Ethics Flashcards
(72 cards)
1
Q
How many Global professional and ethical standards are there?
A
Until 1 February 2022 there were 5 global professional and ethical standards
From 2 feb 2022 onwards the global professional and ethical stands have been consolidated within the new rules of conduct
2
Q
Whats the RICS motto?
A
Est Modus in Rebus.
There is measure in all things
3
Q
When was the RICS founded
A
1868
4
Q
How is the RICS Structured?
A
•The RICS was founded in 1868 with the Royal Charter being grated by the Privy Council in 1881
•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 determines the strategy for the RICS
• The regulatory board, audi committee and management board are beneath the governing council and execute strategies set by them
5
Q
What is rule of confuct Rule 1?
A
Members and firma must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
6
Q
What is rule of confuct Rule 2?
A
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
7
Q
What is rule of confuct Rule 3?
A
Memebers and firma must provide good-quality and diligent service
8
Q
What is rule of confuct Rule 4?
A
Members and firms must treat others with respect and encourage diversity and inclusion
9
Q
What is rule of confuct Rule 5?
A
Members and firms my act in the public interest, take responsibility for their actions and act to prevent harm and maintain the publics confidence in the profession
10
Q
What are the RICS 5 priciples of better regulation?
A
Proportionality
Accountability
Consistancy
Transparency
Targeting
11
Q
What is the Mission statement of the RICS?
A
• To qualify and equip members to offer the highest standard of professional services
•to promote and enforce standards
• to lead solutions to major challenges facing the build environment through professional expertise.
12
Q
What is the difference between RICS ethics and rules?
A
Ethics are a set of moral values
Rules of conduct are a framework that we work to
13
Q
What are the global professional and ethical standards?
A
- act with integrity
*always provide a high standard of service
*act in a way that promotes confidence in the profession
*treat others with respect
*take responsibility
14
Q
What are the profession obligations of members?
A
•members must comply with the CPD requirements set out by RICS being 20 hrs per calendar year with 50% being formal CPD
•members cooperate with RICS
•members must promptly provide all information reasonably requested by the standards and regulation boad, or by those delegated authority on its behalf
15
Q
What are the professional Obligations of Firms?
A
- Firms must publish a complaints handling procedure, including an alternate dispute resolution provider approved by RICS
- Firms must ensure that previous and current professional work is covered by appropriate and adequate professional indemnity cover approved by RICS
- Firms with a sole principle must make appropriate arrangements that their professional work will continue in the event of death, incapacity, absent from or inability to work.
- Firms must co-operate with RICS
- Firms must provide all information reasonably requested by the Standards and Regulations board, or those executing delegation on its behalf
- Firms must display on their litrature, In accorcance with RICS published policy on designations, a designation that denotes that they are refulated by RICS.
- Firms must report to RICS any matter that they are required to report under the rules for registration of firms.
16
Q
Why did the previous Rules of conduct change?
A
- The previous rules had been in place since 2007
- Following research and consultation with members, firms and members of public, the majority voted in favour of replacing the existing Rules of Conduct and separate Global Professional and Ethics Standards
- This was to provide a single document to enable greater clarity for RICS members and firms
- I also understand there is now greater focus on clearer example behaviours, understanding evolving technology and tackling climate change.
17
Q
Talk us through your understanding of the Rules of Conduct change?
A
- The rules of conduct Oct 2021 global practice statement will overhaul the previous separate document:
-Rules of conduct for members
-Rules of conduct for firms
-Global professional and Ethics Standards - Appendix A of the rules of conduct now contains the professional obligations of members and firms
18
Q
What are the professional obligations of members?
A
- Members must comply with the CPD requirements set out by RICS which requires 20 hrs of CDP for each calendar year, 10 hrs being formal CDP
2.Member must cooperate with RICS - Members must promptly provide all information reasonably requested by the Standards and regulations board, or those exercising delegated authority on its behalf
19
Q
What are the professional obligations of firms?
A
- Firms must publish a complaints handling procedure, which includes an alternate dispute resolution provide approved by RICS, and maintain a complaints log
- Firms must ensure that previous and current professional works is covered by the appropriate and adequate professional indemnity cover that meets the standards approve by RICS
- Firms with Sole Principle must make the necessary arrangements for their professional work to continue in the event of incapacity, death, absent from or inability to work.
4.Firms must cooperate with RICS - Firms must promptly provide all information reasonably requested by the Standards and regulations board, or those exercising delegated authority on its behalf
6.Firms must display on their business literature, in accordance with RICS published policy on designations, a designation that denotes that they are regulated by RICS. - Firms must report to RICS any matter that they are required to report under the Rules for registration of firms.
