Ethics Flashcards
Royal Charter
- RICS founded 15th June 1868
- incorporated by Royal Charter 26th August 1881
- updated February 2020
- states the objects of the Institution:
the advancement and facilitation of the acquisition of knowledge constituting the profession of surveyor;
to maintain and promote the usefulness of the profession for the public advantage in the UK and around the world - stipulates Chartered Members (Fellows and Professional Members) and other Members (non-Chartered and Honorary);
may use initials FRICS/MRICS/AssocRICS and “chartered surveyor” - there shall be a GC, President and VP
Bye-Laws and Regulations
- Bye-laws updated Feb 2020
- Regs updated Jan 2021
- Membership and Registration
(to be eligible as Chartered/Non-Chartered, must demonstrate professional competence) - Designations
- Contribution to Funds
(must abide by Charter, Bye-laws, Regs, requirements of GC and pay any fees due) - Conduct
(Bye-laws only: Members to conduct themselves in a manner befitting of RICS membership;
and must disclose any Member in breach) - Governing Council
- Boards and Committees
- General Meetings and Voting
(Chartered and Non-Chartered Members entitled to vote) - Accounts and Audit
What are the Standing Orders?
- updated Feb 2020
- process for appts of officers by GC
- process for election to GC
- process for emergency decisions under bye-law
- process for conduct of GC meetings
What are the formal governance bodies required by the Charter and Bye-laws?
Governing Council
- sets global strategy
- made up of Chair,
6 Strategy Seats,
15 Market Seats, President, President-Elect and VP
Standards & Reg Board
- strategy, policy and operational oversight of the standards and entry to the profession
- and regulatory function of RICS, education and qualification standards
Management Board
- directs RICS affairs under delegated authority from GC
Audit Committee
- operates independent from above
- monitors integrity and effectiveness of RICS financial reporting
- reviews anti-fraud measures
- recommends appt of external auditor
- reports to GC each year
MAY NEED UPDATING
Which committees come under the remit of the Management Board?
MAY NEED UPDATING
(discretionary governance bodies)
- FINANCE COMMITTEE
responsible for ensuring RICS operates appropriate financial and accounting policies globally,
assesses the financial performance of RICS,
strategy for management of RICS investments,
sets non-Exec remuneration levels - REMUNERATION COMMITTEE
sets and reviews remuneration strategy,
sets remuneration for CEO, Exec Team, Ind. Non-Exec Directors and Senior Managers - WORLD REGIONAL BOARDS
delivers agreed RICS strategy at world regional level by overseeing plans and allocating resources to nations
Americas, Asia Pacific, Europe, UK & Ireland
MAY NEED UPDATING
What discretionary governing bodies come under the remit of the Governing Council?
MAY NEED UPDATING
Nominations Committee
- advisory role in talent and succession planning for GC and acts as Appt Panel to GC, oversees Global Appts Model)
Presidential Nominations Committee
- assists GC in election of Senior VC by assessing candidates against a fair and transparent process)
Regulatory Tribunal
- independent decision-making body that reports on activity and performance only
MAY NEED UPDATING
Who comprises the Presidential Team and the Executive Team?
MAY NEED UPDATING
Presidential Team:
Senior VP
President Elect
President
(elected by GC for 1 year term)
- act as leading ambassadors and set thought leadership agenda
Exec Team:
CEO
CPO
COO
Exec Director, SoBE
Chief Markets Officer
Exec Director, Brand & Comms
Exec Director, Profession
- responsible for products, professional standards, reputation, people and corporate responsibility
Rules of Conduct
NEED TO ADD DATES
NEED TO ADD FIRMS ETC.
- 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’s the difference between a guidance notice and a professional statement?
PS = mandatory requirement for RICS members and regulated firms
GN = provides users with recommendations for professional advice and areas of good practice
What are the CPD requirements?
APC =
- a minimum 48 hours every 12 months
- 50% formal
members =
- 20 hours each calendar year (Jan to Dec)
- 50% formal
- must record online by 31st Jan
- understanding of professional and ethical standards during a rolling 3 year period
(formal = clear learning objectives and outcomes)
FIND DATE OF PS AND DATE CAME INTO EFFECT
What does “Conflict of Interest” PS state?
- an RICS member or regulated form must not advise or represent a client where doing so would involve a CoI or a significant risk of other than where all those who are or may be affected have provided their prior Informed Consent
- IC may be sought only where the member/firm is satisfied:
in the interests of all those affected;
is not prohibited by law;
will not prevent provision or competent and diligent advice - must identify and manage CoI
- must keep records of decisions made in relation to whether to accept/continue individual professional assignments, the obtaining of IC and any measures to avoid CoI
- you should not interpret the PS in a narrow or purely technical manner
What are the different types of conflict of interest?
Party Conflict
- where a duty to act in interests of a client in a professional assignment conflicts with a duty owed to another client in relation to the same or a related professional assignment
Own Interest Conflict
- where duty to act in interests of a client in a professional assignment conflicts with the interests of that same firm/member (in case of firm, interests of any of individuals involved directly or indirectly in that or any related professional assignment)
Confidential Info Conflict
- a conflict between the duty of a member to provide material information to one client and the duty of that RICS member/firm to another client to keep that same information confidential
What is Informed Consent?
IC: consent given willingly by a party who may be affected by a CoI, having demonstrated they understand:
- that there is, or is a significant risk of, a CoI
- the facts known by the member/firm that are material
- what that CoI is or may be
- that a CoI may affect the ability of the member/firm to advise or act fully in the interests of a client
What is an Information Barrier?
Info Barrier: the physical and/or electronic separation of individuals within the same firm that prevents confidential information passing between them
What constitutes adequate and appropriate professional indemnity insurance cover?
- an “each and every” claim basis or aggregate plus unlimited round the clock reinstatement basis
- RICS minimum policy wording at least, at minimum on full civil liability basis
- the minimum level of indemnity based on firm’s turnover previous year:
£100k or less = £250k
£100k to £200k = £500k
£200k plus = £1m - maximum level of uninsured excess:
up to £500k = greater of 2.5% or £10k
over £500k = 2.5%
