Ethics, Professionalism and Rules of Conduct Flashcards

Question

What are the various types of standards published by the RICS?

Answer 1

The RICS is currently currently undergoing a review of all their documents to categorise into professional standards and practice notes I am aware that previously this was: Professional statements (mandatory) Guidance notes (not mandatory, but promotes best practice) The APC (entry requirements) Data standards (ensuring software can meet RICS standards for confidentiality)

Answer 2

If there was ever a professional negligence claim, the courts may query whether that charted member acted competently and followed the standards and guidance set out by the RICS If this was not the case, the courts may decide that the works undertaken were professionally negligent

Answer 3

The RICS black book is a suite of guidance notes that defines good technical standards for quantity surveying and construction professionals

Answer 4

If 50% of their principles are RICS charted

Answer 5

Rules for the registration of firms is an RICS regulation that can be located on the website

Answer 6

Firm is eligible when 25% or more of the principals are RICS chartered If this criteria is not met, the RICS head of regulation could determine whether it is acceptable that a firm could be RICS regulated, if they believe that the firm would be suitably managed

Answer 7

A Locum is someone who is appointed to take over a sole practitioner should they be unable to work, for example, if they went on sabbatical or passed away A Locum could be another MRICS surveyor, or someone qualified to do my role

Answer 8

The locum would either be covered under the firms PII policy, or they could get their own cover

Answer 9

A set of rules and regulations under which the RICS conducts itself These can be located on the RICS website

Answer 10

Bye-law 1 - application and definitions Bye-law 2 - membership and registration Bye-law 3 - designations (MRICS / FRICS) Bye-law 4 - contributions to funds (payment for membership / subscriptions) Bye-law 5 - conduct (liabilities of members and firms, and powers of the RICS) Bye-law 6 - governing council, officers and staff (power of councils, duties of council) Bye-law 7 - subordinate boards, committees, and groups Bye-law 8 - procedure for general meetings Bye-law 9 - accounts and audits Bye-law 10 - general

Answer 11

Members must undertake 20 hours of CPD per annum, with at least 10 hours being formal Members must undertake CPD surrounding ethics every three years As an APC candidate, I have been required to undertake 48 hours of CPD per annum, at least 50% should be formal CPD

Answer 12

Professional training courses Learning the includes an assessment measure Seminars, webinars, lectures

Answer 13

Private study Private reading On the job training

Answer 14

Building blocks program Reading articles and policies Mock interview Question and answer hubs

Answer 15

Timing of the gift - is a project in an important stage, for example during tender Proportionality - how big or expensive is the gift? Could it be considered a bribe? Impartiality - would accepting this gift affect my ability to act impartially? Accepting this align with the RICS rules of conduct

Answer 16

There will be circumstances where I can accept gifts from clients and contractors, but I would always ensure to consider the timing, proportionality, and my ability to act impartially, before accepting a gift I would also always ensure to disclose any offered, declined or accepted gifts on my companies gifts and hospitality register

Answer 17

A gift register is a record of all gifts offered, declined and received from clients and contractors The gift register is used for employees within the company

Answer 18

A conflict of interest is a risk that professional judgement could be hindered

Answer 19

Party conflict - where an existing relationship with another party as identified (for example, brother working for contractor) Own Interest conflict - where works to be undertaken conflict with the interests of a member (for example, a large social housing development built behind my house) Confidential information conflict - where you have to disclose information to one client that you need to keep confidential for another client

Answer 20

Where the party who might be affected by the conflict of interest acknowledges the existence and risk of the conflict of interest, and still agrees to proceed with works

Answer 21

Members of the firm are required to issue a conflict of interest check email to members of the company, to see if there would be any conflicts of interest If a conflict of interest is identified, the client would be notified, in writing, about the detail of the conflict of interest, and whether or not they deem it significant to exclude us from the works

Answer 22

I would follow the Gleeds conflict of interest policy and the RICS professional standard for conflicts of interest This would include emailing details of the conflict to the risk management team to review whether we are able to continue with an appointment The risk management team deem acceptable to continue with an appointment, details of a conflict of interest would be emailed to the client outlining what the conflict is and ways in which the conflict would be dealt with internally, for example an information barrier

