Ethics, Rules of Conduct and Professionalism (L3) Flashcards
(82 cards)
1
Q
What types of Conflict of Interest are you aware of?
A
Guidance: RICS Professional Standard on Conflicts of Interest 2017
- Personal Conflicts:
Situations where a members personal interests, relationships or financial stakes may influence their professional judgement. - Professional Conflicts:
Occur when a member represents multiple client with competing interests in the same transaction. - Dual Roles:
When a member takes on different roles (e.g advisor, contractor) that may conflict, leading to potential bias in decision. - Financial Interests:
Involves circumstances where a member has a financial interest in a project or client that could affect their impartiality. - Family or Close Relationships:
Situations where personal relationships with clients, contractors or other stakeholders could influence professional responsibilities. - Third Party Interests:
Conflicts that arise when a members obligations to third parties may impact their ability to act in the best interest of their client.
2
Q
RICS Rules of Conduct - What obligations do you have as a member?
A
Guidance: RICS Rules of Conduct Appendix A - Professional Obligations to RICS
- Must comply with CPD requirements set out by RICS
- Must cooperate with RICS
- Must provide information requested by the standards / regulatory board
3
Q
RICS Rules of Conduct - What obligations do firms have?
A
- Must establish a complaint handling procedure
- Must cooperate with RICS
- Must provide information requested by the standards / regulatory board
- Must ensure all previous and current work is covered by Professional Indemnity Insurance
- Sole Principal must make arrangements for work to continue if incapacitated, death, absence from or inability to work
- Must display RICS designation to business literature
- Must report to RICS matters required under the Rules for Registration of Firms
4
Q
What are the requirements for registering as an RICS firm?
A
- Application to register sent to RICS
- Must always have a responsible principal
- Act in accordance with RICS Bye-Laws
- Inform the Head of Regulation of any disciplinary from statutory authority
- Inform the Head of Regulation on Insolvency against the firm
- Notify the head of regulation of any material change within 7 days
Firms required to register:
A) The firm provides surveying services to the public
B) The firm is operating in Regulated Area A - UK
C) At least 50% of the firms Principals are RICS members
5
Q
What do you know about the institution, what is the structure?
A
- Self regulated body with its own RICS Bye-Laws which provides framework for all members
- Privy Council
- Governing Council
- Management Board / Standards and Regulations Board / Audit Committee
6
Q
What are the 5 Rules of Conduct?
A
- Act with Integrity and Honesty
- Maintain progressional competence and provide services within their communities expertise
- Provide a good quality diligent service
- Respect others and promote diversity and inclusion.
- Take responsibility and act in a way which promotes the profession and public interest
7
Q
How would you handle a situation where the client asks you to overlook a violation to expedite a project?
A
Refuse, and explain to them my obligations to act with integrity and honesty in this case and advise them to rectify the issue
8
Q
Explain the concept of a Conflict of Interest and provide an example?
A
When there is a conflict of interest which may lead to bias or misjudgement due to factors on each side of a transaction
- E.g member provides services to two clients with conflicting interests within the same transaction or project
9
Q
What steps would you take to ensure client confidentiality when dealing with extensive property information?
A
- Limit access: key contacts only within your organisation
- Secure storage of data
- Put in place information barriers
- Data minimisation
- Employee training and awareness
It sharing, ensure parties sign a non-disclosure agreement
10
Q
How would you respond if you discovered a colleague who was accepting gifts from a contractor that could influence their professional decision?
A
- Review information and very facts
- Speak to colleague and remind them of their legal and RICS duties
- Raise with internal channels, manager, compliance manager etc
- Monitor the situation
- Protect your professional integrity
11
Q
How does the RICS Rules of Conduct guide your decision making process in professional situations?
A
- Act with integrity even if means a disadvantage to your client. Should always look for outcomes based on legal and regulatory compliance.
- Providint
12
Q
How does the RICS Rules of Conduct guide your decision making process in professional situations?
