2. Ethics Flashcards
What are the 5 Rules of Conduct?
Take effect from 2nd February 2022:
1) Act with honesty and integrity
2) Maintain professional competence
3) Provide good quality service
4) Treat others with respect
5) Act in the public interest
Appendix A: Professional Obligations
Give examples for each Rule of Conduct
- Told the contractor about a missed item in their valuation.
- CPD and training. Getting mechanical engineers to advise on technical queries.
- Understand the clients objectives to ensure can meet them.
- Ensure do not discriminate or bully. Go above minimum standards
- Ensure tender analysis is transparent and not bias. Encourage staff to speak out.
Why were the Rules of Conduct Introduced?
Introduced to provide a greater clarity with focus on clearer example behaviours.
Why have Rules of Conduct?
1) To provide a framework that we can all work to and so the client knows they are getting a set level of service.
2) Rules of Conduct are also a useful professional guide for individual institution members.
What are the Professional Obligations for Members?
Three professional obligations:
1) Must comply with CPD requirements. 20 hours per year. 10 hours must be formal.
2) Must cooperate with the RICS.
3) Must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What are the Professional Obligations for Firms?
Seven professional obligations:
1) Complaints handling procedure - Including an ADR provider approved by RICS
2) Must have adequate professional indemnity cover approved by RICS
3) Sole principal must make suitable arrangements for their work in the event of their incapacity or death.
4) Must cooperate with the RICS.
5) Must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
6) Display business literature ‘in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
7) Report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
When did the RICS receive its Royal Charter?
Granted by the privy council in 1881.
What is the role of RICS?
A leading professional body working in the public interest to advance knowledge, uphold standards and inspire current and future professionals.
What is the RICS motto?
“There is measure in all things”
What is the RICS mission statement?
1) To qualify and equip their members to offer the highest standards of professional service.
2) To promote and enforce standards.
3) To lead solutions to the major challenges facing the built environment through professional expertise.
When was the RICS founded?
1868
Explain the RICS leadership team
President - Tina Paillet
President Elect - Justin Sullivan
CEO - Justin Young
How is the RICS structured?
- Royal Charter was granted by the Privy Council in 1881.
- RICS is self-regulated and internally monitored.
- Bye-Laws determine how the RICS is regulated.
- Governing council manage and agree the strategy for the RICS.
- Regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them.
What are the five principals for better regulation?
Think PACTT
1) Proportionality
2) Accountability
3) Consistency
4) Targeting
5) Transparency
Explain the Ethics Decision Tree
It is a decision making framework for dealing with potential ethical dilemmas.
It includes questions to ask yourself.
Is it in line with the RICS Rules of Conduct? Is it legal?
Why you you want to be a member of RICS?
1) Status - The qualification is prestigious and shows clients you work to the highest professional and ethical standards.
2) Knowledge - RICS provides support and CPD training
3) Networking opportunities
4) Recognition
What are the key functions of RICS?
Advancing the highest ethical and technical standards for professionals.
Provides expert impartial advise to governments, public and businessess.
Equips RICS members with leading edge advice, market insight and professional training
What is a royal charter?
A royal charter requires RICS to act in the professional interest and promote the usefulness of the profession for the public advantage of the UK and other parts of the world.
What do you understand by the term self regulation?
An organisation that regulates itself without intervention from external bodies.
What is a bye law?
These provide the Head of Regulation and Regulatory Tribunal to make disciplinary and regulatory decisions. This includes disciplinary penalties and costs.
Give an example of a bye law?
Bye Law 3 - Designations - Chartered members shall be entitled to use designatory initials.
What do the rules of conduct replace?
They replace the RICS Rules of Conduct for members and RICS Rules of Conduct for firms.
Who do they relate to?
Apply to members and firms
What are the ethical principals that the rules of conduct are based on?
Ethic principals remember HICSRR
H - Honesty
I - Integrity
C - Competence
S - Service
R - Respect
R - Responsibility
Give an example for each ethical principal
Remember HISCRR
Honesty - Upholding truthfulness and transparency in professional conduct.
Integrity - Demonstrating strong moral character and adhering to ethical standards
Competence - Maintaining high level of expertise
Service - Providing quality service to clients and stakeholders
Respect - Treating others with respect
Responsibility - Taking ownership
What disciplinary procedures can RICS impose?
Fines
Cautions
Condition of membership or registration
Expulsion
In what circumstance can disciplinary procedures be imposed?
To protect the public interest or safeguard the profession
When did RICS last update their disciplinary panel rules?
2nd March 2020
What are the different levels of action within these procedures?
- Investigate
- Disciplinary hearing and sanctions.
- Appeal
What do you understand by the term professional practice?
Term used to describe activities that will help apply your knowledge to industry, job role or workplace
Give me an example of when you have acted with integrity?
Informing a contractor that they had missed an item in their valuation
Tell me about when you have provided a high standard of service?
Providing clients with accurate and timely advice.
Tell me about how you have promoted trust in the profession?
Being honest with clients. Following through on promises (i.e. site visits). Communication with co-workers.
Explain how you have taken responsibility in your current role?
Taking a lead on CIF projects. Discussing potential projects with clients and organising site visits.
Tell me about how you treat clients with respect?
Acting professionally.
Dressing in accordance with requirements.
Assessing the situation and taking onboard comments.
Being courteous.
Smiling.
Tell me about your treat other surveyors with respect?
Being professional
Listening and taking on board comments.
Explain the key steps you would take if you decided to set up a practice as a sole trader after qualifying?
1) Contact the RICS for guidance and obtain a start up pack.
2) Inform the RICS and register for regulations.
3) Appoint a contact officer for all RICS communication.
4) Prepare a complaints handling policy.
5) Obtain PII cover
6) Abide by the Rules of Conduct for Firms
7) Include ‘RICS’ designation on all practice material.
If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this?
In this instance, I would feel incredibly uncomfortable as this would be considered a bribe.
I would politely decline the financial incentive from the prospective purchaser.
I would also report this to my line manager.
What would you do if you were asked by a client to reduce a fee proposal to win new work?
1) This would be considered unfair competition. This is not treating others with respect nor is it acting with integrity. It would be unsustainable to undertake business in this manner and also devaluing the profession.
2) I would explain to the client that I would need to reduce the scope to achieve the same margin. I would also need to consider whether this would still provide a high standard of service. I would also need to consider whether this would be considered a bribe.
What would you do if you became suspicious that a client was involved in money laundering/terrorist activities?
Guidance Note, 1st edition, Effective 1st Sept 2019.
RICS provides a Guidance note on Countering bribery, corruption, money laundering and terrorist financing on these activities.
It is clear that regulated firms must not facilitate or be complicit in money laundering or terrorist activities.
In this instance, I would immediately report the issue to my line manager.
This would also need to be reported to the relevant authorities
If you set up your own practice, tell me about the types of insurance you would need?
Professional Indemnity Insurance
Employers Liability
Public Liability
Building’s insurance of an office premises
How did you ethically deal with the underspend?
Once confident final figures have been confirmed.
I would inform the client of the underspend through a rolling final account. I would advise the client to declare the underspend to the ESFA.
I am aware of the RICS Rules of Conduct and need to act in the public interest.
What is the role of the ESFA?
Education and Skills Funding Agency. Responsible for funding CIF projects.
How did you ensure monies were only used for the approved scope of works?
I would undertake site inspection to verify payment applications.
These would then be issued to the client for payment.
Willows - How did you ethically deal with the missing variation?
I am aware of the RICS Rules of Conduct and the need to act integrity.
