do registered firms have to send to the

RICS annually?
• It is called annual return and done on-line. Failure to do so leads to a fixed penalty.
• Type of business and staffing
• Nature of clients
• Training provision
• Complaints handling procedures details and records
• PI insurance details
• Whether the firm holds clients’ money
Q47) What are the RICS Bye-Laws?
1. APPLICATION AND DEFINITIONS

2. MEMBERSHIP AND REGISTRATION
3. DESIGNATIONS
4. CONTRIBUTIONS TO FUNDS
5. CONDUCT
6. GOVERNING COUNCIL, OFFICERS AND STAFF
7. SUBORDINATE BOARDS, COMMITTEES AND GROUPS
8. PROCEDURE FOR GENERAL MEETINGS
9. ACCOUNTS AND AUDIT
10. GENERAL
Q48) What is GDPR?
A)
• The EU General Data Protection Regulation (GDPR) replaces the Data Protection Directive
95/46/EC and was designed to harmonize data privacy laws across Europe.
• To protect and empower all EU citizens data privacy and to reshape the way organisations
across the region approach data privacy.
• Like its predecessor, the GDPR is designed to protect personally identifiable information
(personal data)
Q49) How will GDPR affect surveying practices?
A)
• For a chartered surveying firm, data you hold to service your clients, for example:
• Data in your valuation systems
• Data in your compliance systems, including accounts, bookkeeping, payroll
• HR data
• Any working papers that support your compliance
• Emails and correspondence, both internal and external
• All the above can fall under the remit of regulation.
Q50) How do firms comply with GDPR?
A)
• You must have knowledge of the data you store and process
• Its geography (where it resides)
• You must be able to provide information on how the data is used and on the rights of
individuals regarding their data
• You must demonstrate that you are managing personal data in a manner compliant with the
regulations and be able to supply, on request, the details of the data you hold and how it has
been used
• You have to be able to delete every instance of an individual’s data in compliance with the right
to be forgotten
END OF Q&A

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RICS APC MOCK INTERVIEW PRACTICE

50 HARDEST QUESTIONS YOU MUST KNOW TO PASS

• 3-4 minutes - Introduction by the chairperson

RICS ETHICS, RULES OF CONDUCT & PROFESSIONAL

• Depends on the level of indemnity

Q7) What sort of Insurances do Chartered Surveyors need to have?

• Professional Indemnity Cover

• The RICS provides a model form which has two stages

Q12) What are the Main Principles

• Act with integrity

• Act with integrity

• Must be made on an ‘each and every’ claim basis

The professional / firm is liable for the difference – in assets etc

• Keep full and detailed records of meetings, conversations etc

• I could not offer advice on my own without PI insurance.

Q33) What was the Carsberg Report, 2005?

Q35) What are the 5 Principles of better regulation?

Q36) What is the purpose of the 5 Principles of Regulation?

• I Clients must always have access to funds

Q44) What is the ‘Clients’ Money Protection Scheme?

• Run by the RICS

Q46) What sort of information do registered firms have to send to the

1. APPLICATION AND DEFINITIONS

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