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Adam's APC Q&A > Conduct / Ethics > Flashcards

Conduct / Ethics Flashcards

1
Q

When was RICS founded?

A

Founded 15th June 1868

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2
Q

How old is the RICS?

A

History traced back to 1792 when Surveyors Club was formed.

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3
Q

When was the Royal Charter last updated

A

Amended 13 March 2019 updated February 2020
- will change with Bischard review

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4
Q

Where is RICS HQ?

A

12 Great George Street, London SW1P 3AD

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5
Q

What is the RICS Moto?

A

Est Modus in Rebus
- There is proper measure in all things

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6
Q

What is a Royal Charter?

A

Royal Charter is an instrument of incorporation granted by the Monarch (King), which confers independent legal personality on an organisation and defines its objectives, constitution, and powers to govern its own affairs.

  • E.g. items 9 and 10 of Charter sets of “There shall be a President/Vice-President and Governing Council”.
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7
Q

What does the royal charter require?

A

Article 3 of The Charter:

  • The institution maintains and promotes the usefulness of the profession for the public advantage.
  • The institution shall secure the advancement and facilitate acquisition of knowledge which constitutes a surveyor in the practice of (sub-items A-H):
    • C - secure optimal use of land and associated resources to meet social and economic needs
    • G - determine the economic use of resources of the construction industry and the financial appraisal, management and measurement of construction work.
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8
Q

What are the 4 main roles of the RICS?

A

1 - Regulate and promote the profession
2 - Maintain the highest educational and professional standards
3 - Protect clients and consumers through implementation of strict code of ethics and professional practice
4 - Provide impartial advice, guidance and analysis where required

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9
Q

What can you tell me about the RICS Regulations?

A

The RICS Regulations were updated in Feb 2022 and are approved by the Governing Council. Regulations 1 to 9 including Management Board and Audit Committee requirements.

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10
Q

What is the RICS’ vision?

A
  • Increase presence in key and international markets
  • Be recognised as key in international markets as leading body that develops and enforces professional standard and gives access to the most sought after professional status
  • Act with integrity and champion the profession
  • Be strategically placed in major cities to advise governments.
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11
Q

What is the RICS Mission Statement?

A
  • To qualify and equip our professionals to the highest level
  • To promote and enforce standards
  • To lead solutions to the major challenges facing the built environment through
  • professional expertise.
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12
Q

What is the role of the Privvy Council?

A
  • External Body Grants and awards Royal Charter on behalf of the Monarch
  • Approves/Ratifies Bye-Laws
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13
Q

Explain role of Governing council

A

Article 10 of the Royal Charter / Bye-Law/Regulation 6
- Highest governing body
- Sets the global strategy
- Ensures RICS fulfils Royal Charter Obligations
- Strategic oversight on entry requirements
- Sets/Enforces professional standards
- Shapes priorities as influential thought leader
- Provides High Level assurance on operations of sustainable business and professional body

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14
Q

Who is currently in Governing Council?

A

Chair of Governing Council
6 Strategy Seats (Academia and Education; Capital Markets and Valuation; Land; Research and Development; Residential; Urbanisation and Planning)
15 Market Seats (Africa; ASEAN, Australasia; Brazil; Canada; Caribbean; China; Europe x2; Hong Kong; India; Middle East; UK & Ireland x2; USA)
RICS President
RICS President-Elect
RICS Senior Vice-President
1 Senior Independent Governor

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15
Q

Explain role of Management Board

A

The main purpose of the Management Board is to direct RICS affairs under delegated authority from Governing Council

Board comprises 1 nr non-executive as Chair and up to 5 non-execs and up to 3 Independent non-members and up to 3 executive members including CEO and lead Finance Executive. The Chair is elected by the Governing Council.

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16
Q

What is purpose of Standards and Regulations Board?

A

SRB exclusive responsibility for strategy, policy and operational oversight of RICS’ professional standards, entry and admission to the profession, education and qualification standards and regulatory functions of RICS.

