Ethics, rules of conduct and professionalism

Question 1

What is rule one of the code of conduct?

Answer 1

Members and firms must be honest, act with integrity and maintain their professional obligations.

Question 2

What is rule two of the code of conduct?

Answer 2

Members and firms must maintain their professional competence, ensure that services are provided by competent individuals who have the relevant level of experience.

Question 3

What is rule three of the code of conduct?

Answer 3

Members and firms must provide good quality and diligent service.

Question 4

What is rule four of the code of conduct?

Answer 4

Members and firms must treat others with respect and encourage diversity and inclusion.

Question 5

What is rule five of the code of conduct?

Answer 5

Members and firms must act in the public interest, take responsibility for their actions, act to prevent harm and maintain public confidence in the profession.

Question 6

Why were the previous Rules Of Conduct and Ethical Standards replaced?

Answer 6

• Replaced as they had been in place since 2007.
• Survey of RICS members showed in favour of replacing them.
• Consolidated previously separate Rules of Conduct & Ethical Standards.

Question 7

Can you name some example behaviours under Rule 1?

Answer 7

• Do not mislead others by your actions or omissions, do not be complicit in doing so for others.
• Do not allow yourself to be improperly influenced e.g. by gifts or hospitality.
• Identify conflicts of interest, do not offer services where a conflict of interest is a significant risk.
• Be open and transparent about scope of service and fees.

Question 8

Can you name some example behaviours under Rule 2?

Answer 8

• Only undertake work you have the knowledge, skills and resources to carry out.
• Ensure employees are supervised and have the necessary skills & knowledge.
• Reflect on your work and learn from it.
• Maintain knowledge through CPD.

Question 9

Can you name some example behaviours under Rule 3?

Answer 9

• Fully understand clients requirements before accepting work.
• Agree scope of service, limitations and timescales.
• Immediately notify client if terms of engagement, fees, costs or scope change.
• Communicate clearly and in a way others can understand.

Question 10

Can you name some example behaviours under Rule 4?

Answer 10

• Respect the rights of others and treat them with courtesy.
• Treat everyone fairly, do not discriminate on any grounds.
• Do not bully, victimise or harass.
• Develop inclusive cultures, support equal access and opportunity for all.

Question 11

Can you name some example behaviours under Rule 5?

Answer 11

• Question practices and decisions you feel are not right and report them.
• Support those who have raised concerns.
• Respond to complaints promptly, openly and professionally.
• Co-operate with investigations and provide all relevant information.

Question 12

What are members and firms professional obligations towards the RICS?

Answer 12

1. Comply with CPD requirements.
2. Must cooperate with RICS.
3. Provide all information reasonably requested by the Standards and Regulation Board or the delegated authority acting on their behalf.

Question 13

What are the professional obligations of firms?

Answer 13

There are seven obligations firms must abide by, theses are:

1. Must publish a complaints handling procedure including alternative dispute resolution provider approved by RICS and maintain complaints log.
2. Adequate PI insurance covering all current and previous work.
3. Firm with sole principal, arrangements for illness, injury or death.
4. Must cooperate with RICS.
5. Provide all reasonably requested information to the SRB.
6. Business literature must have designation showing RICS registered.
7. Must report any matter required under Registration of Firms Rules.

Question 14

What is professional indemnity insurance?

Answer 14

PI insurance is an insurance which protects you against claims for loss or damages to a client as the result of negligent services or advice you provided.

Question 15

What are the general requirements of PI insurance set out by the RICS?

Answer 15

1. Policy must be on an each and every claims basis.
2. RICS sets minimum levels of indemnity.
3. Policy must be fully retroactive.
4. RICS sets max level of excess.
5. Run off cover must be in place.
6. Policy must cover past employees, directors and partners.

Question 16

What are the maximum excess requirements set by the RICS?

Answer 16

Firm turnover £10mil or less = greater of 2.5% of sum insured or £10k

Firm turnover over £10mil = No limit set

Question 17

What the minimum levels of indemnity set by the RICS?

