Ethics, Rules of Conduct And Professionalism

Question 1

Why do you want to become a member of RICS?

Answer 1

It is a global benchmark for integrity and professionalism recognised and valued by clients and governments around the world.

Question 2

What are the key functions of RICS?

Answer 2

Advancing the highest ethical and technical standards for professionals in land, property and the built environment.

Protecting and providing benefits to consumers by enforcing standards and codes of best practices.

Providing expert impartial advice to governments, business and the public.

Question 3

What is a Royal Charter?

Answer 3

It is an instrument of incorporation, granted by the King, which confers independent legal personality on an organisation and defines its objectives, constitution and powers to govern its own affairs.

Question 4

What is the role of RICS?

Answer 4

A leading body working in the public interest to advance knowledge, uphold standards, and inspire current and future professionals.

Question 5

Who is the current RICS President?

Answer 5

Tina Paillet

Question 6

What do you understand by the term self-regulation?

Question 7

Can you tell me what you understand by the principles of better regulation?

Question 8

What is a Bye-Law?

Answer 8

The RICS Bye-Laws provide the power for Head of Regulation and Regulatory Tribunal to make disciplinary and regulatory decisions including issuing disciplinary penalties and costs. Those decisions are made in accordance with the Rules and guidance created by the Standards and Regulation Board.

Question 9

Give an example of one of the RICS Bye-Laws.

Question 10

Explain to me the new RICS Rules of Conduct - what do they replace?

Answer 10

Rules of Conduct for Firms and for Members and the Global Professional & Ethical Standards

Question 11

When do they take effect?

Answer 11

2nd Feb 2022

Question 12

Who do they relate to?

Answer 12

The new Rules of Conduct apply to both Members and Firms globally.

Question 13

What are the ethical principles that the Rules of Conduct are based on?

Answer 13

The Rules of Conduct are based on ethical principles of honesty, integrity, competence, service, respect and responsibility.

Question 14

What are the 5 Rules?

Answer 14

Rule 1
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS. Example behaviours include not being improperly influenced by others and being transparent with clients about fees and services.

Rule 2
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise. Example behaviours include only undertaking work where a Member has the relevant knowledge, skills and resources and undertaking sufficient CPD each year.

Rule 3
- Members and firms must provide good-quality and diligent service. Example behaviours include understanding clients’ needs and objectives before accepting work and communicating clearly with clients.

Rule 4
- Members and firms must treat others with respect and encourage diversity and inclusion. Example behaviours include treating others courteously and respectfully and developing an inclusive workplace culture.

Rule 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. Example behaviours include managing professional finances responsibly and responding to complaints promptly, openly and professionally.

Question 15

Give an example behavior for each.

Answer 15

Rule 1 - Members and firms are open and transparent with clients about their fees and services.

Rule 2 - Members and firms only undertake work that they have the knowledge, skills and resources to
carry out competently.

Rule 3 - Members and firms understand clients’ needs and objectives before accepting any professional
work.

Rule 4 - Members and firms do not bully, victimise or harass anyone.

Rule 5 - Members and firms support directors, partners, employees, colleagues or clients who have
acted in good faith to report concerns.

Question 16

What are the core professional obligations of firms and members to RICS?

Answer 16

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.

Question 17

What disciplinary procedures can the RICS impose?

Answer 17

Caution – this is a warning against repeating the conduct or action which is found to have constituted the contravention of conduct expected of Regulated Members

Reprimand - this is another form of warning against repeating the conduct or action which is found to have constituted the contravention of Conduct expected of Regulated Members

Undertakings – one or more requirements imposed on Regulated Member in regards to future conduct

Fine – monetary penalty imposed in accordance with the RICS Sanctions Policy approved by SRB

Conditions – requiring Regulated Member to carry out or restrict activities within a set period which will be monitored by RICS

Expulsion (of individual Member) - removing the Regulated Member from RICS register

Removal (of a Firm’s registration) – removing the Regulated Firm from RICS register

Question 18

In what circumstances can these be imposed?