Made up of professional and independent members.

Chair: Dame Janet Paraskeva

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17
Q

What is the purpose of the Audit Committee?

A

Audit, Risk and Finance committee monitors the integrity and effectiveness of the financial reporting, internal control and risk management systems.

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18
Q

What is the RICS Matrics?

A
  • The supporting networking and developing of young and aspiring professionals within the industry.
  • The Matrics supports new members entering the industry as well as helping the RICS shape the future of surveying and increase the size, presence and respect of the profession across industries globally.
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19
Q

What is Lionheart

A

LionHeart is an independent charity set up specifically to support past and present RICS professionals and their families through any of life’s unexpected challenges, from the very beginning of their surveying careers through to retirement.

  • Financial Support
  • Wellbeing webinars
  • Presentation workshops
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20
Q

Why does the RICS have Rules of Conduct?

A
  • Royal Charter / Bye-Law requires it (nr 5)
  • It’s the right thing to do culturally and professionally to ensure key stakeholders of the RICS are acting in the most appropriate way.
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21
Q

What did the new rules replace?

A
  • Rules of conduct for members
  • Rules of conduct for firms
  • Global Professional and Ethical Standards
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22
Q

What came into effect 2 Feb 2022?

A

New rules of conduct
- Rules for members and firms now amalgamated.

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23
Q

Can you define what a member and firm and client is?

A
  • A member is anyone with a membership number
  • A firm is any company regulated by the RICS
  • A client is anyone to whom a firm or member has agreed to provide a professional service.
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24
Q

What is the purpose of the updated Rules of Conduct?

A
  • Simpler Structure
  • Clear Examples
  • Focuses on respect, diversity and inclusion
  • Understanding evolving technology
  • Tackling global challenges.
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25
Q

What are the ethical principles of the rules?

A
  • Honesty
  • Integrity
  • Competence
  • Service
  • Respect
  • Responsibility.
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26
Q

What is your understanding of integrity?

A
  • The quality of being honest and having strong moral principles.
  • Always making sure I’m honest, open, and transparent in my dealings. Always looking to avoid any conflicts of interest.
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27
Q

What are the RICS 5 principles of better regulation and why are they relevant?

A
  • Proportionality: penalties and actions must reflect the scope and level of work involved. -
  • Accountability: those responsibility can be traced and held accountable if necessary.
  • Consistency: to promote confidence in the profession a consistent high standard of service is key.
    -Targeting: regulation must reach its targeted audience otherwise it will not have the desired effect.
    -Transparency: to ensure fairness and accountability regulations must be transparent. Regulations must be interpreted easy by everyone.
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28
Q

What are the new rules?

A

Rule 1. Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.

Rule 2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.

Rule 3. Members and firms must provide good-quality and diligent service.

Rule 4. Members and firms must treat others with respect and encourage diversity and inclusion.

Rule 5. Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.

Appendix A – professional obligations for Firms/Members
Members = 3
Firms = 7

29
Q

Explain the Professional Obligations for Members (must)

A
  • Must comply with CPD requirements as per RICS
  • Must Cooperate with RICS
  • Must promptly provide necessary information requested by Standards and Regulation Board or those exercising delegated authority.
30
Q

Explain the Professional Obligations for Firms (must)

A
  • Publish Complaints Handlig Procedure, includng alternative dispute resolution provider approve dby RICS and maintain Complains Handling Log
  • Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards of the approved by the RICS
  • Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
  • Firms must cooperate with the RICS
  • Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on their behalf.
  • Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by the RICS
  • Firms must report to RICS any matter they are required to report under the Rules for the Registration of Firms.
31
Q

What does the new rules have in place to assist its firms and members?

A
  • Case Studies
  • Further Learning (webinars/downloads etc)
  • Ethics Decision Tree
  • FAQs
32
Q

What are the Example Behaviours of Rule 1?

