Ethics Flashcards
What is the role of the RICS?
To promote and enforce the highest professional standards in the development and management of real estate
3 main roles:
- Maintain highest standards of education and training
- To protect customers through regulation of professional standards
- To be the leading source of information and advice
What are the Rules of Conduct 2021?
5 rules of conduct:
1. Must be honest, act with integrity and comply with obligations
2. Maintain professional competency and ensure services provided by competent individuals
3. Provide good quality and diligent service
4. Treat others with respect and encourage diversity and inclusion
5. Act in the public interest, take responsibility for actions, act to prevent harm and maintain public confidence in the profession
What was the rationale for the new Rules of Conduct?
- A simpler structure (easier to understand)
- Clear examples with case studies
- Focus on respect, diversity and inclusion
- Understanding evolving technology
- Tackling global challenges
What is the governance structure of the RICS?
- Governing council has 21 members.
- Regulatory board, management boards and other boards/committees report to Governing Council
- 17 specialist groups covering property, land and construction
UK Structure:
- 4 National associations
- 10 regional boards
- Local associations
What was the Levitt review?
Independent review carried out Alison Levitt in 2021, on internal governance failures.
What was the Bichard review?
RICS commissioned Lord Bichard to undertake a further review.
The report made seven recommendations:
- Focus on public interest remit
- Maintain self regulation
- Increased focus on diversity and inclusion
- Greater support for regional boards
- Review of RICS’ effectiveness every 5 years
- A simplified governance structure
- Showing greater leadership on topical issues (ESG, climate change)
Recommended a quick and phased approach to adoption of clear responsibilities
What are the benefits of a firm being regulated?
- Confidence – for clients as firms are monitored by RICS
- Professionalism – firms have to provide clear, impartial advice
- Security – firms require CHP and PI
What is required in an RICS annual return?
- Types of business and staffing details
- Statutory regulated activities
- Nature of clients
- Complaints Handling Procedure
- PII details
- Confirm whether holding client’s money
What are the 3 levels of disciplinary action?
- Action by Head of Regulation
- Regulatory Tribunal
- Appeal panel
What steps can the head of regulation take?
- Serve a Fixed Penalty Notice
- Make a Regulatory Compliance Order
- CPD Sanctions
- Refer the matter to the Disciplinary panel
What actions can the regulatory tribunal take?
(CUCEP)
- Procedure is used for more serious breaches
- Panel involves non-RICS members
Penalties:
- Issue a compliance order
- Impose an unlimited but proportionate fine
- Impose conditions on future RICS registration
- Expulsion from membership
- Publication of the hearing
What is the RICS stance on social media?
As per guidance note ‘Use of social media, guidance for RICS members 2021’
- Remind members of high standards of professional behaviour and relates to rules of conduct
What are the 3 types of conflict?
- Party conflict – relating to work on the same instruction
- Own Interest conflict – relating to a personal interest
- Confidential information conflict – relating to work between two parties that is confidential
What RICS guidance relates to conflicts of interests?
RICS Global Professional Statement on Conflicts of Interest 2017
- Mandatory statement came into effect on 1st January 2018
- States: must not advise a client where a CoI is involved unless those impacted provide informed consent.
Benefits of being an RICS member
- Status – Credentials
- Recognition
- Market advantage – Competitive advantage
- Knowledge – Guidance, standards and CPD
- Network – Access to 125,000 professionals
Would you ever decline an instruction?
It may be appropriate to decline an instruction when:
- You are not competent to take on the work / outside limitations
- Do not have sufficient facts
- Proposed client will not sign ToEs / complete AML checks
- There is a conflict of interest
- PI cap cannot be agreed
- Advice is for a friend or a pro-bono basis (PI does not cover)
- Potential client is on the govt. sanctions list
- Would you want actions to be made aware to the public?
Why do you need PI insurance?
- Under the RICS mandatory requirements - RICS ‘Professional Indemnity Insurance Requirements Version 9.
- To protect clients against negligence when there is a duty of care breached
- All members must ensure that an appropriate level of PI insurance is in place