A
- Act with integrity even if means a disadvantage to your client. Should always look for outcomes based on legal and regulatory compliance
- Providing a good level of service and clearly outlining a brief and scope with diligence helps prevent miscommunication or disputes
13
Q
Explain the importance of CPD in maintaining professional standards?
A
- Keeps your up to date with standards, practice, and legal and regulatory compliance
- Latest technological advancements
- Further development and provide a varied level of services
- Health and safety developments and procedures
- Environmental and sustainable standards
14
Q
What actions would you take if you identified serious safety risk in a building that the owner was reluctant to address?
A
- Raise with the owner and advise them of their obligations to ensure the safety of all within the building
- Monitor the corrective action or raise to the appropriate channels and order the evacuation if necessary
15
Q
How would you ensure transparency in your fee structure?
A
- Provide detailed breakdown of the calculation
- Provide calculating mechanism I.e days/hours/travel
- Provide full scope of services and
16
Q
How would you ensure transparency in your fee structure?
A
- Provide detailed breakdown of the calculation
- Provide calculating mechanism I.e days/hours/travel
- Provide full scope of services and description of each service
- Outline the team working on the job and level of experience
- Breakdown of additional services
- Assumptions and exclusions
- Communicate regularly and transparently
17
Q
A
18
Q
Explain the concept ‘Acting with Integrity’?
A
- Provide an honest account or advice
- Do not mislead or deceive
- Maintain professional obligations to the RICS and public
- Honesty and transparency, fairness, and impartiality, consistent in actions, adhering to the legal and regulatory standards
19
Q
How would you handle a situation where you are asked to provide a service out of your expertise?
A
- Decline
- Provide advice on appropriate professionals who can provide the service within my organisation
20
Q
What are the potential consequences of breaching the RICS Rules of Conduct?
A
- Fixed penalty or caution
- Fixed penalty and a fine
- Disciplinary panel can impose fine to expulsion
21
Q
What are the ethical considerations when using social media professionally?
A
Guidance: RICS Guidance for Use of Social Media 2021
- Avoid abusive, threatening or discriminating posts
- Avoid unnecessary or excessive posting
- Consider confidentiality when posting sensitive information
- Avoid being dishonest or misleading
22
Q
Client asks you to exaggerate condition survey report?
A
- Refuse
- Maintain honesty and integrity
23
Q
Explain the importance of Professional Indemnity Insurance?
A
- Protects the surveyor or firm against claims for negligence
- Financial protection for Firms and Professionals
- Provides added assurances for clients through trust and credibility
- Financial viability and business continuity
24
Q
What ethical considerations are involved when accepting referral fees or commissions?
A
- Possibility of Conflict of Interest
- Transparency and disclosure, advise the client of the referral
- Fairness and equality, avoid unethical behaviour
- Value of professionalism, focus on best possible service
- Confidentiality issues
25
What are the RICS Rules of Conduct?
- Act with honesty and integrity
- Maintain professionalism and provide services within expertise and competence
- Provide a good quality diligent service
- Respect others and promote diversity and inclusion
- Take responsibility and act in a way which promotes the profession and public interest
26
What are members professional obligations?
- Comply with CPD requirements
- Cooperate with the RICS
- Provide information to the Regulation Board as necessary
27
RICS Firms - Name at least 3 requirements?
- Cooperate with RICS
- Professional Indemnity Insurance
- Adhere to registration of firms as per RICS guidance
- Must establish complaints handling procedure
- Must have an account for Client Money Handling
28
What other RICS Guidance Notes are you aware of?
- Use of Social Media 2021
- Conflicts of Interest 2017
- Anti Bribery and Corruption, Money Laundering and Terrorist Financing 2019
- RICS Registration of Firms 2022
- Client Money Handling 2020
- Complaints Handling 2016
29
Who is the president of the RICS?
- Justin Sullivan
30
What are Justin Sullivans main objectives as RICS President?
