1 - RICS General, Ethics, Rules of Conduct, & Professionalism Flashcards
What is the Royal Charter?
- Awarded in 1881 by Queen Victoria.
- The Royal Charter requires the RICS to promote the usefulness of the profession for the advantage of the UK public and in other parts of the world.
- In practice, the charter means that important changes to the constitution - its bye-laws - must be ratified by the UK Government, through the Privy Council
Where are the RICS’ international headquarters location?
12 Great George Street, Parliament Square, London.
What is RICS’ Motto?
‘Est Modus in Rebus’ - There is measure in all things
When was RICS founded?
1868
What is the RICS?
- Royal Institution of Chartered Surveyors
- The world’s leading professional status in land, real estate, infrastructure and construction.
- One of the most respected and high-profile international institutions that offers advice on property, construction, project management, dispute resolution and environmental issues to various clients and the public.
What is the RICS Mission Statement?
To be recognised in key worldwide markets as the leading body that sets and enforces standards
and offers access to the most sought after professional status in land, property and construction.
What is the role of the RICS?
- Regulate and promote the profession
- Maintain the highest education and professional standards.
- Protect clients and consumers through a strict code of ethics and professional standards.
- Provide impartial, advice, analysis, and guidance
What parts are there to the RICS ?
Governing Council
Regulatory Board
Management Board
Executive Team
President Team
How many members does the RICS have ?
RICS has 140,000 members who operate out of 146 countries
How is the RICS structured ?
- Privy council
- Governing council
- Standard and regulation board (overseeing he standard and upholding them), management board (inform and oversee RICS affairs via the strategy), audit committee (monitor the effectiveness,
Who is the President of the RICS?
What is the President working on during his term?
What is Lionheart?
- Lionheart is an independent charity run by RICS professionals, for RICS professionals.
- Benevolent fund established over 100 years ago.
- Offers advice and in certain circumstances financial assistance.
- It is independent to the RICS.
- Provides support to current and past members of the RICS and their families.
What was the Carsberg Report, 2005?
- Carsberg was invite to carry out a review of the RICS regulatory framework.
- The reasons for wanting a review were both external and internal. Several reviews of other professional bodies suggested that public expectations had changed and there was some evidence that members were unhappy with some aspects of RICS regulation.
What are the RICS 5 principles for better regulation?
PACTT
1. Proportionality
2. Accountability
3. Consistency
4. Targeting
5. Transparency
What benefits for RICS membership / Why did you want to be an MRICS?
- RICS is the largest international property organisation in the world. By joining I will get global recognition and will become part of an international professional community.
- I will get elite professional status, guidance, information and support.
- Technical resources to support my profession.
- I will be part of promoting best practices in the profession.
- Benefit to our clients.
Who is the Governing Council?
The Governing Council set strategy, direction and manages the royal charter obligations.
What is the RICS Matrics?
RICS Matrics aim to help those who have just joined the profession by providing a network for those to connect between and providing training opportunities to students, trainees and those newly qualified.
What do you do if you find out a chartered surveyor is working outside the Rule of Conduct?
- Verify the facts and confront them to remind them of their duties as a member of RICS.
- Inform the RICS specifying my relationship with the surveyor and any corrective action which I believe they are committed to putting in place.
In the case of a breach of a RICS rule of conduct, what is the procedure?
- Not every shortcoming necessarily gives rise to proceedings.
- A formal investigation by the Head of Regulation of the RICS is the first step.
- RICS can then request information and visit to inspect compliance.
How can a disciplinary proceeding be triggered?
- Someone complains to RICS.
- An allegation by client or third party.
- Information received or established by RICS.
What are the disciplinary actions that can be imposed on members found to be in breach of the RICS rules of conduct?
- Fixed penalty
- Consent order - a written agreement between RICS and the offending member and can require the member to take corrective actions, or restrain from taking certain actions and also may require them to pay a fine also.
- Disciplinary panel - for more serious breaches of conduct, panel held in public with the burden of proof on RICS.
Which firms are regulated by RICS?
- Those firms with 50% or more of their partners / directors that are members of RICS.
What insurances would you need if you were starting up your own firm?
- Professional Indemnity
- Employer’s Liability
- Public Liability
- Building insurance of own office
What is your firm’s complaints handling procedure?