Question 19

When did RICS last update their disciplinary panel rules?

Answer 19

2nd March 2020

Question 20

What are the different levels of action within these procedures?

Question 21

What do you understand by the term professional practice?

Question 22

What money laundering regulations or legislation are you aware of?

Question 23

What is a red flag of money laundering?

Question 24

What bribery legislation are you aware of?

Question 25

What is a bribe?

Question 26

What are the penalties for accepting a bribe?

Question 27

What are the penalties for being involved in money laundering?

Question 28

What constitutes an offence under the Bribery Act 2010?

Question 29

What constitutes an offence under the current money laundering regulations?

Question 30

How long should you keep anti money laundering records for?

Question 31

What is Professional Indemnity Insurance (PII)?

Question 32

Can you tell me about the RICS requirements in relation to PII?

Question 33

What is a PII aggregation clause?

Question 34

What does ‘claims made’ mean in terms of PII?

Question 35

Is a PII excess usually paid for per claim?

Question 36

In a negligence claim, what would help to show that you acted with consideration and due process?

Question 37

Can good record keeping help to provide a defence in a PII claim?

Question 38

If you were providing services outside of your usual scope to a client, what might you need to do in relation to your PII cover?

Question 39

What is run off cover?

Question 40

What RICS requirements are there relating to run off cover?

Question 41

What changes did RICS recently make to the Minimum Approved PII Wording?

Question 42

Would a dictated report avoid the need to have any written site notes?

Question 43

Explain PII requirements relating to fire safety cover and cyber cover.

Question 44

How long can a PII claim arise after the work is undertaken?

Question 45

What is the Assigned Risks Pool (ARP)?

Question 46

Who might need to access the ARP?

Question 47

Explain your understanding of the RICS Professional Standard Risk, Liability and Insurance (1st Edition).

Question 48

Explain when you might agree a liability cap.

Question 49

How would set out third party reliance in Terms of Engagement?

Question 50

What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?

Question 51

What is an annual return?

Question 52

Tell me what you understand about Complaints Handling Procedures (CHP).

Question 53

When and how can the RICS be involved in a complaint about a firm or member?

Question 54

Can you tell me about the CPD requirements for members of RICS?

Question 55

Why is CPD important?

Question 56

Tell me about the RICS’ guidance on dealing with Conflicts of Interest.

Question 57

What is double dipping (dual agency)?

Question 58

Why is double dipping (dual agency) an unacceptable practice?

Question 59

How would you close down a regulated firm?

Question 60

What can you tell me about RICS guidance relating to bribery, corruption or money laundering?

Question 61

What status does it hold?

Question 62

What are some of the key principles of this guidance?

Question 63

What must/should firms/members do to comply with the guidance?

Question 64

What are the current RICS rules for registration of firms?

Question 65

When did these last change?

Question 66

What were the key changes?

Question 67

Who is a ‘qualified member’ of RICS?

Question 68

What is a phoenix firm?

Question 69

When must a firm register for regulation?

Question 70

What are the registration eligibility criteria?

Question 71

Who is a Responsible Principal?

Question 72

What happens if a firm cannot comply with the eligibility criteria?

Question 73

What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?

Question 74

When did these rules last change?

Question 75

What changes were made?

Question 76

Tell me about the restrictions to the use of the designation ‘Chartered Surveyors’ by firms.

Question 77

What must be included in ToE relating to firm regulation?

Question 78

What is a locum and who might need one?

Question 79

How could a sole trader set up their CHP using a locum?

Question 80

What RICS guidance relates to handling client money?

Question 81

When was this last updated?

Question 82

What do the RICS Rules of Conduct say about client money?

Question 83

Explain your understanding of the RICS Scheme Rules relating to client money protection.

Question 84

What are the main schemes available to firms?

Question 85

When were these last updated?

