Ethics Flashcards
(43 cards)
1
Q
What are the RICS Rules of Conduct?
A
- Honesty- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Skills/experience- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Service- Memebers and firms must provide good-quakity and diligent service.
- Respect- Members and firms must treat others with respect and encourage diversity and inclusion.
- Public Interest- 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.
2
Q
What are the 6 sections under Conduct & Competence?
A
- Rules of Conduct
- Conflicts of Interest
- Bribery, Corruption, Money Laundering & Terrorist Financing
- Risk, Liability & Insurance
- Client Relationships and Handling Data
- Client Money
3
Q
What is Better Regulation?
A
Better Regulation relates to RICS’ efforts to improve the regulatory framework and processes that govern the land, property, and construction sectors.
RICS aim to strike a balance between protecting the public interest and enabling economic growth and innovation.
The 5 principles are:
- Proportionality.
- Accountability.
- Consistency.
- Targeting.
- Transparency.
4
Q
What were the recent changes in the RICS Rules of Conduct?
A
Revised rules are simpler and highlight transparency, ethical behaviour and sustainability
- New Rules of Conduct to underpin confidence of clients, markets and the public
- Principles and standards of professional practice set out for RICS members worldwide
- New emphasis on diversity and inclusion
- Focus on sustainability in professional development to help clients meet climate targets
5
Q
What is the CPD requirement for a chartered surveyor?
A
20 hours per year, with a minimum of 10 formal hours.
6
Q
What is the structure of the RICS?
A
The RICS is self-regulated and internally monitored meaning that it is not regulated by the Government or external parties.
* The Bye-Laws determine how the RICS is regulated.
* The Governing council manage and agree the strategy for the RICS.
* The Regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them.
7
Q
What are the professional obligations of firms?
A
- Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
- Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
8
Q
How can a Disciplinary Proceeding be triggered?
A
- Someone complaining to the RICS.
- An allegation by a client or third party.
- Information received or established by the RICS.
9
Q
What three actions can be imposed after the end of the investigation stage in a complaints proceeding?
A
- Fixed penalty.
- Consent order.
- Disciplinary panel.
10
Q
What are Fixed Penalties?
A
A fine by RICS
11
Q
What are Consent Orders?
A
- It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS rules.
- It can require the member to take certain corrective actions, or restrain them from taking certain actions for a specified period of time and may require them to pay a fine or costs.
12
Q
What sort of breaches would expulsion from the RICS be suitable for?
A
- Gross, persistent or willful failure to comply with an RICS rule of conduct.
- Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a client’s money.
13
Q
What insurances would you need if you were starting up your own firm?
A
- Professional Indemnity Insurance.
- Employer’s Liability.
- Public Liability.
- Building’s insurance of an office premises.
14
Q
What is meant by the term Negligence?
A
- Negligence is a failure to provide the duty of care that is owed to the client.
- A duty of care is owed to all clients and 3rd parties using reasonable skill and care.
- If it is breached due to Negligence a claim may arise resulting in damages being paid or a Professional Indemnity Insurance claim.
15
Q
What must a complaints handling procedure include?
A
- The RICS provides a model form.
- The process must include a redress mechanism.
- Details of the policy should be issued to the client with the Terms of Business.
- It must be clear, quick, transparent and impartial and free of charge within the first stage.
- Names and contact details of the nominated investigating person must be stated.
- The complaint must be investigated within 28 days.
- All complaints, their progress and outcomes must be recorded.
- We must note the need to advise PI insurers of a complaint immediately.
- The process must have two stages as a minimum:-
o Stage 1 is where there needs to be consideration of the complaint by a senior member of the firm or the complaints handling officer.
o Stage 2 if the issue is not resolved, the complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costs at this stage.
16
Q
What do you do if you receive a letter of complaint?
A
- I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing additional information as required.
- I would also highlight the importance of informing our Professional Indemnity insurance providers immediately.
17
Q
What is the purpose of Professional Indemnity Insurance?
A
To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, errors or omissions.
18
Q
What benefits does PII provide for the professional?
A
- The professional is protected from financial losses.
- The firm does not have to meet the claim from their own assets and resources.
19
Q
What benefits does PII provide for the client?
A
They are able to recover their financial losses.
20
Q
What are the requirements regarding Professional Indemnity Insurance set by the RICS?
A
- The policy cover must be made on an ‘each and every’ claim basis.
- The RICS sets out the minimum levels of indem
nity. - The RICS sets out the maximum levels of uninsured excess.
