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Ethics and Mandatory Flashcards

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1
Q

Why do you want to become a member of RICS?

A

Gold standard

I want to be a member of a professional body which promotes integrity and professionalism, which is recognised and valued by clients. I want to give back to the industry and be able to assist in making the built environment better.

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2
Q

What is the RICS motto?

A

‘Est Modus in Rebus’ - translates to ‘There is measure in all things’

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3
Q

What is the role/key functions/mission statement of RICS?

A

To qualify and equip their members to offer the highest professional standards

Protecting and providing benefits to consumers by enforcing standards and codes of best practice

Provide impartial advice and guidance

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4
Q

The importance of professional ethics?

A

Act as an anchor to appropriate behaviours

Ensure consistency and transparency

Members want to show they are acting and behaving ethically for their own benefit and to promote the profession (demonstrates to members of public that we follow a set of rules and regulations which should give them some security)

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5
Q

When was RICS founded?

A

1868

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6
Q

What is a Royal Charter?

A

Awarded in 1881 by Queen Victoria, to maintain and promote the usefulness of the profession for the public advantage.

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7
Q

What is a Bye-Law?

A

A regulation made by a local authority or corporation

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8
Q

Give an example of one of the RICS Bye-Laws.

A

Bye law 1 – application and definitions.

Bye law 2 – membership and registration.

Bye law 3 – designations

Bye law 4 – contribution to funds.

Bye law 5 – conduct.

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9
Q

How many Countries and how many Members does the RICS operate in and have?

A

over 130,000 members and more than 140 countries

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10
Q

What is Lionheart?

A

A benevolent fund dedicated to providing support and financial aid to current and past members and their families.

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11
Q

What are the rules of conduct?

A

Rule 1: Members and firms must be honest, act with integrity, and comply with professional obligations. (Honesty, integrity and professional obligations)

Rule 2: Members and firms must maintain professional competence and ensure services are provided by competent individuals (Maintaining and acting within competence)

Rule 3: Members and firms must provide good-quality and diligent service. (providing good quality service)

Rule 4: Members and firms must treat others with respect and promote diversity and inclusion. (Respect and encouraging diversity and inclusion)

Rule 5: Members and firms must act in the public interest, take responsibility for their actions, and maintain public confidence. (Public interest, responsibility and public confidence)

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12
Q

When was the RICS Rules of Conduct issued and when did the rules become effect?

A

Issued in October 2021 and effective from 02 February 2022

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13
Q

What changes were made to the Rules of Conduct 2022?

A

Provide a simpler structure

Give clear examples

Focus on respect, diversity and inclusion

Respond to evolving technology

Emphasize of members expertise in tackling global challenges

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14
Q

What did the RICS Rules of Conduct replace?

A

Up until the 1st February 2022 there were 5 Global Professional & Ethical Standards

From 2nd February 2022 onwards the Global Professional & ethical standards have been consolidated within the New Rules of Conduct 2022

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15
Q

Why do we need the Rules of Conduct in the industry?

A

Knowing chartered surveyors have to follow and abide by rules, gives both clients and the general public greater confidence in the profession. They know we would face disciplinary action should we fail to comply with these rules.

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16
Q

What are the mandatory RICS requirements for member?

A

Members must comply with CPD requirements set by RICS

Members must cooperate with RICS

Members must promptly provide all information reasonably requested by the standards and regulation board (or those exercising delegated authority on its behalf.

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17
Q

Obligations Mandatory for RICS-regulated firms:

A

Must publish a complaints handling procedure

PII

A locum

Must cooperate with RICS

Provide information requested by the standards and regulation board

Display on their business literature in accordance with RICS published policy on designations, a designation to denote that they are regulated by RICS

Report under any matter that they are required to report under the rules of for the registration of firms

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18
Q

ow would you define ethical behaviour for a chartered surveyor?

A

Acting in accordance with the 5 RICS Rule of Conduct

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19
Q

What is the RICS decision tree?

