8 - Ethics, rules of conduct and professionalism Flashcards
1
Q
What are ethics ?
A
Moral principles that govern a person’s behaviour or the conducting of an activity
2
Q
What is the difference between rules and ethics ?
A
Ethics are moral principles that govern a persons behaviour, rules are something that has to be followed.
3
Q
What is the RICS ethics decision tree?
A
A flowchart to help with day to day ethics decisions.
It takes you through a few simple steps to make sure your decision is in-line with RICS ethical standards.
4
Q
What are the RICS Bye-Laws?
A
- Application and definition
- Membership and Registration
- Designations
- Contributions to funds
- Conduct
- Governing Council, officers and staff
- Subordinate Boards, committees and groups
- Procedure for general meetings
- Accounts and audit
- General
5
Q
What is your CPD requirements before you are chartered?
A
Min 48 hours per year, min 50% formal CPD
6
Q
What is your cpd requirements when chartered ?
A
Min 20 hours per year, at least 10hrs formal.
7
Q
What are the new Rules of Conduct?
A
Came into effect in 2nd Feb 2022.
5 rules:
1. M&F must be honest, act with integrity and comply with their professional obligations.
2. M&F must maintain their professional competence, ensure services are provided by competent individuals.
(CPD etc.)
3. M&F must provide good quality and diligent service.
(client care, record keeping etc.)
4. M&F must treat others with respect and encourage diversity and inclusion.
(treat others with courtesy and fairly)
5. M&F must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
8
Q
What are the five principles of better regulation?
A
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
9
Q
What is the RICS structure ?
A
Privy Council sits outside the RICS (awarded the RICS a Royal Charter)
directly underneath them is the Governing Council (purple box)
Standards and Regulation Board (purple box)
Management Board (purple box)
Audit Committee (purple box)
10
Q
Who is the RICS president ? What re the working towards ?
A
CLEMENT LAU - NOT DEFINED YET
11
Q
why do you want to become chartered ?
A
this is the gold standard in my profession, offers guidance and support from RICS, designation will help my career, I am committed to lifelong learning,
12
Q
How you review if you are competent to undertake an instruction ?
A
SKATE
Skills, Knowledge, Attitude, Training and Experience
13
Q
What would you do if your boss increases your workload to the point it is unmanageable ?
A
Be realistic with timescales, raise to manage first then senior managers
14
Q
Sinclair gardens, why did a percentage of the contract value work out better than a hourly rate charge ?
A
The hourly rate was more expensive that a percentage of the overall cost
15
Q
Can you expand on what the lionheart charity is ?
A
LionHeart is an independent charity run by our professionals, for our professionals. Through a volunteer network, this benevolent fund offers confidential advice, information and other support to past and present members of the organisation who, for whatever reason, find themselves in difficulty.
16
Q
What is your role within the local RICS matrics committee ?
A
Committee member to help organise and run event, post covid
17
Q
Can you give me an example of a gift you have been offered ?
A
I have been previous offered bottles of wine for xmas which is logged in the gifts register or declined if large value or within tender period.
18
Q
What is your company gift handling policy ?
A
nothing over £20, within gift handling log. Consider proportionality and timing
19
Q
What do the RICS say about gift handling ?
A
RICS members should follow these rules:
Only offer or accept gifts and hospitality that are customary, proportionate and reasonable in terms of value and frequency
Never offer or accept any gift or hospitality if it may improperly influence your decisions/judgement or give the appearance of doing so (e.g. consider the timing of the gift)
Only offer or accept gifts and hospitality that you would be happy for others to know about
Follow the policies and procedures of your employer in relation to gifts, hospitality and promotional expenditure - e.g. record in company’s gifts and hospitality register
Report any concerns about bribery to your employer or to RICS Regulation
20
Q
At pebble lodge how did you grant the tender extension ?
A
Formally via email and a telephone call
21
Q
Whitley bay home buyers survey, why did you not complete the work ?