Answer 17

£100k or less = min. £250k indemnity
£101k to £200k = min £500k indemnity
£201k and above = £1mil

Question 18

What is an “each and every claims” basis?

Answer 18

Each claim has its own level of indemnity with multiple claims due to the same cause being treated as a single claim.

Question 19

Can you explain run off cover?

Answer 19

Run off cover is insurance which provides cover after a firm ceases trading. This is required to be in place for a minimum period of six years.

Question 20

Can you name any case law relating to run off cover?

Answer 20

Merritt vs. Babb, from 2001.

A surveyor was pursued personally for negligence after company ceased trading and lost. Resulted in industry shock and highlighted requirement for run off cover to be in place.

Question 21

What is your firms Complaints Handling procedure?

Answer 21

1. Contact local office director. If complaint made orally and verbal answer not satisfactory then complaint must be made in writing.
2. Once written summary received, letter will be acknowledged and copy of complaints procedure provided. 21 days to advise of outcome and let client know what actions will be taken.
3. If not satisfied the complaint is escalated to the PII Director, before being allocated to regional complaints director for review. Contact to be made within 21 days of complaint to inform client of conclusions. No reply from client in 28 days, matter considered closed.

Question 22

What alternative dispute resolution does your firm have in place for complaints?

Answer 22

Third party RICS approved Centre for Effective Dispute Resolution (CEDR) for private individuals and International Dispute Resolution Centre (IDRC) for business to business clients.

Used to be the Property Ombudsman.

Question 23

What is a conflict of interest?

Answer 23

A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult to maintain impartiality in their duties.

Question 24

What must you do if you identify a conflict of interest?

Answer 24

I must realise that an existing relationship will reduce my impartiality. As a professional I have an obligation to make clients aware and if necessary decline work where a conflict of interest occurs.

Question 25

What is informed consent?

Answer 25

With regards to a conflict of interest means notifying all parties of the perceived or existing conflict of interest and getting their approval to continue with an instruction.

Question 26

Under the Bribery Act 2010 what constitutes a bribe?

Answer 26

A person is guilty of an offence if they offer, promise or give an advantage, directly or indirectly, to another person, intending that a person is rewarded for, or induced to, perform a relevant function or activity improperly.

Question 27

Are you aware of any RICS guidance on bribery?

Answer 27

Yes, the Countering bribery, corruption, money laundering and terrorist financing professional standard.

Question 28

What is the mission statement of the RICS?

Answer 28

• To qualify and equip their members to offer the highest standards of professional service.
• To promote and enforce standards
• To lead solutions to the major challenges facing the built environment through professional expertise.

Question 29

What is the RICS Ethics Tree?

Answer 29

A tool developed by the RICS to help you decide if something is ethical.

Question 30

What is included in an annual return to the RICS?

Answer 30

• Type of business and staffing
• Training provisions
• Nature of clients
• Complaints handling & records
• PI details
• Whether the firm holds client money

Question 31

What is the difference between professionalism and ethics?

Answer 31

Ethics are a code of values and a guide as to how you should behave. Professionalism is the application of such values through your conduct along with displaying the necessary skills and competence.

You cannot be professional without being ethical.

Question 32

What is your firms policy on bribery?

Answer 32

If we are offered, or asked to make, a bribe or have any suspicion of one I must notify my line manager or report it in accordance with the firms Whistleblowing Policy.

Question 33

How do you prevent money laundering?

Answer 33

• My firm takes a risk based approach whereby all clients are subject to verification checks where required.
• No cash payments above £500 are accepted for works without checks being carried out.
• Two forms of ID required and evidence of residence e.g. recent utility bill.
• Use of SmartSearch

Question 34

What is a Dun & Bradstreet check?

Answer 34

Check of a company which provides information on a business e.g. solvency, risk profile, age and balance sheets.