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James' APC Revision > Ethics, Rules of Conduct and Professionalism > Flashcards

Ethics, Rules of Conduct and Professionalism Flashcards

1
Q

What is the RICS?

A
  • The Royal Institution of Chartered Surveyors was founded in 1868 and is now the world’s leading professional body for surveying
  • It promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure
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2
Q

When did RICS receive a Royal Charter and what does this mean?

A
  • RICS received a Royal Charter in 1881 from Queen Victoria
  • Requires RICS to ‘promote the usefulness of the profession for the public advantage in the UK and in other parts of the world’
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3
Q

Where are RICS’ international headquarters located?

A

12 Great George Street, Parliament Square, London

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4
Q

What is the motto of RICS?

A

Est modus in rebus (there is measure in all things)

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5
Q

Who is the RICS President?

A

Ann Gray (as of January 2023) (Andy Gray kekw)

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6
Q

What is Lionheart?

A
  • An independent charity ran by RICS professionals for RICS professionals
  • Services range from financial support to health and wellbeing packages
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7
Q

Why do you want to be a Chartered Surveyor (MRICS)?

A
  • RICS is the world’s leading professional body for surveying. By joining, I will get global recognition and become part of an international professional community
  • I will gain elite professional status, guidance and support, and will become part of promoting best practices in the profession
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8
Q

What is RICS Matrics?

A
  • Supports new members entering the profession
  • Works with RICS to grow the size and respect of the profession across industries globally
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9
Q

Can you give me an overview of RICS’ governance structure?

A
  1. Privy Council
    - Awards Royal Charter
    .
  2. Governing Council
    - RICS’ highest governing body
    - Sets RICS’ global strategy & ensures it fulfils its Royal Charter obligations
    .
    3.1 Standards & Regulation Board
    - Oversees entry into the profession
    .
    3.2 Management Board
    - Directs RICS affairs
    .
    3.3 Audit Committee
    - Monitors RICS’ financial reporting and risk management systems
    .
    & numerous other independently chaired committees
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10
Q

How does RICS ensure standards of professional conduct and practice are upheld?

A

RICS Rules of Conduct (2/2/22), which apply to all RICS members and firms

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11
Q

The RICS Rules of Conduct (effective 2/2/22) are based on RICS’ 5 professional and ethical standards. What are they?

A

S - Always provide a high standard of SERVICE
T - Act in a way that promotes TRUST in the profession
I - Act with INTEGRITY
I - Treat others with RESPECT
R- Take RESPONSIBILITY

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12
Q

Why were new rules introduced?

A
  • More simple, concise and easy to understand. Single document replaces old Rules of Conduct for members and firms, plus global ethical principles
  • Easier to apply to members and firms globally, across different cultures and legal systems
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13
Q

What are the RICS Rules of Conduct (effective 2/2/22)?

A

Members & firms must…

  1. be HONEST, act with INTEGRITY and comply with their professional obligations, including those to the RICS
  2. maintain professional COMPETENCE ensure services are provided by competent individuals with the necessary expertise
  3. provide GOOD-QUALITY and DILIGENT service
  4. treat others with REPSECT and encourage DIVERSITY and INCLUSION
  5. act in the PUBLIC INTEREST, take RESPONSIBILITY for their actions and maintain public CONFIDENCE in the profession
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14
Q

In the Rules of Conduct (effective 2/2/22), what are the professional obligations to RICS for members and firms under Appendix A?

A

RICS MEMBERS must:
- cooperate with RICS
- promptly provide all information reasonably requested by the Standards and Regulation Board, or those acting on its behalf
- comply with RICS CPD requirements
.
RICS-regulated FIRMS must:
- cooperate with RICS
- promptly provide all information reasonably requested by the Standards and Regulation Board, or those acting on its behalf
- publish a complaints-handling procedure, including an RICS-approved ADR provider and maintain a complaints log
- ensure all work is covered by RICS-approved PI cover
- make appropriate arrangements for work to continue should a sole practitioner become unable to work
- denote on their business literature that they are regulated by RICS
.
(- report to RICS any matter they are required to report under the Rules for the Registration of Firms)

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15
Q

Give 3 example behaviours that comply with Rule 1

A
  • Be open and transparent with clients about their fees and services
  • Not offering or accepting gifts, hospitality or services which could affect my impartiality
  • Not allowing conflicts of interest to override my decisions

(- Respect confidential information)
(- Don’t take unfair advantage of others)

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16
Q

Give 3 example behaviours that comply with Rule 2

A
  • Act within scope of competence
  • Supervise employees undertaking delegated work and ensure they have the resources to do it COMPETENTLY
  • Check subcontractors have the resources to do their work COMPETENTLY

