Ethics Level 1 Flashcards
(37 cards)
What are the 5 rules of conduct?
Rule 1 - Must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
Rule 2 - Must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Rule 3 - Must provide good-quality and diligent service
Rule 4 - Must treat others with respect and encourage diversity and inclusion
Rule 5 - Must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
What are the professional obligations for members?
- Comply with the CPD requirements by RICS
- Must cooperate with RICS
- Promptly provide all information reasonably requested by the standards and regulation board, or those exercising delegated authority on its behalf
What are the professional obligations for firms?
- Publish a complaints handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log
- Ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets standards approved by RICS.
- Firms with a sole principal must take appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Must cooperate with RICS
- Promptly provide all information reasonably requested by the standards and regulatory board
- Must display on their business literature, in accordance with RICS published policy on designations, a designation to denote they are regulated by RICS.
- Must report to RICS any matter that they are required to report under the Rules for the registration of firms.
What are the RICS requirements for APC candidates in terms of CPD?
APC candidates must complete 48 hours of CPD per year.
There must be a minimum of 50% formal CPD hours.
What are the minimum requirements for CPD for qualified members?
20 hours CPD per year
A minimum of 50% must be formal CPD
What are the key principles of the Bribery Act 2010?
- Proportionality
- Top-level commitment
- Risk assessment
- Due diligence
- Communication
- Monitoring and review
What are the four offences under the Bribery Act 2010?
- Bribing a person
- Being bribed / accepting a bribe
- Bribing a foreign public official
- Failing to prevent bribery
What does RICS countering bribery and corruption, money laundering and terrorist financing say about bribery?
Declare certain items to their employers including but not limited to gifts, hospitality, entertainment and expenses, customer travel, charitable donations and sponsorships.
Attend relevant training
Be familiar and act in accordance with employers policy
What does RICS countering bribery and corruption, money laundering and terrorist financing say about money laundering?
Keep a breast of current training offered by employer
Comply with their employers policy and process relating to money laundering
Keep reports of money laundering and terrorist financing activity confidential if in a senior management role.
What is the definition of a bribe?
The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.
What is customer due diligence?
Taking the appropriate steps to ascertain who the customer or client is.
Can you name some red flags in terms of bribery and money laundering?
- Not willing to sign the terms of engagement
- Wanting to pay in cash only or substantial amount (10,000 euros)
- Not willing to have background checks or provide identification
- Willing to pay over the market value for services
When was the RICS founded? When did it receive royal charter?
Founded 1868
Royal Charter 1881
Who is the president and who is the CEO?
President - Tina Paillet
CEO - Justin Young
What are the advantages of being an RICS member?
Status
Recognition
Knowledge
Network
Market advantage
5 Principles of RICS regulation?
Proportionality
Accountability
Consistency
Targeting
Transparency
Do you know what the Ethics decision tree is?
Yes, a series of questions to go through when you are asked to act in a certain manner.
Consider:
Legalities
consistency with RICS
Consultation with senior colleagues
Have clear reasoning
Would you want the decision to be made public?
What 3 steps do you need to undertake before accepting an instruction?
- Check if I’m competent to undertake the work.
- Ensure there are no conflicts of interest
- Confirm terms of engagement in writing
How should a fee basis be calculated?
Fee must be market based on ad-hoc basis with the client.
Why would you decline an instruction?
- Not competent
- Client won’t sign the terms of engagement
- You suspect fraud, money laundering etc
- Illegal or unethical
- Conflict of interest
- Insufficient facts
- PII cap not agreed
- PII cover not in place
Why do you need professional indemnity insurance?
To cover yourself/company if a claim is made.
Protect your company
Protect the client
How long should PII cover run for after the closure of a business?
- Mandatory 6 years run off cover
- RICS recommend a minimum of 15 years.
If a conflict of interest arises can you act for the client?
If you can prove the conflict would not influence you in your instruction and informed consent has been received from all affected.
Also, only when proceeding is in the best interest of all parties.
How do you avoid claims of negligence?
- Clear and precise terms of engagement
- Ensure competent to undertake work
- Undertake work in accordance with RICS standards and guidance notes
- Make detailed notes and take photos
- Keep up to date with market knowledge and legislation
- Undertake and record CPD
- Cap the professional liability excess on your PII policy in the TOE
