Ethics, rules of Conduct and Professionalism Flashcards

Question

Explain your understanding of the New Rules of Conduct, Rule 1

Answer 1

Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS. Professional obligations are listed in the appendix of the rules of conduct and include things like firms having adequate and appropriate PI and complaints handling procedures and cooperating with RICS and providing information when requested. For sole principals to have an agreement in place that ensures their practice can continue in the event of ill health or death. Behaviours include – - not misleading others by their actions or omissions or being complicit in the actions or omissions of others. - Identify conflict of interest (actual or potential) to enable appropriate decisions to be made on whether to accept work and identify throughout an assignment. - Avoiding conflicts of interest, using money entrusted to you by clients properly and keeping it safe, and not facilitating financial crime like money laundering and bribery.

Answer 2

Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise. Maintaining your competence and understanding and staying within the limits of it are important elements of professionalism. The behaviours for this rule include ensuring that services provided by employees and contractors, as well as you as a member or your firm, are entrusted to competent people. Maintain competence like reflecting on professional practice, planning, undertaking and supporting continuing professional development and staying up to date with the relevant law and technical standards.

Answer 3

3. Members and firms must provide good-quality and diligent service. The behaviours under this rule set out some of the basic expectations clients would have about good service including understanding of their needs, clear contracting including timescales and fees, good communication and recording of work. Openness about referral fees and commission, handling data carefully and considering economic, social and environmental benefits when providing advice. Surveyors will demonstrate that they have considered the long-term effects of any work being undertaken and will be encouraging clients to take a sustainable approach that balances economic, social and environmental benefits. This is therefore included in behaviour 3.10.

Answer 4

Members and firms must treat others with respect and encourage diversity and inclusion. Respect for everyone, not just clients or colleagues. The behaviours cover not discriminating for improper reasons like race, sex or religion; checking that supply chains are free from modern slavery or unfair labour practices; and developing cultures that support and give fair opportunities to everyone regardless of differences.

Answer 5

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. Taking responsibility for your actions, speaking up when you find evidence of wrong-doing, and supporting others who speak up. There are also behaviours about complaint handling and ensuring that statements on social media and other public forums do not damage public confidence in the profession.

Answer 6

- To provide a framework that we can all work to and so the client knows they are getting a set level of service - An important tool for the institution, the rules are also a professional guide for individual members. Rules of Conduct are core standard of behaviours for RICS members and firms, they make it clear to the public the high standards that professionals are expected to meet and are a benchmark against which complaints and concerns are measured.

Answer 7

- Not every shortcoming will necessarily give rise to proceedings. - First step is a formal investigation by the Head of Regulations of the RICS - RICS can request information and/or visit and inspect to investigate compliance - Members must cooperate fully with all enquiries.

Answer 8

- Someone complaining to RICS - An allegation by a client or a third party - Information received or established by RICS

Answer 9

- Fixed penalty (a fine by the RICS) - Consent order (written agreement between the RICS and a member/firm concerning a disciplinary issue on a breach of the RICS rules. Can require the member to take certain corrective actions, or restrain them from taken certain actions for a specified amount of time and may require to pay a fine or costs. - Disciplinary Panel used for more serious breaches of conduct, panel usually held in public, burden of proof is on the RICS, balance of probabilities will be adopted

Answer 10

- 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. - E.g. Own interest conflict: a personal conflict (e.g. family member as a tenderer)

Answer 11

- Party Conflict - acting on both sides of a transaction - Own Interest Conflict - relating to a personal interest - Confidential Information Conflict - relating to work between two parties which is confidential

Answer 12

I have not yet experienced a COI but I would follow the Motts COI process: * Discuss - talk to my line manager for a personal conflict or the appropriate manager for an organisational conflict. * Disclose - Use the new, confidential COI tool to disclose and create a record of it. * Manage - Agree management actions with your line manager or the appropriate manager (and client/funding body where appropriate) and record in the COI tool. * Monitor - Review and update the disclosure on a regular basis (at least annually).

Answer 13

DECLARE - ADVISE > EITHER - INFORM or - INFORMATION BARRIER - Members must declare any potential conflicts of interest (personal or professional) to relevant parties. - Advise client to seek independent advice on the conflict - Then either: 1. Informed consent (willingly given, full understanding) - can use information barrier to prevent confidential information passing between parties. 2. Don't proceed with the works

Answer 14

- Royal Institution of Chartered Surveyors

Answer 15

- Awarded in 1881 by Queen Vic, “maintain and promote usefulness of the profession for public advantage” - RICS is a Royal Charter body. - Royal Charter requires RICS to act in the public interest. - Under the Royal Charter, RICS’ governing body is the Governing Council, which is responsible for approving RICS strategy and vision, overseeing the effective delivery of the strategy’ as well as standards and regulation

Answer 16

- Dedicated CPD section page on the RICS’s website for chartered members to record their CPD hours.