- Justin is passionate about developing the next generation of surveyors and recognises the challenges that ongoing skills shortages across the globe present to the profession and the built environment as a whole
- He is also keen to maintain and expand recognition of the profession's positive impact on society at large, and his work over the next twelve months will reflect these interests
31
How many faculties are there? And can you name me some?
- 18
- Building Surveying, Quantity Surveying, Building Control, Residential Property, Valuation, PM
32
Are you aware of the RICS Matrics?
- Professional network for young and early-career members
- Platform to help connect, develop, share knowledge, and develop professionally in a social, informal environment
33
What things do you need to do in order to set up as a chartered surveyors firm?
- Register with RICS as per the RICS guidance on Registration of Firms 2022
- Set up Professional Indemnity Insurance, Public Liability Insurance, Employers Liability Insurance
- Set up a Complaints Handling Procedure
- Set up account for clients money
- Ensure compliance with RICS Rules of Conduct
34
Would you accept a gift from a contractor?
- Depends on the value, timing, and nature of the gift and whether it could be perceived as a bribe
35
You have provided your client with a fee, and another surveyor offers 10% less, would you lower?
- No
- However, I would review the scope of works required by the client to see whether the services can be altered to lower the price
- Fees are calculated based on business OHPs and calculated for the services
- If I was to lower, this would devalue the surveying profession
36
Contractor offer lunch on valuation day?
- Decline the offer due to the timing of the hospitality
37
PII insurance and who is it for?
- To protect surveyors and firms against claims for negligence
- To financially protect against legal fees and compensation
- To provide security for the business and continuity
- To provide assurances and trust to the client
38
39
What levels of PII are there?
Guidance: RICS Professional Indemnity Insurance Requirements 2022
- Each and every claim basis
- Fire safety claims for buildings 5 storeys and above
- £0 - £100,000 Turnover =
£250,00 Cover
- £100,001 - £200,000 Turnover = £500,000 Cover
- £200,001+ =
£1m Cover
40
Fire safety
41
How are PII insurance requirements calculated?
Guidance: RICS Professional Indemnity Insurance Requirements 2022
- £0 - £100k Turnover = £250k Cover
- £100,001 - £200k = £500k Cover
- £200,001+ = £1m Cover
- Fire Safety claims for buildings 5 storeys and above
42
43
What does being a chartered surveyor mean?
- High standard diligent service by professionals
- In accordance with legal and regulatory compliance
- Provides assurance and quality assurance to clients
- Globally recognised and respected professional body
- Professional qualifications and expertise
- Continuous Professional Development
44
How would you calculate your fee quote and what should your proposal include?
- Clear breakdown of the fee and rates
- Thorough scope of services and methodology
- Fee calculating method I.e hours, days, distance
- Timing of the services and programme
- Team members and expertise level for services
- Exclusions and breakdown of additional services
- Project description and address and details
45
You declined tickets at tender stage, would you accept at another time?
- Depending on the value and frequency, possibly if a one-off
46
What are your obligations as a chartered surveyor?
- Adhere to the CPD requirements
- Cooperate with the RICS
- Provide information to the regulations board as necessary
- Adhere to the RICS Rules of Conduct
47
What is the RICS Professionalism Module?
- Training course for RICS APC candidates on Ethics, Rules of Conduct and Professionalism
48
What is the RICS Professional Statement on Conflicts of Interest 2017?
Guidance for RICS members and firms regarding;
- The types of Conflict of Interest to be aware of
- What to do in the case of a potential Conflict of Interest
- Importance of reporting to the appropriate channels and addressing with the client
- RICS mandating rules on Conflict of Interest, and how to apply those rules
- How firms and members can meet the obligations
49
What do you understand about the RICS Rules of Conduct Global Issue 2021?
- Streamlined firms and members rules into 5 overarching rules for all
- Previously 9 for individuals and 15 for firms
50
What is a bribe? Have you ever been bribed?
