Ethics, Rules of Conduct and Professionalism Flashcards
(179 cards)
1
Q
What is Rule 1, from the RICS Rules of Conduct?
A
Rule 1: Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS.
2
Q
What is Rule 2, from the RICS Rules of Conduct?
A
Rule 2: Members and firms must maintain their professional competence and ensure that their services are provided by competent individuals who have the necessary expertise.
3
Q
What is Rule 3, from the RICS Rules of Conduct?
A
Rule 3: Members and firms must provide a good quality and diligent service.
4
Q
What is Rule 4, from the RICS Rules of Conduct?
A
Rule 4: Members and firms must treat others with respect and encourage diversity and inclusion.
5
Q
What is Rule 5, from the RICS Rules of Conduct?
A
Rule 5: Members and firms must act in the public interest, take responsibility for their actions, and act to prevent harm and maintain the public confidence in the profession.
6
Q
What are the professional obligations of members?
A
- Comply with CPD requirements as set by RICS.
- Cooperate with RICS
- Promptly provide all information reasonably requested to the Standards and Regulation Board, or those exercising delegated responsbility on its behalf.
7
Q
What are the professional obligations of firms?
A
- Publish a complaints handling procedure, which includes an alternative dispute resolution provider and maintain a complaints log.
- Ensure all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets standards approved by the RICS.
- Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Must cooperate with RICS.
- Promptly provide all reaonably requested information to the Standards and Regulation Board, or those exercising delegated responsbility on its behalf.
- Must display a designation to denote they are regulated by RICS on their business literature, in accordance with RICS’ policy.
- Must report to RICS, any matter they are required to report under the Rules for the Registration of Firms.
8
Q
Where are the professional obligations found?
A
In Appendix A of the Rules of Conduct.
9
Q
What is a conflict of interest?
A
A conflict of interest arises in a situation where there may be an actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment.
10
Q
What types of conflict are there?
A
Party conflict -
A situation in which acting in the interests of a client or other party conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.
Own interest conflict –
A situation in which acting in the interests of a client conflicts with the interests of that same RICS member/firm.
Confidential information conflict –
A conflict where one client requires a RICS member to provide information, but where another client requires the same member to keep that same information confidential.
11
Q
Why would you identify a conflict of interest?
A
The most important reason for avoiding conflicts of interest is to prevent anything getting in the way of your duty to advise and represent each client objectively and independently.
Not identifying a conflict, could affect your professional judgement.
Maintain public confidence.
12
Q
What is an information barrier or ‘Chinese wall’?
A
The physical and/or electronic separation of individuals (or groups of individuals) within the same firm to prevent confidential information being passed between them.
13
Q
You have identified a conflict of interest; what are your next steps?
A
You should always consider whether your proposed course of action might:
Be reasonably perceived as a lack of integrity.
Cause embarrassment the profession.
Prevent you from being able to advise and represent each client objectively and independently.
If there is a risk of your proposed course of action having an effect, you must not proceed.
14
Q
Is there an instance when you might proceed even though a conflict of interest has been identified?
A
The Conflict of Interest professional statement does not allow you to choose whether you can proceed despite a Conflict of Interest or a significant risk of one: it prohibits you from proceeding, unless you obtain prior Informed Consent from all affected parties.
15
Q
What is informed consent?
A
Consent is given willingly by a party who may be affected by a conflict of interest to proceed, in the understanding that:
- there is a conflict of interest or a significant risk of one.
- all the facts are known by the RICS member/firms advising the party.
- what the conflict of interest is or may be.
- the conflict of interest may affect the ability of the RICS member/firm to advise or act fully in the interests of the client.
16
Q
What is your firm’s gifts and hospitality policy?
A
Brittain Hadley operate a Gifts and Hospitality policy in line with RICS guidance and Anti-Bribery Guidance.
Be appropriate: The gift should be given for a valid reason, at an appropriate time, and be of a nominal or one-off value.
Be transparent: Record all gifts and hospitality in a register.
Be open: The gift should not be given in secret or undocumented.
Be proportionate: The value of the gift should be appropriate for the occasion.
Be infrequent: Avoid giving or receiving gifts or hospitality too often.
Avoid undue influence: The gift should not be intended to influence a business transaction or public policy engagement.
Any gift, hospitality or benefit which might reasonably be seen to compromise the Company’s position or your personal judgment and integrity, is to be refused.
17
Q
What is your firm’s Anti-Bribery and Corruption policy?
A
In line with the RICS professional standard on Countering Bribery and Corruption, Money Laundering and Terrorist Financing, Brittain Hadley operates in compliance with the laws relevant to countering bribery and corruption in the UK. This includes the Bribery Act 2010.
It is our policy to conduct all of our business in an honest and ethical manner.
Wherever possible, the Company will use procedures to minimise the opportunity for corruption by subcontractors and suppliers against the company.
