Conduct rules, ethics and professional practice (Level 3) Flashcards
(108 cards)
1
Q
What are the 5 Global Professional and Ethical Standards?
A
- Always provide a high standard of SERVICE
- Act in a way that promotes TRUST
- Act with INTEGRITY
- Take RESPONSIBILITY
- Treat others with RESPECT
2
Q
Tell me a time you have treated others with RESPECT?
A
On Colindale the project manager requested to move all meetings to suit her childcare arrangements which I obliged too
3
Q
A time you took RESPONSIBILITY?
A
On Beckton depot – make sure client knows they can come to me with follow up issues they my face following advice I have given.
4
Q
A time you acted with INTEGRITY?
A
On a surface transport project I was offered tickets to a football game by the contractor which I turned down as it would compromise my decision making.
5
Q
An example of where you have promoted trust?
A
Whilst studying towards my APC actively promote the benefits of RICS
6
Q
An example of where you provided a high standard of SERVICE?
A
• On Beckton Depot I would have regular meetings with the client where they could offer feedback for me to improve my service
7
Q
What do you do with the interest that builds up of the client’s money?
A
Keep in client account they own it
8
Q
What measures are in place for the RICS to protect client’s money?
A
• Clients’ Money Protection Scheme – service for public clients of RICS firms to be reimbursed if suffer loss
9
Q
What are the Five Principles for Better Regulation?
A
- Proportionality.
- Accountability.
- Consistency.
- Targeting.
- Transparency.
10
Q
What do the bye-laws cover?
A
- Membership
- Designations
- Conduct
- Governing Council
- Boards and commitee groups
11
Q
What are the RICS bye laws?
A
Laws established by RICS to regulate help itself
12
Q
What Regulation covers money laundering within the UK? What is covered in the guidance?
A
The Money Laundering and Terrorist Financing (Amendment) Regulations 2019
Identifying potential money laundering
Identifying bribes
Due diligence
Knowing your client
Regular Training
13
Q
What are the indicators of Money laundering?
A
- Secretive Client.
- Elusive Cash
- Paying in cash
14
Q
What publications does the RICS publish relating to Bribes?
A
Countering bribery and corruption, money laundering and terrorist financing 2019
15
Q
What would you do if a contractor offered to take you to a hospitality event?
A
- Decline - could impair my judgement.
- Proportionality of the gift
- Register any gifts
16
Q
What are the 3 types of conflict of interest?
A
- Party Conflict - owe duty to 2 parties which conflict
- Own interest Conflict - Conflict between client and firm
- Confidential Information conflict - Required to share information but conflicts with confidentiality
17
Q
On Silvertown Tunnel how did you establish there was a conflict of interest?
A
- Colleague mentioned Consultant was acting for client and contractor.
- Conflicting duties owed to different clients
18
Q
Why did you advise that the Project Manager should not accept the late tender documents?
A
- Was set in the Tender terms
- Public procurement should follow strict regulations and laws and are accessible to public scrutiny.
19
Q
When working on DLR power upgrade, why could you not award the contract to the ex employee?
A
Conflict of interest – No person should get preferential treatment. - Own interest conflict
20
Q
Who determines the Five Principles for better regulation?
A
The Better Regulations Commission.
21
Q
What is the difference between ethics and rules?
A
- Ethics are a moral choice
- Rules are to be followed
22
Q
Why does the RICS have rules of conduct?
A
- Members can work to
- Client understands the service they should be receiving.
23
Q
How many Rules of Conduct are there from Members?
A
Nine
24
Q
Can you list the Rules of conduct for members?
A
- Interpretation. 2. Communication. 3. Ethical Behaviour. 4. Information. 5. Solvency. 6. Services. 7. Competence. 8. Continued Professional Development. 9. Co-operation.
25
How many Rules of Conduct are there for Firms?
Fifteen
26
Can you list the Rules for firms?
