Ethics, Rules of Conduct, and Professionalism

Question 1

Who is the current President of the RICS?

Answer 1

Tina Paillet

Question 2

How many Professional Groups are there?

Answer 2

17.

Previously known as Faculties.

E.g. Arts & Antiques, Commercial Property, Dispute Resolution

Question 3

What is Professional Indemnity Insurance (PII) for?

Question 4

What is the minimum level of professional indemnity insurance and run off cover required?

Answer 4

Depends on turnover:

£100,000 or less - £250,000

£100,001 to £200,000 - £500,000

£200,001 plus - £1,000,000

6 year run off cover is required to the appropriate level

Question 5

What are the rules for VAT when setting up in practice?

Answer 5

Must be registered for VAT if turnover is over £60k

Question 6

What would you do if you overhead a confidential conversation between another surveyor and his client?

Answer 6

Do nothing

Question 7

State 3 requirements of the RICS when you set up in practice

Answer 7

Register with RICS

Set up Professional Indemnity Insurance with the minimum levels of cover

Create a Complaints Handling Procedure

Question 8

Name 3 core values which you use

Answer 8

Honesty
Objectivity
Respect
Integrity
Responsibility and accountability
Knowing limitations

Question 9

What are the main rules for holding clients’ money? Who gets the interest on client accounts?

Answer 9

Must be in a separate, named client account

Interest accrues to client

Regular bank reconciliation

Question 10

Name the levels of the RICS disciplinary procedures

Answer 10

The regulatory functions of RICS are led and overseen by the Standards and Regulation Board (SRB).

Fixed penalty notice

Regulatory compliance orders/consent orders

Disciplinary and regulatory sanctions (caution, reprimand, undertakings, fine, conditions, expulsion/removal)

Question 11

What are the rules for dealing with a conflict of interest between 2 clients in your practice

Answer 11

Notify each party in writing immediately

Offer to withdraw from transaction

Question 12

What is a conflict of interest and examples

Answer 12

A conflict of interest is when someone’s judgement or actions at work are - or could be - affected by something unconnected with their role. This includes any circumstances that affect - or could be seen to affect - someone’s independence or impartiality

Question 13

Tell me about some professional development which you have undertaken outside your office

Question 14

What procedures do you have to undertake when taking on a new instruction in order to comply with current money laundering regulations?

Answer 14

Know your client

Check proof of identity (passport, UK bank account)

Question 15

Can you give a friend some free (pro bono) advice? What are the implications of doing so?

Answer 15

Yes, but can still be sued and help liable

Question 16

Outline the contents of your company’s complaints handling procedure

Question 17

How do the regulatory functions of RICS work?

Answer 17

The regulatory functions of RICS are delegated from RICS’ Governing Council to the independently led Standards and Regulation Board