Answer 17

- They have to renew their ethics test and carry out CPD that is related to ethics

Answer 18

- Reduced size of Governing Council to a minimum of 25 seats, with 15 geographical seats - A new Chair of the Governing Council will act for up to 6 years - President will focus on ambassadorial duties and continue to be elected on an annual basis

Answer 19

Disguising money to appear as form of legitimite source - Money laundering is legitimising the proceeds of crime. - In the UK there is an obligation to report concerns about money laundering.

Answer 20

Always provide a high standard of service – I worked within my scope of competence, I was tasked in checking for novation clauses for a client. I did not go beyond my knowledge and did not provide legal advice when there was no novation clause. Treating Others with Respect – I treat everyone equally and make sure I talk in an all inclusive language, reducing the amount of abbreviations, but when required explaining what abbreviations when I first use them around them.

Answer 21

- I can attend but I insist that I pay for my own lunch. MM has a very strict no gifts policy which I always adhere to.

Answer 22

- Only if it was specifically mentioned in your ITT as a grounds to disqualify them

Answer 23

- Firstly, I would inform him to go through my company as my PII would not cover any advice I gave him. - I would also be referring him to my company as there would be a conflict of interest between us.

Answer 24

- I would inform the client and apologise to them for the mistake and issue them with a corrected certification if the certificate had been issued to them - I would then discuss what the error was with the junior member of staff and how they can avoid making that mistake again

Answer 25

I would inform a senior member of staff of the issue and inform them that they should notify our PII provider if they deem necessary to do so.

Answer 26

Provides financial cover in the event a client suffers financial losses as a breach of professional duty.

Answer 27

- Employers liability - Public liability - Building insurance for office - PII

Answer 28

It is where the PII is kept in place after an individual leaves a firm’s employment or a firm ceases trading. At least 6 years cover after the contract ends. As for execution of contracts, conract executed under hand limitation period is 6 years executed as a deed period is 12 years. RICS - suggests that firms have ‘adequate and appropriate’ run-off cover, meaning a minimum of six years for consumer claims. For commercial claims, RICS would normally expect cover for six years after closure

Answer 29

- Merrett vs Babb (2001) – this was a negligent valuation of a house given and the firm no longer existed so they went after the individual – highlights the importance of run off cover.

Answer 30

- Yes, the company that has now gone into liquidation needs to ensure that run off cover is in place for me as a previous employee of that company. I personally cannot take out runoff cover for this situation.

Answer 31

It protects the individuals, clients and third parties.

Answer 32

The RICS has a list of approved PII providers on its website

Answer 33

PII protects against negligence

Answer 34

- 6 years if contract executed under hand - 12 years if executed as a deed - RICS recommend 15 years

Answer 35

- It is still possible to have a claim raised against you within 15 years of the contract being executed

Answer 36

- Turnover: < £100k = £250k limit of indemnity - Turnover: £100k to <£200k = £500k limit of indemnity - Turnover: £200k + = £1million limit of indemnity

Answer 37

- That fits within the banding of £100k to < than £200k so I would need £500k level of indemnity

Answer 38

- £10million for any one claim - The £1m is the minimum advised by the RICS, therefore, larger companies such as MM can be higher aka our £10m cover. - Our advised PII is £10m but we can actually have it increased to £25m but we would have to go to our group board for approval.

Answer 39

- Less than £500k = the greater of 2.5% of the sum insured, or £10k - £500k + = 2.5% of the sum insured

Answer 40

- The “black book” is a suite of guidance notes that define good technical standards for quantity surveying and construction professionals. - These standards are essential development tools for younger professionals working through their APC and useful guides to best practice for more experienced professionals. - Examples include – e-tendering, Accelerations, Cash Flow Forecasting etc.

Answer 41

1. Gather Info: Collect details about parties involved. 2. Identify Conflicts: Spot potential conflicts of interest. 3. Follow Guidelines: Refer to RICS ethics codes. 4. Stay Objective: Assess impacts impartially. 5. Disclose: Be transparent about conflicts. 6. Seek Help: Get advice if uncertain. 7. Manage Conflicts: Take steps to address them. 8. Document Process: Keep records of actions. 9. Regular Review: Periodically reassess for new conflicts

Answer 42

- Follow the guidance set out in the RICS Global Professional Statement on Conflicts of Interest, 2017: 1. Conflict avoidance - decide whether the conflict is manageable and whether proceeding is in the best interest of all parties 2. Written advice to both parties - disclose the nature of the conflict, explain how you will manage it and request written confirmation of informed consent 3. Conflict management - set up an information in accordance with provisions agreed with the clients

Answer 43

- I verify the facts and confront him reminding him of his duties as a member of the RICS. - I inform the RICS specifying my relationship to the person and any corrective action which I believe my brother-in-law is committed to put in place.