- Person who receives the complaint is to document it if made in writing including the time and date, but if made orally they must create a written record and then confirm with the person making the complaint that it is correct.
- Complaint is then handed to the job director who will pass it to our complaints handling officer Alex Brown, a Director in our Bristol office.
- The complain will be reviewed and considered as soon as possible, but a full response or update with the progression of the complaint is to be given to the individual within 28 days.
- If an agreement cannot be made on how to solve the complaint then they individual has the opportunity to refer it to the Centre for Effective Resolution.
What must a complaints handling procedure include?
- RICS provides an example model:
- Must have a redress mechanism
- Details of the procedure should be issued to the client with the Terms of Business
- Must be clear, quick, transparent and impartial and free of charge
- Names and contact details of the nominated investigating person must be stated
- Complaint must be investigated within 28 days
- All complaints, their progress and outcomes must be recorded
- Must have two procedural stages (at least) - consideration of the complaint by a senior member of the firm or complaints handling officer and if not resolved, referred to an independent third party with the authority to award redress
What are the RICS Rules of Conduct?
- They support positive change in the built and natural environments, through promoting and enforcing the highest ethical standards.
- The rules of conduct are based on ethical principles of honesty, integrity, competence, service, respect and responsibility.
- The rules of conduct set out five rules which provide a structure for making ethical decisions about how to behave as a professional.
- The rules apply to ALL RICS members and firms who are regulated by RICS no matter where they work, although firms and members must consider geographical legal obligations that apply to them.
Why did the RICS implement the rules of conduct?
- A simpler structure. We have made it easier for RICS members and firms to understand our rules, providing more confidence for clients and the public.
- Clear examples. To help support members’ professional judgement, each Rule is illustrated with examples of how members and firms can behave to comply with the Rule. There are also 12 case studies showing real-life application of the Rules.
- Focusing on respect, diversity and inclusion. Whether it’s encouraging diversity and inclusion, or tackling modern slavery, respect and courtesy underpin all our professional ethics.
- Understanding evolving technology. The Rules highlight the importance of understanding the evolving use of data and technology, and the associated benefits and risks.
- Tackling global challenges. The Rules show that ethical practice by RICS members and firms has an important role when it comes to global challenges, including creating sustainable development and tackling climate change.
What are the 5 rules that make up the RICS Rules of Conduct?
Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations. including obligations to 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 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.
What are some example behaviours of Rule 1 of the RICS Rules of conduct?
Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Example behaviours:
- Members and firms do not mislead others by their actions or omissions, or by being complicit in the actions or omissions of others.
- Members and firms do not allow themselves to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments) or by their own self interest.
- Members and firms identify actual and potential conflicts of interest throughout a professional assignment and do not provide advice or services where a conflict of interest or a significant risk of one arises, unless they do so in accordance with the current edition of Conflicts of interest, RICS professional statement.
- Firms have effective processes to identify actual and potential conflicts of interest, to enable appropriate decisions to be made on whether to accept work, and to keep records of decisions made about actual and potential conflicts of interest.
- Members and firms providing advice and opinion in a professional context do so honestly and objectively based on relevant and reliable evidence, and firms have processes to ensure that directors, partners and employees do so.
- Members and firms are open and transparent with clients about their fees and services.
- Members and firms act to prevent others being misled about their professional opinion.
- Members and firms do not take unfair advantage of others.
- Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law.
- Firms keep client money safe and have appropriate accounting controls.
- Members do not misuse client money and comply with controls intended to keep it safe.
What are some example behaviours of Rule 2 of the RICS Rules of conduct?
Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Examples:
Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently.
Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary knowledge, skills and resources to do their tasks competently.
Members and firms check that subcontractors have the necessary knowledge, skills and resources to do their tasks competently.
Members and firms reflect on the work they have undertaken and its impacts, and consider how they might apply what they have learned to their future work.
Members maintain and develop their knowledge and skills throughout their careers. They identify development needs, plan and undertake continuing professional development (CPD) activities to address them and are able to demonstrate they have done so.
Firms encourage and support directors, partners and employees to maintain and develop their knowledge and skills, and check that they are complying with CPD requirements set by RICS.
Members and firms stay up to date and comply with relevant legislation, codes of practice and other professional and relevant technical standards. Firms ensure that their directors, partners and employees do so.