19
Q
Why does RICS have rules of Conduct?
A
- To provide a framework that we can work to and so the client knows her is getting a set level of service.
- As well as being an important tool for Institutions, the Rules of Conduct are also a useful professional guide for individual institution members.
20
Q
Your brother-in-law is a chartered surveyor. You find out that he is working outside the RICS Rules of Conduct. What do you doe?
A
- Verify the facts and confront him reminding him of his duties as a member of RICS
- I inform the RICS specifying the relationship to the person and any corrective actions which I believe my brother-in-law is committed to put in place
21
Q
In the case of a breach of the rules of conduct, what is the procedure?
A
- Not every shortcoming will necessarily give rise to proceedings
- A formal investigation by the head of regulations of RICS is the first step of the process.
- The RICS can request information and/or visit and inspect to investigate compliance
- Members must cooperate fully with all enquiries
22
Q
How can a disciplinary proceeding be triggers?
A
- Someone complaining to RICS
- An allegation by a client or third party
- Information recieved or established by the RICS
23
Q
What three actions can be imposed after the end of the investigation stage?
A
- Fixed penalty
- Consent order
- Disciplinary panel
24
What are Fixed penalties?
A fine by RICS
25
What are consent orders?
1. A written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach if the RICS rules.
2. 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
26
When is a disciplinary panel applicable?
1. they are used for more serious breaches of conduct
2. the panel will usually be held in public
3. The burden of proof is on the RICS
4. A balance of probabilities approach will be adopted
27
What sort of breaches would expulsion be suitable for?
1. Gross, persistent or wilful failure to comply with an RICS rules of conduct
2. Fraud, dishonesty, conviction of serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a clients money
28
What procedures must you follow if you are starting up a new business?
1. Contact RICS for guidance and obtain a company start up pack
2. Inform the RICS and register for regulation
3. Appoint a contact officer for all RICS communication
4. Prepare a complaints handling procedure
5. Obtain Professional Indemnity Insurance cover
6. Abide by the Rules of Conduct for Firms
7. Use the designation 'Regulated by RICS on the practice material.
29
Would you advertise you new company in the press?
Yes as long as it is in a trustful and responsible manner in line with Rules of Conduct for Firms
30
What insurance would you need if you were starting up your firm?
1. Professional Indemnity Insurance
2. Employer Liability
3. Public Liability
4. Buildings insurance of an office premises
31
What sort of information do registered firms have to send to the RICS annually?
1. It is called annual return and carried out inline
2.Failur to do so leads to fixed penalties
3. it includes:
-Type of business and staffing
-Nature of Clients
-Training provisions
-complaints handling procedures details and records
-PI insurance details
-Whether the firm holds clients money
32
What processes do regulated firms need to put in place when handling clients money?
1. Preserve the security of clients money which does not belong wholly to the company
2. RICS regulated firms that operate a clients account must:
-Set clear segregation of duties for employees
-A principle oversees the clients money account function
-Principles cannot override controls
-Competent and knowledgeable staff are to process clients
money with cover provided for long term absence
- Accounting systems and data must be secure
-Client money must be kept separate and clearly identifiable with
the work client included in the bank account name
-Clients must always have access to funds
-We must agree the terms and advise the client on the bank
details
-The account must not be overdrawn
-We must maintain client ledgers and provide a running balance
33
What is meant by the term negligence?
1. A duty of care is owed to all clients and 3rd parties using reasonable skill and care
2. If it is breached due to negligence, a claim may arise resulting in damaged being paid or PII claim
3.Negligence is a failure to provide the duty of care that is owed to the client
33
What are the different types of Client money Accounts?
1. General accounts hold money for more than one client
2. Discrete accounts reference a single named client
33
What do you do if you receive a letter of complaint?
1. I would acknowledge receipt and I would forward it to my firms designated complaints handler, as per our complaints handling procedure, providing additional information required.
2. I would also highlight the importance of informing out PII provide immediately.
34
What must the Complaints handling procedure include?
1. The RICS provides a model form
2. The process must include a redress mechanism
3. Details of the policy should be issued to the client with the terms of business
4. It must be clear, quick, transparent and impartial, and free of change within the first stage
5. Names and contact details of the nominated investigating person must be stated
6. The complaint must be investigated within 28 days
7. All complaints, their progress, and outcomes must be recorded
8. We must note the need to advise PI insurers of a complaint immediately.
9. The process must have 2 stages as a minimum:
-Stage 1 is where there. needs to be consideration of the
complaint by a senior member of the firm or complaints
handling officer
-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
34
Tell us about Merrit V abb case law?