A

A flowchart to help members decide how to act in difficult situations where their professional ethics may be at stake.

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20
Q

What factors does the RICS decision tree consider?

A
  1. Do You have sufficient Facts?
  2. Is it Legal?
  3. Is it in line with the RICS Rules of Conduct?
  4. Have you consulted with the appropriate people to make an informed decision?
  5. Do you have clear reasoning?
  6. Is your decision informed & would you be happy for your actions to be made public
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21
Q

What is the RICS Governance Structure?

A

Privy Council (Grants/awards Royal Charter)

Governing Council (Manage and agree a strategy for RICS)

RICS Board

Standards and Regulation Board

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22
Q

What are the 5 principles of better regulation?

A

(PACTT)

Proportionality

Accountability

Consistency

Targeting

Transparency

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23
Q

What is the role of the RICS?

A

The RICS is a global leading professional body that promotes and sets a framework of the highest standards in the property industry for firms and members. It is a gold standard of professional regulation that promotes public confidence in the profession.

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24
Q

President of RICS

A

was Justin Sullivan. Acting president Nicholas Maclean, OBE, RD, FRICS

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25
Who is the current president-elect of RICS?
Nicholas Maclean / Maureen Ehrenberg
26
Who is the CEO if the RICS
Justin Young
27
Who is the chair of the standards and regulation board?
Nigel Clarke
28
What is the structure of the RICS?
The Royal Institution of Chartered Surveyors has a hierarchical structure consisting of a Privy Council, Governing Management Board, Regional Boards and various committees and working groups.
29
Within the Governing Council, what are the four strategy seats?
R&D, Residential, Urbanisation and planning, Academia and Education, Capital Markets and Valuation, Land.
30
Approx how many member of the RICS?
Over 130,000 member globally
31
Levels of Disciplinary process:
Conduct committee (can serve a fixed penalty notice or make a consent order) Disciplinary Panel (can issue caution, impose a fine, expel) - This is for more serious breaches
32
COMPLAINTS HANDLING
RICS PROFESSIONAL STANDARD Complaints handling (July 2016)
33
Please can you talk me through Workman's complaints handling procedure?
If unable to resolve this matter in the first instance with a member of staff The CHP is accessible to everyone and should be provided with Terms of engagement Upon receipt of the complaint the firm will contact them within 7 days to note that the complaint has been registered on the complaints log and provide a formal final repone where possible. Within 28 days of receiving the complaint a final response will be provided or an update on the progress and timeframe to expect a final response (no later than 8 weeks for the date of the complaint) If dissatisfied, can contact an independent redress scheme (independent 3rd party) listed on CHP.
34
What would you do if receiving a complaint?
Acknowledge complaint and forward to the designated complaints handler Highlight the importances of informing our PII provider
35
What is the purpose of the RICS Guidance Note on Complaints Handling?
The RICS guidance note on complaints handling provides a framework for RICS professionals to handle complaints in a fair, transparent and effective manner. It aims to enhance the quality of service provided by the RICS professionals and maintain public confidence in the profession.
36
When was the RICS Guidance Note on Complaints Handling Issued and when did it become effective?
Issued July 2016 Effective July 2016
37
What is a complaints log?
Documenting complaint, what went wrong, what actions were taken, and any improvements to processes that would mitigate future risk of this complaint. Complaints log will help firms identify whether there are any patterns in complaints.
38
How do you ensure that the complaint handling procedure is fair and impartial?
Appointing an independent and impartial person to investigate the complaint, conducting a thorough and objective investigation, considering all the evidence and arguments presented by both parties and making an informed decision . The decision making process should be transparent and well documented to help mitigate against the need for referral to ADR.
39
CONFLICT OF INTERST
RICS PROFESSIONAL STANDARD Conflicts of interest (Effective 2018)
40
What are the 3 principle Conflicts of Interest types?
Party Conflict (a situation in which the duty to act in the interests of a client or other party in a professional assignment conflicts with a duty owed to another client or (party in relation to the same or a related professional assignment.) Own Interest Conflict (arises in any situation where your duty to act in the best interests of a client in relation to a matter conflicts, with your own interests in relation to that or a related matter) Confidential information Conflict (a conflict between the duty of an RICS member to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.)
41
What is your firms policy on Conflicts of Interest?
Anyone who finds themselves in a conflict situation must declare and disclose it for consideration by partners and the advisory board Immediately disclose all actual and potential conflicts they identify Avoid any situation that might give rise to an actual or potential conflict Withdraw from a situation that develops into a conflict or a potential conflict, until the situation has been considered and resolved Comply with the firms instructions and any controls imposed following the disclosure of a conflict of interest Monitor the actual and potential conflict identified and update the conflicts of interest database as necessary
42
How can you identify a conflict of interest ?
Before taking on new client or instruction, ask yourself if you ability to act in the best interest of your client could potentially be impaired by: Any financial interest A personal relationship Commercial relationship Interests of your firm If you believe your impartiality could be compromised in any way then it is likely that there is a CONFLICT OF INTEREST
43
Please can you outline how you would carry out a conflict of interest check?
There is internal conflict of interest database Only Partner in Charge can get access to this
44
In what circumstances could you proceed with an instruction?
If received prior informed consent from all parties in writing
45
What are the CPD requirements for RICS members?
All members must undertake a minimum of 20 hours CPD each calendar year (January to December). Of the 20 hours at least 10 hours must be formal CPD. The remainder can be informal CPD. Members must undertake learning on the RICS ethics on a rolling 3 year period. Members must record their CPD activity online by 31 January via the RICS on-line management system
46
How do you differentiate between different categories of CPD?
Refer to CPD decision tree
47
Examples of CPD activities members can undertake:
Courses , seminars Personal and informal learning Professional work based activities and training
48
What is Professional Indemnity Insurance?
PII protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered.
49
What is negligence?
Failure to provide the duty of care that is owed.
50
What is the purpose of PII for firms and individuals?
1. Protect firms from financial loss if they cannot meet the claim from their own resources 2. Protects the insured member or firm against the consequences of its liability to pay damaged to a third party for breaches of professional duty 3. Ensures that firms clients can recover their financial losses.
51
What are the minimum levels of indemnity?
Firms turnover in the preceding year / Minimum limit of indemnity (this is for each and every claim) £100,000 or less = £250,000 £100,001 to £200,000 = £500,000 £200,001 and above = £1,000,000
52
Minimum level of uninsured excess:
Limit of indemnity / Max uninsured excess Up to and including £500k = The greater of 2.5% of the sum insured or £10K Over £500K = 2.5% of the sum insured
53
What is run off cover?
Run-off insurance is a form of professional indemnity insurance (PII) providing cover for the past liabilities of a business once it has ceased trading
54
How long does the RICS require firms and individuals to have run off cover in place?
6 years
55
What is PII and why is it important to have it as a professional offering services?
Type of insurance that provides protection against claims of professional negligence, errors or omissions. It is important to have PI insurance as it provides a safety net in case a client or third party makes a claim against you for damages resulting from a mistake or error in your work. PII also provides peace of mind and confidence to clients, who are more likely to trust your services.
56
When does your insurer first need to know if a complaint was made against your firm?
This depends on your policy and specific agreement with the insurers. However, usually as soon as the complaints handling procedure is triggered.
57
What steps should a member take if they are unable to obtain the required level of insurance cover?
They should contact the RICS as soon as reasonably practicable to discuss their situations. RICS may be able to provide guidance of support to help the member find appropriate insurance cover.
58
What measures should be taken to try and avoid PI Claims?