A
  • Having reviewed the example behaviours in adhering to Rule 1 RICS Members and firms should not allow themselves to be influenced improperly through the acceptance of work referrals, gifts or hospitality.
  • Members and Firms must also be sure to identify conflicts of interest and not provide services or advice where these conflicts of interest occur.
  • This could be a scenario where you have reduced impartiality due to an existing relationship, for example being friends with a Main Contractor who has subsequently been selected to submit a tender would form a conflict of interest.
33
Q
  1. What are the Example Behaviours of Rule 2?
A
  • To ensure compliance with Rule 2, Members and firms must only act for clients where they have the necessary knowledge, skills and resources to carry out the work competently.
  • Firms must supervise any employees or subcontractors undertaking work on their behalf, for example requesting that a Junior Surveyor undertakes a complex valuation due to resourcing issues would create problems in achieving compliance with this Rule. Instead an experienced and suitably qualified surveyor should be asked to undertake the valuation
34
Q

What are the Example Behaviours of Rule 3?

A
  • As an RICS member or regulated Firm we must also be sure to understand a clients’ project specific requirements before acting on their behalf.
  • The clients’ scope of services should be agreed along with any exclusions and timescales for achieving each of the deliverables before signing up to formal terms of engagement
35
Q

What are the Example Behaviours of Rule 4?

A
  • The RICS also expects its members to respect the rights of others and treat others with courtesy.
  • We need to ensure that everyone is treated fairly and look to eliminate any instances of discrimination on the basis of age, disability, gender, pregnancy, race, religion or sexual orientation.
  • RICS members and firms also need to adopt a no tolerance policy of bullying or harassment
36
Q

How would I set up and RICS regulated firm

A
  • Apply for registration (inc agree RICS may share relevant information of firm to government/regulatory bodies and agree RICS can publish declination fo firm)
  • Appoint Responsible Principle
  • Complaints Handling Process
  • Client Account Mechanism in place (Client Money)
  • Taken out PI + run off cover with firm approved by RICS
  • Have other insurances in place (Directors / Buildings/Contents / Employers-public Liability)
  • Min 25% principals are chartered (eligible)
  • Operating in regulating area A (UK) (area B = rest of the world)
  • Providing surveying services to public (article 3 of Charter)
  • Use correct designation
  • Appoint locum / Provision for business continuity (death/incapacity)
37
Q

What are the Example Behaviours of Rule 5?

A
  • Members and firms are required to question practices and decisions that they suspect are not right and raise concerns with colleagues, senior management, clients or the RICS.
  • When making public statements we need to ensure these do not undermine public confidence in the profession.
  • When receiving and processing complaints, we need to ensure these are dealt with promptly, openly and professionally.
  • In complying with Rule 5, a useful sense check to ensure compliance is to ask ourselves if we would be comfortable in standing behind our actions if these were brought into the media or a public forum
38
Q

What sanctions can be imposed in respect of rule 2 (CPD)

A
  • First breach = Fixed Penalty (caution)
  • Second breach within 10 years of caution = Fixed Penalties (caution and fine)
  • Third breach within 10 years of caution = referral to single member or disciplinary panel with presumption of expulsion.
39
Q

When do you have to set up as RICS Regulated firm?

A
  • Min 50% principals are chartered
  • Operating in regulating area A (UK)
  • Providing surveying services to the public
40
Q

Can you tell me what RICS registered firms need to send to the RICS every year?

A
  • Annual Return (fine if not completed)
  • Type of the business and the staffing
  • Nature of my business’ clients
  • Training provisions
  • CHP & Logs
  • Any Client Money held
41
Q

Can you tell me what a “responsible principal is”?

A

A responsible principal has primary responsibility for ensuring that RICS’ professional, technical and ethical standards are applied, upheld and supported by an appropriate assurance framework within a regulated firm.

  • Must meet criteria A-B-C of 7.3-7.5 by Head of Regulation.
    • ie. influence strategic decisions / RICS Member or sufficiently experienced /
42
Q

How many professional groups?