1. This case dates back to 2001 and highlights the importance of having run-off cover in place
2. AA surveyor was sued for negligence by a former client
3. Because the surveying firm was no longer in existence therefore the individual surveyor was perused for damaged successfully
4. This caused a big shock in the industry and highlighted the need to ensure that run-off cover is in place for all previous employees
35
What limitation period are associated with underhand and deed forms of contrace?
6 years when executed underhand
12 years when executed as a deed
35
What is an independent redress scheme?
1. It is a consumer scheme designed to handle small issues that would be disproportionally expensive to take to court
2. If the scheme judges in favour of the complainant, it is binding
3. If it judges in favour of the firm, the complainant can escalate the matter to court
4. RICS firms must specify which redress scheme they want to use, it could be an ombudsman arbitration or sometimes adjudication
5. If the complaints related to large amount of money or if the complainant wishes so, he can take the matter to court.
36
What is the Clients money protection scheme?
1. This is a money protection scheme operated by the RICS
2. It contains provisions for any member of the public to be reimbursed their direct loss of fund when using an RICS regulated firm
3. This is provided through an RICS insurance policy.
37
What is the purpose of the joint name on a client account?
For the purpose of duel authorisation
38
What are the continuous profession development requirements?
1. members must undertake and record appropriate lifelong learning
2. On request by the RICS they must provide evidence that they have carried out the CPD to maintain and improve their levels of professional competence.
39
How many hours of CDP must you do?
1.A minimum of 20 hrs CPD must be achieved per calendar year, of which 10 hrs must be formal.
2. Members must undertake learning on the standards expected around RIC Ethics on a rolling 3-year period
3. All CDP's must be recorded via the RICS on-line management system
40
What sorts of activities are included in CDP?
1. It must have a clear learning objective relevant to my role to count as CPD
2. Formal CDP can be classed as web based training with structured assessments, formal seminars, providing training to others where research and preparation is required.
3. Informal CPD is classed as private reading, internal CPD's and on the job shadowing.
41
What types of articles do you read?
My Employers research and development team send us weekly digests of the relevant press and I request copies of articles of interest.
2. I also read the RICS journals ( Modus, construction Journal, RICS regional Magazine)
3.I also keep up to date via the RICS website.
42
What recent articles have you read from the RICS?
43
How do you keep up to date with topical issues?
1. I am on the mailing list for several CDP provides
2. My employers Learning and Development team send us weekly digests of the relevant press and I request articles of interest
3. I also exchange industry articles and relevant information with colleagues
4. I follow updates on the RICS website
5. I undertake regular web research on key topics relevant to my field of surveying.
44
What is your CDP strategy?
1. I meet with my manager twice a year to review career development plan and objectives
2. I build my CDP strategy around these objects
3. I am currently looking to go to the next level in my career so I have requested to shadow on the tasks I am lacking on.
4. I also frequently browse the employers iLearn portal to identify what courses are being offered and register for any of relevance to my field.
45
What doe PII stand for?
Professional Indemnity Insurance
46
What is the purpose of PII?
To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, error or omission
47
What benefits does PII provide for the professional?
1. The professional is protected from financial loss
2. The firm does not have to meet the claim from their own assets and resources.
48
What benefit does PII provide the client?
They are able to recover financial losses
49
On what basis is it underwritten in the UK?
On a claims made basis
50
What does "on a claims made basis" mean?
The insurance policy that is in place at the time the breach is discovered is responsible for providing the indemnity, not the insurance policy in place when the breach was made.
51
What are the requirements regarding PII se by RICS?
1. The policy cover must be made on 'each and every' claim basis
2. The RICS sets out the minimum level of indemnity
3. The RICS sets out the maximum levels of uninsured excess
4. run off cover must be in place for at least 6 years
5. The policy should include cover for past and present employees, directors and partners.
52
What measures should be taken to try and avoid PI claims?
1. Keep full and detailed records of meetings and conversations
2. Record recommendation and advice given
3. Use proper letters of engagement, scope of services and terms of engagement
4. Don't advise on specialism outside of your field of experience
5. Use RICS guidelines
6. Avoid poor management and excessive workloads
53
Id you made a mistake in your cost plant, what would your insurance company expect?
For you to notify them and comply with any conditions and procedures set out in the insurance policy.
54
If an estimate prepared by a QS is incorrect, can the client claim damages?
1. An estimate that is incorrect in itself will not provide the client with the right to redress
2. The client must demonstrate that the QS warranted the accuracy of the estimate or that it was incorrect due to lack of reasonable skill and care
3. It could have been incorrect due to reasons outside their control for example market conditions or an item referred to in their exclusions.
55
How can you limit your liability when agreeing terms of appointment with a client?