1. Interpretation. 2. Communication. (email, phone, fax, letter when RICS ask for info) 3. Professional Behaviour. 4. Information. (always provide info when needed) 5. Solvency ( not be bankrupt, pay debts) 6. Service. 7. Continued Professional Development. 8. Cooperation. 9. Competence. 10. Complaints Handling Procedure. 11. Handling Clients Money. 12. Advertising. 13. Use of Designations. (50% directors then need to register) 14. Arrangements for Incapacity or death of an owner. 15. Professional Indemnity Insurance.
27
What are the levels of Professional Indemnity Insurance?
Revenue - £ 100,000 or less = £ 250,000 limit of indemnity Revenue - £ 100,001 to £ 200,000 = £ 500,000 limit of indemnity Revenue - Over £ 200,000 = £ 1,000,000 limit of indemnity
28
Why must you have Professional indemnity insurance?
* Breach of regulatory requirements as well as a poor business practice.
* A firm will be prevented from trading and closed down if they cannot obtain adequate cover.
29
**What is the purpose of PII?**
To provide cover if a client suffers financial loss due to a breach of professional duty
30
**What does claims basis mean?**
Cover is when claim is made not when event occurred
31
What basis is it underwritten?
Claims basis
32
What is the Role of the RICS?
* To REGULATE AND PROMOTE the profession.
* To maintain the HIGHEST STANDARDS.
* PROTECT CLIENTS and consumers through a strict code of ethics.
* Provide IMPARTIAL ADVICE AND GUIDANCE.
33
How does the RICS discipline members?
* Inform the person the allegation is made against in writing
* Issue a consent order.
* Issue a fixed penalty.
34
What is a consent order?
* What actions need to be taken, and by what date they need to be achieved
* Pay a fine
* Pay RICS Costs
35
What RICS initiatives do you know of?
* Lionheart
* Advancing inclusion for black professionals
36
Can you tell me more about the New Arbitration Service?
* Will be faster and cheaper than courts.
* More detailed than adjudication
37
What issues do you know about that the RICS are looking into?
* The rising prices of housing in relation to the lack of supply and over demand
* Grenfell tower cladding
* Covid- 19 impacts on the industry
38
Who is the president of the RICS?
Kathleen Fontana
39
What is the Royal Charter?
A grant awarded in 1881 by Queen Victoria
40
How many Countries and how many Members does the RICS operate in and have?
* RICS operates in 146 countries.
* RICS has over 100,000 members.
41
Where is the RICS Head Quarters?
Parliament Square, London.
42
**What does RICS do?**
* Promotes professional standards.
* Provides a service to Clients and the Public.
43
How many professional groups are there?
18
44
Can you name some of the professional groups?
* Quantity Surveying and Construction
* **B**uilding Surveying
* **C**ommercial Property
* **D**ispute Resolution
* **E**nvironment and resources
* **F**acilities Management
45
What are the duties of these professional groups?
* **C**PD and training
* **P**romote and Represent.
* **R**esearch to improve the profession
* **B**est practice guidance
46
What are the three market sectors covered by the RICS?
* Land
* Property
* Construction
47
What is the Governing Structure for the RICS?
* Top is the **P**rivy Council – Section of gov that reports to the queen
* Below is the **G**overning Council - Setting the global strategy
Below this is:
**M**anagement board - implements global strategy
**S**tandards and regulation board - non members review standards and rics membership
Also various committes - Audit, finance, nominations
* **R**egulatory Tribunal – Independent review
48
What is the RICS Matrics?
* Supports student surveyor training.
* Produces a network of Charity and Networking events.
* Promotes seminars and lectures.
49
What was the Carsberg report and what did it introduce?
* A through internal and external review of RICS regulation due to member disatifisfaction
* The conduct board was introduced, who operate the disciplinary measures.
* The requirement for firms to be regulated as well as Members.
* Review of CPD requirements
50
What Help Sheets does the RICS publish?
* Complaints Handling Procedure
* Handling Clients Money
* PII Requirements.
51
What are the four levels of membership?
* Trainee.
* Associate.
* Member.
* Fellow.
52
Can you run me though the requirements for a complaints handling procedure?
* An effective complaints handling procedure should have consideration by a senior manager
* Repsonse in 7 days
* A referral system to a third party which can review
* Ideally 28 days turn around
53
How do you become a fellow?