What are some example behaviours of Rule 3 of the RICS Rules of conduct?
Rule 3 - Members and firms must provide good-quality and diligent service.
Examples:
Members and firms understand clients’ needs and objectives before accepting any professional work.
Members and firms agree with clients the scope of the service to be provided and its limitations, and timescales for the work.
Firms inform clients that they are regulated by RICS and that they may need to disclose records to RICS where required for regulatory purposes.
Members and firms inform clients promptly and seek their agreement if it is proposed that any of the terms of engagement or estimated fees or costs be changed.
Members and firms undertake their work in a timely manner; with due care, skill and diligence, and in accordance with RICS technical standards.
Members and firms communicate to clients the material information on which their professional advice and opinion is based.
Members and firms communicate with clients and others clearly and in a way they can understand.
Members and firms ensure that any referral or introduction they make for a client is in the best interests of the client and inform clients about any financial or other benefits to the member or their firm from a referral or introduction.
Members and firms keep proper records of their work and decisions in enough detail to allow them to answer questions from clients and to allow their work to be audited for quality assurance or regulatory purposes.
Members and firms, when advising clients about projects, encourage solutions that are sustainable in that they minimise harm and deliver balanced economic, social and environmental benefits.
Members and firms understand the risks and benefits of using relevant technology.
Members and firms check that all data used is accurate and up to date, is kept securely, and that they have proper legal rights to use it and, where required, share it.
Firms have effective quality assurance processes for their work.
What are some example behaviours of Rule 4 of the RICS Rules of conduct?
Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion.
Example behaviours
Members and firms respect the rights of others and treat others with courtesy.
Members and firms treat everyone fairly and do not discriminate against anyone on any improper grounds, including age, disability, gender reassignment, marriage or civil partnership, pregnancy or maternity, race, religion or belief, sex or sexual orientation.
Members and firms do not bully, victimise or harass anyone.
Firms check that supply chains do not involve modern slavery or other abuses of the workforce.
Members and firms report abusive labour practices to proper and recognised authorities if they become aware of, or suspect, them.
Members and firms work cooperatively with others.
Members and firms develop an inclusive culture in their workplaces, support equal access and opportunity for all, and identify and address unconscious bias.
What are some example behaviours of Rule 5 of the RICS Rules of conduct?
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.
Example behaviours
Members and firms question practices and decisions that they suspect are not right, and raise concerns with colleagues, senior management, clients, RICS or any other appropriate person, body or organisation where they believe in good faith that it is necessary to do so. Firms provide processes to allow and support individuals within the firm to raise concerns with senior management.
Members and firms support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns.
Members and firms ensure that public statements made by the firm, or in which members are (or could be) identified as members of the profession, do not undermine public confidence in the profession.
Members and firms respond to complaints made against them promptly, openly and professionally.
Members and firms do not dissuade complainants from approaching an alternative dispute resolution provider, RICS or any other regulatory body.
Members and firms cooperate with investigations into complaints or concerns, and provide information where it is reasonably requested and they can do so lawfully.
Members consider the effect that any health conditions may have on their competence or ability to undertake professional work, and inform management or clients where they require reasonable adjustments or are unable to continue to undertake work competently.
Members and firms manage their professional finances responsibly.
Members and firms take appropriate action when they consider that the rules have been breached, and report suspected significant breaches of the Rules of Conduct by themselves or others to RICS.
What CPD have you attended relating the ethics?
- RICS Professionalism Module.
- Internal presentations at my firm.
- Private study - have familiarised myself with ethics rules of conduct.
What is a conflict of interest? (personal conflict of interest)
A conflict of interest occurs when an individual’s personal interests – family, friendships, financial, or social factors – could compromise his or her judgment, decisions, or actions in the workplace.
What are the three types of conflict of interest, which are defined in the RICS Conflicts of Interest Professional Standard, Global (1st Edition, March 2017)?
1) Party conflict: a situation in which the duty of an RICS member or firm to act in the interests of a client in a professional assignment conflicts with a duty owed to another client in relation to the same or a related professional assignment.
2) Own Interest Conflict: a situation in which the duty of an RICS member or firm to act in the interests of a client in a professional assignment conflicts with the interests of that same member/ firm.