Answer 44

- **Creates a contract** with the client - Sets out the **proposed fee basis**, **payment of expenses** and that a **copy of the firm’s complaints handling procedure is available upon request**

Answer 45

- Inform the RICS - Inform clients and arrange for them to be handed over to a new firm - Return any clients’ money - Set-up professional indemnity run-off cover for a minimum of 6 years - Retain a copy of client files and record for a minimum of 6 years

Answer 46

CPS: Confidence - for client as regulated firms are monitored by RICS regulation Professionalism - firms have to provide clear, impartial and expert advice Security - firms have to have recognised CHP, access to ADR and PII cover

Answer 47

Failure to do so will lead to a fixed penalty. Type of business and staffing details Statutory regulated activities - such as for financial services Nature of clients Complaints handling procedure and records Professional indemnity insurance certificate Whether the firm hold clients’ money

Answer 48

- I would refuse the payment and make it clear that I am unable to accept cash payments.

Answer 49

Bribery is giving someone an advantage in return for an reward. 1. Bribing another person 2. Being Bribed 3. Bribing Foregin Public Officials 4. Corporations failure to prevent bribery

Answer 50

An unlimited fine or imprisonment for up to 10 years (12 months on summary conviction in England and Wales or Scotland or 6 months in Northern Ireland), or both

Answer 51

- No because my headquarters is in the UK so I must adhere to the bribery act 2010 and one of the key points of this act is on the bribery of a foreign official

Answer 52

1. Do you have sufficient facts on the issue? 2. Is it legal 3. Is it line with the RICS global professional and ethical standards 4. Have you consulted with appropriate people to make an informed decision 5. Do you have clear reasoning in reaching your decision? Is your decision informed? 6. Would you be content for your actions to be made public – in the newspapers or on the internet?

Answer 53

1. Consent orders = Formal agreement, RICS & firms 2. Fixed penalties = RICS issues fines 3. Panel hearings = Held for serious breaches in preference to a fixed penalty or consent order

Answer 54

A locum is another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work, e.g. in the event of an accident/illness, unforeseen circumstances, prolonged absence (e.g. holiday or a sabbatical) or death. A locum can be another chartered surveyor or a trusted professional. A locum can be appointed formally in writing.

Answer 55

Legal standards/requirements are implemented by governments either via statue or common law. Ethical standards on the other hand are derived from moral principles.

Answer 56

RICS members and firms must produce a cost prediction report that adheres to several principles; o Produce a reliable and appropriate prediction of costs. o Collaborate with clients to determine the suitable cost reporting method, advocating ICMS when beneficial. o Provide sources of data (unless confidentiality applies). o Identify key assumptions and exclusions and how they can be managed, as well as timing and method limitations in compiling the cost. o State change in predicted cost since last report and reason for the change. o Commensurate with the size and complexity of the project, provide an estimate of the accuracy or level of uncertainty of the cost prediction and how this can be improved through management action.

Answer 57

9 things * Inform RICS * Register with RICS for Regulation * Have a Responsible Principal * Prepare a Complaints Handling Procedure that aligns with RICS guidance. * Prepare a Handling Client’s Money Procedure aligned with RICS requirements. * Obtain necessary insurances (Public liability, Employer Liability, Buildings Insurance, PI Insurance (what level do I need?). * Have a locum agreement in place if sole practitioner. * Abide by the rules of conduct for firms and use the designation ‘Regulated by RICS’ on all practice materials. * Set up staff training and CPD

Answer 58

Ethics are a set of moral values Rules of Conduct are a framework that we work to.

Answer 59

To provide a framework that we can all work to and so the client knows he is getting a set level of service. As well as being an important tool for the Institution, the ROC are also a useful professional guide for individual institution members.

Answer 60

Consider whether the information is personal data protected by legislation, or information that is confidential for some other reason (for example your terms of engagement with your client). Follow proper procedures to report the breach, including to clients and to regulators where necessary. Identify what you could do differently to reduce the risk of the same thing happening again. Destroy confidential information that is sent to you accidentally.

