1.RICS Rules

Question 1

Why do the RICS have codes of conduct?

Answer 1

To protect customers through a strict regulation of professional standards and to ensure members have clear guidance on their professional conduct.

Question 2

What are the RICS rules of conduct for members?

Answer 2

Ethical behaviour; competence; service; CPD; solvency; submission of information to RICS; cooperation with RICS.

Question 3

What are the RICS rules of conduct for firms?

Answer 3

Professional behaviour; Competence; Service; Training and CPD; Complaints handling procedure; Client’s money; PI insurance.
Administrative compliance including: advertising rules, maintaining solvency, arrangements to cover incapacity/death of a sole practitioner, use of designations, submission of info to the RICS; cooperation with RICS.

Question 4

What is the difference between RICS ethics and rules?

Answer 4

Ethics are ways in which everyone should behave they are key principles. The rules govern the behaviour of members and member firms.

Question 5

What are the five RICS professional and ethical standards?

Answer 5

Act with integrity
Always provide a high standard of service
Act in a way that promotes trust in the profession
Treat others with respect
Take responsibility

Question 6

What are the steps of decision trees

Answer 6

1. Do you have sufficient facts on the issue
2. Is it legal
3. Is it in line with RICS global professional and ethical standards
4. Have you consulted with appropriate people to make an informed decision
5. Do you have clear reasoning in reaching your decision? Is your decision informed?
6. Would you be content for your actions to be made public - in the newspapers or on the internet?

Question 7

If a friend asks for your advice as a QS for her new house, will you give her/him advice?

Answer 7

I would not give this advice as I do not have Professional Indemnity Insurance and would encourage the friend to seek advice through your company being careful to acknowledge any conflict of interest for yourself.

Question 8

What is the process to set up your own company?

Answer 8

-Contact RICS and request a new firm starter pack.
-Take out and maintain adequate insurances (PI, Public liability, employer’s liability).
-Request to be regulated by the RICS. (Firm details form).
-Comply with RICS Rules of conduct for firms.
Stipulate if you will be handling client money, and identify adequate procedures if you will be.
-Establish a complaints handling procedure.
Staff development and training processes.

Question 9

What if you had more than 5 staff? (Registration of firms)

Answer 9

Establish & Implement a Health and Safety Plan.

Question 10

What is RICS complaints handling procedure guidelines?

Answer 10

• Complaints handling procedure must be included within Terms of Business/appointment letter.
• Firm must have a designated senior manager/complaint handler to respond to claims.
• Notify PI insurers if complaint may give rise to a claim.
• If a complaint cannot be resolved, it should be referred to an independent third party with the authority to award redress.

Question 11

What is a conflict of interest?

Answer 11

It is anything that impedes or might be perceived to impede an individual’s or firm’s ability to act impartially and in the best interest of a client?

Question 12

What would you do if you identified a conflict of interest?

Answer 12

If a conflict is identified, there needs to be robust rules in place regarding declarations, transparency and resolution. If a conflict has been identified and there is justification to knowingly proceed, you must declare the existence of the conflict to all relevant parties and secure their written agreement to proceed. Identify how you are planning to deal with the conflict if a decision is agreed to proceed.

Question 13

What is the RICS decision making tree?

Answer 13

A mechanism provided by the RICS to aid with decisions ‘To proceed or not to proceed.’
Questions asked include; Do I have enough information, is it legal, is it in line with RICS ethics standards, have I consulted appropriate people to make an informed decision, is my decision informed, would I be content for my actions to be made public?

Question 14

When would it be acceptable for a subcontractor to take you out to dinner?

Answer 14

It is recommended to decline such offers however, they may be considered when there is a genuine business purpose with no wrongful or perception of wrongful intent.

Question 15

If a contractor offered to buy you a sandwich after a valuation, how would you approach this?

Answer 15

I would politely decline the offer. However, if the contractor would not take ‘no’ for an answer and there was no wrongful intent, I would offer to pay half.

Question 16

What about a client taking you out to dinner?

Answer 16

I would advise the subcontractor that I would be unable to accept any offering and would immediately report the matter to my senior management.

Question 17

What insurances would you require if you were setting up your own firm?

Answer 17

There are three main insurances needed: professional indemnity, public liability and employer’s liability.

