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Flashcards in Conduct rules, ethics and professional practice Deck (141)
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1

What is the central purpose of the RICS?

1. To maintain the highest standards of education and training
2. To protect consumers through strict regulation of professional standards
3. To be the leading source of information and independent advice on land, property, construction and associated environmental issues

2

How does the RICS ensure members abide by the Rules of Conduct for Members, 2007 (as amended 2013)?

Head of Regulation at the RICS investigates claims of misconduct. They have the power to:
1. Serve a Fixed Penalty notice
2. Make a Regulatory Compliance Order
3. CPD sanctions
4. Refer to a Disciplinary Panel
Member has right to appeal decision made at a Disciplinary Panel by going to an Appeal Panel

3

How does the RICS ensure firms abide by the Rules of Conduct for Firms, 2007 (as amended 2017)?

RICS ensures firms comply by conducting audits
Firms have to provide information when registering with the RICS and in an annual return

4

Why must a Chartered Surveyor do CPD?

It is one of the Rules of Conduct for Members, 2007 (as amended 2013)
Ensures you remain up to date with relevant legislation and any changes in the industry

5

Why must a Chartered Surveyor main solvent?

It is one of the Rules of Conduct for Members, 2007 (as amended 2013)
May impair your decision making and mean that you're more likely to take bribes and not act in the best interest of the client
If you're unable to manage your own finances, it does not reflect well on you being able to manage your client's finances

6

Give me an example of when you have acted with integrity in your work.

In my case study I was honest and straight forward from the outset, including my initial marketing recommendations and regular updates.

7

Give me an example of when you have provided a high standard of service.

In my case study, to ensure I was providing the best possible advice, I obtained my clients objectives.

I defined my scope of service within written terms of engagement and my marketing recommendations.

I communicated regularly throughout with both parties via phone, emails and written correspondence.

8

Give me an example of when you have acted in a way that promotes trust in the profession.

I acted in a professional manner throughout, ensuring I met my clients objectives.

9

Give me an example of when you have treated others with respect.

I was always very polite and respectful throughout, but especially when dealing with the negotiations. I needed to maintain a good report with the prospective tenant to ensure suitable terms could be agreed.

10

Give me an example of when you have taken responsibility.

I acted very diligently, prior to commencement I undertook extensive research to identify the planning history, energy performance rating, business rates, land registry title documents and flood zone.

11

What would you do if you were asked to do something unethical?

I would speak to someone more senior, such as a supervisor or line manager
I would whistleblow if required e.g. I would report suspected Money Laundering to the MLRO

12

What has the RICS produced to help surveyors make ethical decisions?

The RICS has created the Ethics Decision Tree, which members can refer to if they are asked to do something they are unsure about

13

When you taken on a new client, what checks do you make?

Will need to undertake Customer Due Diligence (CDD) to identify the client and verify their identity
If the client is a politically exposed person (PEP), a PEP family member/business associate or from a high-risk third country then you should undertake Enhanced Due Diligence (EDD)

14

How do you undertake a conflict of interest check?

I use my firm's internal system, which is a Microsoft Dynamics database to check the client name and the address of the property again all known jobs.

15

How would you approach a conflict of interest?

Follow the guidance set out in the RICS Global Professional Statement on Conflicts of Interest, 2017:
1. Conflict avoidance - decide whether the conflict is manageable and whether proceeding is in the best interest of all parties
2. Written advice to both parties - disclose the nature of the conflict, explain how you will manage it and request written confirmation of informed consent
3. Conflict management - set up an information in accordance with provisions agreed with the clients

16

What is money laundering?

Money laundering is legitimising the proceeds of crime.

17

Why does you firm have Terms of Engagement? What should be included in Terms of Engagement?

Creates a contract with the client
Sets out the proposed fee basis, payment of expenses and that a copy of of the firm's complaints handling procedure is available upon request

18

How would you close down a practice?

Inform the RICS
Inform clients and arrange for them to be handed over to a new firm
Return any clients' money
Set-up professional indemnity run-off cover for a minimum of 6 years
Retain a copy of client files and record for a minimum of 6 years

19

What is the structure of the RICS?

Governing Council (33 members) runs the RICS
Regulatory Board, Management Board and various committees report to the Governing Council
17 specialist professional groups covering property, land and construction

20

What changes have been made to the Royal Charter and Bye-Laws?

Reduced size of Governing Council to a minimum of 25 seats, with 15 geographical seats
A new Chair of the Governing Council will act for up to 6 years
President will focus on ambassadorial duties and continue to be elected on an annual basis

21

Why would you like to be a Chartered Surveyor?

1. Status - professional credentials provide client confidence
2. Recognition - promotion of your professional excellence
3. Market advantage - RICS status gives you a competitive advantage
4. Knowledge - International practice standards and professional guidance
5. Network - access to over 130,000 members worldwide

22

What are the THREE benefits of regulation for firms?

CPS:

1. Confidence - for client as regulated firms are monitored by RICS regulation
2. Professionalism - firms have to provide clear, impartial and expert advice
3. Security - firms have to have recognised CHP, access to ADR and PII cover

23

How many hours of CPD do you have to undertake? What are the rules?

Minimum of 20 hours of CPD per year, of which at least 10 hours must be formal
Member must maintain an understanding of RICS Professional and Ethical standards every 3 years
Members must record their CPD using the RICS CPD Management System on the RICS website by the 31st December

24

What are the Rules of Conduct for Members, 2007 (as amended 2013)?

ECS CPD SIC:

Ethical behaviour
Competence
Service
Continuing Professional Development (CPD)
Solvency
Information to the RICS
Co-operation

25

What are the Part II - Conduct of Business Rules of Conduct for Firms, 2007 (as amended 2017)?

PCS CPD CCI:

Professional behaviour
Competence
Service
Continuing Professional Development (CPD)
Complaints handling
Clients' money
Indemnity insurance

26

What information is required by the RICS for registration and in the annual return?

1. Type of business and staffing details
2. Statutory regulated activities - such as for financial services
3. Nature of clients
4. Complaints handling procedure and records
5. Professional indemnity insurance certificate
6. Whether the firm hold clients' money

27

Can you rely on due diligence checks undertaken by a solicitor?

Can only rely on information provided by a third party where there is an appropriate level of confidence in the quality of the information provided by that party
Guidance contained within RICS Countering bribery, corruption, money laundering and terrorist financing, 2019

28

If your agency team sold a property, could you still value it?

Cannot value the property if you have had "previous involvement" which is usually defined as being within the past two years

29

If you are conflicted, can you still undertake an instruction if you've got informed consent?

Depends whether you would be able to act impartially, whether you believe that you undertaking the instruction would be in the best interest of all those who are or may be affected and whether its prohibited by law

30

What forms of conflict of interest are there?

Party Conflict - acting on both sides of a transaction
Own Interest Conflict - relating to a personal interest
Confidential Information Conflict - relating to work between two parties which is confidential