Ethics, Rules of Conduct & Professionalism

Question 1

Who became the RICS President for 2025?

Answer 1

Justin Sullivan FRICS

Question 2

Who is the acting president of RICS due to a high court case?

Answer 2

Nick Maclean

Question 3

Who is the CEO of RICS?

Answer 3

Justin Young

Question 4

Who became the Senior Vice President (SVP) of RICS for 2025?

Answer 4

Maureen Ehrenberg FRICS

Question 5

Who was the president elect of RICS?

Answer 5

Nicholas Maclean

Question 6

In what year was RICS formed?

Answer 6

1868

Question 7

RICS was formed under what legal document?

Answer 7

Charter

Question 8

what are bye-laws?

Answer 8

i) Allows bodies / companies to regulate their own legislation
ii) Skeleton to follow to have a royal institution
iii) Ratified by Privy Council who advise on gov and monarch on how to take for
iv) Regulations – approved by RICS Governing Council

Question 9

What is the objective of the Royal Charter?

Answer 9

To “maintain and promote the usefulness of the profession for the public advantage”

This emphasizes the commitment to serving the public interest in the profession.

Question 10

What is the motto of the Royal Charter?

Answer 10

“there is proper measure in all things”

This reflects the importance of balance and ethics in professional practice.

Question 11

What is the role of the Privy Council in RICS governance?

Answer 11

Approving changes to RICS’s Royal Charter and Bye-Laws

This ensures that any modifications to governance are reviewed at a high level.

Question 12

What does the Governing Council do?

Answer 12

Sets global strategy and fulfills Royal Charter

The Governing Council is crucial for aligning the organization’s actions with its foundational objectives.

Question 13

What is the primary function of the RICS Management Board?

Answer 13

Delivering the business plan

This involves implementing the strategies and objectives set by the Governing Council.

Question 14

What are the responsibilities of the Stds and Reg Board?

Answer 14

RICS’s regulatory functions including prof stds, admission, DRS, Tribunal

This board is essential for maintaining standards and ensuring compliance within the profession.

Question 15

5 Rules of Conduct

Answer 15

a) Honesty & Integrity - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
b) Competence - maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
c) Service - must provide good-quality and diligent service
d) Respect - must treat others with respect and encourage diversity and inclusion.
e) Responsibility - 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

Give examples of Honesty and Integrity

Answer 16

i) Conflict of interest, gifts, transparency in fees, client money safe, professional obligation (BRIBARY ACT 2010)
ii) Tender for Ilford

Question 17

Give examples of competence

Answer 17

i) Knowledge, skill, resources, limitations, CPD, legislation, DD, client care
ii) UCEM Courses

Question 18

Give examples of Service

Answer 18

i) Client’s needs, scope agreed, communication, record keeping, confidentiality, data protection, DPA / GDPR 2018, eco soc and env solutions, AI, locum
ii) Reporting and NDA respect

Question 19

Give examples of respect

Answer 19

i) Inclusive, collaborative, Equality Act 2010, H&S Act 1974, unconscious bias
ii) organise events and inclusive design

Question 20

Give examples of responsibility

Answer 20

i) Complaint handling, health and safety, finances, PII, risk,
ii) Ensuring all members wore PPE on Uni visit.

Question 21

Appendix A explain the members obligations

Answer 21

1) CPD,
2) cooperate with RICS,
3) all info Stds and Reg Board

Question 22

Appendix A explain the firms obligations

Answer 22

1. Complaints – must have a procedure
2. PII – all professional work covered by PII
3. Sole principal –arrangements for work to continue in event of death etc
4. Cooperate with RICS
5. Provision – info requested by Board
6. Designation – display on literature designation to denote they are regulated by RICS
7. Report – report any matter they are required to under Rules for Registration of Firms

Question 23

Name the 7 Mandatory Prof Statements

Answer 23

a) Rules of Conduct
b) Conflicts of interest – 1st Ed 2017
c) Complaints handling – 1st Ed, 2016
d) Rules for the registration of firms, 7, 2022
e) Client money handling – 1st 2019
i) RICS Client Money Protection Scheme Rules – surveying and agents
f) Countering bribery, corruption, money laundering and terrorist financing - Countering financial crime: Bribery, corruption, money laundering, terrorist financing and sanctions violations 2nd edition, RICS professional standard
g) Diversity, equity and inclusion (DEI) - Webpage

Question 24

Explain the Complaints Handling Procedure

Answer 24

o Stage 1 – Company Complaints Procedure
- Comp received in writing, consider asap, acknowledge within 7 days, respond within 28 days
o Stage 2 – No resolution (Indep Redress / ADR)
- Complaint to an independent redress provider (approved by RICS) e.g. Centre for Effective Dispute Resolution for consumer and bus to bus or Property Ombudsman – Consumer

Question 25

What is Gleeds' complaints handling procedure?

Answer 25

Designated director in each region, written complaint, within 7 days to acknowledge circumstances and further comments, within 21 days inform outcome of investigation and actions, if dissatisfied then contact COO, if continue to remain dissatisfied then negotiation, or mediation through Centre for Dispute Resolution (CEDR) or mediation procedure of Dispute Resolution Service, if still not then referral to DRS

Question 26

Registration of Firms - info required

Answer 26

Details, Nature of work, Principal and Employee details incl consultants (membership no.s).  Stds and regs requirements  Professional Obligations

Question 27

Registration of Firms - what are the professional obligations?

Answer 27

* Complaints handling procedure * PI insurance cover * Sole principles (locums) for business cont * CPD / training for staff * Use of RICS logo * Statement of “Regulated by RICS” * Compliance with legislation and stat undertakings

Question 28

Registration of firms - Rules for regulation?

Answer 28

Required for regulation * Surveying service to public * Reg Area (UK) * 50% of Principles are MRICS+ Eligible * Surveying service * Min of 25% Principles MRICS * Supported by another reg firm

Question 29

Reg of firms - responsible principle

Answer 29

 Must have one who ensure complies with obligations, appropriate policies and RICS stds, legal obligations, info to RICS is truthful, record failure, contact officer

Question 30

Obligations of Registration

Answer 30

 Comply with RICS Rules of Conduct  Act according to Royal Charter and Bye-laws  Inform head of reg if – finding disciplinary, insolvency, material change, dishonesty, serious prof misconduct, reputational damage

Question 31

What is the requirements of Valuer Registration?

Answer 31

 All valuation to RICS Red Book  Raising Stds – committed to openness and transparency

Question 32

Public Indemnity Insurance Cover - min levels of cover

Answer 32

 Ensure clients are protected from loss (and firms)  Min levels of cover against firms financial turnover * 100k or less = £250k * 100k – 200k = £500k * 200k plus = £1m

Question 33

Public Indemnity Insurance Cover - max levels of uninsured excess

Answer 33

 Max uninsured excess * Limit of indemnity o £500k – >2.5% of sum or £10k o Over £500k – 2.5% of insured sum

Question 34

Public Indemnity Insurance Cover - details

Answer 34

 Retroactive - Past and present employees and work  Underwritten by listed insurer  Run-off cover – post ceasation - £1m for 6 years – plus retirement  Assigned Risks Pool (ARP) – if no PII is available on the market

Question 35

What sort of information do registered firms have to send to the RICS annually?

Answer 35

- Type of business and staffing. - Nature of clients. - Complaints handling procedures details and records. - PI insurance details. - Whether the firm holds clients’ money.

Question 36

What do you need in place in order to start a company?

Answer 36

1) Contact the RICS for a company start up pack. 2) Inform the RICS and register for regulation. 3) Appoint a contact officer for all RICS communication. 4) Prepare a complaints handling procedure. 5) Obtain insurances: PI, Employer’s Liability, Public Liability, building insurance for the office. 6) Use the designation ‘Regulated by RICS’ on all practice material. 7) Set up a company bank account. 8) Register with Companies House.

Question 37

RICS’ CPD policy

Answer 37

a) Jan – Dec = 20 hours, at least 10 hours must be formal b) Understanding of ethics during rolling 3 yr period

Question 38

Government, legislation and regulation - a) Data Protection & GDPR 2018

Answer 38

– informed, access, rectification, erase, restrict processing, portability, object.

Question 39

What Government, legislation and regulation is relevant to ethics?

Answer 39

Data Protection & GDPR 2018 Bribery Act 2010 Money Laundering Regulations 2017 Modern Slavery Act 2015 Equality Act 2010 Building Safety Act 2022

Question 40

What are the key principles of Data Protection & GDPR 2018?

Answer 40

informed, access, rectification, erase, restrict processing, portability, object ## Footnote GDPR stands for General Data Protection Regulation, which governs data protection and privacy in the EU.

Question 41

What does the Bribery Act 2010 address?

Answer 41

giving / receiving a bribe, foreign official, not having systems in place ## Footnote The Bribery Act 2010 is aimed at preventing bribery in business and government.

Question 42

What are the red flags identified in the Money Laundering Regulations 2017?

Answer 42

client, parties, source of funds, transaction, instructions ## Footnote These red flags indicate potential money laundering activities.

Question 43

What is a requirement of the Modern Slavery Act 2015 regarding supply chains?

Answer 43

transparent in supply chains - £36m = modern slavery statement, prosecute ## Footnote Companies with a turnover of £36 million or more must publish a modern slavery statement.

Question 44

List the protected characteristics under the Equality Act 2010.

Answer 44

* age * disability * gender reassignment * marriage and civil partnership * pregnancy and maternity * race * religion or belief * sex * sexual orientation ## Footnote The Equality Act 2010 aims to consolidate and simplify anti-discrimination laws.

Question 45

What does the Building Safety Act 2022 focus on?

Answer 45

increased accountability, duty of care ## Footnote This act was introduced to improve building safety regulations following high-profile incidents.

Question 46

Gleeds Anti-Bribery, Corr and Fraud Policy - RICS Professional Statement: Countering Bribery and Corruption, Money Laundering and Terrorist Financing

Answer 46

- Does not prohibit but with prior approval. reasonable, proportionate, and justifiable. - No rewards or encouragement. No cash, avoided at contracts, no cultural offence but donate to charity - Written in register both given or received. - Whistleblowing concerns

Question 47

Can you give an example of when you have applied the principles of each standard?

Answer 47

1. Honest and Integrity – Conflict of interest checks and flagging of tender 2. Competency – partake in UCEM courses 3. Service – Agree fee 4. Respect – Comply with South African law in diversity 5. Responsibility – Seminar presentation, negotiation of PI

Question 48

RICS Ethics Decision Tree

Answer 48

1. Do I have sufficient facts on the issue? 2. Is it legal? 3. Is it in line with RICS Professional and Ethical Standards? 4. Have I consulted with appropriate people to make an informed decision? 5. Do I have clear reasoning in reaching my decision? Is the decision informed? 6. Would I be content for my actions to be made public?

Question 49

What changes or new initiatives have recently occurred in the RICS?

Answer 49

- Technical Partnership

Question 50

What is CSR?

Answer 50

Corporate Social Responsibility - Shows a firm’s compliance to laws / ethical standards / international norms ## Footnote CSR is essential for businesses to demonstrate their commitment to ethical practices and social accountability.

Question 51

What is the procedure in case of a breach of a rule of conduct?

Answer 51

Investigate / Disciplinary Procedures – Head of Regs – impose CPD / Regulatory Tribunal = unlimited fines and expulsions ## Footnote This process ensures accountability and adherence to professional standards within the organization.

Question 52

What three actions can be imposed after the end of the investigation stage?

Answer 52

* Fixed penalty – fine if not certain info * Consent order – cannot undertake certain actions for time and pay a fine * Disciplinary panel – 8 RICS and non-members, 14 days. ## Footnote These actions provide a range of responses depending on the severity and clarity of the misconduct.

Question 53

Who can use designations?

Answer 53

* A sole practitioner. * Firms with over 50% partners / directors who are members. * No partners or directors that have been expelled from the RICS or refused reinstatement. ## Footnote This ensures that only qualified individuals and organizations can represent themselves with professional designations.

Question 54

What are the biggest issues facing the RICS today?

Answer 54

* housing * skills * sustainability ## Footnote Addressing these issues is critical for the future growth and relevance of the RICS.

Question 55

What are the big topics within the industry today?

Answer 55

* Fire Safety (Grenfell Report) * sustainability * AI * economic distribution * planning reform ## Footnote These topics reflect current challenges and trends that the industry must navigate.

Question 56

What were the big events or changes in the RICS this year?

Answer 56

* MIPIM – official strategic partner * Commonhold and Leasehold Reform 2024 – commonhold to become default, leasehold to 990yrs. * World Built Environment Forum ## Footnote These events signify important strategic partnerships and reforms impacting the property sector.

Question 57

What is the Bichard Review?

Answer 57

Governing Council in December 2021, following a recommendation in the Levitt Review that a “wide-ranging examination of purpose, governance and strategy” ## Footnote This review aimed to enhance governance and ensure that the RICS serves the public interest effectively.

Question 58

How many recommendations were made in the Bichard Review?

Answer 58

- 36 recommendations – public interest / focus on diversity and inclusion / simplified governance structure ## Footnote These recommendations focus on public interest, diversity and inclusion, and a simplified governance structure.

Question 59

Where a firm ceases to trade or becomes unregulated what must you do?

Answer 59

- Complaints handling - Continue to adopt an effective procedure for handling complaints which were made to the firm prior to it ceasing to trade/becoming unregulated by RICS - Clients’ money - On ceasing to trade – ensure that the security of clients’ money is preserved until all monies have been distributed. In the event of a firm becoming un-regulated by RICS – inform your clients that the monies are no longer covered by the RICS Clients’ Money Protection Scheme. - Professional indemnity insurance - Maintain run-off cover for a minimum period of six/twelve years. This ensures you are not exposed to claims during the period following ceasing to trade or becoming unregulated by RICS. It is advisable to contact your broker for more detailed advice

Question 60

What does the Consumer Rights Act 2015 allow?