(- Apply what was learned from past work to future work)
(- Develop knowledge throughout careers e.g. CPD activities)
(- Comply with evolving relevant legislation)

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17
Q

Give 3 example behaviours that comply with Rule 3

A
  • Understand client’s needs and objectives before accepting work
  • Complete work on-time with due diligence and in accordance with RICS technical standards
  • Communicate clearly with clients in a way they can understand

(- Follow QA processes)
(- Agree scope of services, limitations and timescales)

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18
Q

Give 3 example behaviours that comply with Rule 4

A
  • Treat others with respect and courtesy
  • Work cooperatively with others
  • Never discriminate against anyone for any reason

(- Check supply chains don’t involve workforce abuse e.g. modern slavery)
(- Firms develop an inclusive culture in their workplaces)

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19
Q

Give 3 example behaviours that comply with Rule 5

A
  • Question practices and decisions I suspect are not right, and raise concerns with others where I believe in good faith it is necessary to do so
  • Support those who have acted in good faith to report concerns
  • Respond to complaints promptly, openly and professionally

(- Report significant breaches of the Rules of Conduct to RICS)

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20
Q

Can you explain how you promote trust in the profession?

A
  • Always act in a trustworthy manner
  • Consistently provide good quality and diligent service to clients
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21
Q

Are you aware of any RICS guidance on the use of social media? What does it say?

A

[Regulation] Use of social media: guidance for RICS members, 2021

  • Essentially standards expected of members don’t change on social media
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22
Q

You attend a work social event and witness two junior colleagues acting in a way which could bring your firm into disgrace. What would you do in this situation?

A
  • I’d speak with my colleagues immediately and take steps to prevent reputational damage
  • I’d then address their actions formally in working hours
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23
Q

What are the various RICS professional standards and what is their status?

A

Professional statements (MUSTs) - mandatory requirements with details of interventions if these aren’t met

Guidance notes (SHOULDs) - non-mandatory requirements, recommendations of best practice

APC - requirements and guidelines for entry into the profession

Data standards - ensure technology and software can adopt RICS standards

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24
Q

Why does RICS publish guidance notes?
Do Chartered Surveyors have to follow them?

A

Guidance notes provide:
- recommendations on best practice in the profession
- advice to surveyors on how to complete certain tasks

Don’t have to follow them, but if a professional negligence claim is made against a member the courts will likely look at the relevant RICS guidance notes to determine whether the surveyor had acted with reasonable competence

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25
Q

What is the ‘Black Book’?

A

A suite of guidance notes published by the RICS that define good technical standards for quantity surveying

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26
Q

Why must you act within your professional capabilities/competence?

A
  • To avoid providing negligent service to my clients which could lead to a complaint or claim of negligence
  • To comply with Rule 3 of the RICS Rules of Conduct - to provide good quality and diligent service
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27
Q

What should an individual do to maintain a high ethical standard in their profession?

A
  • Follow professional body guidance on ethical behaviour
  • Help their company develop ethical ways of working
  • Note any unethical behaviour by others and address this with them where appropriate
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28
Q

What should employers do to create an ethical environment?

A
  • Include ethical standards in employee hiring and training
  • Include ethical evaluations in performance development appraisals
  • Promote CPD relating to ethics
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29
Q

What’s the difference between ethics and integrity?

A
  • Ethics: moral principles that govern a person’s behaviour
  • Integrity: the quality of being honest and having strong moral principles
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30
Q

What tools produced by RICS are available to help members make ethical decisions?

What sort of decision would you consult the tool about?

A

RICS ethics decision tree

Any ethical issue I may encounter as a professional

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31
Q

Are you aware of any rules associated with registering a Firm with RICS?

When is a Firm required to register for RICS regulation?

A

[Regulation] Rules for the registration of firms, 2022

3.1a) Firm provides surveying services to the public
3.1b) Firm operates in the UK
3.1c) At least 50% of the Firm’s Principals are RICS Members

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32
Q

In what circumstances are Firms eligible to register for RICS regulation? (under the Rules for the registration of firms, 2022)

A

4.1a) the Firm provides surveying services to the public AND EITHER,

4.1b) at least 25% of the Firm’s Principals are RICS Members OR,

4.2a) Head of Regulation is satisfied Firm will achieve this in a reasonable period of time OR,

4.2b) Head of Regulation is satisfied Firm is supervised by another RICS-registered Firm or Firms fulfilling 4.1 requirements

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33
Q

What is a locum?

