Conduct Rules, Ethics & Professional Practice Flashcards
(41 cards)
When was the RICS founded?
15th June 1868
When was the RICS incorporated with the Royal Charter?
26th August 1881
What is the address of the RICS Headquarters
12 Great George Street, Westminster, London
What is the RICS’ motto?
Est Modus in rebus – there is measure in all things
What is the purpose of the RICS?
To regulate and promote the profession and maintain the highest educational and professional standards that protects both clients and consumers via a strict code of ethics and providing a high standard of impartial advice.
What are the benefits of the RICS?
Status – profesisoinal credentials give unrivalled client confidence
Recognition – promotion of your professional excellence
Market advantage – RICS status and standard gives competitive advantage
Knowledge – International practice standards and professional guidance
Network – Access to 140,000 worldwide members
Who are the key persons in the RICS?
CEO – Richard Collins
President – Ann Gray FRICS
President Elect – Tina Pillet FRICS
Senior Vice President – Currently vacant
What is the Presidents main aim?
Driving engagement and inspiring change in the built environment and is a passionate promoter of technology, social impact and diversity as drivers in long term value.
What is a Royal Charter?
An instrument of incorporation granted by The Queen, giving independent legal personality on an organisation (becomes a single legal entity) giving it the power to govern its own affairs. It reflects a high status for a body or corporation.
What is the RICS Structure?
Formal governance bodies required by Royal Charter
Independent decision-making body reporting on activity and performance only
Privy Council – grants and awards charter, formal body of advisors to the Sovereign and comprises non-RICS members, mainly politicians who are present or former members of the House of Commons
Governing Council – sets the top level strategy and chaired by the current president. Made of RICS members and responsible for delivering the requirements of the Royal Charter
Standards and Regulatory Board – formulates and delivers the regulatory policy objectives of the RICS. Meetings are chaired by a non-member to demonstrate the regulation is independent from the interest of its members. Enforces highest standards.
Management Board – Governing Council delegates day to day operational accountability of RICS to the Management Board. Approves the business plan and made up of nominated members, non-members and executive staff
Audit Committee – responsible for reviewing internal systems and risk management whilst monitoring standards and quality service
Regulatory Tribunal – Provides RICS with an effective fair and independent judicial body. Responsible for dealing with the regulatory tribunal rules made my the standards and regulation board
What other RICS initiatives do you know of?
Lionheart – independent charity run by members for past and present members.
RICS Foundation – independent of the RICS, founded in 2000, is a worldwide charitable foundation. Supports and promotes research
What are the five global professional and ethical standards?
ISTRR (I Stroke Trees Rather Rigorously)
Act with INTEGRITY – not offering or accepting gifts/respecting confidential information – Cullum Centre tendering example
Always provide a high standard of SERVICE – giving best possible advice to clients.
Act in a way that promotes TRUST in the profession – Do what you say you will
Treat others with RESPECT – treat people how you wish to be treated, no discrimination
Take RESPONSIBILITY – Be accountable for your actions
What are the 5 principles of better regulation?
PACTT
1. Proportionality
2. Accountability
3. Consistency
4. Targeting
5. Transparency
What are the five RICS rules of conduct?
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
- Members and firms must provide good-quality and diligent service.
- Members and firms must treat others with respect and encourage diversity and inclusion
- Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
What are the RICS rules for registration of Firms?
Firms required to register if at least 50% of directors are MRICS
Firms eligible to register if 25% of directors are MRICS
Responsible principal – registered firm must have a responsible principle who must be an RICS member. Responsible for ensuring firm complies with legal and RICS standards/obligations. They are the primary point of contact to the RICS.
If you were to set up your own chartered company what would you need in place?
- Set up company with companies house
- Employ an accountant to set up accounts
- Take out PI insurance (covers financial loss and or injury resulting from an act of negligence)
- Take out employer’s liability and public liability insurance if opening an office outside of your home
- Ensure a CHP is in place and your insurers are consulted and satisfied with its content
What are the minimum RICS requirements for PI Insurance?
- Cover past and present employees
- Must have RICS minimum wording
- Must be taken out on a ‘each and every’ or ‘any one claim’ basis
- Underwritten by an RICS listed insurer
- Fully retroactive (current insurer responds not insurer when the negligent act occurred)
- Fire Safety Exclusions (NEW 2020) RICS excluded this from minimum requirements
What is the RICS minimum level of indemnity cover for PI Insurance?
£100k or less - £250k
£101k - £200k - £500k
£200k+ - £1m
Levels of Uninsured Excess:
Up to £500k level of indemnity – 2.5% of sum insured or £10k, whichever is greatest
£500k + level of indemnity – 2.5% of sum insured
What is the minimum run off cover required?
Minimum of 6 years from ceasing to trade
Minimum limit of £1m
How would you define a conflict of interest and can you give me some examples?
A conflict of interest is where there may be an actual or potential risk that the professional judgement of an RICS member will be compromised and will likely impact on the ability for them to give impartial judgement or professional advice
There are 3 main types of conflict of interest:
- Party conflict – 2 competing parties represented by the same firm
- Own interest conflict – family/personal relations within a team or between 2 parties - my uncle owning a main contracting business if working on the same project
- Confidential information – ensure you identify who should and shouldn’t be party to certain confidential information
How do you identify a conflict of interest?
Take it upon myself to identify whether my ability to act in the best interests of my client is impaired in any way, e.g.:
* Financial interest
* Personal relationship
* Commercial relationship
* Interests of the firm
How would you deal with a conflict of interest?
Be open and transparent, honesty in this scenario is key. Declare the conflict of interest to all parties involved as soon as possible and offer to stand down from acting for any party involved in that instruction. If there was written informed consent from all parties, I would need to make a final decision as to whether I felt comfortable proceeding with the instruction
What are the RICS CPD requirements for members?
20 hours per year with at least half being formal CPD. Ethics course to be undertaken every 3 years.
What can be used if uncertain about how to act regarding professionalism and ethics?
- Liaise with another MRICS in my company to obtain their advice
- Use the RICS Decision Tree
What would you do if a contractor gave you a gift or hospitality invite?
I would ask myself some questions depending on the scenario:
1. What is its value?
2. Who is it being given to? A range of people or just me?
3. Is it reasonable and proportionate?
4. Does it have a genuine business purpose?
5. When is it being given? At a crucial stage or a regular event?
6. Can you decline it there and then?
I would then consult Modus’ Gift and Hospitality Policy an ensure I wasn’t in breach of this. If accepted I would ensure it is logged in the Register of Gifts and Hospitality as appropriate.
