Ethics - Level 3

Question 1

What is the role of the RICS?

Answer 1

•Accredits professionals in the Industry
•Set, maintain, and regulate standards within the industry
•Provides advice to government and policy makers

Question 2

What are the 5 principles of RICS Regulations?

Answer 2

PACTT
1) Proportionality - Solutions to non compliance should be proportional to the misdemeanour
2) Accountability - RICS regulators must be able to justify their decisions
3) Consistency - Rules should be implemented fairly and consistently by regulators
4) Targeted - RICS regulators should focus on key problems
5) Transparency - RICS regulators should clearly define and communicate regulations to members

Question 3

How does the RICS maintain professional standards?

Answer 3

• By the 5 rules of conduct
• Updated and became effective in January 2022

Question 4

What are the rules of conduct for RICS members?

Answer 4

HPQDP

1) Members must be HONEST, ACT WITH INTEGRITY, and comply with professional obligations

2) Members must maintain PROFESSIONAL COMPETENCE, and ensure that services are provided by competent individuals with relevant experience

3) Members must provide good QUALITY AND DILIGENT SERVICE

4) Members and firms must treat others with respect and ENCOURAGE DIVERSITY AND INCLUSION

5) Members and firms must act in the PUBLIC INTEREST and take responsibility for their actions

Question 5

Why does the RICS have rules of conduct?

Answer 5

It sets the standards of professional conduct and practice expected of members and firms registered under the RICS

Question 6

What happens if a member contravenes the rules of conduct?

Answer 6

•Penalties (e.g Cautions, Fine, Removal of Registration, Expulsion)

Question 7

What are professional statement documents?

Answer 7

•Mandatory requirements for RICS members and firms
•Set out behavioural, competence and technical expectations

Question 8

What examples of professional statements are you aware of?

Answer 8

•Client Money Handling (2019)
•Conflict of Interest (2017)
•Countering Bribery and Corruption, Money Laundering, and Terrorist Financing (2019)
•Complains Handling (2016)

Question 9

What are RICS Guidance Notes?

Answer 9

• Documents that provide RECOMMENDATIONS our outline good practice

Question 10

What examples of guidance notes are you aware of?

Answer 10

•Management of Risk (2016) - provides risk identification and quantification techniques
•Design and Specification (2013) - provides guidance on understanding project briefs, managing design information and documents, identifying methods of change control

Question 11

What is the difference between a professional statement and a guidance note?

Answer 11

•Professional statements are MANDATORY for all RICS members and firms
•Guidance noted and RECOMMENDATIONS for good practice

Question 12

What is the biggest issue facing the RICS at the moment?

Answer 12

•Diversity - Gender and Race inclusion
•Access to the industry for people from all walks of life / backgrounds
•Levitt Review 2021

Question 13

What is your company’s gift policy?

Answer 13

•Business Development Director approval is required for entertaining business contacts over the value of £100
•Approval required for being entertained over £50 and from the MD if over £1,000
•Offering or accepting gifts from the government is prohibited
•Christmas gifts are shared with the rest of the company
•If in doubt, do not accept

Question 14

What is the RICS Gift Policy?

Answer 14

•Covered in the Countering Bribery, Corruption, Money Laundering, and Terrorist Financing Professional Statement
•RICS regulated firms must have a written policy on anti-bribery and corruption, and encourage transparency by implementing a register
•RICS members must declare gifted items to their employers

Question 15

Who is the CEO of the RICS

Answer 15

Justin Young

Question 16

What is the structure of the RICS?

Answer 16

Governing Council sits above both the 1) RICS Board and the 2) Standards and Regulation Board

Question 17

What is the Royal Charter?

Answer 17

•Means that the RICS has a seat on the privy council to advise the Crown
•Requires members to promote the profession for the public benefit

Question 18

How many members does the RICS have?

Answer 18

•140k members globally
•10k firms globally

Question 19

How do you become a member of the RICS?

Answer 19

•Demonstrate professional knowledge and skills
•Understand and commit to the RICS ethical standards

Question 20

What is Ethics?

Answer 20

•Study of moral standards and how they impact conduct

Question 21

What are the four levels of membership for the RICS?

Answer 21

•FRICS - Fellow
•MRICS - Member
•AssocRICS - Associate
•Trainee

Question 22

Why do you want to be a member of the RICS?

Answer 22

•Be part of an institution that promotes the highest standards and ethics within the industry
•Recognised as a professional
•Broaden my network and CPD opportunities

Question 23

What is the CPD policy for members?

Answer 23

•48 hours per year for APC candidates
•20 hours minimum recorded online per year
•10 hours must be formal, with clear learning outcomes and recorded online
•Each member must update their understanding of professional and ethical standards every three years

Question 24

What professional group boards are there within the RICS?

Answer 24

There are 18 professional group boards covering specific technical segments / services
• These offer networking, market insights and technical guidance
•E.g. Project Management Group / Dispute Resolution Group

Question 25

What are the three obligations for RICS members?

Answer 25

1) Comply with RICS CPD requirements 2) Cooperate with the RICS 3) Provide information if requested by regulation boards

Question 26

What are the seven obligations for RICS-regulated firms?

