Ethics Flashcards
(38 cards)
What is the RICS motto?
Est Modus in rebus
There is measure in all things
Current president of RICS?
Nicholas Maclean
What is the full name for the RICS Rules of Conduct?
Rules of Conduct, Global, October 2021
What is the purpose of the new Rules of Conduct?
Amalgamated the 2 separate documents - rules for Firms and rules for members. Produced to provide clear examples for both members and firms in 1 document
To protect the public, whilst upholding the standard
What are terms of engagement and why are they important?
Written agreements specifying and agreeing works to be carried out
Examples of what is included in terms of engagement?
- Parties
- Nature and scope of works
- Personnel
- Fee basis
- Complaints handling
What is an international standard?
High-level standard developed in collaboration with other relevant bodies
What is a RICS professional statement?
Mandatory requirements for RICS member and regulated firms
What is a RICS guidance note?
A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners
What is the RICS Code of Practice?
A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note
What is an RICS Jurisdiction Guide?
Offers local market details to support RICS standards, covering legislation, associations, and professional bodies, but is not guidance or best practice.
What does CPD stand for
Continual Professional Development
What is the importance of completing CPD?
To ensure a good standard of service can be provided, by providing diligent and up to date advice
What are the CPD requirement for both qualified and seeking qualification?
Qualified – 20hrs/yr @ 50% formal
Seeking – 48hrs/yr – 50% formal
3 year ethics certificate
Definition of Professional Indemnity Insurance?
Mandatory for surveyors and is to protect surveyors, clients and third parties against negligence claims when a duty of care has been breached, to reimburse incurred losses.
How do you calculate PII?
Based on turnover
1. Less than £100k = £250k
2. £100-200k = £500k
3. + £200k = £1mil
4. If no turnover – based off income forecasting – can adjust based off actual earnings
What are the RICS requirements for PII policy?
- Send certificate to the RICS annually
- Minimum of 6 years run off cover of £250k for past and present employees – RICS recommend 15 years
- Provide early notification to provider if a claim arises
How does run off cover work?
Run-off insurance is professional indemnity insurance which covers the historic liabilities of a business and its directors when the business ceases or is acquired.
What is FG’s PII
- £25mil – each and every claim
What is a COI?
A situation where a professional or firms independence, impartiality or judgement can be impaired
What RICS guidance covers COI’s?
RICS Global Professional Statement on Conflicts of Interest, 2017
3 types of COI’s
- Party v Party conflict
- Own Conflict
- Confidential information conflict
How should a COI be managed?
- All parties informed at earliest opportunity
- If viewed as can be managed through personnel separation and information barriers, letters of informed consent to be put in place to ensure parties are happy for you to act
What is client money?
Money received by a firm that does not belong to them
