Ethics, Rules Of Conduct And Professionalism L3 Flashcards
(22 cards)
What is contained within terms of engagement?
The scope of work
fee basis
Any limatations
liability
how the client’s data will be used complaints procedure
Give some reasons as to why you might decline an instruction
Conflict of interest
not competent or qualified to do the job
insufficient facts about the work or property
Client might fail anti-money laundering checks
If not covered by Personal Indemnity Insurance
If client declines terms of engagement
What are the professional indemnity requirements?
Required to have PII to cover yourself and the client. Past and present employees.
Each and every claim basis so can keep making new claims.
Run off cover for at least 6 years RICS recommend 15 years
What are the minimum thresholds of PDI?
Firms turnover in preceding year ~ min. Level of indemnity:
£100,000 or less = £250,000
£100,001 to £200,000 = £500,000
£200,001 + = £1 Million
If the turnover was £150,000 (or change number) what would the minimum level of professional indemnity insurance be?
£500,000
What is the maximum levels of uninsured access?
Limit of indemnity ~ max. Uninsured excess
Up to and including £500,000 = the greater of 2.5% of the sum insured, or £10,000.
Over £500,000 = 2.5% of the sum insured
What does personal indemnity insurance protect us from?
Protect us from claims of negligence when working for the firm and for 6 years after protect us and client and third parties
What is negligence?
Whether has been a breach of duty of care, e.g. Hart v Large case, Mr Large (surveyor) failed to identify serious water ingress problems in a newly refurbished property and this led to a negligence claim as he did not meet the expected standards of practice and breached his duty of care to his client.
What piece of legislation goes with negligence
The limitation act 1980
How do you avoid negligence
Keep a paper trail
give precise clear instructions and terms of engagement
make sure you have the competence and skill to undertake a case
make detailed notes and take lots of photographs on inspection
keep up to date with RICS guidance and CPD and
have PDI in place
What is the role of the RICS?
To promote trust in surveying profession
to provide guidance to surveyors
demonstrate the highest standard of education and training
Leading source information for property and construction
What are the 5 member benefits of RICS
Status, recognition, knowledge market recognition, networking
What are the 5 principles of regulation
P - proportionality
A - accountability
C - consistency
T - targeting
T - transparency
What is your understanding of procedures relating to money laundering regulations?
Money laundering: Concealing the source of the proceeds of criminal activity to disguise their illegal origin
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, are designed to prevent the use of the financial system for criminal activity, particularly the concealment of the source of illegally obtained funds.
In accordance with the Rules of Conduct, all RICS members and firms, members and firms must not facilitate any financial crime including money laundering, tax evasion, bribery or corruption.
What is professional indemnity insurance?
PI insurance protects businesses against claims from clients alleging that inadequate advice, or negligence for example has caused financial loss.
The insurance will cover legal fees and expenses and any damages awarded in claims.
What are the 2 most recent RICS reviews
Bichard review in December 2021 RICS purpose governance and strategy. Aimed to clarify the purpose of RICS.
Independent review of real estate investment valuations this document highlighted the need to recognize real estate as an operating business
What is the RICS governance structure
- Royal Charter
-requires RICS to act in the public interest.
2.Under the Royal Charter, RICS’ governing body is the Governing Council, which is responsible for approving RICS strategy and vision, overseeing the effective delivery of the strategy’ as well as standards and regulation.
How would you set up a complaint’s handling procedure
I’d follow RICS guidance and 1. Designate a complaints handling manager and 2. Establish a clear procedure.
Give clear guidelines and expectations for receiving and processing complaints. Give staff good training on this.
What is the difference between a professional standard and a professional guidance note?
A professional standard defines mandatory requirements for all RICS members and firms.
Professional guidance gives recommendations and best practices to support surveyors.
Talk me through the RICS Rules of conduct.
There are 5 rules of conduct:
honesty, integrity, competence, service, respect, and responsibility.
And appendix A sets out core professional obligations of members and firms to RICS:
The following professional obligations to RICS are mandatory for RICS members.
1. Members must comply with the CPD requirements set by RICS.
2. Members must cooperate with RICS.
3. Members must promptly provide all information reasonably requested by the Standards and
Regulation Board, or those exercising delegated authority on its behalf.
The following obligations are mandatory for RICS-regulated firms.
1. Firms must publish a complaints-handling procedure, which includes an alternative dispute
resolution provider approved by RICS, and maintain a complaints log.
2. 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.
3. 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.
4. Firms must cooperate with RICS.
5. Firms must promptly provide all information reasonably requested by the Standards and
Regulation Board, or those exercising delegated authority on its behalf.
6. Firms must display on their business literature, in accordance with RICS’ published policy on
designations, a designation to denote that they are regulated by RICS.
7. Firms must report to RICS any matter that they are required to report under the Rules for the registration of firms.
What are the changes to the RICS rules of conduct?
updated to reflect a simpler structure, clearer examples, a focus on respect, diversity and inclusion, and a recognition of the use of data and technology and a focus on sustainability.
