Ethics - Level 1 Flashcards
When was RICS founded?
1868
When did RICS get its Royal Charter?
1881
What do RICS Regulations and Bye-laws do?
Set out the governance of the Institution
How many members are in the RICS?
137,500
What is the purpose of the Bribery Act 2010?
Aims to prevent bribery in the UK and abroad
What are the different levels of membership?
- FRICS
- MRICS
- Associate Member of RICS
- Student/Trainee Member
How do you become a Fellow?
- 5+ years of experience at MRICS
- A leadership role
- Professional/technical achievement
- Academic achievement
- Raising the profile of the RICS
Who is the RICS CEO?
Justin Young
Who is the RICS President?
Ann Gray
How is the RICS currently governed?
By various internal councils, boards and associations
What is the Governing Council?
- Has 21 members
- Runs the RICS
- Provides management and strategic direction
Who reports into the Governing Council
- The Regulatory Board
- Management Board
- Various boards and committees
How many specialist professional groups are there? What do they do?
- 17
- Each board has an elected board and is responsible for outlining standards of competence and practice
What’s the UK Structure?
- 4 National Associations
- 10 Regional Boards
- Local Associations
What is currently going on with the RICS’ current governance arrangements?
- Currently under review
- A variety of new regulations were approved by Governing Councils in Nov 2022 following the Levitt Review (2021)
- There was a lack of clarity, structure and purpose of RICS governance arrangements
What is the role of RICS?
- To maintain the highest standards of education and training
- To protect consumers through strict regulation of professional standards
- To be the leading source of information and independent advice on land, property, construction etc.
Who is the RICS accountable to?
Both members and public
What was the reason for the Bichard review?
- To clarify the purpose of RICS, including its responsibility to act for the public advantage
- Make recommendations on its governing structure to deliver that purpose
- Provide proposals for the incoming leadership for the future of the institution
What are some of the recommendations from the Bichard review?
- Increased focus on D&I across the profession
- A new simplified, clear accountable governance structure
- Showing greater leadership on issues that matter most to society (ESG, Sustainability etc)
What are the benefits of becoming a member?
- Recognition and status of professional excellence by being a member of a globally respected organisation
- Market advantage as membership is a hallmark of high standards which gives client confidence
- Knowledge and network - high standards, professional guidance and network of 137,000 members
What are the benefits of regulation of firms by the RICS?
CPS
1. Confidence - for clients as regulated firms are monitored by RICS
2. Professionalism - firms will have to provide clear, impartial and expert advice
3. Security - firms have to have a recognised CHP, access to free independent redress and PII cover
What are the rules of the regulation of firms?
- If 50% of Principals at a UK firm are RICS members then it has to be regulated
- If at least 25% are RICS members then it can apply to be regulated
- Principals are sole practitioners/directors/partners or board members or anyone able to act autonomously without supervision at a firm
- Each firm must nominate a Responsible Principal
What is a Responsible Principal?
Someone in the firm who is obliged to ensure all reasonable steps are taken to ensure compliance with regulatory and RICS requirements and to report to RICS as required.
What rules came into play in regards to the use of the RICS logo?
- Can’t use ‘Chartered Surveyors’ in trading name
- only RICS members and firms can use the logo
What information is needed for registration?
- Type of business and staffing details
- Name of the Responsible Principal
- Statutory regulated activities
- Nature of clients
- CHP details and records
- PII details
- Whether the firm holds clients’ money
What are some current changes facing the RICS
- D&I
- Property and evolving technology
What is the differences between Code of Conducts and ethical standards?
- Ethical standards - governs decision making
- Code of conduct - governs actions
What do ethics mean to you?
It’s at the heart of being an RICS professional. Underpins how we approach situations and brings positive benefit to our client.
Why have the RICS updated their rules of conduct?
To provide clear, standard framework and to approach new risks and opportunities
What has now been added?
Rule 3 - behaviour added for firms to understand the risks and benefits of relevant technology
Rule 4 - to encourage D&I
What is Rule of Conduct 1?
Members and firms must be honest, act with integrity and comply with their personal obligations, including obligations to RICS
What is Rule of Conduct 2?
Members must maintain their professional competency and ensure services are delivered by competent individuals who have the necessary expertise
What is Rule of Conduct 3?
Members and firms must provide good-quality and diligent service
What is Rule of Conduct 4?
Members and firms must treat others with respect and encourage diversity and inclusion
What is Rule of Conduct 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 their profession
What are the mandatory obligations for members?
- Comply with CPD requirements: 20 hours, 10+ hours must be formal
- Cooperate with the RICS
- Promptly provide info requested by the standards and regulation board
What are the mandatory obligations for firms
- Publish a CHP which includes a ADR provider approved by the RICS, and maintain a complaints log
- All work to be covered by PII
- Cooperate with the RICS
- Promptly provide info requested by the standards and regulation board
What is the ethics decision tree?
An ethical decision-making framework.
Sets out questions to ask yourself when deciding how to deal with an ethical situation
What are some of the examples of questions on the ethics decision tree?
- Is it legal?
- If it was publicised on the media, would you be happy?
What other resources could you seek help from in decision marking for ethical situations?
RICS confidential hotline
Could you give me an example of a professional statement or guidance note that is relevant in your work and explain why?
- RICS Conflicts of Interest Professional Statement 2017 – because RICS members and firms must act to identify and prevent conflicts of interest unless they have informed consent by parties involved to proceed
- RICS Countering bribery, corruption, and terrorist financing Professional Statement 2019
What would you do if a client asks you to amend the value of a property?
Speak to client regarding concerns. Review my report and search for new evidence to support a change in value. Cannot change value unless evidence supports this.
Contravenes with Rule of Conduct – should not be improperly influenced by a client or provide misleading info. Opinion needs to be honest.
Contravenes with Red Book – must base value on verifiable information or reasonable assumptions
What would you do if you saw an inappropriate social media post from your colleague?
- Refer to the RICS – Use of Social Media guidance for RICS members 2021 to establish whether it is inappropriate
- If the post breaches the Rules of Conduct and undermines public confidence in the profession, report this to the RICS
- Also report to my employer
How long after you enrol on the APC should you qualify as MRICS?
6 years
How do you start a practice?
- Inform RICS (Complete firm details form)
- Send RICS your PII certificate
- Send RICS your CHP and appoint complaints handling officer
- Set up client money handling procedures
- Appoint Responsible Principal to contact RICS
o Register for regulation by Regulatory Board
o Log CPD
o Train staff
o Get a logo kit from RICS
o Ensure Annual Return is completed each year
What is the statutory compliance required for starting a practice?
- Register with HMRC and company’s house
- Appoint Money Laundering Officer
- Disability discrimination compliance (Equality Act 2010)
- Bribery Act- 2010 compliance
- Ensure insurance compliance for employer and public liability
Does a RICS firm just need to comply with statutory regulations?
No, it also needs to comply with the RICS regulations
What do you do if you close a practice?
Inform RICS
Inform clients
Return any client money held
Inform PI insurer and get run off cover
Retain a copy of all files for at least 6 years RICS recommends 15 max
What happens if you break the Rules of Conduct?
THREE disciplinary levels
1) Action by Head of Regulation
2) Regulatory Tribunal
3) Appeal panel
Why can a disciplinary procedure be triggered?
Allegation by a client or third party
Information received or established by the RICS
What can the Head of Regulation do?
Can initiate FOUR actions after initial investigation:
1) Serve a fixed penalty notice (relates only for breaches in the supply of info to the RICS)
2) Issue a Regulatory Compliance Order (low level breach –timeframe for breach of activities)
3) CPD sanctions
4) Refer you to the Disciplinary panel
Who are the Disciplinary Panel?
50% are lay members
What penalties are available for the Disciplinary Panel?
FIVE OPTIONS
* Issue a Compliance Order
* Unlimited fine per breach (must be proportionate to offence)
* Impose conditions for continued membership
* Expulsion for members or remove firm
* Require outcome to be published (e.g. Modus)
Who are the appeal panel and what can they do?
- 50% MRICS 50% laymen
- Hear new evidence and adjust penalty
What are the CPD requirements?
- 20 hours per annum (of which 10 must be formal)
- Every 3 years to do at least an hour on ethics
- Record all CPD online