The Company is open and transparent about the process by which contracts have been notified, tendered and awarded.
18
Q
How do you manage conflicts of interest in your professional work?
A
I would initially exercise my professional judgement to see if a conflict exists and which type.
I would exercise my professional judgement to determine if I can represent the client objectively and without bias.
If I can, I would inform them I would be willing to act only if informed consent can be provided by parties involved before proceeding.
Alterntively I would consider recommending another colleague or organisation.
19
Q
What are the three types of conflicts of interest?
A
Party conflict - A conflict between two parties on the same job.
Own interest conflict - when representing the client conflicts your own interests.
Confidential information conflict - A conflict when you are asked to share/withold information.
20
Q
How do you keep up to date with current affairs and topic issues ?
A
On mailing list, office discussion, CPD email group, magazines and publications etc
21
Q
What information is required by the RICS for registration and in the annual return?
A
Type of business and staffing details.
Statutory regulated activities.
Nature of clients.
Complaints handling procedure and log.
Professional indemnity insurance certificate.
Whether the firm hold clients’ money.
22
Q
How does your behavior differ professionally and personally ?
A
My approach and behaviour does not change.
23
Q
What would you do if you considered your directors advice to be incorrect ?
A
I would consider :
The implications of the advice
Is it legal ?
I would discuss with managers and other colleagues.
Refer to the Ethics decision tree.
24
Q
What is the status of a RICS professional statement ? who does it apply to ?
A
A RICS professional statement is Mandatory. It applies to -
RICS trainees, members, regulated firms.
25
You set up your own business but you decide to go off on a skiing holiday for 2 weeks, you break your leg and the doctors say you must have complete bed rest and no access to emails or work phone, what do you need in place to cover this situation?
A Locum agreement
26
You see that a colleague is having some unwanted attention from a male colleague and it has happened a few times, what action if any would you take and what is this?
Consider this as a potential form of workplace harassment.
I would go and speak to the male colleague and tell him its not acceptable behavior, I would also report it to my senior.
27
Why do you want to become chartered ?
A globally recognised standard.
Designation will help my career.
Once a member, RICS offer guidance and support.
I am committed to lifelong learning
28
What is the RICS ethical decision tree?
The RICS decision tree is a framework to help make informed decisions that are in line with ethics and laws.
29
What are ethics?
Moral principles that govern an individuals behaviour.
30
Why are ethics important?
Ethics encourage appropriate behaviour and ensure consistency and clarity in the market.
They allow us to provide the best service for the client and recognise the wider public.
31
What does it mean to act ethically as a Chartered Surveyor?
Acting ethically means complying with rules or conduct and standards.
It ensures that you are acting on behalf of your clients best interests.
32
What are the three types of due diligence?
Simplified Due Diligence – Where you determine the business relationship is low risk of money laundering/terrorism
Enhanced Due Diligence – for high risk customers and transactions with greater threat to financial sector
New Customer Due Diligence – doing the checks to ensure your client is who they say they are.
33
What are the three benefits of RICS regulations for firms?
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.
34
Why does your firm have Terms of Engagement? What should be included in Terms of Engagement?
Creates a contract with the client and a clear definition of what is expected and on what terms etc.
Sets out the proposed fee basis, payment of expenses and that a copy of the firm’s complaints handling procedure is available upon request.
35
How would you close down a practice?
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
36
How long should files be kept for?
A minimum of 6 years before disposing and destroying them securely (although can be sued for negligence for up to 15 years)
37
What do the new rules state about the use of the RICS logo and designation?
Use of the RICS logo has been restricted to members and regulated firms only.
The ‘regulated by RICS’ designation must be displayed clearly to ensure visibility.
Companies are only allowed to use ‘chartered surveyor(s)’ designation in trading name and not company name
38
How would you limit the risk of working with a client or contractor who may be financially unstable ?
Dun & Bradstreet credit check.
Company search (Account information from Companies House)
Internet search (Client website for additional information judgement on reliability)
References.
39
If your client asked you to lower your fees because of their limited funding, what would you do?
I would explain that the client would have to pay the required price for the level of service required. I cannot just lower my fees.
Alternatively I could offer to reduce the scope of works.
40
How do you know you are competent ?
Having the appropriate knowledge, skills, training or experience to undertake an instruction.
41
Can you advise somebody as an individual ?
Not unless you have the correct insurances in place.
I would advise them to contact me during normal working hours, I will then be able to dicuss a formal appointment, as long as it does not become a conflict of interest and TOE can be defined.
42
How do ethics link with conduct rules?
Rules of conduct are a detailed description of how we are expected to carry ourselves and how to set the highest possible level of standard.
Ethics hold a similar value.
43
If faced with a situation that you felt was unethical, how would you proceed?
I would use the Ethics decision tree to consider if:
I have sufficient facts?
The matter legal?
It is in line with RICS Professional and Ethical Standards?
I have consulted with appropriate people?
I have clear reasoning in reaching my decision?
I would be content for my actions to be made public?
If I answered no to any of the above, I would not proceed with the situation alone and would consult senior staff with direction on how to proceed.
44
Why are ethics important?
Sets a standard of expertise and professionalism.
Promotes trust in the company and industry
45
What are the CPD requirements?
Qualified/MRICS member – 20 hrs per year, min 10 hours formal. Ethics every 3 years.
46
What is the difference between formal and informal training ?
Formal has a learning objectives and a defined learning outcome.
Such as an online course or seminar.
46
What is your CPD strategy ?
My CPD plan is dictated by my skills and knowledge gap.
I consider future requirements.
I review my CPD strategy twice a year with my Director to confirm I am getting suitable and appropriate CPD for my role.
46
Where would you find the RICS requirements for professional indemnity cover?
The RICS requirements for professional indemnity (PII) cover are outlined in the RICS Rules of Conduct, Appendix A: Professional obligations to RICS.
46
In relation to professional indemnity insurance, what is the minimum limit of indemnity for turnover under £100,000 (in the preceding year )?
* £250,000. This is dependent on predicted turnover based on the previous year’s turnover
* The RICS defines 3 levels of cover:
o up to £100,000 = £250,000
o £100,001 - £200,000 = £500,000
o £200,001 + = £1,000,000 of cover
47
How many years after an instruction has been completed can a Professional Indemnity claim be made ?
A professional indemnity claim can be made up to six years after an alleged negligent act occurred. However, there are some circumstances where the time limit can be extended:
Deed agreements
If the agreement is drafted as a deed, the deadline for a contract claim can be extended to 12 years after completion.
Hidden damages
If the claimant can prove that there was hidden damage that was unknown to them, the time limit for a tort claim can be extended by up to 15 years.
48
What type of cover would you need to cover a claim brought after a firm or member ceases to trade ?
Run off cover.
Run off cover must also be held for a minimum of 6 years for a limit of £1million.
49
What cover do you need?
PII insurance - Professional indemnity insurance covers financial loss, personal injury and property damage resulting from negligence or errors while working for a client.
PLI insurance - Public liability insurance is there to protect you if a member of the public is injured (or their property is damaged) and your business is faced with a compensation claim as a result. It can cover you when you’re working at client sites or in public.
Employers Liability Insurance - Employers’ liability insurance covers you and your business for compensation costs if an employee becomes ill or injured as a result of the work they do for you. It’s legally required of all businesses with one or more employees.
Building Insurance (if you own your own premises)
50
Why do you need PII insurance?
Consultants provide expert advice and therefore face risks associated with making mistakes or errors in judgement that could cost a business in profits.
Professional Indemnity Insurance (PII) is important because it protects against legal costs and damages that may result from claims of negligence or inadequate services.
51
What would you do if you dropped your camera on someone’s car bonnet during a survey?
Make numerous attempts to contact the owner to detail what has happened along with an sincere apology.
If not available I would leave a note, take pictures etc.
I would escalate this to the management team.
This may prompt a claim under professional or public indemnity insurance.
52
What status is the RICS Professional Indemnity Insurance Requirements document?
A regulation document
53
Who does PII protect ?
Clients from financial loss, the firms form loss resulting in being able to continue trading and the surveyor.
54
What is meant by each and every claim ?
Each and every claim, is cover for each claim that is raised.
The value of each claim is not added up.
The opposite is 'aggregate claims', where the claims are added up to a certain agreed value.
You could have each and very claim up to £100,000 per claim or you could have £100,00 aggregate(which is a lot lower cover).
55
What measures should be taken to try and avoid PI claims?
Keep full and detailed records of meetings, conversations etc
Record recommendations and advice given
Use proper letters of engagement, scope of services and terms of engagement
Don’t advise on a specialism outside your field of experience
Use RICS guidelines
Avoid poor management and excessive workloads
56
In the RICS Professional Statement - Countering bribery, corruption, money laundering and terrorist financing February 2019 - RICS Members and Firms must do what in relation to bribery and corruption ?
Not offer or accept, directly or indirectly, anything that could constitute a bribe
Ensure that they have adequate knowledge of bribery and corruption to be able to comply with the requirements of this professional statement.
Report any activity they are aware of that breaches applicable anti-bribery and corruption laws to the relevant authorities or a senior manager.
57
Can you name any Money Laundering Red Flags?
Cash-only buyers
An unusual sale price (too low or too high)
Payments from multiple/different source to counterparty
Funds provided by unknown third parties
58
What is money laundering?
Concealing the source of proceeds of criminal activity to disguise their illegal origin.
This may take place through hiding, transferring and or recycling illicit money or other currency through one or more transactions, or converting criminal proceeds into seeming legitimate property.
59
Give me some examples of how your firm might comply with the Money Laundering Regulations.
We report cash payments over £10K.
Carry out risk assessments to make sure that we take the necessary procedures when working with clients from high risk countries or high risk sectors.
60
What are the aims of the Money Laundering Regulations and what are the duties of surveyors?
Aims to stop criminals using professional services to launder money and to investigate large or regular cash transactions.
I have a duty to report cash payments over £10K.
Sets additional obligations for private sector firms working in areas of high money launder risk.
Requires surveyors to carry out risk assessments to make sure that you take the necessary procedures when working with clients from high risk countries or high risk sectors.
61
If you were given a gift what would you do ?
Consider if the gift is appropriate - ie, when was it given,
Consider if it is proportionte and in line with my firms G&H policy.
Log it within the gift log.
I may decline the gift taking into account timings and proportionality and my companies gift handling policy.
62
Would you accept a gift from a contractor ?
I would take into account the proportionality and timings. If I did It would be logged in our gifts handling register.
63
If you were offered a bottle of wine at xmas what would you do ?
Consider the proportion and circumstances of the gift, including the timings.
64
When would accepting or providing hospitality be acceptable ?
Once all the works are complete on site and the final account agreed and there is no conflict of interest. also consider the scale, time and suitability of the hospitality and or gift.
65
What’s the difference between a gift and a bribe ?
A gift is a small gesture, a bribe is under the impression that some gain will result.
66
Would you accept a gift or hospitality?
Consider the timing and proportionality. Could always check this against the guide in the Bribery Act 2010. Ensuring it does not influence decisions, should not be regular, should be openly received, keep a log of the items received.
67
What would you do if a contractor took you out for a coffee?
I would question the intentions firstly. If I felt like it was a genuine business reason, I would accept but offer to pay for myself and log the meeting in the companies gift register if they end up paying.
68
Can you please expand on your knowledge of Merritt Vs Babb ?
The case dates back to 2001, and highlights the importance of run-off cover.
A surveyor (Babb) provided valuation advice and was negligent. They were then sued by the former client (Merritt).
Because the firm was no longer in existence, the individual survyeor was pursued for damages, successfully.
This highlighted the need to ensure run-off cover is in place for all previous employees.
69
There is some case law relevant to PII and discusses the Liability of individuals. What is the name of the case law?
Merrett v Babb
Hart v Large
70
Can you please expand on your knowledge of Hart V Large ?
The Claimants (Hart) brought claims in negligence against Mr Large their survyeor.
The Claimants alleged that Mr Large was negligent in:
(1) failing to recommend a full building survey, rather than HomeBuyer report.
(2) failing to draw attention to the issues of water ingress / damp in the HomeBuyer report.
(3) failing to recommend that the Claimants obtain a professional consultant’s certificate.
The key take-aways from this case:
* Being clear on the report about the scope of inspection including limitations, caveats and actions available to the client;
* Recommending justifiable further investigation;
* Taking all reasonable steps to ensure clients understand the differences between the levels of service, including the extent and limitations of each option.
70
When was the RICS founded ?
15th June 1868,
71
What is the RICS mission statement ?
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 practice.
72
What does the RICS stand for ?
Royal Institution of Chartered Surveyors
73
What are the key roles of the RICS?
* Maintain the highest standards of training and professional experience
* Protect customers and consumers through a strict code of ethics
* Provide impartial advice, analysis and guidance
* Regulate and promote the profession
74
What are the 5 principles of better regulations?
PACTT
* Proportionality
* Accountability
* Consistency
* Targeting
* Transparency
75
What parts are there to the RICS ?
* Governing Council
* Standards and Regulation Board
* RICS Board
76
When did the RICS start ?
1868 - and had 48 members
77
How many members does the RICS have ?
RICS has over 140,000 members who operate out of 146 countries
78
Who is the president of the RICS ?
Tina Paillet - 2024
79
What is the RICS motto ?
Est modus in Rebus - there is measure in all things
80
What is Tina Paillet working on in her term?
Tina has a particular focus on sustainability, principally the circular economy and decarbonisation.
81
What act covers discrimination ?
The Equality Act 2010, which came into force 1st October 2010
82
What are the 9 protected characteristics of the Equality Act 2010 ?
* Race & Ethnicity
* Disability
* Religion or belief
* Age
* Sexual orientation
* Gender
* Gender reassignment
* Pregnancy & maternity
* Marriage & civil partnership
83
Where are you protected under the Equality Act ?
Within and outside of work
84
What are the key principles for firms to prevent Bribery ? PCRCDM
1) Proportionality
2) Top Level Commitment
* Issue a statement to staff/partners that communicate the polices
* Zero tolerance
* Select and train a senior employee to take responsibility for procedures and policy.
* Issue internal and external publications
3) Risk Assessment
* Procedures to assess the nature and extent to exposure for potential bribery.
* Accurately identify and prioritise risks a firm may face
* Written record of risk assessments and findings
* Internal risks – bonus culture, lack of bribery messages from top management
* External risks – Country (is the country particularly known for bribery) or Sectoral
4) Communication
* Embed an understanding of procedures and zero tolerance with internal and external communications
* Training should be continuous
* Whistle blowing policy established
5) Due Diligence
* Firms should carry out due diligence on their staff and partners
* Credit checks, internet checks, interviews etc
* Should get a clear statement of the nature of services offered
6) Monitoring and Reviewing
* Periodically review anti-bribery policies and assess effectiveness.
* Use bribery risk assessment to make decisions
* Review process in response to external or internal stimuli
* Review financial control mechanisms
85
What is the name of the RICS guidance on bribery and money laundering and when is it effective from ?
Professional Statement (Mandatory) - Countering bribery and corruption, money laundering ad terrorist financing, 1st edition, February 2019
86
What due diligence do you apply in relation to bribery ?
My company has an Anti-Bribery policy.
I would always air on the side of caution. For example as a business we do not accept cash payments.
87
What is bribery ?
The offer, promise, giving, demanding to acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust.
88
What are the four offences in the Bribary Act 2010?
* giving a bribe
* receiving a bribe
* bribery of an official
* no procedure in place at firm
89
What is corruption
The misuse of public office or power for private gain, or misuse of private power in relation to business practice and performance
90
What are the principles for mitigating bribery ?
Suitable procedure/policy in place.
Anti bribery training.
91
Explain your understanding of Rule 1.
RICS Members and Firms should not allow themselves to be influences improperly through the acceptance of work referrals, gifts or hospitality.
Be sure to identify conflicts of interest and not provide services or advice where a COI occurs.
92
Why did the previous Rules of Conduct change?
The rules were changed following consulation and research with RICS firms, members and the general public.
To provide more clarity in one document.
93
Why does RICS have rules of conduct?
To provide a framework so clients know they are receiving a set level of service. The rules are also a helpful guide for members.
94
Please give some examples of matters you may refer to the RICS Decision Tree.
Receiving gifts in a professional capacity.
Equal opportunities.
Whistle blowing.
Conflicts of interest.
Charitable donations.
Attendance and hospitality events.
95
What steps would you need to follow when setting up in practice?
Inform RICS.
Appoint a contact officer.
Set up insurances.
Set up CPD & training.
Client account for client money.
Complaints handling procedure.
Register for RICS regulation.
96
Who is the current CEO?
Justin Young.
97
What are the executive team responsible for?
The day to day running of the RICS and implementing the decisions made by the Governing Council and boards.
98
What must all RICS regulated firms do on an annual basis?
Submit an annual return including information on their complaints handling procedure and PII.
99
What is the Birchard Review, 2021?
An independent review into the purpose, governance and strategy of the RICS.
100
What is your understanding of Rule 2?
Members and firms must only undertake work where a member has the relevant knowledge, skills and resources. And to fulfill the CPD obligations.
101
What is your understanding of Rule 3?
Members and firms need to understand the clients need and objectives before accepting work and communication clearly with clients.
102
What is your understanding of rule 4?
Members and firms must treat others couteously and respectfully and develop an inclusive workplace culture.
103
What is your understanding of rule 5?
Members should manage professional finances properly and respond to any complaints openly and professionally.
104
What should be included in the terms of engagement?
Scope of work.
The fee basis.
A liability cap.
Exclusions of personal liability.
CHP Procedure with RICS approved ADR methods.
Governeing law and jurisdiction.
Proportionate liability for all advising parties.
105
Where should client money be kept?
Seperate from the fund of the firm.
106
When asked by your client to reduce the cost of enclosure amount payable to the neighbour, how did you deal with the ethically?
I informed my client that I had a duty of care to implement the Act impartially and following his request would not be honest or fair.
107
Why was specialist advice required when tree routes were exposed on Netheravon Road and how did you explain this to the client.
The tree in question was a large London Plane, and it was evident that the roots were extending through the proposed area of excavation. As the tree was located within the local authoirty pavement, we could not chance cutting any of the roots as it could have caused a devistating accident. Therefore specialist advice was required to ensure that the works being carried out would not jeopodise the health and stability of the tree.
This added some additional time to the programme, as we required staged inspection,s but the client understood it was being done to prevent potential issues.
108
According to the RICS professional standard, Conflicts of Interest, what should every RICS member do when faced with a potential conflict?
- Identify and manage Conflicts of Interest in accordance with this professional standard.
- Keep records of the decisions made in relation to whether to accept or continue individual professional assignments.
- Keep records of obtained Informed Consent, and any measures taken to avoid Conflicts of Interest arising.