- Run off cover must be in place for at least 6 years.
- The policy should include cover for past and present employees, directors and partners.
21
Q
What are the minimum levels of indemnity and Maximum levels of uninsured excess?
A
£100k or less = £250k of cover
£100,001- £200,000 = £500k of cover
£201,000 or above = £1M of cover
22
Q
What are the main elements included within a fee proposal?
A
- Terms and conditions.
- Scope of services.
- Exclusions.
- Assumptions.
23
Q
If the client gives you a lump sum fee before going on holiday, what would you do?
A
I would place the funds in a separately identified client account and agree a drawdown of monies against the services being provided with the client.
24
Q
What are the Main Principles of the Bribery Act?
A
- The offences are:-
o Making a bribe.
o Receiving a bribe.
o Bribery of a foreign public official.
o Failure of a corporate entity to prevent bribery on its behalf. - The legislation applies to all UK Entities and includes associated Persons for example sub-consultants and external advisors.
- There are six principles of prevention companies should put in place:-
o 1. Proportionate Procedures.
o 2. Top Level Commitment.
o 3. Risk Assessments.
o 4. Due Diligence.
o 5. Communication.
o 6. Monitoring & Review.
25
When should you decline an instruction of new work from a client?
* If there is a Conflict of Interest.
* If the appointment is would not be in the clients’ best interests.
* My firm may not be able to resource the job adequately.
* If the project is outside of my skillset.
* If the work was unlawful.
26
How would you calculate a fee proposal?
* I would review the work involved with the commission based on the level of information available.
* I would calculate the time & number of individuals required to undertake the work & multiply it by an hourly rate adding a suitable allowance for over heads and profits.
27
What is your company’s procedure for complaint handling?
* The RICS specifies 2 stages as a minimum:
o Stage 1 – The complaint in the first instance is reported to a Senior Member of the firm or the designated complaints handler.
o Stage 2 – If the complaint cannot be resolved this is referred to the independent redress mechanism.
* The person is invited to make a complaint in writing to our designated complaint handler who will investigate the complaint with all parties involved and advise the complainant of any action taken within 21 days.
* If the complainant is not satisfied, the complaint is escalated to the Regional Managing Director who will take action and respond within 21 days.
* Should the complainant remain dissatisfied, the matter can be escalated to the RICS independent redress mechanism.
28
How do you establish trust?
* I am transparent and honest about my actions at all times.
* I learn about my client and their long term objectives in addition to key challenges they are facing.
* I only act inside the parameters of my level of expertise and competence.
* I always act in a professional manner.
* I always provide a high level of service.
29
What are some Example behaviours of Rule 1 (Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.) of the RICS Code of Conduct?
1.1 Members and firms do not mislead others by their actions or omissions, or by being complicit
in the actions or omissions of others.
1.2 Members and firms do not allow themselves to be influenced improperly by others (as a result
of, for example, giving or receiving work referrals, gifts, hospitality or payments) or by their own selfinterest.
1.3 Members and firms identify actual and potential conflicts of interest throughout a professional
assignment and do not provide advice or services where a conflict of interest or a significant risk of
one arises, unless they do so in accordance with the current edition of Conflicts of interest, RICS
professional statement.
1.4 Firms have effective processes to identify actual and potential conflicts of interest, to enable
appropriate decisions to be made on whether to accept work, and to keep records of decisions made
about actual and potential conflicts of interest.
1.5 Members and firms providing advice and opinion in a professional context do so honestly and
objectively based on relevant and reliable evidence, and firms have processes to ensure that directors,
partners and employees do so.
1.6 Members and firms are open and transparent with clients about their fees and services.
1.7 Members and firms act to prevent others being misled about their professional opinion.
1.8 Members and firms do not take unfair advantage of others.
1.9 Members and firms protect confidential information and only use or disclose it for the
purposes for which it was provided, where they have the necessary consent to do so or where
required or permitted by law.
1.10 Firms keep client money safe and have appropriate accounting controls.
1.11 Members do not misuse client money and comply with controls intended to keep it safe.
1.12 Members and firms do not facilitate any financial crime including money laundering, tax
evasion, bribery or corruption. Firms have effective processes to prevent directors, partners or
employees from doing so.
30
What are some Example Behaviours of Rule 2 (Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.) of the RICS Rules of Conduct?
2.1 Members and firms only undertake work that they have the knowledge, skills and resources to
carry out competently.