Answer 26

1) Publish COMPLAINTS HANDLING PROCEDURE 2) Ensure all work is covered by adequate PROFESSIONAL INDEMNITY COVER that meets RICS approved standards 3) Firms with a SOLE PRINCIPAL must make arrangements for their professional work to continue in the event of their incapacity to work 4) Must COOPERATE with the RICS 5) PROVIDE INFORMATION requested by the Standards and Regulation Board 6) Display in their business literature they are regulated by RICS 7) Report to the RICS any matters they are required to report under the Rules for the Registration of Firms

Question 27

What are the requirements of firms to be RICS registered?

Answer 27

•Adequate professional indemnity cover •Have a Complaints Handling Procedure •Security of Client’s money •Comply with Employment Legislation •Training Programme for Employees •Individual RICS professionals must carry out CPD

Question 28

When does a firm become eligible to be RICS registered?

Answer 28

• If they are providing surveying services to the Public • At least 25% of the Firms Principals are RICS members

Question 29

When is it mandatory for a firm to be RICS registered?

Answer 29

•If the firm provides surveying services to the Public •If the firm operates in regulated area a •At least 50% of the firms principals are RICS members

Question 30

How does the RICS monitor firms?

Answer 30

•Annual returns •Client accounts •Correspondence •Regulation board ensures members follow the rules

Question 31

What are the benefits of being regulated by the RICS?

Answer 31

•Reputation-ally beneficial •Practice globally recognised standards It also recognises that your firm / you: 1) Behaves ethically and acting with integrity / honesty 2) Has the required competencies to do the job 3) Manages conflict transparently 4) Safeguards the security of clients money 5) Manages finances appropriately 6) Provides adequate and appropriate indemnity for works 7)Handles complaints and disputes fairly

Question 32

What is the RICS Complaints Handling Procedure?

Answer 32

•A firm must have a CHP •It must include a redress system •Firms must have a CH Officer and a CH Log •CHP must be free of charge •Sole traders can’t deal with complaints themselves •Employees should understand your own CHP and know the process for dealing with complains •Time limit = 1) Acknowledge within 7 days 2) Substantive reply within a further 21 days 3) Second stage redress if the client is dissatisfied

Question 33

What is your company’s CHP?

Answer 33

•Inform line manager •Acknowledge complaint within 5 days •Formally respond within 14-18 days •Formally record and investigate •Internal lessons learnt to be held after

Question 34

What are the Principles of UK Law?

Answer 34

1) Statutory Legislation - Act of Parliament, Regulation, Bylaws 2) Common Law - Derived from previous judicial decisions of courts rather than written legislation 3) Criminal Law - Crown Prosecution for offences against society 4) Civil Law - Offences against an individual or other private party 5) Case Law - Relevant cases used to help a court make a judicial decision

Question 35

What examples of legislation are you aware of?

Answer 35

•Health and Safety at Work Act 1974 •Equality Act 2010 •Bribery Act 2010 •Data Protection Act 2018

Question 36

What is Professional Indemnity Insurance?

Answer 36

•An insurance policy that protects you against claims for loss or damage made by third parties as a result of the impact of negligent services you provided or negligent advice offered •Mandatory for Surveyors working practice

Question 37

What level of PI do firms need to hold?

Answer 37

•Up to 100k turnover - £250k •£100k - 199k - £500k •£200k - £1m

Question 38

What would you do if a Client gave you a bag of cash?

Answer 38

•Undertake due diligence - enquire where it came from •You can accept but you must register it with HMRC to ensure you are paying VAT, however only up to the value of £10k •Take advice from a senior •Consider the Bribery Act 2010

Question 39

What do you need to do if you set up a practice tomorrow?

Answer 39

•Notify the RICS •Register to be regulated as a firm •Obtain required insurances (PI, Public Liability) •Meet the requirement of the Rules of Conduct for Firms, including 1) H&S Policy 2) Equal Opportunity 3) CHP •Register on Companies House

Question 40

Is it appropriate to give advice to a friend?

Answer 40

•Not unless they are paying you for your professional services •Instead give names of other companies •Ensure I am working within my competence

Question 41

What is the Management of Risk Guidance Note?

Answer 41

•Brought in in 2016 •Provides recommendations on risk identification and quantification techniques

Question 42

What is the Stakeholder Management Guidance Note?

Answer 42

•provides guidance on how to approach stakeholder engagement, including planning strategies, relationship development, communication and early consultation

Question 43

What is the RICS policy on H&S?

Answer 43

•Captured in the Surveying Safely Guidance Note •RICS regulated firms must ensure they provide a 1) Safe Working environment 2) Safe working equipment 3) Safe systems of work 4) Competent Staff • 2019 version provided a new safe person concept - each individual assumes personal responsibility for themselves and those around them

Question 44

What is the Client Money Handling Professional Standard?

Answer 44

•Professional standard ensures three things: 1) Client Money is kept safe 2) Client Money accounts are used for appropriate purposes only 3) Firms have the right controls / procedures in place It requires RICS firms to: •Hold Client money in a seperate account •Registered with the RICS Client Money Protection Scheme •Up to date records are kept •Must be immediately available

Question 45

What is the Conflict of Interest Professional Standard?

Answer 45

•Defines a conflict of interest as a situation when the duty owed to a client conflicts with the duty to another client in relation to the same professional assignment •All conflicts of interest must be recorded

Question 46

What guidance does the RICS have on handling corruption?

Answer 46

•RICS Professional Standard on Countering Bribery and Corruption, Money Laundering and Terrorist Financing (2019) •Members must not accept anything that could constitute a bribe •Members / firms must report any activity they are aware of which breaches anti-bribery