Keep full and detailed records Don’t advise outside you area of competence Use RICS guidance
59
How many years after an instruction has been completed can a Professional Indemnity Insurance claim be made?
15 years
60
OWN PRACTICE
Rules for the registration of firms (Version 7) 2022 - Regulation
61
What you need to do if you intended to set up a practice?
Contact RICS for guidance (Inform RICS and register for regulation) Appoint a contact officer for all RICS communication Obtain PII cover and other relevant insurances (Run-off cover in case I decided to cease practice) Locum (A sole practitioner requires a locum. A locum is another professional who is appointed to ‘stand in’ for a surveyor if they are unable to work) Prepare Complaints handling procedure, Anti-bribery policy, Money laundering policy Use the designation 'Regulated by RICS' on all practice material
62
When must a firm register for regulation?
If the firm provides surveying services to the public If the firm is operating in Regulated A Area At least 50% of the firms principals are RICS Members
63
What are the registration eligibility criteria?
The firm provides surveying services to the public At least 25% of the firms principals are RICS members
64
What insurances would you need if you were starting up your own firm?
Professional Indemnity Insurance Employers Liability Public Liability Building Insurance of an office premises
65
How would you close down a regulated firm?
Inform RICS of closure Inform client, arrange handover, and return of client money Notify PII insurers and arrange run-off cover Keep files for a minimum of 6 years before safely and securely destroying (can be sued for negligence up to 15 years)
66
What info do registered firms have to send RICS annually?
An annual return (failure to do so results in fixed penalty); CHP details and records, PII details, training provisions etc.
67
What would you do if a client wants to pay you cash?
RICS states you are able to accept up to a Maximum of 10,000 euros in cash, but only on the basis you have the appropriate money laundering check and anti-money laundering procedures in place and you can verify the nature and source of where that money has come from. However, I would choose not accept cash.
68
What should you do if you believe there is a conflict of interest?
Be open and transparent informing all parties of potential conflicts of interest - offer to stand down if necessary Depending on the situation it may be manageable i.e. by having an information barrier Money Laundering and Anti-Bribery: Professional statement sets out mandatory requirements for RICS members and RICS regulated firms in relation to Bribery Corruption, Money laundering and terrorist financing (1st Sept 2019)
69
When deciding whether to accept or provide gift/hospitality consider:
The value of the gift Who is the gift being given to Is the gift hospitality reasonable and proportionate When is the gift being given? i.e. close to re-tendering
70
What are the rules around the RICS logo and ‘regulated by RICS’ designation?
Rules for the use the RICS logo and designation by firms, February 2022, Version 6 Only RICS firms can display the RICS logo The ‘Regulated by RICS’ designation must be displayed clearly on business literature Only registered firms are able to display the designation
71
Anti Bribery
Bribery Act 2010, makes it an offence for a UK national or person located in the UK to pay or receive a bribe, either directly or indirectly Professional standard: Countering bribery, corruption, money laundering and terrorist financing (2019)
72
How do you ensure that you comply with bribery legislation?
Ensure I follow my companies anti-corruption and bribery policy I never accept cash or cash equivalent All gifts and/or hospitality are registered on the gift/hospitality register to ensure transparent behaviour
73
How do you ensure you comply with your firms bribery and gift policy?
The giving or receipt of hospitality is acceptable if it complies with the law and is given openly and without the intention of influencing All gifts and hospitality must be registered
74
How would you keep Clients money safely and securely held?
Client monies kept separate and clearly identifiable with the work 'client' included in the account name Client money should be available on demand and should always be in credit Maintain client ledgers  
75
What is a bribe?
Something given in expectation of a change of behaviour.
76
What constitutes an offence under the bribery act?
Giving a bribe. Accepting a bribe. Bribing an official/foreign official. Not having systems in place to prevent bribery.
77
Legislation for money laundering
Proceeds of Crime Act 2002 (POCA)
78
Current challenges facing RICS
Diversity Price cutting Sustainability
79
Penalties for bribery
10 years imprisonment and or unlimited fine

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