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Mandatory Competencies (RP) > Ethics, rules of conduct and professionalism > Flashcards

Ethics, rules of conduct and professionalism Flashcards

1
Q

What is Rule 1 of the RICS Rules of Conduct? And give me an example of how you apply it?

A

Members and Firms must be honest, act with integrity and comply with their professional obligations including obligations to the RICS.

This rule is important when dealing with clients, such as at pre instruction phase where it is vital to assess whether any conflict of interest exists. Another example of applying this rule would be complying with professional obligations such as undertaking the required amount of CPD.

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2
Q

What is Rule 2 RICS RoC and how would you apply it?

A

Members and Firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.

An example where I have applied this rule in my day to day work would be where I come across a part of rural practice which I am less familiar when speaking with a client, which they want advice on. I would seek to refer to the relevant legistlation, case law or specific practice guidance before giving advice to the client and if I still felt I not have the appropriate level of expertise to advise the client, I would speak to a more experienced professional and advise under their supervision or pass the work to them.

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3
Q

What is Rule 3 of the RICS RoC and how have you or could you apply it?

A

Members and firms must provide good quality and diligent service.

At the outset of discussions with a prospective client, I seek to establish their needs and objectives for the instructed work and confirm these in written terms of engagement prior to undertaking the work and acting for them.

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4
Q

What is rule 4 of RICS RoC and how can it be applied?

A

Members and Firms must treat others with respect and encourage diversity and inclusion.

Being courteous when speaking with clients and colleagues + Treating inviduals with respect and not discriminating against others on improper grounds + inclusive culture within workplace.

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5
Q

What is RICS RoC Rule 5 about and how have you applied it in your everyday work?

A

Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

Responding to complaints made against member/firm in an open, honest and efficent manner. Responsible managment of profesiional financies + Take appropriate action where they consider breaches to rules of conduct have been made

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6
Q

Name some professional obligations (Appendix 1 RICS RoC)

A

CPD requirements
Cooperate
Info to RICS

Firms only
Clients money handling
Complaints handling procedure
PII
+ Rules for registration of firms

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7
Q

How is the RICS governed?

A

Not by government = self regulated internally monitored and inspected
Governance structure which is informed by the Royal Charter and Bye Laws
Privy council
Governing council manage and agree strategy for RICS
Boards and committees (forming the formal and discretionary bodies)
Regulatory Tribunal (independent - reports on activity and performance)

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8
Q

What is the purpose of the RICS?

A
  1. Regulate and promote the surveying profession
  2. Maintain the highest educational and professional standards
  3. Protect clients and consumers via a strict code of ethics
  4. Provide impartial advice and guidance
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9
Q

What professional groups are there within the RICS?

A

• Land
• Property
• Construction

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10
Q

What are RICS practice statements?

A

provides members with mandatory requirements in order to comply with the RICS bye-laws and regulations in the interest of maintaining the highest professional standards

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11
Q

What are RICS Codes of Practice?

A

documents approved by the RICS and endorsed by another professional body/stakeholder that provides recommended best practice to practitioners

Example = codes of measuring practice 6th Ed. May 2015

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12
Q

What are RICS Guidance notes?

A

provides users with recommendations for accepted good practice as followed by competent and conscientious practitioners

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13
Q

What are RICS information papers?

A

practice based information that provides users with the latest information and/or research

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14
Q

As a surveyor, why should you follow the guidance produced by the RICS?

A

If an allegation of professional negligence is made against a surveyor, the court is likely to take into account compliance with relevant professional standards published by the RICS in deciding whether or not the surveyor acted with reasonable competence.

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15
Q

What is the purpose of the Royal Charter/RICS constitution?

A

Changes a body from a collection of individuals into a single legal entity
Written description of the RICS’ powers (e.g. self-regulation) and obligations (e.g. advancement of knowledge, appointment of a Governing Council etc.)
Requires the RICS to develop the profession for the public advantage
Allows members to use the term ‘chartered’ in their job title

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16
Q

What are bye-laws?

A

A list of laws applied internally using powers granted by the Royal Charter

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17
Q

List the bye laws. If don’t know, where would you find them?

A

Bye-Law 1 Application & Definitions
Bye-Law 2 Membership & Registration
Bye-Law 3 Designations
Bye-Law 4 Contributions to Funds
Bye-Law 5 Conduct
Bye-Law 6 Governing Council, Officers & Staff
Bye-Law 7 Subordinate Boards, Committees and Groups
Bye-Law 8 Procedure for General Meetings
Bye-Law 9 Accounts and Audit
Bye-Law 10 General

RICS publish a document stating the bye laws which were most recently amended on the 13th March 2019 by the Privy Council. They determine how the RICS is run.

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18
Q

How is the RICS Governing Council elected?

A
  1. Elections are held every two years and are open to all FRICS, MRICS and AssocRICS members
  2. Comprises of members from world regions, specific countries, regions of England, the professional groups, Matrics and members as a whole
  3. All Members can vote in the whole membership category
  4. For geographical seats, only Members based in that geographical area may vote
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19
Q

How many RICS regional boards are there in the UK?