A
It was intended for to carry this out by myself outside of my employment. I do not hold my old PII insurance and did not have the free time to complete to a suitable standard.
22
Q
3 North Jesmond AV, why were you not competent to create these calculation s?
A
I do not have any training regarding these items
23
Q
How would you manage a unhappy client ?
A
Try and understand why they are not happy, try and reach a solution, refer back to CHP
24
Q
What insurance must you practice have ?
A
Public Liability, PII, Buildings, Contents, Gadget cover, Cyber etc
25
How does the RICS discipline members ?
Fixed Penalties
Regulatory compliance order - mutually agreed
Regulatory sanction
26
Can you expand on what you know about the equality act 2010 ?
The Equality Act 2010 legally protects people from discrimination in the workplace and in wider society. It replaced previous anti-discrimination laws with a single Act, making the law easier to understand and strengthening protection in some situations.
27
What are the RICS Bye Laws ?
1. Application and definition
2. Membership and Registration
3. Designations
4. Contributions to funds
5. Conduct
6. Governing Council, officers and staff
7. Subordinate Boards, committees and groups
8. Procedure for general meetings
9. Accounts and audit
10. General
28
you mention anti money laundering cpd, what is money laundering ? What did you learn from this cpd ?
Money laundering is the process of changing large amounts of money obtained from crimes, such as drug trafficking, into origination from a legitimate source. It is a crime in many jurisdictions with varying definitions. It is a key operation of the underground economy. I learned that the property/construction industry is a high risk/ targeted sector.
29
What forms of conflict of interest are there?
Party Conflict - acting on both sides of a transaction
Own Interest Conflict - relating to a personal interest
Confidential Information Conflict - relating to work between two parties which is confidential
30
Are you aware of any case law relating to PI insurance ?
Merrett v Babb
• Considered if a professional employee was vulnerable to claims brought directly against them for advice given on behalf of their employers.
• Essentially, an individual provided valuation advice and was negligent. The firm the person worked for did not have adequate run off insurance, the company shut down and the client made a claim which was passed to the employee that gave the advice.
Hart V Large
The Claimants brought claims in negligence against the architects instructed by the previous owners, the Claimants’ conveyancing solicitors and Mr Large. The claims against both the architect and the solicitors settled prior to trial.
Against Mr Large, the Claimants alleged that he was negligent in: (1) failing to recommend a full building survey, rather than Homebuyer report; (2) failing to draw attention to the issues of water ingress / damp in the Homebuyer report; and (3) failing to recommend that the Claimants obtain a professional consultant’s certificate.
The key take-aways from this case:
Being clear on the report about the scope of inspection including limitations, caveats and actions available to the client;
Recommending justifiable further investigation;
Taking all reasonable steps to ensure clients understand the differences between the levels of service, including the extent and limitations of each option
31
What would you need to register a firm with RICS ?
```
PI Insurance
Responsible Principal
Contact officer
CHP
Procedure for clients money
Complaints handling procedure
Suitable MRCIS principles
```
32
How would you deal with a compliant ?
Rule 7 for firms (2nd march 2020 V7) A Firm shall operate a complaints handling procedure and maintain a complaints log. The complaints handling procedure must include an Aleternate Dispute Resolution (ADR) mechanism that is approved by the Standards and Regulation Board.
33
What are the principles of the bribery act ?
```
Proportionate procedures. The policies and procedures a commercial organisation has in place to prevent bribery should be proportionate to the bribery risks the organisation faces. PCRCDM
Proportionality
Top level commitment
Risk assessment
Communication
Due diligence
Monitoring and review
```
34
Can you expand on what act with integrity means to you ?
the quality of being honest and having strong moral principles.
35
What is the bribery act ?