* 5 years post award MRICS.
* Managerial positions.
* Significant contribution to the profession.
54
What is the APC?
The Assessment of Professional Competence is a period of structured training followed by a Final Assessment Interview.
55
What different routes can you take to APC?
* An accredited degree 2 years industry experience and diary
* An accredited degree and 5 years industry experience
* 10 years industry experience
* Academic route
56
What is Lionheart?
Provides support and financial aid to current and past members and their families
57
If you become qualified, how will you become involved with the RICS?
* Surveys
* RICS events
* APC supervisor
58
Would you like to become an APC Assessor?
Yes, to keep developing
59
How do you become an assessor?
* MRICS for three years
* 1 day training course.
60
What is the role of the APC Supervisor?
* Offer **G**uidance
* To **A**dvise a candidate for APC
* **E**valuate candidates structured training.
61
What benefits will you gain from becoming MRICS?
* Recognition from clients and peers.
* A known level of professional standards
* Competitive Advantage
62
What is the ‘Black Book’?
Best practice guidance notes.
63
What are they types of RICS Published Documents?
* **P**rofessional Statement
* **G**uidance note
* **C**ode of practice
* **I**nformation statement
64
Can you name some of the Black Books?
* **Tendering Strategies**
* **Valuing Change**
* **Cash Flow forecasting**
* **Writing a procurement strategy**
* Commercial Management of construction
65
What do you do if you find a member working outside the RICS Rules of Conduct?
* **S**peak to them and remind them of rules for members
* **W**rite to RICS
66
What are the RICS Disciplinary Procedures?
* RICS Head of Regulation will investigate
* May visit and or require further information.
* The member/firm in question must cooperate fully as per the Rules of Conduct.
67
How can a disciplinary procedure be triggered?
* Complaints to the RICS.
* Allegations by Clients/Third Parties.
68
What may the fixed penalties be?
* Caution
* Unlimited Fine.
* Member expulsion.
.
69
What can result in expulsion?
* Fraud.
* Dishonesty.
* Criminal Offence.
70
How are Disciplinary Breaches published?
* Hearings are posted on the RICS website 14 days prior.
* Decisions are published online
71
How do you keep up-to-date with topical issues?
* Receive email notifications from the RICS
* Modus Online
72
What is a conflict of interest?
Someone in a position of trust has conflicting interests notmaking them impartial
73
How do you proactively avoid claims?
* Keep full detailed records of meetings and conversations.
* Record recommendations and advise given.
* Do not advise outside my field of experience.
* Use RICS Guidance.
74
Can a client claim for damages against a Quantity Surveyor who prepares an incorrect estimate?
* Not necessarily.
* They would have to prove that the Quantity Surveyor warranted the accuracy of the estimate.
75
What is run off cover?
Cover to run after trading -
* A limit of £1,000,000 in all for a period of 6 years under hand
* 12 years executed as deed
76
What would say is conduct unbefitting a chartered surveyor.
Conduct not inline with the Global Professional Ethical Standards.
77
What do you need to do to set up a new RICS Firm?
* **C**omplete RICS firm details form (online)
* **P**rofessional Indemnity Insurance.
* **C**lients Money procedure
* **P**ay fees for registering
* **C**omplaints Handling Procedure in Place.
* **S**taff training
* If 50% of Directors are MRICS must register.
* If 25% of Directors are MRICS eligible but dont have too
78
What are the RICS CPD requirements?
* 20 hours CPD, of which 10 is formal.
* Maintain relevant understanding of the RICS ethics.
* Record CPD activities online.
79
What is a bribe?
An exchange of value for an improper cause.
80
What would you do if a Client offered to pay you in cash for your works?
Ask them to pay the cash into an online bank account then transfer the money, as paying in cash could be seen as tax evasion.
81
What law governs the act of Bribery within the UK?
The Bribery Act 2010.
82
What are the penalties for committing a bribe within the UK?
* Up to 10 years in prison
* Unlimited fine.