Answer 61

Bribery Act ROC RICS decision Tree: Proportionate Legal in line with ROC and consulted relevant people to make an informed decision. RICS recommend: Proportionate Value Impartionality (does it look bad if you accepted it?) Timing

Answer 62

To keep client money safe To ensure client money is used only for appropriate purposes To ensure RICS-regulated firms have appropriate controls and procedures in place to safeguard client money

Answer 63

It is paid in to a client money account promptly If mixed monies are received, they must be paid into a client money account and then office money transferred out promptly Account for interest or other benefits, unless agreed in writing with the client Unidentified funds are promptly identified. If the owner is not identified within 3 years then they must be paid to a registered charity

Answer 64

Account details That any fees paid in advance for surveying services (but not property agent services in England) will not be covered by the Client Money Protection scheme Disclosure of any commission earned whilst a property is managed How unidentified funds are dealt with Copy of written procedures for handling client money

Answer 65

Hold all client money in an exclusively controlled client money account Ensure that the account only contains client money paid into it, including any sums paid in to replace money withdrawn in error (plus accrued interest) Not hold office money in a client money account unless it is a receipt of mixed monies where the office money is awaiting transfer Ensure that the account name includes the word ‘client’ and the name of the firm, in addition to discrete client money accounts including an identifier such as the client or property name Confirm the bank operating conditions in writing, including confirmation that the bank will not set-off or counterclaim against the client money account for any sum owed to it by another account held by the firm

Answer 66

* Client Money Handling Professional Statement - RICS members and RICS-regulated firms comply with their professional requirements and that client funds are properly protected. - Client money is kept safe, accounts are used for appropriate purposes only and RICS regulated firms have the appropriate controls and procedures to safeguard client money. - RICS-regulated firms that hold client money must therefore ensure that they are registered with the appropriate RICS scheme: o **the RICS Client Money Protection Scheme for Surveying Services**, which generally applies for client money held by RICS-regulated firms in the UK or o the RICS Client Money Protection Scheme for Property Agents, which meets the specific provisions that apply for property agents from 1 April 2019 for client money held in connection with letting agency work and property management work in England.

Answer 67

For payments out of a client account, RICS-regulated firms must: Use the money only for the client’s matters and with the client’s written consent Ensure that client money is returned as soon as there is no longer a need for it to be retained Send an invoice for any fees due and payable, unless the client has given written consent for deduction without prior notification Ensure that sufficient funds are held before payments are made Obtain written consent for any direct debits, standing orders or bank charges

Answer 68

RICS-regulated firms must keep accurate accounting records and have appropriate systems, procedures and controls in place, for example: Undertaking regular reconciliations, reviewed by a principal or senior staff member Publishing written procedures for handling client money on the firm’s website, with a copy provided free of charge Avoiding overdrawn balances Ensuring electronic data security and disaster recovery Complying with the latest RICS Professional Statement, Countering bribery and corruption, money laundering and terrorist financing Ensuring breaches are investigated, recorded and remedied promptly Informing the RICS, client and insurers immediately if any client monies are misappropriated

Answer 69

Bribery Act 2010 Bribery is giving someone an advantage in return for an reward Long title: An Act to make provision about offences relating to bribery; and for connected purposes. 6 Principles (PTR DCM) 1. Proportionality 2. Top Level Commitment 3. Risk Assessment 4. Due Diligence 5. Communication 6. Monitoring and Control

Answer 70

Bribery Act 2010 Bribery is giving someone an advantage in return for an reward Long title: An Act to make provision about offences relating to bribery; and for connected purposes. Offences 1. Bribing another person 2. Being Bribed 3. Bribing Foreign Public Officials 4. Corporations failure to prevent a Bribe

Answer 71

Soliciting funds to support terrorsit acts/organisations.

Answer 72

Formal CPD – structured learning that has a clear learning objectives and outcomes e.g. professional course

Answer 73

Its very hard to do checks and balances on cash. I would politely tell them to send it across electronically to the client account. I would hope that we have a strong relationship, so they would understand the need to follow the processes.

Answer 74

Gift and hospitality must have a clear business purpose. Must be reasonable and proportionate Must be given and recieved openly and transparently. Respect local culture. We must disclose a gift(input into register) if above £20 and seek approval (LM or Management approval depending on cost of gift). Anything under does not need to be disclosed or seek approval.

Answer 75

Mandatory requirements for RICS members and RICS-regulated firms. Client Handling Money Countering Bribery and Corruption, money laundering and terrorist financing Conflict of Interest Others can be found in the RICS website where there is directory of RICS produced documents.

Answer 76

A document that provides best practice Change Control and Management Life Cycle Costing Tendering Stratagies etc. A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners

Answer 77

A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note. E.g. code of practice for commercial landlords and tenants code of practice for commercial property sector.

Answer 78

This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally.

Ethics, rules of Conduct and Professionalism Flashcards

(104 cards)