Answer 23

If the works include due diligence where we have undertaken another role on the project

Answer 24

A bribe is someone offering or providing a reward to gain commercial, contractual or personal advantage

Answer 25

The bribe react legally enforces the criminal activity associated with bribes It covers four main principles, including: Bribing someone Receiving a bribe Failure to prevent a bribe

Answer 26

P- Proportionality C- communication (educating staff) R- Risk Assessment D- Due diligence T- Top level commitment M- Monitor & review potential for bribery offences

Answer 27

Applies to British citizens, British associates with connection to the UK, and organisations that carry out business within the UK

Answer 28

I adhere to the legislation which is echoed in my companies anti-bribery policy My companies anti-bribery policy also includes those outlined in the RICS professional standard for countering bribery and corruption, money laundering and terrorist financing

Answer 29

They could face up to 10 years imprisonment and penalty of a fine

Answer 30

The process by which criminals conceal the origins of money associated with criminal activity

Answer 31

RICS members are legally obligated to submit suspicious activity to the national crime agency (NCA)

Answer 32

I am aware of the money laundering regulations 2017 which set out the requirements for businesses to analyse their potential exposure for money laundering or terrorist financing I am also aware of the proceeds of crime act 2002 which relates to the recovery and conversation of proceeds made from illegal activity

Answer 33

I would ask my client to pay the monies into a ring fenced bank account and agree a drawdown from that for payments for the works completed

Answer 34

Money could come from different sources and bank accounts Money transferred from third parties Large cash payments

Answer 35

Corruption is the abuse of entrusted power for private gain

Answer 36

Follow RICS professional standard Follow Gleeds anti-corruption policy Prevent, detect and report acts of corruption

Answer 37

A collection of independent businesses that fix the price of a good or service they provide, without competition from others

Answer 38

The solicitation, collection or provision of funds with the intention to support terrorist acts or organisations

Answer 39

A payment made to a public or government official that acts as an incentive to complete some action or process

Answer 40

Modern slavery is the illegal exploitation of people for personal or commercial gain

Answer 41

The modern slavery act 2015 This act makes it illegal requirement for organisations to address and report on modern slavery, and ensure all goods and services have been ethically sourced

Answer 42

Modern slavery may include: Forced labour Child slavery Forced marriage Human trafficking

Answer 43

Professional indemnity insurance covers the policyholder for the cost of legal action made against them in respect of financial loss due to negligence, error or omission of professional advice or services

Answer 44

Insurance can be obtained from an insurance provider in which the RICS have a list of approved providers on their website

Answer 45

It does not have to be through an approved provider, but the RICS requires that regulated firms must obtain their PI from listed insurer that has a credit rating by either: AM best, with a credit rating of at least B+ Standard and poor, with a credit rating of at least category BBB

Answer 46

The limit of indemnity is how much a business should be insured for

Answer 47

The firms turnover in the preceding year

Answer 48

Up to £100k = £250k LOI £100,001 - £200k = £500k LOI £200,001 + = £1m LOI

Answer 49

Uninsured access is the part of each claim that the firm pays themselves

Answer 50

Up to and including £10m = 2.5% sum insured or £10,000 (the greater of the two) Over £10m = no limit set

Answer 51

The firms turnover in the preceeding year

Answer 52

PI insurance must be adequate and appropriate PI insurance must cover all past and present employees PI insurance must be fully retroactive

Answer 53

Any one claim - entitled to full amount of policy for each claim In the aggregate - cost of each claim is deducted from the policy total. For example, if a claim cost £100,000, and the policy was £250,000, the remaining value on the policy is £150,000

Answer 54

Keep record of all communications, meetings and advice Follow RICS professional standards and practice notes Don’t advise outside scope of competence

Answer 55

Run-off cover is a form of PII which covers the business after they cease trading

Answer 56

The RICS states run-off cover should be in place for a minimum of six years, but cover must be adequate and appropriate for each firm so it may need to be longer than this

Answer 57

Run-off cover should be at least £1m in the aggregate policy for a period of six years, but the period may need to be longer to ensure it is adequate and appropriate for the firm Run off cover must be a fully retroactive policy