3) Confidential Information Conflict: a conflict between the duty of an RICS member or firm to provide material information to one client, and the duty of that RICS member or firm to another client to keep that same information confidential.
What does informed consent mean?
Consent given willingly by a party who may be affected by a Conflict of Interest, that party having demonstrated to the RICS member working independently or within a non-regulated firm or regulated firm concerned that the party understands:
- There is a Conflict of Interest or a significant risk of a Conflict of Interest and;
- The facts known by the RICS member (working independently or within a non-regulated firm or within a regulated firm) or the regulated firm that are material to the Conflict of Interest.
- What that Conflict of Interest is or may be and d that a Conflict of Interest may affect the ability of the RICS member (working independently or within a non-regulated firm or within a regulated firm) or a regulated firm to advise or act fully in the interests of a client.
What is the standard for ‘Conflict of Interest’?
Clause 1 - Conflict of Interest
1.1 An RICS member or regulated firm must not advise or represent a client where doing so would involve a Conflict of Interest or a significant risk of a Conflict of Interest; other than where all of those who are or may be affected have provided their prior Informed Consent. Informed Consent may be sought only where the RICS member or regulated firm is satisfied that proceeding despite a Conflict of Interest is:
a. in the interests of all of those who are or may be affected and
b. is not prohibited by law, and that the conflict will not prevent the member or regulated firm from providing competent and diligent advice to those that may be affected.
1.2 Every RICS member working independently or within a non-regulated firm or within a regulated firm must:
a. identify and manage Conflicts of Interest in accordance with this professional
standard and
b. keep records of the decisions made in relation to whether to accept (and where
relevant, to continue) individual professional assignments, the obtaining of Informed Consent, and any measures taken to avoid Conflicts of Interest arising.
What is the standard for ‘Confidential Information’?
Clause 2
2.1 RICS members and regulated firms must maintain confidentiality of Confidential Information unless disclosure is required or permitted by law, or the RICS member or regulated firm concerned can demonstrate that the relevant party consented to the disclosure before it was made.
2.2 Every RICS member working independently or within a non-regulated firm or within a regulated firm must provide to every client all the information that is material to that client’s professional assignment of which that RlCS member has knowledge.
What is the standard for ‘Firm Systems and controls’?
Clause 3
3.1 Every RICS regulated firm must have in place effective systems and controls appropriate to the size and complexity of their business to enable them to ensure that the firm and its employees are able to manage their compliance with this professional standard.
3.2 RICS members working independently or within non-regulated firms and regulated firms must then consider their obligations under paragraph 1.1.
Who must comply with the Conflicts of Interest professional standard?
RICS members, whether working within regulated firms or non-regulated firms, must comply with this professional standard.
All areas of RICS practice and geographies.
You see that a colleague is having some unwanted attention from a male colleague and it has happened a few times, what action if any would you take and what is this?
Consider this as a potential form of workplace harassment. I would go and speak to the male colleague and tell him its not acceptable behaviour, I would also report to my senior.
You set up your own business but you decide to go off on a skiing holiday for 2 weeks, you break your leg and the doctors say you must have complete bed rest and no access to emails or work phone, what do you need in place to cover this situation?
A Locum agreement
How many different types of RICS document statuses are there ?
1) Professional Standards
2) Practice Information
Updated to Practice Information and Professional Standards - replacing guidance notes, professional statements, etc.
There are a number of document types. This includes (can be found within the first few pages of many RICS documents) :
* Practice Information and Professional Standards - replacing guidance notes, professional statements, etc.
* International standards - High-level standard developed in collaboration with other relevant bodies
* RICS professional statements (PS) - Mandatory requirements for RICS members and regulated firms
* RICS guidance note (GN) - A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners
* RICS code of practice (CoP) - A document developed in collaboration with other professional bodies and stakeholders that will have the status of a professional statement or guidance note
* RICS jurisdiction guide - This provides relevant local market information associated with an RICS international standard or RICS professional statement. This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement. This is not guidance or best practice material, but rather information to support adoption and implementation of the standard or statement locally
What is the status of a RICS professional statement ? who does it apply to ?
Mandatory
RICS trainees, members, regulated firms
What would you do if you considered your directors advice to be incorrect ?
Consider :
• The implications of the advice
• Is it legal ?