1. Base the appointment on reasonable care and skill rather than fitness for purpose which is more onerous
2. If the clients requirements are performance based, this may imply fitness for purpose. It is advised to request a clause limiting the appointment to reasonable skill and care only
3. Run off cover must be in place
4. Execution of the appointment under hand will result in a reduced liability period of 6 years instead of 12.
56
What are the main elements included within a fee proposal?
1. Terms and conditions
2. scope of service
3. exclusions
4. assumptions
57
If you put together a fee proposal, but a couple months into the job you realise that you have under forecasted your resources, would you go back to the client and ask for more money?
1. If project requirements such as service, scope or value of the project has increased then I would to back to the client and request a fee increase
2. If the scope of works had remained the same, this highlights a mistake within our fee bid and the additional work would need to be carried out without reducing the level of service being offered and without requesting additional fees from the client.
58
Once you and your client agreed the service that are to be provided verbally, what would you do next?
Follow up with a formal letter which includes the terms and condition, fee and scope of service that are to be provided.
59
If the client gives you a lump sum fee before going on holiday, what would you do?
I would place the funds in a separate, identified client account and agree a drawdown of monies against the service being provided with the client
60
Tell me what you understand about conflicts of interest?
1. A conflict of interest is where someone in a position of trust has a competing personal or professional interest making it difficult for them to fulfil their duties impartially.
2. An existing relationship will result in reduced impartiality and Chartered Surveyors have an obligation to make clients aware of this and if necessary, decline work opportunities where a conflict of interest occures.
61
How could the conflict of interest be managed internally if two separate departments were working for the same client?
1. I could put in place procedures to ensure exclusive staff
2. This would avoid any cross over of information between departments
3. U would also ensure that there are separate communication lines into the client
4. Separate geographical locations and secure office and data storage would also need to be provided.
5. Staff could also sign up to confidentiality and non-disclosure agreemnts
6. I would also need to monitor the potential conflict and keep the client updated on progress.
62
If the client was insistent that you worked for them despite an existing conflict of interest, how would you proceed?
1. I would check the clients understanding around the conflict of interest
2. I would them make the client aware of the potential for reducing impartiality
3. If they were still insistent on appointment, i would seek a letter of instruction from the client to continue
4. Following the appointment, i would agree working procedures to manage the conflict of interest with the client and the teams involved.
63
What are the main principles of the Bribery Act?
1. The offenses are:
-Making a bribe
-Receiving a bribe
-Bribery of a foreign public official
-Failure of a corporate entity to prevent bribery
on its behalf
2. The legislation applies to all UK entities and includes associated persons for example sub-consultants and external advisors.
3. There are six principles of prevention companies should put in place:
3.1. Proportionate procedure
3.2. Top level commitment
3.3. Risk Assessment
3.4. Due Diligence
3.5. Communication
3.6. Monitoring and review
64
Under the Bribery Act, under what circumstance is a facilitation payment permitted?
1. The only circumstance in which it is ok to make a facilitation payment is when you are under duress
2. for example if there is a real and present or danger to "life, limb or liberty"
3. If you or you companions are under immediate physical threat
4. You should put safety first, make the payment and report the matter immediately
5. Or as soon as is practicable to your manager or your ethics compliance contact.
65
You are attending a Main Contractor organised business conference where it is announced you have been randomly selected as the winner of this months prize draw. Its and i-pad air. How would you act in this scenario?
1. I would be extremely uncomfortable accepting the prize in this scenario
2. The prize is of significant value and could be interpreted as a bribe
3. Furthermore due to working on a project with the Main Contractor at the time of this scenario, accepting the prize would have been highly inappropriate and could be interpreted as having an affect on my business conduct during the project.
4. I would respectfully decline the prize and suggest that this is made as a charitable donation to a charity of the contractors choice
5. I am aware that bribes are commonly distributed as random prizes and due to the scenario of this incident, I would report this to my line manager.
66
You receive and invite to attend the Theatre with some members of your project team but they dropped out due to illness at the last minute, would you still attend?
1. In the first instance i would declare this hospitality on my companies gifts and hospitality register.
2. Assuming the invite was approved and I was authorised to attend, I would need to decline the invite due to the project team dropping out.
3. Since they wont be present, this will not be a genuine business event
4. Consequently, I would decline this hospitality at the project teams expense.
67
A Contractor invites you to lunch to a restaurant and advises they've toy 2 Michelin stars and a wine list second to non. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?
1. Going to what sounds like a lavish lunch paid by a bidder in the middle of a tender process is against company policy and could be an offence under the UK bribery act
2. If this were the first time, it would be ok just to decline and explain that such an invitation is inappropriate.
3. However, if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannot put in writing, so we should report this infringement.
