Ethics, Rules of Conduct and Professionalism

Question 1

Why do you want to become a member of the RICS?

Answer 1

I want to be a member of a professional body which promotes integrity and professionalism, which is recognised and valued by clients. I want to give back to the industry and be able to assist in making the built environment better.

Question 2

What is the RICS motto?

Answer 2

‘Est Modus in Rebus’ - ‘There is measure in all things’

Question 3

What is the role of the RICS?

Answer 3

To qualify and equip their members to offer the highest professional standards

Question 4

What are the key functions of the RICS?

Answer 4

Promote and enforce high professional standards, regulate chartered professionals, and provide expert advice to governments, businesses, and the public in the built and natural environment

Question 5

What is a Royal Charter?

Answer 5

Awarded in 1881 by Queen Victoria, to maintain and promote the usefulness of the profession for the public advantage

Question 6

Who is the current RICS president?

Answer 6

Justin Sullivan

Question 7

What do you understand by the term self-regulation?

Answer 7

self-regulation means the organisation, through its Standards and Regulation Board (SRB), sets and enforces standards for its members and regulated firms

Question 8

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

Answer 8

• Proportionality
• Accountability
• Consistency
• Targeting
• Transparency

Question 9

What is a Bye-Law?

Answer 9

Rules that govern the organisation’s internal operations

Question 10

Give an example of one of the RICS Bye-Laws

Answer 10

Every member shall conduct themselves in a manner befitting their professional status and membership of the Institution, avoiding any action likely to discredit the Institution or the profession.

Question 11

When was the RICS Rules of Conduct issued and when did the rules become effect?

Answer 11

Issued in October 2021 and effective from 02 February 2022

Question 12

What changes were made to the Rules of Conduct 2022?

Answer 12

• Provide a simpler structure
• Give clear examples
• Focus on respect, diversity and inclusion
• Respond to evolving technology
• Emphasis of members expertise in tackling global challenges.

Question 13

What did the RICS Rules of Conduct replace?

Answer 13

Up until the 1st February 2022 there were 5 Global Professional & Ethical Standards

From 2nd February 2022 onwards the Global Professional & ethical standards have been consolidated within the New Rules of Conduct 2022

Question 14

What are the 6 ethical principles that the Rules of Conduct are based on?

Answer 14

Honesty
Integrity
Competence
Service
Respect
Responsibility

Question 15

What are the 5 rules

Answer 15

Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS

Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise

Rule 3 - Members and firms must provide a good quality and diligent service

Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion.

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.

Question 16

Please could you provide me with an example as to when you have acted with honesty and integrity at work? (Rule 1)

Answer 16

In December 2024 I received a Christmas gift from one of my clients, in the form of a Hamper filled with wine, cheese etc. to thank me for the work I have done for them over the past year.

I determined that this gift was worth above the £25 limit under my firms Gifts and Hospitality policy. Therefore, remaining in line with this policy, I informed my line manager, declared it on our gifts register and advised it to be raffled off for charity.

To maintain transparency with my client, I thanked them for the kind gesture and informed them that under our policy, I was required to declare the gift.

Question 17

Please could you provide me with an example as to when you have ensured you are maintaining and acting with competence at work? (Rule 2)

Answer 17

I ensure I am consistently maintaining and developing my knowledge and skills through undertaking continuing professional development (CPD). For example I recently attended an insurance update training session, to gain insights into how insurance premiums are calculated.

Question 18

Please could you provide me with an example as to when you have provided good quality and diligent service at work? (Rule 3)

Answer 18

Upon taking on a new client I have requested information to conduct anti money laundering checks before entering into a PMA. I work alongside our compliance department who conducts checks.

Question 19

Please could you provide me with an example of when you have taken responsibility and have acted in the public interest (Rule 5)?

Answer 19

I’m fortunate to of not received a complaint. However, should I receive one I would comply with my firms complaints handling procedure.

Question 19

Please could you provide me with an example of when you have treated others with respect and encouraged diversity within the workplace (Rule 4)?

Answer 19

Recently we had an apprentice join our team, I acted as their ‘buddy’ to provide them with support and guidance when starting out, i ensure i make all new starters feel welcome regardless of their background or role.

Question 20

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

Answer 20

• Members must comply with CPD requirements
• Members and Firms must cooperate with the RICS
• Members and Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
• Firms must have a complaints handling procedure
• Firms must have professional indemnity insurance
• Firms must have a locum if there is a sole principle

Question 21

What disciplinary procedures can the RICS impose? In what circumstances can these be imposed?

Answer 21

• Conduct Committee (can serve a fixed penalty notice or make a consent order)
• Disciplinary Panel (can issue caution, impose a fine, expel) - for more serious breaches.
• Appeal Panel - relate to 3 levels of disciplinary procedure - fixed penalty notice, disciplinary panel or registration panel.

Question 22

When did the RICS last update their disciplinary panel rules?

Answer 22

RICS Disciplinary, Registration and Appeal Panel Rules
Version 8 with effect from 1 October 2019

Question 23

What are the different levels of action with the disciplinary procedures?

Answer 23

Minor issues result in informal advice or fixed penalty notices,

Moderate breaches may lead to formal reprimands or consent orders.

Serious offences are dealt with by disciplinary panels who may impose fines, membership conditions, suspension or expulsion.

Members have a right to appeal these decisions via an independent Appeal Panel.

Question 24

What do you understand by the term professional practice?

Answer 24

Providing professional services performed by qualified individuals or regulated firms, adhering strictly to the ethical guidelines and professional standards set by RICS

Question 25

What money laundering regulations are you aware of?

