The New Rules of Conduct Flashcards
When did the new rules of conduct come into force?
02 February 2022
What documents did the RICS rules of conduct replace?
The old rules of conduct for members
The old rules of conduct for firms
The global ethical and professional principles
What are the five ethical standards?
Rule 1 - Members and firms must be honest, act with integrity and comply with obligations, including obligations to the RICS.
Rule 2 - Members and firms must maintain their professional competence and ensure services are provided by competent individuals who have the necessary expertise.
Rule 3 - Members and firms must provide 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 encourage confidence in the profession.
What is in appendix A?
Mandatory obligations for members and the mandatory obligations for firms.
What are the mandatory obligations for members as outlined in appendix A?
Comply with the CPD requirements
Cooperate with the RICS
Provide all information reasonably requested
What are the mandatory obligations for firms under appendix A?
Publish a complaints-handling procedure
Maintain adequate PII cover for previous and current work that meets the standard approved by the RICS
Continuity in the event of incapacity or death of a sole practitioner
Cooperate with the RICS
Provide all information reasonably requested by the standards and regulation board
Display the RICS designation on their business literature stating that they are regulated by the RICS
Report matters required under the Rules of Registration for Firms
What are the requirements for complaints handling procedures set by the RICS?
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.
What does the RICS deem to be adequate PII cover?
As set out in the RICS Professional Indemnity Requirements, the level is PII required is based on the firms turnover.
£100,000 or less = minimum £250,00 PII
£100,000-£200,000 = £500,000 PII
200,000 and above = £1M PII
What are the requirements for continuity for sole practitioners?
Sole practitioners must nominate a locum, effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work.
What matters are required to be reported under the rules of registration for firms?
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.
What is the ethical decision making process?
- Consider the facts.
- Identify the relevant RICS standards in the rules of conduct and other guidance in addition to any legal obligations.
- Use your professional judgement, which may require you to balance different interest and principles.
- Document your decision
Where could you find guidance on making ethical decisions?
RICS ethical decision tree
RICS anonymous hotline
What are the new areas of content in the news rules?
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.
Could you give me an example behaviour of Rule 1?
Members and firms must not allow themselves to be influenced improperly by others or by their own self interest.
Could you give me an example behaviour of Rule 2?
Members and firms must maintain and develop their knowledge and skills throughout their careers. They must identify their development needs and the necessary undertake CPD. Firms must encourage and support development of their skills and knowledge.