2.2 Members and firms supervise any employees undertaking work for them and ensure that
these employees have the necessary knowledge, skills and resources to do their tasks competently.
2.3 Members and firms check that subcontractors have the necessary knowledge, skills and
resources to do their tasks competently.
2.4 Members and firms reflect on the work they have undertaken and its impacts, and consider
how they might apply what they have learned to their future work.
2.5 Members maintain and develop their knowledge and skills throughout their careers. They
identify development needs, plan and undertake continuing professional development (CPD) activities
to address them and are able to demonstrate they have done so. Firms encourage and support
directors, partners and employees to maintain and develop their knowledge and skills, and check that
they are complying with CPD requirements set by RICS.
2.6 Members and firms stay up to date and comply with relevant legislation, codes of practice and
other professional and relevant technical standards. Firms ensure that their directors, partners and
employees do so.
31
What are some Example Behaviours of Rule No.3 (Members and firms must provide good-quality and diligent service.) of the RICS Rules of Conduct?
3.1 Members and firms understand clients’ needs and objectives before accepting any professional
work.
3.2 Members and firms agree with clients the scope of the service to be provided and its
limitations, and timescales for the work.
3.3 Firms inform clients that they are regulated by RICS and that they may need to disclose records
to RICS where required for regulatory purposes.
3.4 Members and firms inform clients promptly and seek their agreement if it is proposed that any
of the terms of engagement or estimated fees or costs be changed.
3.5 Members and firms undertake their work in a timely manner; with due care, skill and diligence,
and in accordance with RICS technical standards.
3.6 Members and firms communicate to clients the material information on which their
professional advice and opinion is based.
3.7 Members and firms communicate with clients and others clearly and in a way they can
understand.
3.8 Members and firms ensure that any referral or introduction they make for a client is in the best
interests of the client and inform clients about any financial or other benefits to the member or their
firm from a referral or introduction.
3.9 Members and firms keep proper records of their work and decisions in enough detail to allow
them to answer questions from clients and to allow their work to be audited for quality assurance or
regulatory purposes.
3.10 Members and firms, when advising clients about projects, encourage solutions that are
sustainable in that they minimise harm and deliver balanced economic, social and environmental
benefits.
3.11 Members and firms understand the risks and benefits of using relevant technology.
3.12 Members and firms check that all data used is accurate and up to date, is kept securely, and
that they have proper legal rights to use it and, where required, share it.
3.13 Firms have effective quality assurance processes for their work.
32
What are some Example Behaviours of Rule No.4 (Members and firms must treat others with respect and encourage diversity and inclusion.) of the RICS Rules of Conduct?
4.1 Members and firms respect the rights of others and treat others with courtesy.
4.2 Members and firms treat everyone fairly and do not discriminate against anyone on any
improper grounds, including age, disability, gender reassignment, marriage or civil partnership,
pregnancy or maternity, race, religion or belief, sex or sexual orientation.
4.3 Members and firms do not bully, victimise or harass anyone.
4.4 Firms check that supply chains do not involve modern slavery or other abuses of the workforce.
4.5 Members and firms report abusive labour practices to proper and recognised authorities if
they become aware of, or suspect, them.
4.6 Members and firms work cooperatively with others.
4.7 Members and firms develop an inclusive culture in their workplaces, support equal access and
opportunity for all, and identify and address unconscious bias.
33
What are some Example Behaviours of Rule No.5 (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.) of the RICS Rules of Conduct?
5.1 Members and firms question practices and decisions that they suspect are not right, and raise
concerns with colleagues, senior management, clients, RICS or any other appropriate person, body or
organisation where they believe in good faith that it is necessary to do so. Firms provide processes to
allow and support individuals within the firm to raise concerns with senior management.
5.2 Members and firms support directors, partners, employees, colleagues or clients who have
acted in good faith to report concerns.
5.3 Members and firms ensure that public statements made by the firm, or in which members
are (or could be) identified as members of the profession, do not undermine public confidence in the
profession.
5.4 Members and firms respond to complaints made against them promptly, openly and
professionally.
5.5 Members and firms do not dissuade complainants from approaching an alternative dispute
resolution provider, RICS or any other regulatory body.
5.6 Members and firms cooperate with investigations into complaints or concerns, and provide
information where it is reasonably requested and they can do so lawfully.
5.7 Members consider the effect that any health conditions may have on their competence
or ability to undertake professional work, and inform management or clients where they require
reasonable adjustments or are unable to continue to undertake work competently.
