Code of Conduct

Question 1

What are the five principles for better regulation?

Answer 1

PACTT

1. Proportionality - making the penalty proportional to the breach
2. Accountability - being accountable for decisions and to the public interest, complaints handling procedure/log
3. Consistency - treating all members the same
4. Targeting - maintaining a regulatory balance on breaches as the industry of firms is diverse.
5. Transparency - to all members keeping regulations clear and simple

Question 2

What does Part 1 of the Rules of Conduct for Members 2020 state?

Answer 2

How the RICS communicate with Members by:

post, fax, email, telephone and in person

Question 3

What are the 7 clear rules for all RICS members in respect to personal and professional standards? Explain each one.

Answer 3

ECS CPD SIC

3. Ethical Behaviour - acting with integrity and avoiding conflicts of interest.
4. Competence - carry out work with due skill, care and diligence
5. Service - proper regard to standards of service, being punctual.
6. CPD - Comply with RICS CPS requirements.
7. Solvency - Personal and professional finances are managed appropriately
8. Information to RICS - Give information to the RICS if requested by a regulatory body.
9. Cooperation - Fully co-operate with RICS staff or regulatory board.

Question 4

Rules of Conduct for Firms 2007, What are three benefits of regulation for firms?

Answer 4

1. Confidence - for clients as regulated firms are monitored by the RICS
2. Professionalism - firms have to provide clear, impartial and expert advice
3. Security - Recognised complaints procedures, access to free redress and PII cover.

Question 5

Can you name some of the changes introduced in April 2020?

Answer 5

. 50% of principles of a UK firm which provides surveying services has to be regulated, if at least 25% then it can apply.
. Principles are sole practitioners
. Each firm must nominate a “Responsible Principle”

Question 6

What does a regulated firm have to complete every year? What must they include?

Answer 6

An annual return
Type of business and staffing details
Statutory regulated activities 
nature of clients
Complaints handling procedure
PII details
Whether the firm holds client money?

Question 7

Give me some examples of professional behaviour relating to your own work?

Answer 7

High standard of service - FORs

Question 8

What are the rules/conduct for business for RICS firms?

Answer 8

PCS CPD CCI

3. Professional Behaviour - a firm shall always act with integrity and avoid conflicts of interest.
4. Competence - a firm shall carry out work with due skill, care and diligence.
5. Service - Firms shall carry out work with proper regard to standards of service
6. Training and CPD - firm should have necessary procedures in place to ensure proper staff training
7. Complaints Handling Procedure - Shall operate one and maintain a complaints log. It must contain a ADR mechanism that is approved by the Regulatory board.
8. Clients Money - Firms shall preserve the security of clients money
9. Indemnity - Firms shall ensure any previous or current work is covered by adequate and approved indemnity cover.

Question 9

What are rule for firms for Part 3 - Firms Administration ?

Answer 9

1. Advertising - a firm should only promote its services in a truthful manner.
2. Solvency - A firm ensures that its finances are managed properly
3. Cover incapacity or deal to sole practitioner - must have appropriate arrangements in place to cover absence.
4. Use of Designations - a firm registered for regulation must denote that it is regulated by the RICS eg through the use of the logo on their website or terms of engagement.
5. Information to RICS - a firm shall submit and information regarding activities to the RICS if requested.
6. Co-operation - a firms shall fully co-operate with RICS staff and any person appointed to the Standards & Regulatory board.

Question 10

What does RICS regulation provide clients?

Answer 10

A ‘gold standard’ of good practice

Question 11

Can you share any details of the recent consultation on the new Ethics Principles and Rules of Conduct?

Answer 11

A new consultation has closed
RICS proposing a new simplified structure of five rules of conduct that will bring the ethical standards and Rules of Conduct for members and firms into one document.
Incorporate Sustainability, Data Management and behaviours eg D&I
Eg some examples:
Honest act with integrity
Treat others with respect
Quality service, car and due diligence.

Question 12

How may a disciplinary produce arise?

Answer 12

If a firm or member of RICS fails to follow any RICS guidance.
From a compliant or allegation

Question 13

What are the three disciplinary actions?

Answer 13

1. Action by Head of Regulation
2. Regulatory Tribunal
3. Appeal Panel

Question 14

Can you give me an example of a breach of the rules?

Answer 14

Professional Behaviour - sharing confidential client info
CPD - not properly trained
Protecting clients money - a firm continuing to trade if the firm is insolvent and failing to pay taxes

Question 15

What’s the first stage of disciplinary procedure?

Answer 15

Initial investigation by the Head of Regulation of the RICS.

Question 16

What can the Head of Regulation of the RICS consider in disciplinary action?

Answer 16

1. Serve a Fixed Penalty
2. Make a Regulatory compliance order - a member or firm must take or desist from certain actions for a period of time
3. CPD sanctions - to follow CPD
4. Refer the matter to a Disciplinary Panel

Question 17

What is the process for more serious breaches? What can be some of the penalties?

Answer 17

Action by Regulatory Tribunal. can go to Appeal Panel

1. Compliance Order
2. Impose a fine proportionate to the offence
3. Expulsion from membership