Question 86

What is the current compensation limit?

Question 87

What does the annual regulatory review fee relate to?

Question 88

What might client money include?

Question 89

How does this differ to office money?

Question 90

What are some of the key principles of the RICS Professional Standard relating to client money protection?

Question 91

Explain the key themes from the RICS Futures 2020 Report.

Question 92

Explain the potential implications of the Hart v Large case.

Question 93

Explain your understanding of precedent set in Burgess v Lejonvarn.

Question 94

What do RICS set out as good practice for the use of social media in their Regulation document (June 2021)?

Question 95

Explain your understanding of the RICS Levitt review.

Question 96

What is whistleblowing?

Question 97

What does good governance mean to you?

Question 98

Explain what the Pandora Papers are, and the ethical issues raised within them.

Question 99

Explain what you understand by the RICS Bichard Review.

Question 100

Explain some of the recommendations of the Bichard Review.

Question 101

How will these recommendations be implemented by RICS?

Question 102

How do professional integrity and professional ethics differ?

Question 103

What is modern slavery and how would you identify red flags of it?

Question 104

Explain the implications of the Sanctions and Anti-Money Laundering Act 2018.

Question 105

What is the Sanctions List and why should you be aware of it?

Question 106

Why was the Register of Overseas Entities introduced?

Question 107

What are the six RICS values published as a result of the Levitt review?

Question 108

Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022.

Question 109

How do you ensure that you comply with bribery legislation?

Question 110

How do you ensure you comply with money laundering regulations?

Question 111

How do you ensure you comply with your firm’s bribery and gifts policy?

Question 112

Tell me about an instance of when you have been offered a gift or hospitality by a client.

Question 113

Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge.

Question 114

Tell me about an instance of when you have handled client’s money.

Question 115

How would you keep client’s money securely and safely held?

Question 116

Tell me about how you would handle a client complaint.

Question 117

Tell me about your understanding of your firm's process for escalating a complaint to Alternative Dispute Resolution (ADR).

Question 118

Tell me about a conflict of interest check you have carried out.

Question 119

If you identified a potential or actual conflict of interest, how could you handle this?

Question 120

Studio 2 – how did you respond to this unprofessional personal relationship?

Answer 120

I made it clear that i was uncomfortable with the situation and that if we did proceed we would need to ensure that there were clear boundaries and all parties need to be aware of them and what happens if any are crossed.

Question 121

What action did you recommend was taken?

Question 122

How did you avoid a reoccurrence in future?

Question 123

How do you personally avoid conflicts of interest?

Question 124

Hanover – how did you identify and deal with the conflict of interest?

Question 125

Why was it unethical to have more favourable payment terms for one contractor, than another?

Question 126

Give me an example of when you have acted with integrity?

Question 127

Tell me about when you have provided a high standard of service.

Question 128

Tell me about how you have promoted trust in the profession.

Question 129

Explain how you have taken responsibility in your current role.

Question 130

Tell me about how you treat clients with respect.

Question 131

Tell me about how you treat other surveyors with respect.

Question 132

Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.

Question 133

If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.

Question 134

What would you do if you were asked by a client to reduce a fee proposal to win new work?

Question 135

What would you do if you became suspicious that a client was involved in money laundering?

Question 136

What would you do if you became suspicious that a client was involved in terrorist activities?

Question 137

If you were to set up in practice on your own, tell me about the types of insurance you would need.

Question 138

Windsor Dials – why did you refuse to make the payment?

Answer 138

I had valued the account in lots of detail and i knew that the account was not worth the amount i was being asked to pay. There were items that that company did not carry out and so there was no way their account could increase.

Question 139

What Rule(s) of Conduct did you apply?

Question 140

How did you advise your directors on ethical payment practices?

Question 141

How did you advise on the conflict of interest?

Question 142

How did you ensure a fairly appointed replacement was sourced?

Question 143

Who needed to give written informed consent in this scenario?