Answer 58

Understanding why clients complain Understanding how to deal with a complaint and escalation Highlights the importance of good record keeping, learning from experience and identifying training needs Includes appendices for claim processes and PI insurance

Answer 59

I would follow my companies complaints handling procedure which includes: Notifying the PI insurer as soon as possible of a potential claim Notify the complaints handling manager Contacting the complainant within seven days of their preliminary notice to inform them of my understanding Issuing a copy of the companies complaints handling procedure to the complainant Responding to the preliminary notification within 21 days to inform the complainant of the actions taken to rectify the issue Ensuring I do not dissuade the complainant from escalating their complaint to ADR, the surveyors ombudsman (for public members only, not corporations), or RICS dispute handling, should they still be dissatisfied

Answer 60

-Setting clear expectations in scope of services and appointment documents -Regular communication with client -Following up in writing for good housekeeping and records -Following company and RICS policies for conflict avoidance

Answer 61

I can’t provide a holistic overview of the potential loss for a client would suffer, as these records for potential cost incurred would be internal

Answer 62

If they provided the numbers, I would calculate on that basis and ensure I reply to the client in writing that these delay damages are calculated based on the costs they have provided Before undertaking this work, I would always seek advice from my employer and risk management team before calculating damages on behalf of a client

Answer 63

Loss of profits Cost of professional fees Rental of another premises Storage costs

Answer 64

Serious professional incompetence Failure to adhere to regulations and bylaws Convicted criminal Conduct liable to bring RICS into disrepute

Answer 65

Where company’s can obtain run off cover if they are unable to through the open market or their incumbent supplier

Answer 66

The person responsible for upholding the RICS standards within a company

Answer 67

The everyday contact for a person, whereby the RICS can get in touch about a company

Answer 68

- Members must comply with CPD regulations - Members must cooperate with RICS - Members must promptly provide all information requested by Standards & Regulations board

Answer 69

- Must publish CHP, including an ADR approved by RICS & maintain complaints log - Ensure all previous & current work is covered by adequate and appropriate PI - Firms with sole principal must ensure there are measures in place in the event of death, incapacity or sabbatical (Locum) - Firms must have RiCS designation on their business literature

Answer 70

- Byelaws are set by the Governing Council but they must be signed off by the Privy Council

Answer 71

- I could forecast my anticipated turnover for the next year and obtain the appropriate LOI

Answer 72

- Obtain through the Assigned Risk Pool - Open to all UK RICS regulated firms that are unable to obtain PII that meets the minimum requirements of the RICS

Answer 73

Each and every claim would always be a preferred option, but an aggregate plus unlimited ‘around the clock’ reinstatement can also be used. Aggregate + = claims are deducted from the policy limit, but once the policy is exhausted, it must be reinstated to its full policy amount

Answer 74

- Rule Nr 1: I do not take unfair advantage of others; this is demonstrated regularly by ensuring I act impartially when assessing valuations - Rule 2: I maintain my CPD and adhere to the RICS CPD policy - Rule 3: I always ensure I keep proper records by providing all advice in writing to clients to ensure an audit trail is available - Rule 4: I always treat others with respect and ensure everybody has the ability to speak when chairing meetings - Rule 5: IF it were to arise, I would ensure all complaints were dealt with in a timely manner

Answer 75

Sets out the professional obligations of members (Rule 1 - Professional Obligations including Obligations to RICS)

Answer 76

The Governing Council, but the Privy Council must sign them off to agree to the change

Answer 77

- It demonstrates compliance with Rule of Conduct 3 - Undertaking work, in a timely manner, with due care, skill and diligence.

Answer 78

- The Client would hold all the relevant information required to calculate the delay damages holistically - I would not have access to all these costs, so if I calculated the damages, it would not be reflective of the correct delay damages rate and therefore not a genuine pre-estimate of potential costs incurred should the project overrun

Answer 79

- Advice on VAT / taxes

Answer 80

To provide a simpler, clearer structure to which members and firms must abide

Answer 81

Try and resolve with my client initially, and if cannot be resolved, resort to my company’s CHP

Answer 82

- VAT - Services not included - Travel expenses