Ethics Flashcards
(39 cards)
What is a Bye Law?
A rule or law established by an organization or community to regulate itself, as provided for by a higher authority.
Changes to the Royal Charter and Bye-Laws can only be amended following a membership vote and approval of Privy Council, which is part of the UK Government.
Give an example of one of the RICS Bye Laws
Bye-Law 5 relates to conduct of RICS Members and Firms
What is the role of RICS?
The RICS is designed to effect positive change in the built and natural environments.
It promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure
What are the key function of RICS?
Advance the highest ethical and technical standards
Protect consumers and businesses through strict regulation of standards
Promote the highest standards of education and professional training
Provide expert impartial advice to governments, businesses and the public
Explain your understanding of the RICS Levitt review
Published in 2021 by Alison Levitt KC
An Independent Review into internal governance failings that occurred in RICS 2018-19.
A key recommendation was to conduct a wide-ranging examination of purpose, governance and strategy, conducted by an external reviewer.
This triggered RICS to commission Lord Bichard to undertake the review.
What are the 6 RICS values?
Integrity
Transparency
Inclusion
Collaboration
Advocacy
Passion
Why do you want to become an RICS member?
Being a member:
- Provides status
- Provides a competitive advantage
- Gives access to a network of over 134,000 members worldwide
- Professional development
What do you need to do when setting up a firm?
The Firm must provide surveying services to the public
It must operate in the UK
It must have at least 50% of the Firm’s Principals be RICS Members.
What are the 3 main benefits for RICS regulated firms?
- Confidence for clients – as regulated firms are monitored by RICS regulation
- Professionalism – firms have to provide clear, impartial and expert advice
- Security – firms have to have a recognised complaints procedure, access to free independent redress and PII cover
Other benefits?
4. Regulation provides a ‘gold standard’ of quality control for clients
What are the current RICS rules for registration of firms and when was the last change?
RICS Rules for Registration of Firms Version 8 - updated in February 2022
What happens if there is a dispute concerning the registration of a firm?
Any disputes concerning the registration of a firm will be heard by the RICS Standards & Regulation Board
What are the 6 areas of information required in an annual return?
- Type of business and staffing details
- Statutory regulated activities – such as financial services
- Nature of clients
- Complaints handling procedure details and records
- Professional Indemnity Insurance details
- Whether the firm holds clients’ money
Explain to me the new RICS Rules of Conduct
The Rules of Conduct are mandatory standards of professional conduct and practice expected of all RICS members, candidates, students, and regulated firms.
There are five new Rules which have been updated to address challenges relating to sustainability, the use of data, and diversity and inclusion
These apply globally, although they are designed to complement national legislation and legal requirements.
What are the 5 Rules?
- RULE 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
- RULE 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
- RULE 3 - Members and firms must provide good-quality and diligent service
- RULE 4 - Members and firms must treat others with respect and encourage diversity and inclusion
- RULE 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
How should a RICS member or regulated firm act when negotiating fees?
Firms should avoid price fixing, aggressive fee cutting or collusion with competitors
You must be completely transparent with clients and customers
The granting or accepting of referral fees should be considered in the context of the Bribery Act 2010 and the RICS Rules of Conduct
When you are being appointed by a client, what should you consider?
That you a professionally competent
That there are no conflicts of interests
That you have confirmed the terms of engagement in writing and get written approval from the client before you start work on the instruction
What is a conflict of interest?
A conflict of interest arises when a members’ or firms’ impartiality is threatened
What do the RICS Bye Laws state about client confidentiality
Client confidentiality must be maintained for all client affairs
This includes historic information and information provided by a client prior to instruction
What is Professional Indemnity Insurance (PII)?
A type of insurance designed to cover firms and individuals against claims for injury, damage or loss caused by professional incompetence or negligence
It is mandatory for all surveyors working in practice
What RICS guidance relates to handling client money?
RICS Professional Standard: Client Money Handling, 1st Edition, effective from Jan 2020
What are the six main areas of good practice set out in the RICS Professional Standard ‘Client Money Handling’ 1st Edition 2019?
- Holding Client Money
- Providing Information to Clients
- Receipts of Client Money
- Payments from Client Accounts
- Accounting Records and Controls
- Compliance
Tell me about some of the things you must do when starting a new practice, to deliver on RICS compliance.
- Inform RICS of your new practice by completing a Firm Detail Form
- Appoint a Responsible Principal for all RICS communication
- Register with RICS for regulation of the firm by the Regulatory Board
- Set up procedures for the requirements for Client Money Handling, including a Protection Scheme
What bribery legislation are you aware of?
- UK Bribery Act 2010
- Proceeds of Crime Act 2002
What is a bribe?
A bribe can be the giving, offering, promising or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust
