RICS - Ethics & Rules of Conduct Flashcards
(36 cards)
What is RICS rules of conduct Rule 1? What does it mean? (5)
Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Do not mislead or take advantage of others
- Recognise conflicts of interest and know how to handle these.
- Do not be influenced by gifts, bribes or hospitality.
- Be open and transparent
- Keep client money safe.
What is RICS rule of conduct Rule 2?
What does it mean? (4)
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
1.Comply with CPD requirements
2. Supervise colleagues with less experience
3. Check that subcontractors have correct competence.
4. Stay up to date with relevant legislation and codes of practice
What is RICS rule of conduct Rule 3?
What does it mean? (5)
Members and firms must provide good quality and diligent service.
- Understand client objectives prior to agreement
- Be clear on inclusions and exclusions in agreements.
- Have quality assurance procedures.
- Keep good records in the event of audit
- Communicate clearly
What is RICS rule of conduct Rule 4?
What does it mean? (5)
Members and firms must treat others with respect and encourage diversity and inclusion.
- Discourage bullying/harassment
- Work collaboratively
- Ensure equal access is provided to all
- Do not discriminate
- Report issues relating to the above
What is RICS rule of conduct Rule 5?
What does it mean? (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.
- Take responsibility for my actions
- Support others if they raise concerns
- Ensure public communication
- Stick to complaints handling procedures
- In conflict situations, offer ADR processes
What obligations are set out as mandatory for RICS members? (3)
- Members must comply with CPD requirements.
- Members must cooperate with RICS.
- Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on their behalf.
What obligations are mandatory for RICS regulated firms? (7)
- Firms must publish a complaints handling procedure, which included an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- 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.
- Firms with a sole principal mus make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standard and regulation board.
- 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.
- Firms must report to RICS any matter that they are required to report under the rules for the registration of firms.
Can you explain the general overview of the New Rules of Conduct (Feb 2022)?
Single document that replaces the old rules of conduct for members, rules of conduct for firms and global ethical principles.
Provides a simpler set for people working in the industry, and clearer guidance on what the public will receive from those providing such service, by developing the rules on ethical principles and combining the requirements for members and firms.
What do you need to do to set up an RICS accredited practice? (3)
- Make an application to the RICS for registration as a firm.
- Carry appropriate PI
- Have a minimum of 25% of the company’s principles be members of the RICS
What are the CPD requirements for a chartered surveyor?
- 20 hours per calendar year, at least 10 must be formal.
- These must be submitted by the 31st of Jan every year.
- Must provide evidence of CPD on ethical standards over a 3 year rolling period.
What is PII? What is it for?
Professional Indemnity Insurance.
Provides protection to both a firm and its clients in cases of negligence, errors, omissions or breach of duty claims that cannot be paid from a policy holder’s own resources.
What are the requirements of PII? (2)
What minimum levels are needed when setting up a private practice? (3)
What is a firms maximum uninsured excess?
- Must be held as in each and every claim.
- Must cover directors, staff and former employees.
Minimum cover based on revenue:
1. £100k or less - £250k indemnity
2. £100k - £200k - £500k indemnity
3. £200k+ - £1m indemnity
Firms maximum uninsured excess must not exceed 2.5% of their annual fee income or £10k, whichever is higher.
What is PII run off cover? When would you need it?
PII run off cover is a PII that continues to provide protection after a firm has ceased trading. This is needed for claims that arise from work that was carried out whilst the firm was active.
How long must PII run off cover be held for?
Required to be held for at least 6 years after a firm has ceased trade as this is the statuary limitation period for negligence claims in the UK.
How would you protect a client’s interests if you decided to give up practice? What is a locum?
Have a procedure in place so that services could continue.
A locum is a qualified professional who is temporarily appointed to take over the work of someone who is absent (due to illness, retirement, death etc.)
What are the 2 main professional guidance document types? What are they for?
- Professional standard document.
- Set expectations or requirements for RICS members about how they provide services. - Practice information document.
- Supplementary guidance to support surveyors in delivering services. Guidance is not mandatory and doesnt provide explicit recommendations.
Why does the RICS publish guidance notes?
To ensure that surveyors now how to act with reasonable competence, which is ensured by acting in accordance with RICS guidance documents.
What is the Black Book?
Collection of technical practice documents that covers all processes throughout a project life cycle. These are guided to best practice.
How do you act with integrity? (5)
- Being trustworthy in what I do
- Being open and transparent
- Respecting confidential information
- Not allowing bias or conflict of interest influence my decisions
- Not offering or accepting gifts or hospitality that might suggest an improper obligation.
How do you take responsibility? (4)
- Be accountable for my actions.
- Act with skill, care and diligence.
- Ensure appropriate complaint handling procedure is in place.
- Be willing to respectfully challenge things that I think are not right.
How do you promote trust in the profession? (3)
- Understanding how my actions affect others and the environment.
- Fulfilling my professional obligations.
- Acting in a trustworthy manner.
What is the difference between ethics and integrity?
Ethics - external, applies to an organisations rules and code of conduct and how these have been created to follow moral principles.
Integrity - internal quality of being honest, strong morals and doing the right thing.
When is a firm required to register for regulation? (3)
- Provides surveying services to the public
- Operates in the UK
- 50% or more of the firms principles are RICS members
What must be considered when offered gifts or impartiality? (3)
- Timing of the gift
- Proportionality of the gift
- Consideration to the impartiality or perceived impartiality of the gift offered.