The Bribery Act has been in force since 2011. Bribery is defined as when a person offers, gives or promises to give a "financial or other advantage" to another individual in exchange for "improperly" performing a "relevant function or activity"
36
What are the requirements for PI insurance ?
up to £100,000 = £250,00 cover
£100,001 to £200,00 = £500,000
£200,00 and above = £500,000
Dependant of level of indemnity
up to £500,000 = greater of 2.5% of insured sum or £10,000
Over £500,000 = 2.5 % of insured sum
37
Are you aware of the latest pi updates and inclusions ?
Approved minimum wording
fire safety cover
cyber cover
updated approved insurers
38
What are the principles of GDPR ?
```
LADSPAL
Lawfulness, fairness, and transparency. Whenever you're processing personal data, you should have a good reason for doing so. ...
Purpose limitation. ...
Data minimization. ...
Accuracy. ...
Storage limitation. ...
Integrity and confidentiality. ...
Accountability.
```
39
Would you accept cash payments ?
No, written into the terms of engagement
40
Are you aware of any case law relevant to surveying ?
Merret v Babb, Hart v Large
41
Why do you need to inform your PI insurance early of a potential claim ?
This might be a provision of temporality, not informing was void any claims
42
Can you tell me how you demonstrated one of the five RICS professional and ethical standards within your case study?
Promote trust in the profession - At Sinclair gardens I defined the most economic fee structure for the client as opposed to chasing larger fees, this ensure to promote the clients trust in the profession and surveyors for future appointments.
43
What are the RICS Global Professional and Ethical Standards?
STIRR.
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
44
What are the four offences under the Bribery Act?
The Bribery Act creates four categories of offences:
offering, promising or giving a bribe to another person;
requesting, agreeing to receive or accepting a bribe from another person;
bribing a foreign public official; and
the corporate offence of failing to prevent bribery.
45
Why is trust in the profession important?
To ensure the longevity of the profession
46
How many hours CPD does a Chartered Surveyor need to record annually?
20 Hours CPD, 10 hours formal
47
What is run off cover?
Cover to a firm when it ceases to trade. RICS require size years for consumer claims and a mimim of £1,000,000
48
Outline some of the key subject areas of the rules for firms.
Section 1 – Interpretation
Section 2 – Communication
Section 3 – Firms Required to Register
If 50% or more of the principles are MRICS, then the firm has to be registered and regulated.
If the firm provides surveying services to the public
If the firm is operating in Regulated Area A – UK
Section 4 – Firms eligible to register
If 25% of the principles are MRICS, then it is voluntary for the firm to become registered and regulated and provides surveying services to the public
Section 5 – Registration of Practice Divisions
Section 6 – Procedure for Registration
Provide all information required by standards and regulation board
Agree that rics mare share relevant information about the firm
Agree that rics can publish its decision if they reject registration.
Section 7 – Responsible Principal
Firm must have one at all times and must be one of the following
Condition A – Head of registration is satisfied that the person is appropriate
Condition B – Head of regulation is satisfied the person has necessary leadership skills OR reports directly to a person that can fulfil the role of a responsible principal
Condition C – Be MRICS or if not MRICS, firm must show that it is impracticable to appoint an MRICS person or the person selected is adequately qualified to carry out the roles of a responsible principal.
Section 8 – Obligations of registration
Comply with rules for firms
Inform head of regulation about any disciplinaries
Notify the head of regulation about any material change
Section 9 – Deregistration
Section 10 – Review and appeal
Section 11 – Limits on applications for registration and readmission
May be refused if you applied in last 12 months and were rejected or deregistered.
Section 12 – Publication
Section 13 - Fees
49
Outline some of the additional subject areas covered by the rules for members.
1) Interpretation
In these rules, Members means a chartered member, non member, honorary
2) Communication
Rics will contact members via post, fax, call, email, in person
3) Ethical behaviour
Members shall at all times act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with their professional obligations.
4) Competence
Members shall carry out their professional work with due skill, care and diligence and with proper regard for the technical standards expected of them.