A
  • A professional who is appointed to ‘step in’ for a surveyor when they are unable to work, e.g. illness, holiday, sabbatical, death
  • Typically another Chartered Surveyor, but can be a different trustworthy professional, e.g. an accountant

(required for a sole practitioner under RICS Rules of Conduct)

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34
Q

How does PII cover relate to locums?

A

Work undertaken by locums must be covered by PII, either through their own cover or the Firm’s PII policy

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35
Q

What guidance does RICS have on complaints handling? What does it say?

A

[Guidance note] Complaints handling, 2016

All RICS Firms must have a published CHP, including an RICS-approved ADR provider and maintain a complaints log

An effective CHP should:
- reflect the size and nature of the firm
- accessible to and understood by all members of staff
- reviewed at a senior level
- provide details of access to an RICS approved independent redress if the firm cannot resolve the complaint (redress for consumers should be free in UK)

36
Q

What is a complaint?

A

According to RICS’ complaints handling guidance note 2016, it is “any expression of dissatisfaction”

37
Q

What is alinea’s CHP?

A

Stage 1:
- Gives alinea the opportunity to fully review the complaint
- Receipt of the complaint will be acknowledged within 7 days
- A formal and full response will be provided within 28 days of the complaint being received

Stage 2:
- If unsatisfied or cannot agree on a resolution, complaint can be dealt with by a RICS-approved independent redress provider

alinea complaint’s handling officer: Mark Lacey

38
Q

Why does alinea have a CHP?

A

It is a requirement for all RICS firms. Also helps to find a resolution for unhappy clients;

39
Q

What is a Conflict of Interest?

A

Where there’s an actual or potential risk that the professional judgement of an RICS member or firm will be compromised when undertaking a professional assignment

40
Q

Has RICS published any information on Conflicts of Interest?

What types of conflict are there?

A

[Professional Statement] Conflicts of interest, 2017
.
1. Party Conflict
- The duty to act for a client conflicts with a duty owed to another party on the same or related professional assignment
.
2. Own Interest Conflict
- The duty to act for a client conflicts with the interests of that RICS member or their firm
.
3. Confidential Information Conflict
- The duty to provide information to one client conflicts with a duty to another client to keep that same information confidential

41
Q

Can you provide working examples of a conflict, or potential Conflict of Interest?

A
  • Working for both the developer and contractor on the same project
  • Acting as an expert witness where you/your firm has an interest in the outcome of the proceedings
42
Q

What is informed consent?

A

When a party who might be adversely affected by a Conflict of Interest acknowledges this but still agrees the RICS member or firm can proceed with the assignment

43
Q

What action should you take if a Conflict of Interest situation (or potential situation) arises?

A

Immediately notify the client of the conflict of interest in writing

44
Q

You are instructed to work on a proposed development which would require the removal of a nature reserve. You have very strong views on protecting the environment. What should you do?

A
  • Notify the client in writing of the potential Conflict of Interest
  • Ask myself could I work on the project without bias?
  • May need to respectfully decline the commission and offer to someone else in the business who could work without Conflict of Interest
45
Q

Would you accept a gift from your client or contractor?

A

I would not accept any gifts, hospitality or services because it could affect my perceived impartiality

46
Q

What things would you consider when assessing if a gift or hospitality is appropriate to accept?

A
  • Who it’s from
  • Timing e.g. just before tender award
  • Proportionality
  • Will it affect my impartiality or perceived impartiality?
  • Is it in line with RICS rules of conduct and professional standards?
47
Q

What is professional indemnity insurance?

A

Protects the policyholder against the cost of compensating clients for loss or damage resulting from their professional negligence

48
Q

Has RICS published any information on PII requirements?
What does it say?

A

[Regulation] UK Professional indemnity insurance requirements, 2022

  • RICS firms must ensure all work is covered by adequate PII cover that meets RICS’ approved standards
49
Q

What if a firm cannot obtain PII in the insurance market/open market?

A

Firm must register with the Assigned Risk Pool (ARP), which provides emergency cover for up to 2 years so that it can continue to practise

50
Q

What is the purpose of having professional indemnity insurance?

A
  • Protects the policyholder against professional negligence claims that they may not be able to otherwise afford
  • Protects firm’s CLIENTS as the firm can afford to compensate them
51
Q

What are the basis of cover on a professional indemnity policy?

A
  • ‘Any one claim’: covers up to the full limit for EACH individual claim made in an insurance period
  • ‘Aggregate’ policy: covers up to the limit for ALL claims made in an insurance period
52
Q

Are you aware of any case law surrounding PII/run-off cover?