Answer 60

- 14 day cooling off period

Question 61

When did the new rules of conduct come into force?

Answer 61

02 February 2022

Question 62

What are the requirements for complaints handling procedures set by the RICS?

Answer 62

Details of the CHP should be issued to the client at the same time as the Terms of Business. A complaints log should be maintained. Firms must include an RICS approved Alternative Dispute Resolution (ADR) mechanism in their Complaints Handling Procedure. Detail of the Complaints Handling Officer must be stated as the person to contact in the first instance. The complaint must be made in writing Strict timescales – a complaint should be acknowledged within 7 days and investigated within 28 days. If the complainant is not happy with the review, then they can pursue an independent redress scheme.

Question 63

What are the requirements for continuity for sole practitioners?

Answer 63

Sole practitioners must nominate a locum, effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work.

Question 64

What matters are required to be reported under the rules of registration for firms?

Answer 64

Inform the head of registration of: any findings against it by any disciplinary or regulatory body any insolvency any material change such as change of business address or a principal within the firm.

Question 65

What are the new areas of content in the news rules?

Answer 65

Sustainability - to assist in achieving UNSDG Handling Data - due to increased use of technology and challenge of handling large amounts of data Diversity and inclusion - not just respect for others, but active encouragement of diversity and inclusion.

Question 66

What is client money?

Answer 66

Money that an firm holds for or receives on behalf of another person, including money held by a the firm that is not immediately due and payable to the RICS regulated firm.

Question 67

What do the RICS rules of conduct require when handling client money?

Answer 67

Rule 1 Firms must keep client money safe and have appropriate accounting controls.

Question 68

What scheme must RICS regulated firms holding client money register with and what protection do these provide?

Answer 68

‘RICS Client Money Protection Scheme for Surveying Services’ provides client money protection in the event that the firm is unable to repay a clients money.

Question 69

What are the requirements/procedures which should be followed when setting up a client account?

Answer 69

Client accounts must be separately and clearly identifiable The word ‘client’ and a unique identifier such as the name of the property must be on the bank account Money in the account must be immediately available to the client on demand Payment of interest must be agreed with the client and accounts kept in credit Regular reconciliation checking payment received and made Accurate records and running balance available Money can only be withdrawn if properly required.

Question 70

How should money be paid out of the client account?

Answer 70

used only for that client matters ensure that as soon as soon as the money is no longer required it is returned to the client all payment made to or on behalf of the client when fees area due, send an invoice to the client before withdrawing the funds. check there are sufficient funds prior to making payment

Question 71

What are the six main areas of good practice as set out in the RICS Professional Statement ‘Client Money Handling’

Answer 71

Holding client money Providing information to clients Receipts of client money Payment from client account Accounting records and controls Compliance

Question 72

What are the options where a authorised individual is unable or otherwise restricted in carrying out bank account functions due to sickness-related absence?

Answer 72

Additional authorised signatory Power of attorney in place which delegates authority.

Question 73

How would you define a conflict of interest and can you give some examples?

Answer 73

In a position of trust has competing personal or professional interests cannot fulfil their duties impartially e.g. two competing clients represented by the same firm Protect commercially sensitive information: exclusivity of staff, staff confidentiality, physical separation, security of docs Disclose to each client the possibility, nature and circumstances of the conflict, in writing. Cannot continue unless requested to do so.

Question 74

How do you identify a conflict of interest?

Answer 74

- Any financial interest - A personal relationship - Commercial relationships - The interests of the firm.

Question 75

What is Gleeds' Conflict of Interest?

Answer 75

- What is a conflict – Party (two clients) / Own Interest (shares and contract) / Confidential Info Conflict (act for two clients) - Carry out conflict of interest check on project opening - raise to global risk if so who maintains a register – not accept / parties accept / member of staff cant be involved - Informed Consent if can avoid conflict of interest - Manage – physical and electronic separation

Question 76

How would you react when faced with a conflict of interest?

Answer 76

- With openness and transparency - declare - stand down - written permission

Question 77

Gleeds Anti-Bribery, Corr and Fraud Policy - RICS Professional Statement: Countering Bribery and Corruption, Money Laundering and Terrorist Financing

Answer 77

- Does not prohibit but with prior approval. reasonable, proportionate, and justifiable. - No rewards or encouragement. No cash, avoided at contracts, no cultural offence but donate to charity - Written in register both given or received. - Whistleblowing concerns