83
What are the 6 Principles to mitigate a bribe?
1. **P**roportionate Procedures
2. **T**op Level Commitment
3. **R**isk Assessments
4. **D**ue Diligence
5. **C**ommunication
6. **M**onitoring and Review
84
What are the four types of Bribes?
1. **G**iving.
2. **R**equesting.
3. **O**ffering.
4. **R**eceiving.
85
What is classed as a bribe under the Bribery Act 2010?
* Bribing a public official.
* Facilitation payments.
* Failing to prevent a briber by a commercial organisation.
86
What is the difference between an Institute and an Institution?
* Institute - Advances the study of a subject.
* An Institution - Serves a public purpose.
87
Tell me about Merrett V Babb? What is the implications
Case in 2001, Babb did an evaluation as an employee, the company no longer existed and the court perused the individual for negligence.
Run off cover should be in place
88
RICS motto?
'There is measure in all things'
89
What changes are being considered for the rule of conduct?
Consolidate down to 5 rules
Respect
Examples of behaviour
Sustainability
Technology
90
What are the requirements under Professional Indemnity Insurance approved minimum wording?
* Cyber Cover
* Underwritten by a listed insurer
* Must be on a claims made basis
* Minimum level of indemnity required by the RICS
* Each and every claim basis
* Run-off cover
* Gives min wording
* Covers past and present employees
* Fire safety cover
91
What if you cant get PII or run off cover?
RICS provides Assigned Risks Pool for PII
Run off Pool
92
What preventative measures could be put in place to reduce potential conflict of interest in same firm?
Seperate Teams managing work
Different Geograhically locations
Seperate communication line to client
Sign non-disclosure agreement
Manage and monitor regularly
93
If a client was insistent for you to work for them despite a conflict of interest what would you do?
Check the client understands the conflict
Make them aware could affect advice
Seek a letter of instruction
Explain how it will be managed
94
What does RICS publish on PII?
Professional indemnity insurance requirements guidance
95
What are the levels of uninsured excess?
Depends on amount of indemnity cover
Up to and including £500k of indemnity = greater of 2.5% of the sum insured or £10k
Over £500k = 2.5% of the sum insured
96
97
What are the main principles of the bribery act?
Applies to all UK entities
Acting anywhere in the world
Unlimited fine
10 years in prison
Making or recieving a bribe
Bribing an official
98
How would you avoid claims?
Always document advice
Record meetings
Done give advice outside your skillset
Use RICS guidance
CPD
99
If you recieve an invite for a business event but team drop out?
Declare in gift and hospitality register
Decline, it wouldnt be a business event with just you there,
Should be reported to Manager
100
A client advices you to lower your bid by £3000 to win the work, what would you do?
Unfair competition
Not treating others with respect
Not acting with integrity
The price you bid should represent the value of work you are offering, by lowering it are you devaluing service.
101
Client takes you out for lunch, but turns out to be £200. What should you do?
It would be ok to go to lunch, record in gift and hospitality
Make line manager aware of high cost
Remind client that it would be inappropriate and shouldnt happen again
102
What is limit of liability?
Placing a limit on the cover you have in place:
aggreagate means as a maximum of different claims
Cover is for each and every claim - considered unlimited
103
What if a friend asked for advice?
Cant offer advice without PI cover in place
if i did have cover treat the friend as a client and provide full advice in a professional manner
If not comfortable can use rics 'find a surveyor' scheme.
104
What is the purpose of the principles of regulation?
Sets out how RICS should self regulate internally to the benefit of the public interest
105
106
What information do registered firms provide to RICS annually?
Annual return completed online including
Type of business, nature of clients, training provisions, complaint handling procedure, PI details, Client money handling.
107
You recieve a complaint from a client, when do you inform your PI policy?
Under the terms of PI insurance i must inform them of any situation that may give rise to a claim, in this cirucmstance i would inform them as soon as possible.
108
What should be considered when handling client money?
* **D**esignated account (client name on account)
* **O**nly contain client money
* **R**ecords of transactions are kept
* **I**mmediately available
* **S**ervice provided in writing to client