A

9

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20
Q

What is the BCIS and what is its relationship to the RICS?

A

Building Cost Information Service (BCIS) is published by the RICS
It provides independent cost and price information for key areas in the construction industry

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21
Q

What different types of professional guidance is published by the RICS?

A

Practice Statements
Codes of Practice
Guidance Notes
Information Papers

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22
Q

Do you have to comply with Practice Statements, Codes of Practice, Guidance Notes and Information Papers?

A

Practice Statements - mandatory
Codes of Practice - mandatory or recommended good practice (will be confirmed in the document itself)
Guidance Notes - recommended good practice
Information Papers - information and/or explanatory commentary

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23
Q

Who regulates members of the RICS and ensures they comply with the rules?

A

The RICS is a self-regulatory body, meaning members are not regulated by government but are internally monitored and inspected
The Regulatory Board helps regulate the profession, deciding on policy and overseeing the implementation of regulatory matters
The Conduct and Appeals Committee also help in regulating the profession

24
Q

What determines when a firm has to register with the RICS?

A

A firm must register for regulation by the RICS if it provides surveying services in the UK and at least 50% of its partners/directors are RICS members

NB: a firm can still register if at least 25% of its partners/directors is a member of the RICS

25
Q

What are the benefits of RICS regulation?

A

Quality assures competence through adherence to the rules of conduct
Enhances members’ professional status through providing confidence to consumers
Provides guidance, support and advice for members

26
Q

Name some of the RICS obligations for starting a new surveying business.

A

Register for regulation - no cost unless the firm will hold clients’ money
Ensure clients’ money handling procedures as per RICS guidance are in place if applicable
Obtain sufficient professional indemnity insurance (PII)
Adopt a sufficient complaints handling procedure (CHP)
Ensure processes are in place ensure staff are adequately trained and competent (including CPD provision)
Comply with the rules of conduct for firms
Appoint a Contact Officer designated to be the main liaison point with the RICS
Appoint a locum if a sole practitioner

27
Q

Name some of the statutory obligations for starting a new surveying business.

A

Comply with employment legislation (e.g. HASAWA 1974, Equality Act 2010)
Follow statutory policies for staff recruitment, contracts, hours, pay, holidays, illness, paternity/maternity, grievances, disciplinary, dismissals, redundancy
Comply with other legislation:
Data Protection Act 1998
Money Laundering Regulations 2007
Bribery Act 2010

28
Q

What are the turnover limits for professional indemnity insurance?

A

The minimum level of indemnity is based on the firm’s turnover in the previous year:

Turnover in previous year
£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 and above = £1million

29
Q

What are the legal requirements to sue for professional negligence?

A

A claimant will need to demonstrate that he or she is was owed a duty of care by the defendant professional, the professional breached the duty of care and the breach caused a loss to the claimant.

30
Q

What do you understand by the global professional and ethical standards?

A

1) Act with integrity – Being honest and straightforward
2) Always provide a high level of service – Always ensuring that your client receives the best possible advice, support or performance of the terms of engagement you have agreed.
3) Act in a way that promotes trust in the profession – Acting in a manner, both in your professional life and private life, to promote you, your firm or organisation you work for the profession in a professional and positive way.
4) Treat others with respect – Treating people with courtesy, politeness and consideration.
5) Take Responsibility – Being accountable for all your actions.

31
Q

What is the RICS Decision Tree?

A

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

32
Q

What is a conflict of interest?

A

Anything that impedes or might be perceived to impede an individual’s or firm’s ability to act impartially and in the best interest of a client

33
Q

As a qualified surveyor how much CPD are you required to complete each year?

A

• All members must undertake a minimum of 20 hours (10 hours formal - includes assessment measure) CPD each calendar year (January to December). Members must record their CPD activity online by 31 January.
• All members must maintain a relevant and current understanding of our professional and ethical standards during a rolling three-year period by completing 1 hour CPD every 3 years in relation to professional ethics.

34
Q

What would count as informal CPD?

A

any self-managed learning that is relevant or related to your professional role. This could include activities such as private study, on-the-job training, attendance at informal seminars or events where the focus is on knowledge sharing.

35
Q

What is meant by the term ‘maximum level of uninsured excess’?

A

The part of each claim the firm must pay itself.

36
Q

Provide three examples of a member class of the RICS.

A
  1. Chartered members – comprising fellows and professional members
  2. Non-chartered members – trainee surveyor or associate and student
  3. Honorary members – a person who does not practice as a Surveyor but is able to assist in promoting the objects of RICS by reason of his position and experience.
37
Q

For the purposes of regulation by the RICS, how would you define a firm?

A

‘Firm’ means:
• a company, limited liability partnership or other body corporate;

• a partnership;
• the unincorporated practice of a sole practitioner;
• a practice that is equivalent to any of the above in the part of the world in which it is established;
• a Regulated Practice Division

38
Q

When would you need run off cover?