- An offering of a gift or hospitality to an individual or firm to cloud their judgement in their favour to provide an unbiased decision, to gain an unfair advantage
- Cash payments
- Gifts
- Hospitality
- Favours
- No, I have never accepted any gifts, although offered some in good faith, I haven’t been bribed
51
When is planning permission required?
- Extensions, change of use, change of materials
- Extension for increasing more than 50% of the existing building footprint
- Works within Conservation areas
- Works near trees with TPOs
- Structural alterations
52
When is planning permission required?
- Extensions, change of use, change of materials
- Extension for increasing more than 50% of the existing building footprint
- Works within Conservation areas
- Works near trees with TPOs
- Structural alterations
53
What are the consequences of not receiving planning?
- Will be required to halt works until planning is approved
- May be required to demolish the construction
- May face criminal charges if work done to listed buildings or TPOs
- Fines can be unlimited
54
What was the reasoning behind the fencing changes?
- Increased height to prevent students climbing and hanging off the roof netting
- Students vulnerable to self harm
55
What are the ESFA’s T&Cs on remaining moneys?
- Any money saved and not expended as part of the proposed works for the CIF Bid should be returned back to the ESFA
56
When was the RICS Rules of Conduct last updated?
- 2021
57
What was included in the last update to the RICS Rules of Conduct?
- Combined rules for Firms and and Members into one
58
What recent guidance is available for diversity and inclusive environments?
- Equality Act 2010
- RICS Rules of Conduct, Rule 4
- BS8300
- Part M
- RICS Standard on Diversity, Equity and Inclusion 2024
59
How do you undertake a Conflict of Interest check?
- Ascertain facts and undertake due diligence checks
- At Ridge, we have a system to contact all employees to out a Conflict of Interest check
60
How do you ensure you comply with Bribery Legislation?
Guidance:
- RICS Countering Bribery and Corruption, Money Laundering, and Terrorist Financing
- Bribery Act 2010
- Review and adhere to the requirements set out within associated governance documentation
- Ensure I understand how to identify a potential bribe
- Understand I should not take part in a bribe
- Understand my obligations to report a bribe
- Raise through the appropriate channels within my organisation to the compliance manager, and to the RICS in some instances
- Review whistle blowing procedures if necessary
61
How do you ensure you comply with Money Laundering regulations?
- Ensure compliance with RICS Professional Standard on Counter Bribery and Corruption, Money Laundering and Terrorist Financing 2019
- Up to date training on Money Laundering awareness
- Understand how to identify possible money laundering activities, I.e cash payments €10,000+ should not be accepted and possible cause for reporting
- Ensure further Enhanced Due Diligence EDD’s checks are carried out for suspected parties to ascertain further in detail information
- Report to the National Crime Agency (NCA), by reporting a SAR, Suspicious Activity Report if necessary
62
How do you ensure you comply with your firms bribery and gift policy?
- Whether accepted or not accepted any gifts, hospitality offered by other parties, regardless of the value, should be submitted on the company gift and hospitality register
63
Tell me about how you would handle a client complaint?
1. Provide the complainant with the company’s Complaint Handling Procedure and Policy
2. Acknowledge the complaint within 7 days
3. Pass on to the Compliance Manager to provide a fair, transparent, unbiased review within 28 days
4. Providing the complainant is satisfied with the outcome, the complaint will be closed and logged into system and discussed for lessons learnt and improvement for future
5. If complainant is not satisfied, passed onto the managing partner to provide a solution
6. If complainant is still not happy, they will be referred to independent redress mechanism scheme with RICS for ADR
7. If this approach is adopted, I would notify the PII insurers for my firm of the complaint
64
Tell me about your firms procedure for escalating a complaint to Alternative Dispute Resolution (ADR)?
- 2 stage process
- First with compliance officer, then to the managing partner to resolve
- Second if not resolved, escalated to independent redress through RICS ADR service
- Firm will need to notify PII insurers in this case
65
Tell me about a Conflict of Interest check you have carried out?