A

Merrett v Babb (2001)

  • Babb completed a valuation as an employee of a company for a house purchased by Merrett
  • The valuation was later found to be negligent, but the company no longer existed and the PII policy had been cancelled
  • Court ruled Merrett could pursue Babb for losses
53
Q

What are RICS’ minimum limits of indemnity (for regulated firms)?

A

Firm’s turnover in preceding year –> Min. limit of indemnity

£100k or less –> £250k
£100k to £200k –> £500k
£200k+ –> £1M

54
Q

What is RICS’ maximum level of uninsured excess (the part of each claim the firm must pay itself) for regulated firms?

A

Firm’s turnover in preceding year –> Maximum uninsured excess

£10M or less –> the greater of 2.5% of the (PII) sum insured, or £10k
Above 10M –> No limit set

55
Q

What measures do you take to avoid professional indemnity insurance claims?

A
  • Follow RICS professional statements and guidance notes
  • Follow alinea’s company procedures and policies
  • Act within my scope of competence
56
Q

If you made a mistake, what would your insurance company expect you to do next?

A
  • Notify them ASAP
  • Comply with any conditions and procedures set out in the insurance policy
  • Advise the client on the error
  • Assess the level of mistake and take steps for correcting
57
Q

Assuming you are MRICS, how would you deal with the following situation: A friend asks for your help on a private house extension, they ask for technical advice, for free, outside business hours?

A
  • alinea’s PII wouldn’t cover me for private advice, therefore I would politely decline
  • I would also need to consider a potential Conflict of Interest (working for a friend)
  • I would suggest my friend contacts alinea during their business hours to discuss the commission
58
Q

What is run-off cover?

A

A form of PII which covers the historic liabilities of a business after it ceases to trade

Duration:
- If the contract is signed under hand it’s 6 years
- If the contract was executed as a deed then run off cover is 12 years

RICS RECOMMENDS 15 YEARS

59
Q

How long should run-off cover be in place?

A

RICS expects run-off cover to be maintained for a minimum of 6 years after a business ceases to trade

60
Q

What RICS guidance is there on handling client’s money?
What does it say?

A

[Professional Statement] Client money handling, 2019

RICS-regulated firms obligations:
- Keep client money safe
- Ensure client money accounts are used for appropriate purposes only
- Have the appropriate controls and procedures to safeguard client money.
- Client account must be separate from firm’s business account
- Client account title must include the word ‘client’ and the name of the firm
- Firm must be registered with either:
- RICS Client Money Protection Scheme for Surveying Services, or
- RICS Client Money Protection Scheme for Property Agents

ALINEA DOES NOT HANDLE CLIENT’S MONEY.

(Information to clients
- Firm must provide confirmation to the client that the money provided will be held in a client account, account details and confirmation that the firm has exclusive control over the client money.
- Advise clients that fees paid in advance for surveying services is not covered by the Client Money Protection Scheme.
- A copy of the firms written procedures for handling client money.

Receipts of client money
- Ensure all client money received is paid into a client money account promptly.
- If mixed monies is received ensure the client money is transferred to a client money account and the office money transferred to the office account promptly.
- Promptly attempt to identify the owner of any unidentified client money, if an owner cannot be identified transfer the money to a registered charity account after 3 years from receipt and all avenues of investigation have been exhausted);

61
Q

What is RICS CPD?

A

Continuing professional development is a commitment by RICS members to continually update their skills and knowledge in order to remain professionally competent

62
Q

What are the CPD requirements for APC candidates?

A

Minimum 48 hours CPD/year, at least 24 hours must be formal CPD

63
Q

What are the CPD requirements for Chartered Surveyors (MRICS)?

A
  • Minimum 20 hours CPD/year, at least 10 must be formal
  • Must be completed by 31 December each year and recorded online by 31 January
64
Q

How is CPD recorded once a surveyor is qualified (MRICS)?

A

Either on the RICS’ website or using the RICS CPD app

65
Q

What is the difference between formal and informal CPD?

A

Formal:
- Structured learning with clear learning objectives, e.g. professional training course

Informal:
- Self-managed learning relevant to your professional role, e.g. reading RICS Modus articles (or Construction Journals)

66
Q

What tools are available to determine if CPD is formal or informal?

A

RICS CPD decision tree

67
Q

What CPD have you done during your training period?

A

Formal:
- Lunchtime CPD sessions (internal & external speakers)
- In-house training e.g. Revit
- Graduate seminars

Informal:
- Reading RICS Modus articles

68
Q

How will go about selecting CPD subjects over the next year?

A

I will consider:
- Weaker areas where I can develop my knowledge
- ‘Hot topics’ that may be relevant over the next 12-18 months
- Current and future projects I’m working on and their requirements

69
Q

How do you keep up to date with topical issues?