5) Service
Members shall carry out their professional work in a timely manner and with proper regard for standards and service and customer care expected of them
6) CPD
Members shall comply with RICS’ requirements for CPD.
7) Solvency
Members shall ensure that their personal and professional finances are managed appropriately.
8) Information to RICS
Members shall submit in a timely manner and information required
9) Cooperation
Members shall cooperate fully with RICS staff and any person appointed by the Standards and Regulation Board
50
Give me a couple of examples of the RICS ethical standards.
STIRR.
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
51
Give me an example of how you comply with these standards in your everyday working life.
I treat others with respect both within and outside of my dealings
52
Explain why the Bribery Act is important to professionals working in the construction industry.
It is for this reason that the Bribery Act has come into being: to prevent acts of bribery, from small gifts to serious donations, from creating a culture of endemic corruption, for the sole purpose of winning overseas contracts and increasing your own revenue.
53
Give me an example of how you could be exposed to fraud in your current role.
If I excepted cash payment or was involved within the sale of property.
54
What do you understand by the term “client’s money”?
Money of any currency (whether in the form of cash, cheque, draft or electronic transfer) that:
an RICS-regulated firm holds for or receives on behalf of another person, including money held by a regulated firm as stakeholder and
is not immediately due and payable on demand to the RICS-regulated firm for its own account,
excluding fees paid in advance for professional work agreed to be performed, and clearly identifiable as such, unless the fees are for work undertaken as a property agent as defined by the Rules of the RICS Client Money Protection Scheme for Property Agents.
55
Give me some examples of how your firm might comply with the Money Laundering Regulations.
Setting up clients money account, registering with the client money protection scheme, implementing a client money procedures.
56
How does a firm decide how much PII it requires?
Based on the RICS Regulation Document - Professional Indemnity Insurance - which dictates the minimum levels ofPII and the maximum levels of in insured excess.
57
What do you generally understand about the New Rules of Conduct published on 11 October 2021 and coming into force in February 2022?
Simplified structure to consolidate the existing ethical standards and how to maintain competence and service.
Clear examples of the expected behaviour to illustrate compliance.
Incorporate sustainability
Supporting the use of technology – members and firms must understand the risks of technology particularly with data usage.
Respect – non discrimination, modern slavery, diversity
2020 consultation adds five rules based on existing international ethical standards.
Rule 1 – Honesty and integrity
Rule 2 – Maintaining competence
Rule 3 – Quality Service, Care, Diligence
Rule 4 – Respect
Rule 5 - Public interest and responsibility
58
Setting up in practice
Register your firm with RICS via the application form
| Create suitable policies and priodcure - CHO, clients money, training and cpd
59
CPD
Rules 6 - Trained and CPD, 48 hours, 24 formal changing to 20 hours 10 hours min formal. Ethics every 3 years. Formal v informal = CPD decision tree
60
Complaints Handling
Rule 7 - Two stage, 28 days timescales, Responsible principal and third party redress panel
61
PII and run off cover
SEE RICS Regulation doc - PII - min level of cover, max ininsured excess
62
Explain how you structured the fee quote for the project at Sinclair Gardens ?????
I based this on a percentage of the project fees as opposed to an hourly rate which worked out cheaper for the client.
63
Explain how a percentage fee quotation was more cost effective to your client
For example the amount of time spent on the project would have related to 25% in addition to the percentage based fee
64
When administering a construction contract on behalf of your employer how do you fulfil the role in an impartial manner?
Ensure to have all the facts, progress in line with the contract, ensure to understand a review before proceeding on items
65
What are your employer’s rules on gifts and hospitality?
We do not accept anything over £20, this would be logged in the gift register but I also consider the proportionality and the timings
66
How does your employer guard against favouritism when you select contractors to tender for a construction project?
We comment on the facts and the merits of the tender documents, various
67
Explain, in detail, how your employer’s complaints handling policy works
Initial recipe in 7 days, further 21 days of investigation, site visits etc, if no agreement this can eb escalated to stage 2 third party redress panel which we use the property ombudsman.