5.8 Members and firms manage their professional finances responsibly.
5.9 Members and firms take appropriate action when they consider that the rules
have been breached, and report suspected significant breaches of the Rules of Conduct
by themselves or others to RICS.
34
What are the principles around Client's Money?
RICS provides a Professional Standard which outlines the requirements.
1. Protection and Segregation: Chartered surveyors should ensure that clients' money is protected and kept separate from their own funds. Establish designated client accounts to hold and manage client funds separately.
2. Accounting and Record-Keeping: Maintain accurate accounting records and clear financial management procedures. Reconcile client accounts and provide regular financial reports to clients.
3. Compliance with Regulations: Adhere to relevant laws, regulations, and professional standards related to handling clients' money. Comply with financial regulations and requirements set by regulatory bodies or professional organizations.
4. Transparency and Communication: Maintain open and transparent communication with clients regarding the handling of their funds. Provide clear information about how their money will be managed, fees or charges involved, and promptly address client inquiries or concerns.
5. Trust Accounting: Use trust accounting principles, ensuring accurate records of all funds received and disbursed on behalf of clients. Funds should be used only for authorized purposes, and any unused funds should be promptly returned to clients.
6. Auditing and Reviews: Conduct regular internal and external audits or reviews to ensure compliance with financial management procedures and detect irregularities or discrepancies.
7. Professional Indemnity Insurance: Consider obtaining professional indemnity insurance to protect against financial loss or professional negligence related to the handling of clients' money.
35
How would you handle Client Data?
* I would comply with GDPR.
* I would ensure all data is saved on a secure server.
* I would delete personal data if no longer required.
* I would ensure clients are away of their rights to request their data be removed from our records.
36
What would you do if you thought you were being bribed?
* I would retain the evidence.
* I would remain calm, politely refuse and not engage in ongoing discourse with that person.
* I would report the incident to my supervisor.
* I would not indicate to the individual offering the bribe that my concerns had been raised.
* The relevant authorities would be alerted.
37
A client sends you a case of wine after completing an instruction for them. What would you do?
Providing the gift was proportional to the work carried out and not excessive, I would accept the gift and log it in the company gift register.
38
What are the different kinds of Conflict of Interest?
1. Personal Conflict of Interest: This occurs when a surveyor's personal interests or relationships could influence their professional judgment or decision-making process. For example, a surveyor who has a financial interest in a property may be biased in their valuation or advice.
2. Commercial Conflict of Interest: This type of conflict arises when a surveyor's business or employer has a vested interest in a transaction or outcome that may compromise their objectivity. For instance, a surveying firm that is also involved in property development may have a conflict of interest when assessing the value of a competing development.
3. Professional Conflict of Interest: This refers to conflicts that arise from the surveyor's responsibilities to multiple clients or conflicting professional roles. For example, a surveyor who represents both the buyer and seller in a transaction may face a conflict of interest as their fiduciary duties to each party may be compromised.
4. Familiarity Conflict of Interest: This occurs when a surveyor has a personal or professional relationship with a party involved in a transaction or assignment that could impair their impartiality. It could be a conflict arising from a friendship, family ties, or past business dealings.
5. Confidentiality Conflict of Interest: This type of conflict arises when a surveyor possesses confidential information from one client or assignment that may create a conflict when working on a different assignment involving a different client. The surveyor must ensure that the confidentiality of their clients' information is maintained.
39
Who is the current RICS President?
Ann Gray
40
What is the hierarchy of RICS literature?
1. RICS Rules of Conduct
2. International Standard
3. Practice Statement
4. Guidance Note
5. Code of Practice
6. Jurisdiction Guide
41
What must you do with unidentified funds?
All attempts should be made to trace the owner and return the funds.
After three years, the money should be donated to a registered charity.
42
What would you do if given a gift by a contractor.
I would ensure the gift was reasonable and proportianate and use professional judgement as to whether it could be percieved as a bribe or conflict of interest.
If I though the gift was fair and reasonable, I would accept it, but log it in our company gift register, as well as informing my line manager.
If the gift seemed excessive and disigeneous, I would politiely declien the offer.
43
What are the steps in the RICS Ethical Decision Tree?
1. Do you have sufficient facts on the issue?
2. Is it Legal?
3. Is it inline with the RICS Rules of Conduct?
4. Have you consulted with appropriate people to make an informed decision?
5. Do you have clear reasoning in reaching your decision?
6. Would you be happy for your actions to be made public?
7. Act and reflect on outcome.