- Surveying services for Marley Risk Consultants for damages to a house from latent defects
- Undertook a Conflict of Interest check through internal communication systems, containing all in business
- Understand whether there were any works undertaken for the house builders or insurance for these works previously
66
If you identified a potential a Conflict of Interest, tell me how you would handle this?
Guidance: RICS Conflict of Interest 2017
- Review and verify the facts
- Notify the parties who are involved
- Understand whether the parties involved would be affected by the conflict.
- Assess whether each parties interests would be served despite the Conflict of Interest and provide the correct level of service
- Only then would
67
Give me an example of when you have acted with integrity?
- EIA Landscaping
- Client wanted to proceed with higher fence without receiving consent from planning
68
Tell me about how you have provided a high standard of service?
- Hall Green Case Study
- Prompt inspection and discussion regarding high risk programme related issue for defects to columns
- Facilitated quick investigations and provided options without delay
69
Tell me about how you have promoted trust in the profession?
- Shipston Safeguarding
- Advised client to return moneys back to the ESFA for moneys remaining as opposed to spending on undeclared works
70
Explain how you have taken responsibility in your role?
- Citizen Housing
- Client was not satisfied with level of service provided by junior surveyor
- I took responsibility as the senior surveyor and arranged a meeting to discuss concerns and rectify the issues
71
Tell me about how you treat clients with respect?
- I ensure to work cooperatively with all stakeholders and avoid discrimination or mistreatment to maintain respectful environment
72
Tell me about how you treat other surveyors with respect?
Internally
- Provide constructive feedback to help improve the services we offer as a team
Externally
- Engage with other surveyors with respect and ensure my practices do not provide unfair advantage to them
73
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying?
Guidance: RICS Registration of Firms
- Notify the RICS of my intention to set up my firm
- Cooperate with the RICS and provide them with information as and when necessary
- Set up correct level of PII insurance
- Establish Complaints Handling procedure in line with RICS Professional Standard on Complaints Handling
- Set up an account for clients money
74
If a prospective purchaser offered you a financial incentive to accept their offer, how would you deal with this?
- I would decline
75
What would you do if you became suspicious that a client was involved in money laundering?
- Review facts and establish the evidence
- Restrict any cash payments
- Raise through appropriate channels internally
- Undertake an Enhanced Due Diligence of the client (EDD)
- If necessary, report to the NCA and submit a SAR (Suspicious Activity Report)
76
What would you do if a client was involved with terrorist activities?
- Report to the NCA (National Crime Agency) and submit a SAR (Suspicious Activity Report)
77
If you were set up in a practice of your own, what insurances would you need?
- Professional Indemnity Insurance
- Public Liability Insurance
- Employers Liability Insurance
- Gadget Insurance
- Office Building Insurance
- Car Insurance
78
What would you do if your client asked you to reduce your fee?
- Decline
- Review scope and client requirements to see whether I can tailor to better to suit the clients needs and budget
79
What are the 3 types of conflict of interest
- Party Conflict
- Own Interests
- Confidentiality Conflicts
80
Which firms are required to register to RICS?
Review the RICS Registration of Firms 2024
Firms required to register:
A) The firm provides surveying services to the public
B) The firm is operating in Regulated Area A - UK
C) At least 50% of the firms Principals are RICS members
81
What are the RICS Bye Laws?
Bye-Law 1 - Application and Definitions
Bye-Law 2: Membership and Registration
Bye-Law 3: Designations
Bye-Law 4: Contributions to Funds
Bye-Law 5: Conduct
Bye-Law 6: Governing Council, Officers and Staff
Bye-Law 7: Subordinate Boards, Committees and Groups
Bye-Law 8: Procedure for General Meetings
Bye-Law 9: Accounts and Audit
Bye-Law 10: General
82
What are the RICS 5 principles of better regulation?
- Transparency
- Proportionality
- Accountability
- Consistency
- Targeting