A
  • Reviewing in-house research e.g. alinea’s economic week in review
  • Regularly review RICS’s website and Modus articles
  • Speaking with colleagues at work
70
Q

What are the sanctions for CPD breaches?

A

1st Breach
- Failure to record sufficient CPD they will be issued a Fixed Penalty caution which will remain on the member’s disciplinary record for 10 years

2nd Breach (within 10 years of receipt of caution)
- Fixed Penalty caution and fine of £150. RICS will also publish a list of members who are non-compliant for a second time. If the fine remains unpaid the member may be referred to a Disciplinary Panel

3rd Breach (within 10 years of receipt of caution)
- Potential referral to Disciplinary Panel which may result in expulsion from membership and likelihood of costs being awarded against the member

71
Q

What is a bribe?

A

Dishonestly persuade someone to act in one’s favour using a gift of money or other inducement

72
Q

What is the Bribery Act 2010?

A

Covers criminal law relating to bribery and contains 4 main bribery offences:

  1. Bribing another person
  2. Being bribed
  3. Bribing a foreign public official
  4. Failure by a commercial organisation to prevent bribery
73
Q

What are the 6 principles of the Bribery Act?

A

Government believes procedures put in place by firms wishing to prevent bribery on their behalf should be informed by six principles:

P1) Proportionate procedures - action taken should be proportionate to the risk and size of the firm

P2) Top-level commitment - senior members are best placed to ensure the firm is bribery-free

P3) Risk assessment - shows the extent of exposure to bribery (many firms will have little or no risk of bribery)

P4) Due diligence procedures must be applied to individuals performing services on behalf of the company

P5) Communication (incl. training) - employers must communicate their policies to those performing services, additional training may help raise awareness

P6) Monitoring and review - firms should monitor and review their procedures designed to prevent bribery and improve where necessary

74
Q

Who does the Bribery Act 2010 apply to?

A

Applies to:
- all British citizens and British associates with a connection to the UK
- organisations incorporated in the UK or that have carried out business in the UK

75
Q

What is your position for compliance with the Bribery Act 2010?

A
  • I follow the procedures in alinea’s anti-bribery and corruption policy which applies to me as an employee
  • I’d report any act of bribery to the National Crime Agency (or Serious Fraud Office)
76
Q

What are the potential consequences for not adhering to the Bribery Act?

A
  • Individuals: max. penalty of 10 year’s imprisonment and/or an unlimited fine
  • Firms: unlimited fine
77
Q

What is money laundering?

A

Concealing the origins of illegally obtained money, typically through transfers involving foreign banks or legitimate businesses

78
Q

How do you report suspicious money laundering behaviour?

A

Submit a Suspicious Activity Report (SAR) to the National Crime Agency

(if you suspect money laundering is taking place, you’re legally obligated under the Money Laundering Regulations to do so)

79
Q

A client asks you to take responsibility for making interim payments to the contractor. The client gives you £500,000 in cash to make the payments. What would you do?

(Past Q x2)

A

I would not accept the payment because alinea doesn’t handle client’s money. But if alinea did:

  • I would not accept cash, I would set up a bank account in the name of the client and alinea and would encourage my client to pay the money there (the bank is then responsible for checking the legitimacy of the cash)
  • If I had concerns about the source of the money (e.g. from illegal activity), I would submit an SAR to the National Crime Agency
  • Money would be withdrawn from the account as the works progressed
  • Any interest that had been accumulated at the end would be paid to the client
80
Q

What is corruption?

A

Dishonest or fraudulent conduct by those in power, typically involving bribery

81
Q

What is a price fixing cartel?

A

When independent businesses or countries act together as if they were a single producer so they can fix prices for their goods/services as there is reduced or no competition

82
Q

What is terrorist financing?

A

Providing funds to support terrorist acts or organisations

83
Q

What is a facilitation payment?

A

Paying a government official as an incentive for them to complete an action expeditiously to the benefit of the paying party

84
Q

What is modern slavery?

A

Illegally exploiting people for personal or commercial gain

85
Q

What is the relevant legislation for modern slavery?

A

Modern Slavery Act 2015

86
Q

Can you give some examples of modern slavery?

A
  • Human trafficking: the recruitment or movement of people for exploitation using violence or coercion
  • Forced labour: people are forced to work against their will under the threat of some form of punishment
  • Debt bondage: victim is tricked into working for little or no money to repay a debt. An employer or controller will use different tactics to trap the victim in an endless cycle of debt which can never be repaid and may even be passed on to their families (world’s most widespread form of slavery)
87
Q

How would you report modern slavery?

A

Call the modern slavery helpline or police

James' APC Revision (10 decks)

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