Question 18

What is PI insurance?

Answer 18

Cover for claims for damages incurred as a result of negligent acts or omissions against previous and current work.

Question 19

What are the levels of PI insurance required in the RICS code of conduct and what are the given turnover rates they relate to?

Answer 19

Turnover £100,000 or less, minimum level of indemnity required £250,000. Turnover £100,001 to £200,000, minimum level of indemnity required £500,000. Turnover £200,001 and above, minimum level of indemnity required £1,000,000.

Question 20

If a client sues you as a result of your negligence what do you do?

Answer 20

Inform the RICS of the complaint and proceedings. Inform my PI insurer, seek to rectify the situation through negotiation firstly and seek legal advice.

Question 21

What is run off cover?

Answer 21

PI cover held after a firm ceases to trade or ceases to be involved in a project. RICS advises that firms that cease to trade hold run-off cover for a minimum of 6 years. Collateral warranties will often stipulate that a level of PI cover must be maintained for a run-off period of 10-12 years after practical completion on a project.

Question 22

Why does the RICS want you to have PI Insurance?

Answer 22

It is known that Chartered surveyors are required to have PI Insurance and therefore the public see this as a benefit as they are confident they have the backing and are more likely to seek services knowing they are protected.

Question 23

What is client’s money?

Answer 23

Clients’ money is any money received and held by a firm such as:
• tenant’s deposits;
• rents;
• service charges;
• interest (if in an interest bearing client account);
• arbitration fees;
• fee money taken in advance;
• clients’ money held but due to be paid to contractors;
• money held by members appointed as a Receiver; and
• Sale proceeds.

Question 24

What advice does the RICS offer about firms handling client money?

Answer 24

Client money should be held and maintained in a separate account and should be clearly linked to the client’s to whom the money belongs and be suitably protected on their behalf.

Question 25

Is your current employer a RICS regulated company?

Answer 25

Currently RLB Melbourne office is not RICS regulated company. But I believe we share the same principle and aim during the business, which reflect the RICS five ethic and professional standards.

Question 26

What can you get expelled from RICS for?

Answer 26

Criminal conviction, not paying membership fees, not renewing PI insurance, not completing CPD, misconduct under codes of conduct.

Question 27

What are CPD requirements?

Answer 27

RICS rules for members state that ‘Members shall undertake and record appropriate lifelong learning and, on request, provide RICS with evidence that they have done so’. A minimum of 20 hours per year should be recorded.

Question 28

Who is the RICS CEO

Answer 28

Sean Tompkins

Question 29

What does Sean Tompkins do?

Answer 29

Sean Tompkins supports our Governing Council in defining its strategic priorities and goals and is accountable to the Management Board for the global performance of RICS

Question 30

Name the President & Board members? (Globally)

Answer 30

The current RICS president is Amanda Clack, appointed in June 2016 and John Hughes is President Elect, appointed at the same time.
Sean Tompkins has been the chief executive since 2010.
Will Myles is the Managing Director, Asia Pacific

Question 31

RICS Oceania Region Board Member

• Chairman
• Oceania Managing Director

Answer 31

Chairman - Murray Coleman

Oceania Managing Director - Stephen Albin

Question 32

What does the RICS do?

Answer 32

RICS is a professional body that accredits professionals within the land, property and construction sectors worldwide. The RICS regulates and promotes the profession; maintains professional standards, protects clients and consumers via a strict code of ethics, and provide impartial advice and guidance.

Question 33

What do you see as the main role and function of the RICS?

Answer 33

To set and regulate the highest standards of competence and integrity among members and to provide impartial advice on key issues for business, society and governments worldwide. RICS offers advice on property, construction, dispute resolution and environmental issues to various clients and the public.

Question 34

Why do you want to become chartered?

Answer 34

To be recognised as a qualified professional and be associated with a brand that represents the highest standards of professional practice and integrity within the industry.

Question 35

What is the motto of the RICS?

Answer 35

Est Modus in Rebus’ - There is measure in all things.

Question 36

What is RICS registered charity and what does it raise funds for?

Answer 36

The charity is called ‘Lionheart’ and provides support for past and present RICS members suffering hardship.

Question 37

Who is RICS Presidence

Answer 37

John Hughes