109
What is an information barrier?
The physical and/or electronic separation of individuals within the same firm, to prevent confidential information being passed between them.
110
Why is it important to avoid a Conflict of Interest?
To prevent anything affecting your duty to advise and represent objectively and independently.
111
What is RICS matrics?
A community for students, trainees and those who are newly qualified, which offers support, networks, social events CPD and advice.
112
What is RICS Lionheart?
LionHeart is a charity that supports RICS professionals and their families throughout their careers, from the beginning to retirement.
113
What is RICS mission statement?
To qualify and equip their members to offer the highest standards of professional service.
To promote and enforce standards.
To lead solutions to the major challenges facing the built environment through professional expertise.
114
What is the Governing Council?
The highest governing body, which sets RICS Global Strategy and ensures RICS fulfils its Royal Charter obligations.
115
What are Bye-Laws?
The Bye-Laws are set out in the Royal Charter and determine how the RICS is regulated.
There are 10 Bye-Laws in total.
116
What are the 5 principles for better regulation?
Proportionality, Accountability, Consistency, Targeting and Transparency.
117
What limitation periods are in place in under hand and deed forms of contract?
6 Years when excecuted under hand.
12 Years when excecuted as a deed.
118
What are the new RICS professional Indemnity Insurance requirements?
The requirements were updated in 2022.
This introduced a change to the maximum uninsured excess.
For companies with a turnover in excess of £10m, there is no maximum.
For companies with a turnover less than £10m, this is greater of £10,000 or 2.5% of the insured sum.
119
What insurance does Merrit v Babb relate to?
Run-off insurance.
120
What is the purpose of Professional Indemnity Insurance?
To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, errors or omissions.
The professional is protected from finacial losses.
The firm does not have to meet the claim from their own assests or resources.
121
What does a claims made basis mean?
The insurance policy that is in place at the time the breach is discovered, is responsible for providing indemnity. It is not the policy that was in place when the breach was made.
122
What are the requirements for PII set by the RICS?
The policy cover must be made on an 'each and every' claim basis.
RICS sets out the miniumum levels of indemnity and maximum levels of uninsured excess.
Run off cover must be in place for at least 6 years.
The policy should include cover for past and present employees, directors and partners.
123
Do LAD clauses apply beyond termination?
No, not unless expressly agreed by the parties in writing.
124
What are the 7 obligations of firms?
1. Firms must publish a CHP and maintain a complaints log.
2. Firms must ensure all previous and current works is covered by adequate PII.
3. Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of theit incapacity, death, absence or inability ro work.
4. Firms must cooperate with RICS.
5. Must provide all info reasonable reguested by the Standards and Regulation Board.
6. Must display thier business literature in accordance with RICS.
7. Must report report any matters to RICS as required under the Rules for registration of firms.
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What is the RICS model CHP form?
Deatils of the policy should be issued to the client with the Terms of Engagement.
It must be quick, clear, transaparent and free of charge within the first stage.
The complaint must be investigated within 28 days.
There is a need to advise PI insurers of a complaint immediately.
The process must have two stages.
Stage 1 is where there needs to be consideration of the complaint by a senior member of the firm or the CHO.
Stage 2 - If the complaint cannot be resolved in Stage 1, it is referred to an independent third party with the authority to award redress.
All complaints, their progress and outcomes must be recorded.
126
What is the RICS Guidance on handling Client Money for firms that operate a clinet account?
Firms must:
Set clear segregation duties for employees.
Ensure a principal oversees the client money accounting functions.
Ensure principals cannot overide controls.
Ensure accounting and data systems are secure.
Ensure client money is kept seperate and is clearly identifiable with the word 'client' in the account name.
Ensure clients always have access to funds.
Ensure terms are agreed and clients have the bank details.
Ensure the account is never overdrawn.
Ensure ledgers are maintained and a running balance is provided.
127
What information do registered firms need to send to RICS annually?
Type of business and staffing.
Nature of clients.
Training provisions.
PI Insurance details.
Whether the firm holds client money.
CHP and records.
There is a fixed penalty if it is not returned and can be carried out online.
128
Are you aware of any guidance that applies to RICS members when using Social Media?
The RICS introduced the Guidance Note - Use of Social Media: Guidance for Members, V1.
This took affect in June 2021.
This sets out the same standards as stipulated in the RICS Rules of Conduct and reminds members that these do not change whether communication via social media, face to face or via traditional forms of media.
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How do you ensure you operate inline with RICS Guidance on the use of Social Media?
I am always sure to use social media in a responsible and professional manner, in the same way that I communicate in everyday forms of communication.
Using professional and respectful language.
I understand that improper use of social meida could potentially undermine public confidence in the profession.
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What would the RICS Investigate a social media post?
An investigation may take place if a post is:
Discriminatory.
Dishonest.
