Key Ethics Questions Flashcards
Why do you want to become a member of the RICS?
- Recognition and status
- Gives clients confidence in my services
- Knowledge
- Network
- Competitive advantage
What are the 5 Global and Ethical Standards? Give an example of each.
- To Act with Integrity (100LS valuation didnt include costs carried out on site)
- To always provide a high standard of service (Centrica amendment - act within my scope of competence)
- To act in a way that promotes trust in the profession
(Agree timescales with my clients and stick to them) - To treat others with respect (When agreeing variations with a contractor I am firm but respectful)
- Take responsibility (I carry out an internal QA process for all my work before it is formally issued to client / on site H&S risks)
What are the benefits of regulation?
- commitment to the highest standards
- open to independent scrutiny
- strict code of ethics
- protection for firm and clients
- training and CPD
How many professional groups are there? Name 5.
18 professional groups
- QS
- Project Management
- Dispute resolution
- Building surveying
- Valuation
What are the duties of each professional group?
- Provide best practice guidance
- Set the standards for professional competence
- Provide training, CPD and networking
- Promote and represent the profession
What do you need to do to set up your own firm?
- Advise RICS
- Apply for regulation
- Appoint a Responsible Principal
- PII / run off cover
- CHP
- Client money obligation
- Follow the RICS Rules for Firms
Why is it important to have client money handling in place?
Protects clients from:
- Misappropriation
- Insolvency
- Death of sole practitioner
Why might you be asked to hold clients money?
- Fees paid in advance
- Arbitration fees
- Clients money held but due to be paid to the contractor
What is professional indemnity insurance?
- Protection for the policy holder against negligence, non-performance, breach of duty or defamation
What does PII cover?
- Protects firms for financial loss in the event of a claim
- Protects clients from financial losses which cannot be met from the firms resources
What must a PII cover have?
- Each and every claim basis
- Written on a full civil liability basis
- Fully retroactive
- RICS minimum policy wording
- Minimum level of indemnity based on turnover
- Maximum level of uninsured excess
- Underwritten by a RICS listed insurer
- Cover past and present employees
- Includes run-off cover
What is the PII premium based on?
- Size of firm
- Type of work
- Claims history
- Number of partners
- Experience
How do you avoid PI claims?
- Record keeping of advice / meetings
- Follow RICS recommended best practice
- Issue Terms of Engagement / scope of services
- Only advice within your area of expertise
- Avoid poor management and excessive workload
What if you dont meet your CPD requirements?
1st time - fixed penalty caution
2nd time - caution, fine, and published on RICS website
3rd time - Referred to disciplinary panel
Which three of the 5 ethical standards resonate with you the most?
- Act with integrity ensures that I an honest, open and transparent with my work and will always avoid a conflict of interest
- High standard of service provides best possible advice and performance to those who I have a professional responsibility for
- Acting in a way that promotes trust in the profession ensures I act in a professional and positive manner in both private and professional settings
- Treating others with respect means treating others courteously and being polite, I am aware of any cultural sensitivities
- Taking responsibility is being accountable for my actions
