APC Mandatory Competencies Flashcards
What are the five Rules of Conduct (2021)
1) Members and firms must act with honesty and integrity, maintain their professional obligations, and the obligations of the RICS
2) Member and firms must act within their professional competences and ensure services are provided by a competent individual within the scope of their expertise
3) Members and firms must provide a good quality and a diligent service
4) Members and firms must treat others with respect, and promote diversity and inclusion
5) Members and firms must act in the public interest, take responsibilities for their actions and prevent harm and maintain public confidence.
What was the Bichard Review and date it was published
Lord Michael Bichard published his independent Bichard RICS Review (June 2022) which was commissioned by the RICS Governing Council to review the Institution’s purpose, governance and strategy following the recommendation from the Levitt Review.
What are the key recommendations from the Bichard review
Creating a public interest panel to advise governing council
Increase focus on diversity and inclusion across the profession and within RICS governance
Maintaining self regulation, through greater independence for regulatory functions
Undertaking an independent review of RICS governance and effectiveness at delivering against it’s charter for the public advantage once every 5 years
Greater leadership on sustainability and climate change
Who is the new CEO of RICS
Justin Young from 5 July 2023
Who is the RICS president and what is their role
Ann Gray
An ambassador responsible for driving leadership across the profession helping to deliver RICS goals.
What is the role of RICS
To promote and enforce the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure
What is a conflict of interest
A conflict of interest arises when a firm’s independence or impartiality is threatened due to the existence of conflict between two client. Examples include:
- Any financial conflict
- A personal conflict
- Commercial relationships
- Acting on both sides of a transaction
What is the professional guidance note on Conflict of Interest
RICS Global Professional Statement on Conflicts Statement on Conflicts of Interest (2017) - Effective from Jan 2018
What does it state in the Professional guidance note for conflict of interest
‘Members must not advise or represent a client where doing so would involve a conflict of interest or significant risk of a conflict of interest, other than where all those who are or may be affected have provided informed consent’
Informed consent can only be sought where RICS member or regulated firm is satisfied that proceeding despite a conflict of interest is in the interests of all those who are or maybe affected and is not prohibited by law (RICS 2017)
What are the three types of conflicts of interest
A party conflict - relating to work on the same or related instruction for two different parties
An own interest conflict - relating to personal interest
A confidential information conflict - relation to work between two parties that are confidential
How can informed consent be provided and what measures should be in place
This can only be given in writing by the party if the person explaining the position to them is entirely transparent about any material factors and sure that the party affected understands what they are doing
Surveyors should only seek informed consent if satisfied that all relevant parties are best served by doing so
What are other key areas of the professional statement
- All conflict must be managed in accordance with the Professional Statement
- Every RICS firm must have in place effective systems and controls appropriate to the size and complexity of their business to ensure compliance
- All firms must keep records to show their compliance with the Statement
What is FG’s conflict of interest policy
All individual’s at FG must comply with policy and RICS professional statement of COI
The responsible principle is - Clare Philipson
- Must carry out COI checks before accepting instruction
- We carry out COI annually for existing management clients
- Colleagues must monitor COI daily
- Information barriers can be put up (ie. separate office areas)
- The instruction partner must decide whether or not a conlifct
- Can request an informed consent form
Name a time when you had a conflict
I was advising on a potential acquisition of land in Belvedere. I was aware that Fisher German’s lease advisory team were actively involved with the landowner. I raised this as a potential conflict with the instruction partner who advised me that they had requested informed consent from the landowner to act for the other party. We did not proceed with the land acquisition due to other factors.
How do you handle conflict of interest
Must undertake three steps:
1) Conflict Avoidance
2) Written advice to both parties
3) Conflict Management