68
How does your employer gather feedback on completed construction projects?
We have a standard feedback template that be amended to suit.
69
Explain why giving an extension of time for the tendering contractors was considered the fairest solution on the project at Pebble Lodge.
This was to allow for fair competition to all, as a limited number of tenders were going to be returned so inclusion from as many as possible was key.
70
Explain why you declined to inspect the property at Whitley Bay for your friend.
I do not hold my own PI insurance and his intention was for me to carry out the survey outside of my employer.
71
What advice could you have given without leaving yourself open to criticism?
That he can arrange an inspection though my employer or use the RICS find a surveyor
72
Explain why you declined to offer any advice on the lean-to roof on the project at North Jesmond Avenue
Within the design of the lean to construction there were strict tolerance regarding the proposed fizings and the strength, as works were requirement to created a suitable fixing location of strength I passed this to a structural engineer to design within the suitable tolerance of the prepared design.
73
Explain how you ensure there are no conflicts of interest on the projects you are involved in?
I use an internal system to check against both the client and the address, this is also backed up with a conversation between the surveyors in the office.
74
If you were undertaking a building project at your own home, would you consider asking a contractor who has worked for you professionally to undertake the work - discuss the implications.
I would consider using a contractor that I has professional appointed however I would ensure to make it clear that this project, prices etc will have no bearing on my ability to act impartially and in the interest of my client.
75
Have you ever accepted a gift offered by a contractor or other work-related contact?
I have not. However I would consider the timing and proportionality, anything accepted would be detailed in the gift register.
76
Selecting one of the global professional and ethical standards, explain how you implement that in your role.
Treat others with respect - I ensure in all my dealing to be respectful, courteous and considerate both in my professional ad person life.
77
Where do you buy professional indemnity insurance from?
From a broker ensuring the policy is underwritten by an approved under righter ( approved by RICS)
78
Have you ever had to deal with a compliant from a client?
I have not , however if I did it would initially be passes to the responsible principal for dealings
79
Assuming you are successful at interview and become a chartered surveyor, you then decide to set up your own practice, what would you need to do to comply with RICS guidance and regulations?
```
Register with RICS
Create CHP
Register for and have procedures for clients money
PII Insurance
appon contact officer
appoint a responsible principal
potential locum agreement
Ensure min 25% MRICS principals
Training and CPD policy
```
80
What are the RICS rule for firms ? How many are there ? What is the purpose of them ? How do you implement this into your working day ? Can you expand on four please and what they mean to you ? When were they updated ? What is the status of the document ?
```
"Professional Behaviour
Competence
Service
Training and CPD
Complaints Handling
Client Money
Indemnity
Advertising
Solvency
Arrangements in the event of incapacity or death of sole practitioner
Use of designation
Information to RICS
Co-operate with RICS"
```
81
What are the RICS rule for members ? How many are there ? What is the purpose of them ? How do you implement this into your working day ? Can you expand on four please and what they mean to you ? When were they updated ? What is the status of the document ?
```
" ECS CPD SIC:
Ethical Behaviour
Competence
Service
CPD
Solvency
Info to RICS
Co-operation with RICS"
```
82
Why did the RICS Rules of Conduct change?
To provide a simpler structure, clear examples, focuses on respect, diversity and inclusion, understanding evolving technology, tackling global challenges.
83
What is the difference between rules and principles?
Rules are imperative directions to do or not do something. They are imposed by external authorities, such as the state or a regulator.
Principles, in contrast, generally set aspirational standards on conduct. They often come from our internal self-motivation. So, most people are internally motivated to act on moral principles like honesty, charity, or kindness, simply because it’s the right thing to do, and we don’t need an external body to tell us that.
84
What are the 6 principles of the Bribery Act 2010?
```
PCRCDM
Proportionality
Top-level commitment
Risk assessment
Communication
Due-diligence
Monitor and review
```