Abusive or threatening.
Likely to cause significant harm, distress or offence.
Shows a patten of concerning communications.
Ignores previous advice/warnings.
131
Please explain your understanding of the recent updates to RICS PII cover around fire safety?
Following the Grenfell disaster, in 2019 Fire Safety Insurance cover was removed from the PII market, leaving firms exposed on previously completed instructions and not protected for future work.
In 2021, RICS agreed with insurers that fire sfaety exclusions could be used, but would not apply to work on properties with four or less stories.
Cover for completion of EWS1 forms remains excluded.
132
Please explain your understanding of the Hart vs Large caselaw.
This is a high court case relating to a dispute between the purchasers (Mrs & Mrs Hart) and their surveyor (Mr. Large).
Large carried out L2 survey. Mr & Mrs Hart later had problems with damp and water ingress, resulting in a claim against Large.
The court ruled that Large was negligent, as he:
- Failed to identify issues relating to damp.
- Failed to advise the purchaser to obtain a Professional Consultants Certificate.
-Failed to recommend further investigations.
This is important for surveyors as it highlighted the need to:
- Report on building elements that have not been inspected and explain why.
- Recommend further investigations, if there is suspicion of concealed defects.
- Recommend that a Professional Consultants Certificate is obtained on recently refurbished properties.
133
Please explain your understanding of the Birchard Review.
An independent review comissioned by the RICS Governing Board in December 2021, into the purpose, governance and strategy of the RICS.
It was commissioned following the Levitt Review and aimed to create a new sense of purpose and direction.
The review advised on 36 recommendations, which include the setting up of the Diversity and Inclusion Panel, Sustainability Panel and Public Interest Panel.
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What are Professional Standards?
These set out the musts and shoulds. They are requirements or expectations for RICS members and regulated firms with a focus expectations for competence and ethical behavior.
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What is Practice Information?
Sets out supporting guidance to advise surveyors in delivering specific services.
136
Where can you use the RICS logo for personal use?
Emails and business cards.
137
Are you aware of the changes the RICS made around its use of Membership Cards?
Members now receive digital cards which offer a more sustainable way to confirm proof of membership and designation.
This forms part of the efforts to make the profession more sustainable and cost effective.
138
Who is currently on the RICS presidential team?
Tina Pailett, is the President.
Justin Sullivan is the President Elect.
Nicholas Maclean is the Senior VP
139
Why did the previous Rules of Conduct change?
To provide a single document to enable greater clarity for RICS members and Firms.
There is now a greater focus on example behaviours, undertsanding evolving techonolgy and tackling climate change.
140
What is the Levitt Report?
A report commissioned by RICS following a 'treasury management audit' in 2018.
The Independent Review set out three core objectives:
To consider the way in which the internal reporting was commissioned and dealt with and to determine whether there were any shortcomings
To consider whether any shortcomings represented a failure of governance
To make recommendations for the future.
The report illuded to an internal power struggle due to its two board structure.
The report highlighted that governance priniciples were not followed by RICS.
The RICS governing council accepted all recommendations set out in the Independent review.
141
Are you aware of any RICS guidance covering the use of Drones?
Drones: Applications and compliance for survyeors.
This provides advice on the different types of drones available, how they can be applied within the industry and advice on current legislation.
142
What legislation applies to drone operators in the UK?
Air Navigation Order 2016.
Air Navigation amendment order 2018.
Data Protection Act 2018.
Aviation and Maritime Securirty Act 1990.
The CAA specify that commercial drone operators must have a PfCO (Permission for Commercial Operations).
Users must not recklessly or negligently act in a manner likely to endanger a person or aircraft or property.
143
What is the difference between RICS ethics and rules?
Ethics are a set of set moral values.
Rules of Conduct are a framework that we work to.
144
Why does RICS have Rules of Conduct?
To provide a framework that we can all work to and so the client knows they are getting a set level of service.
They are also a helpful guide for members.
145
Your friend is a chartered survyeor. You find out that he is working outside the RICS rules of Conduct. What do you do?
I verify the facts and confront him, reminding him of his duties as a member of RICS.
I inform the RICS specifying my relationship to the person and any corrective action which I believe my friend is committed to put in place.
146
In the case of a breach or a rule of conduct, what is the procedure?
Not every shortcoming will necessarily give rise to proceedings.
A formal investigation by the Head of Regulation is the first step.
The RICS can request information and/or visit and inspect to investigate compliance.
Members must cooperate fully with all enquiries.
147
How can a disciplinary hearing be triggered?
Someone complaining to RICS.
An allegation by a client or third party.
Information recieved or established by RICS.
148
What are three actions that can be imposed after an investigation?
Fixed penalty - a fine.
Consent order - corrective action required by the member.
Disciplinary Panel - Used for more serious offences.
149
What insurances would you need if you were starting up your own firm?