A

For a minimum of 6 years
And for a minimum level of indemnity cover of £1m per year

39
Q

What is run off cover?

A

Professional indemnity insurance cover which comes into effect when you or your employees stop trading.

Importance highlighted - Merrett v Babb 2001 was a case which Babb had done a valuation as an employee of a company for a house purchased by Merret. Valuation later found to be negligent. The original company no longer existed. Court ruled Merrett could pursue the individual – Babb – for the losses

40
Q

What is PII and what is its purpose?

A

Professional Indemnity Insurance (PII):
• Protects firms against losses resulting from professional negligence, errors and/or omissions which cause financial loss to a third party

• Ensures a firm’s clients do not suffer financial loss which the firm cannot meet

41
Q

What should a PII policy contain?

A
  1. Must be on a claims made basis
  2. Must be on an each and every claim basis
  3. Policy wording is written on a full civil liability basis
  4. Underwritten by a listed insurer
  5. Covers past and present employees
  6. Run-off cover
  7. Minimum level of indemnity required by the RICS
42
Q

Explain the term ‘claims made basis’.

A

The policy at the time the claim is made will respond, not the policy in place at the time of the negligence.

43
Q

What does having the PII policy written on a full civil liability basis mean?

A

A full civil liability basis means if a claim isn’t specifically excluded, it’s included (as opposed to a ‘negligence only’ policy, where if a claim is not specifically included, it’s excluded)

44
Q

What should you do in case of a potential claim on your PII?

A

Must notify insurer in the event of:
1. An actual claim

  1. A written or verbal threat of a claim
  2. Any circumstance that the firm has reason to believe may result in a claim
  3. Any complaint notified via the firm’s CHP
45
Q

How can negligence claims be avoided?

A

• Good communication
• Clearly understand client’s objectives and confirm precise details

• Check you are competent to perform the instruction
• Undertake work in accordance with any relevant RICS guidance
• Keep up-to-date notes
• Be aware of changes in legislation
• Try and resolve any complaints as soon as possible

46
Q

What constitutes a bribe?

A

“giving of financial or other advantage with the intention to induce a person to perform a function improperly”

Or to reward that person for already having done so

47
Q

Name three offences under the Bribery Act 2010.

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign public official
  4. Failing to prevent a bribe
48
Q

What actions could a firm take to reduce the risk of bribery and corruption?

A

• Risk Assessment
• Top down approach
Proportionality

• Implement procedures
• Training
• Monitor and review
• Gifts and hospitality policy
• Controls in place e.g a robust accounting system
• Policy re consultants and commission

49
Q

What is a conflict of interest and what forms can these take?

A

A conflict of interest arises when a firm’s independence and impartiality is threatened due to the existence of a conflict between two clients.
3 types:

1) Party interest
2) Own Interest Conflict
3) Confidential Information Conflict

50
Q

How would you deal with a potential COI?

A

Consider the conflict and you should only seek informed consent in order to proceed with the instruction if you are satisfied that all of the relevant clients’ interests will be served by you doing the work.
The affected party can only give informed consent if the person explaining the position to them:

a) is entirely transparent about any material factors
b) is sure that the party affected understands what they are doing and is doing it willingly.

51
Q

Conflict of duty – information barriers – explain

A

If both clients agree in writing, giving informed consent, a firm can act for 2 parties where a conflict of interest exists, by creating an information barrier between the 2 agents acting for the respective clients. This should be operated as follows:
• The barrier must be robust enough to offer no chance of information passing between the 2 parties

• You must take reasonable steps to operate an effective barrier
• The surveyors must be physically separated with separate support teams
• All information regarding the instruction should be securely stored
• Keep a clear audit trail of the COI process
• The firm’s compliance officer must oversee all actions.

52
Q

What does the RICS recommend firms include in a Complaints Handing Procedure?

A

• Ensure the CHP has at least two stages – 1. Consideration of the complaint by a senior member of the firm or the firm’s designated complaints handler 2. If the complaint cannot be resolved, referral to an independent third party with authority to award redress
• Timescales for responding – Acknowledgement of the complaint within 7 days and a full response within 28 days

• Ensure complaints are recorded in a complaints log

53
Q

Do the RICS need to get involved in complaints?

A

The RICS will only become involved if the firm fails to respond to a complaint or prevents the client from gaining access to an independent redress mechanism

54
Q

Where would you obtain PI cover?

A

The RICS publishes annually a list of insurers who are listed to underwrite professional indemnity insurance policies of RICS member firms.

55
Q

Assigned risk pool

A

ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of the RICS, in the insurance market

ARP is collectively underwritten by all RICS Listed Insurers and managed on behalf of insurers and the RICS by Miller Insurance Services LLP

56
Q

What is a locum agreement and when do you need one?

A

A formal appointment of a trusted professional which should be agreed in writing.

Necessary for sole practitioners.

Mandatory Competencies (RP) (12 decks)

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