• Discuss with managers, colleagues
• Refer to the Ethics decision tree
How does your behaviour differ professionally and personally ?
My approach and behaviour does not change.
How do you keep up to date with current affairs and topic issues ?
On mailing list, office discussion, CPD email group, magazines and publications etc
Why do you want to become chartered ?
- Gold standard in my profession
- Offers guidance and support from RICS
- Designation will help my career
- I am committed to lifelong learning
- I want to give back to the up and coming surveyors
What is the RICS ethical decision tree?
The RICS decision tree assists me in making informed decisions , confirming my actions are ethical and legal
What are ethics?
Moral principles that govern an individuals behaviour.
What does it mean to act ethically as a Chartered Surveyor?
Acting ethically means complying with standards and ensuring that you are acting on behalf of your clients best interests.
How would you close down a practice?
- Inform the RICS
- Inform clients and arrange for them to be handed over to a new firm
- Return any clients’ money
- Set-up professional indemnity run-off cover for a minimum of 6 years
- Retain a copy of client files and record for a minimum of 6 years
How long should files be kept for?
• A minimum of 6 years before disposing and destroying them securely (although can be sued for negligence for up to 15 years)
How would you limit the risk of working with a client or contractor who may be financially unstable ?
- Screening process:
- Dun & Bradstreet credit check
- Company search (Account information from Companies House)
- Internet search (Client website for additional information judgement on reliability)
If your client asked you to lower your fees because of their limited funding, what would you do ?
The client would have to pay the required price for the level of service required or reduce the scope of works involved. I could consider if the scope of work could be reduced however on the client request i would not just lower my fees.
Why shouldn’t you reduce fees at the request of a client?
- Devalues the profession by driving down prices.
- Fee has been calculated on time and resources needed to ensure a sufficient profit - not sustainable financially.
How do you know you are competent ?
- Skills
- Knowledge
- Attitude
- Training
- Experience
Can you advise somebody as an individual ?
Unless you have the correct insurances in place, you should not be giving any professional advice to anybody, friend or family or strangers. I would advise them to contact me during normal working hours as long as it does not become a conflict of interest and TOE can be defined etc.
If faced with a situation that you felt was unethical, how would you proceed?
Using the decision tree:
• Do I have sufficient facts?
• Is the matter legal?
• Is it in line with RICS Professional and Ethical Standards?
• Have I consulted with appropriate people?
• Do I have clear reasoning in reaching my decision?
• Would I be content for my actions to be made public?
If answered no to any of the above, I would not proceed with the situation alone and would consult senior staff with direction on how to proceed.
Why are ethics important?
- Prevents any issues with consistent behaviour
- Sets a standard of expertise and professionalism
- Promotes trust in the company and industry
What are the CPD requirements?
- Qualified/MRICS member – 20 hrs per year, min 10 hours formal
- Student member – 48 hrs per year (Min 24 formal)
What is the difference between formal and informal training ?
Formal has a learning objectives and a defined learning outcome, i could reference the CPD decision tree for further guidance.
What is a complaints handling procedure?
A procedure to allow and define the procedure for clients to raise a complaints. This may include ADR and relevant timescales for the process.
What is a Complaints Handling Procedure ?
- A firm must have a CHP and maintain a complaints log
- If there is a complaint, it must be addressed to the Complaints Handling Officer and handled within 28 days of receipt. If the complaint cannot be resolved, it can be referred to an independent 3rd party
- You can be your own Complaints Handling Officer as a sole practitioner but most refer it to a 3rd party
What must a complaints handling procedure include?
The procedure must include an Alternative dispute mechanism approved by the standard and regulation board. The procedure can be based on the RICS forms. Issued with terms of engagement, nominated person also details investigated within 28 days, record the complaints, advise PI insurers of complaint etc.
- A form to fill out
- Redress mechanism
- Details should be issued to clients with the terms of business
- Clear, quick, transparent and impartial and free of charge
- Names and contact details of nominated investigating person must be stated
- Complaint must be investigated within 28 days
- All complaints and progress and outcomes must be recorded
- Advise PI insurers of a complaint
- Two stages: 1 – consideration, 2 – referral to third party
What options are available if you couldn’t resolve the complaint?
- Property Ombudsman
- RICS Dispute Resolution
- Escalation etc