Answer 25

RICS professional statement: Countering bribery, corruption, money laundering and terrorist financing - Effective 1st September 2019)

Question 26

What is a red flag of money laundering?

Answer 26

A warning sign or indicator that suggests potential criminal activity - such as a sudden surge in transactions

Question 27

What bribery legislation are you aware of?

Answer 27

The Bribery Act 2010

Question 28

What is a bribe?

Answer 28

Something given in expectation of a change of behaviour.

Question 29

What are the penalties for accepting a bribe?

Answer 29

Accepting a bribe is viewed as a serious breach of RICS ethical standards. Penalties include expulsion or suspension from RICS membership, significant fines, public disciplinary publication, and potential criminal prosecution

Question 30

What are the penalties for being involved in money laundering?

Answer 30

Involvement in money laundering is a serious breach of RICS ethical standards and criminal law. RICS penalties include expulsion, suspension, large fines, and public disciplinary publication. Additionally, criminal penalties may include fines, imprisonment

Question 31

What constitutes an offence under the Bribery Act 2010?

Answer 31

- Bribing another person - Being bribed - Bribing of foreign public officials - Failure of commercial organisations to prevent bribery.

Question 32

What constitutes an offence under current money laundering regulations?

Answer 32

when an individual or firm facilitates financial crime, including money laundering, tax evasion, bribery, or corruption, or when they fail to implement effective processes to prevent such activities by their directors, partners, or employees

Question 33

How long should you keep anti-money laundering records for?

Answer 33

Five years from the date a business relationship ends or a transaction is completed

Question 34

What is professional indemnity insurance?

Answer 34

Insurance that protects businesses from claims arising from negligent advice or services provided to clients or third parties

Question 35

What is negligence?

Answer 35

failure to provide the duty of care that is owed.

Question 36

What is the purpose of PII for firms and individuals?

Answer 36

1. protects firms from financial loss if they cannot meet the claim from their own resources. 2. Protects the insured member or firm against the consequences of its liability to pay damages to a third party for breaches of professional duty. 3. Ensures that a firms clients can recover their financial losses.

Question 37

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

Answer 37

‘Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.’

Question 38

What are the minimum levels of indemnity?

Answer 38

Firms turnover in the preceding year = Minimum limit of indemnity (this is for each and every claim) £100,000 or less = £250,000 £100,001 to £200,000 = £500,000 £200,001 and above = £1,000,000

Question 39

What is the minimum level of uninsured excess?

Answer 39

Up to and including £500k - the greater of 2.5% of the sum insured or £10k over £500k - 2.5% of the sum insured.

Question 40

What does 'claims made' mean in terms of PII?

Answer 40

A 'claims made' PII policy covers claims that are notified to the insurer within the policy period, regardless of when the event causing the claim took place, subject to any specified retroactive date

Question 41

Is PII excess usually paid for per claim?

Answer 41

Yes, the excess under Professional Indemnity Insurance is usually payable on a per claim basis. This means the insured pays the excess each time a separate claim is made, rather than once for multiple claims.

Question 42

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

Answer 42

In a negligence claim, clear documentation and records demonstrating that I agreed written terms, checked competency and conflicts of interest, complied fully with RICS standards, undertook thorough due diligence, and kept detailed file notes and evidence of professional advice would show that I acted with consideration and followed due process

Question 43

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

Answer 43

Yes, good record-keeping can be crucial for defending a Professional Indemnity Insurance (PII) claim

Question 44

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?

Answer 44

I would contact my PII provider to confirm whether the new services are covered by my existing policy. If they weren't, I would arrange an extension of cover or additional insurance, and formally notify the insurer to ensure full compliance and adequate protection.

Question 45

What is run off cover?

Answer 45

Run off cover is a form of PII providing cover for past liabilities of a business once it has ceased trading.

Question 46

How long does the RICS require firms and individuals to have run off cover in place?

Answer 46

15 Years

Question 47

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

Answer 47

The new Minimum Policy Wording and insurance rules will mean that from 1 May 2021*, PII policies will provide greater fire safety cover for chartered surveyors

Question 48

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

Answer 48

No, even with a dictated report, RICS standards require written notes, inspection details, and calculations to be retained on file. Dictation alone does not fulfil the RICS requirement for comprehensive supporting documentation.

Question 49

Explain PII requirements relating to fire safety and cyber cover?

Answer 49

Professional Indemnity Insurance must explicitly cover fire safety services if undertaken, including activities like fire risk assessments or advice on cladding. Regarding cyber cover, while not mandatory, RICS strongly advises firms to obtain cyber insurance to manage risks associated with data breaches and cyber-attacks.

Question 50

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

Answer 50

15 Years

Question 51

Who is the assigned risks pool? (ARP)

Answer 51

a facility provided by RICS to help regulated firms that are unable to secure Professional Indemnity Insurance (PII) through the open insurance market.

Question 52

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

Answer 52

Purpose: Help members manage professional risk, liability, and insurance obligations. Key areas covered: Risk Management: Identifying, mitigating, and managing risks. Liability: Contractual limitations, clear terms, documentation. PII: Ensuring suitable cover, managing claims, run-off cover. Specialist Risks: Advice on high-risk areas (e.g., fire safety). Cyber Liability: Understanding and insuring against cyber risks.

Question 53

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

Answer 53

I hold bi-weekly calls with one of my clients to update them on their portfolios outstanding arrears and any ongoing rent reviews, this ensures full transparency on how these matters are progressing.

Question 54

Explain how you have taken responsibility in your current role?

Question 55

How would you set up an RICS firm, what is the process?

Answer 55

Notify the RICS of your intention Appoint a lead communicator Provide