Profession Indemnity Insurance.
Employers Liability.
Public Liability.
Buildings Insurance.
150
What are the different types of client money accounts?
General - hold money for more than one client.
Discrete - reference a single names client.
151
What is meant by the term negligence?
Failure to provide a duty of care owed to the client.
152
How do you keep up to date with topical issues?
I am on the mailing list for several CPD's.
I follow RICS Modus and other construction journals.
153
How can you limit your liability when agreeing terms of appointment with a client?
Ensure run-off cover is in place.
Execute under hand (6 years liability)
Base the appointment on care and skill, not fitness for purpose.
154
Would you go back to the client and ask for more money?
If the services, scope or value of the project has increased, then yes.
If the scope of works has remained the same, the issues is with the fee quote. So I could not ask the client for additional fees.
155
Are you aware of any guidance on Conflicts of Interest?
RICS Professional Standard - Conflicts of Interest - effective from Jan 2018.
156
What is the Birchard Review, 2021?
It was an independent review into the purpose, governance and strategy of RICS.
157
What does the RICS Governing Council do?
It is the governing body of RICS and sets the strategy and vision.
158
What does the RICS Board do?
Delivers the RICS buisness plan and oversees operations, excluding standards & regulation.
159
What does the Standards and Regulation Board do?
Exercises the regulatory function of RICS. It is accountable to the GC, but not directed by them. It is independently led.
160
How can a disciplinary proceeding be triggered?
- Someone complaining to the RICS
- An allegation by a client or third party
- Information received or established by the RICS
161
In the case of a breach of a rule of conduct what is the procedure?
- A formal investigation by the Head of Regulation, which may include RICS requesting info.
- Members must cooperate fully with all enquiries.
162
Your brother in law is a chartered surveyor. You find out that he is working outside the RICS Rules of Conduct. What do you do?
I verify the facts and confront him reminding him of his duties as a member of RICS.
I inform the RICS of specifying my relationship to the person and any corrective action I believe should be put in place.
163
What actions can be imposed after an investigation?
- Fixed penalty. (A fine)
- Consent order. (A written agreement with RICS)
- Disciplinary panel. (For more serious breaches of conduct)
164
What sort of breaches would expulsion be suitable for?
Gross, persistent ot willful failure to comply with the rules of conduct.
Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination or misappropriation of a clients money.
165
What do you do if you receive a letter of complaint?
I would acknowledge receipt and then forward onto my firms designated complaint handler.
I would also highlight the importance of informing our professional indemnity insurance providers immediately.
166
What recent article have you read from the RICS?
- Could filling empty homes solve the housing crisis? - 1.5m empty homes, we spend 2.2bn a year on temporary accom. Why not repurpose empty homes.
167
How can you limit your liability when agreeing terms and of appointment?
- Base your appointment on reasonable skill and care.
- Run off cover.
- Execute appointment underhand.
168
What are the main elements included within a fee proposal?
Terms and conditions
Scope of services
Exculsions
Assumptions
169
Under the Bribery Act, under what circumstance is a facilitation payment permitted?
If you are under duress, e.g. if there is a real and present risk of danger of life.
Make the payment and then report the matter immediately.
170
You attend a Main Contractor organised conference and it is announced that you have been randomly selected as the winner of the prize draw. It is an ipad.
How would you act in this scenario.
The prize is of significant value and could be interpreted as a bribe.
I am aware that bribes are commonly distributed as random prizes.
I would use my professional judgement to assess the timings and proportionaility.
However, ultimately it is a very substantial gift and I would respectfully decline and suggest it is donated to charity.
I would report the incident to my manager.
171
You recieve an invite to attend the theatre with some members of your project team but they drop out due to illness at the last minute, would you still attend?
- First of all, I would declare this hospitality on my companies gifts and hospitality register.
- Assuming the invite was approved and I was authroised to attend, I would need to decline due to the project team dropping out.
- As they will not be present, it will not be a genuine business event.
- I would need to decline on the project teams behalf.
172
A contractor invites you to a restuarant and advises they've got two michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit. How would you respond?
Going to what sounds like a lavish lunch,paid for by a bidder in the middle of a tender process is against company policy and could be an offence under the UK Bribery Act.
If this was the first time, I would decline and explain that it was inappropriate.
However, if the supplier was persistant, there is a concern that they wish to discuss things that cannot be put in writing anf I would report the infringement.
173
What is the Royal Charter?
The Royal Charter is a document that gives the Royal Institution of Chartered Surveyors (RICS) specific rights and requires them to act in the public interest.
The RICS must independently regulate chartered professionals and firms.
174
What is the structure of RICS/
Governing Council.
RICS Board. Standard & Regulations Board.
175
Who is on the presidential team?
Tina Pailett - President.
Justin Sullivan - President elect.
Nicholas Maclean - Senior VP