A

18 Professional Groups

  • QS
  • Building Surveyor
  • Project Management
  • “Our Mental health” added
43
Q

What is deemed a “material Change” within Registration of Rules (Feb22) Regulation document

A

A-G:

  • Significant change of principals (whether or not RICS qualified)
  • Ditto non-Principal employees
  • Ditto change of contact details/address
  • Firm commence or cease holding client’s money
  • Etc.
44
Q

How does the RICS address costs regarding disciplinary action?

A

As per Supplement 2 of sanctions policy: fines, costs and administration fees.

45
Q

How does RICS set out disciplinary sanctions?

A

Bye Law B5.4.2 gives RICS power to one/more penalties
Bye Law B5.4.3 sets out penalties (A-I (9 of))
- Caution member/firm against repeating the contravention.
- Reprimand
- Fine
- impose conditions of the Member’s continued membership or Firms registration
- Expel Member / remove Firm’s registration.

46
Q

Talk me through RICS’ disciplinary procedures.

A

Fixed Penalties – Only applies to CPD, providing information to RICS and firms paying fees. First breach will be a caution, second breach (within 10 years) caution and fine. Any breach can warrant further investigation dependent on circumstances. Member must pay by date specified or request a review within 28 days.

Regulatory Compliance Order – agreement between RICS and member that they are liable for disciplinary action (member accepts), can include caution, reprimand, specific requirements of undertakings or a fine of up to £2000 per breach. The member will be liable for associated costs and usually be published on the website. Failure to comply = disciplinary hearing.

Part V - Regulatory Sanctions:

Disciplinary/Appeal Panel – Panel of three (chair and two other tribunal members). 2/3 must be non RICS members. Assisted by an independent legal adviser.
- Can impose: caution, reprimand, undertakings, fines, conditions, expulsion/re-registration.

The Regulatory Tribunal – Single member of regulatory tribunal can impose same as disciplinary panel save for de-registration of firm.

47
Q

Reasons for Expulsion or Withdrawal of registration?

A

gross, persistent or wilful failure to comply with an RICS Rule of Conduct

fraud, dishonesty or a lack of integrity

conviction of a serious criminal offence (an offence for which the penalty could be a
custodial sentence)

gross incompetence or recklessness in relation to the conduct or management of
professional activities

persistent and/or serious failure to cooperate with RICS

breach of a required undertaking previously given to RICS, or failure to give an
undertaking without reasonable excuse

deliberate discrimination

gross mismanagement of finances

misappropriation of clients’ money

third breach of Rule 2 of the Rules of Conduct within 10 years of receipt of a caution for
breach of the same Rule.

48
Q

Talk me through the RICS presidential team

A

President = Clement Lau
Elect = Ann Gray
Senior VP = Tina Paillet

49
Q

What is the role of the RICS president?

A

Royal Charter Article 9 requires president and vice-president

The Presidential team act as leading ambassadors for RICS. They work in partnership with the CEO to shape the RICS’ thought leadership agenda to address critical issues in the built and natural environment

They are elected by Governing Council for one-year terms, first as Senior Vice President, then as President Elect, progressing to President. They sit as members of Governing Council throughout their terms, where they participate in setting RICS’ strategy and providing oversight.

50
Q

What are your liabilities as a Member?

A

Bye-Law B5.2.1 - every member shall:
- conduct himself in a manner befitting the RICS
- comply with regulations/rules
- disclose promptly to RICS any firm/member he believes has breached regs//rules or charged/convicted of criminal offence with custodial sentence.

51
Q

What are liabilities as a firm?

A

Bye Law B5.3
- Every firm complies with Regs/Rules
- disciplinary action if brings into disrepute / serious professional incompetence.

52
Q

What would you describe as conduct befitting a chartered surveyor

A

Act in line with ethical principles. Irrespective of in/out of work/professional environment
- uphold standards of the institution to promote and maintain the usefulness and integrity of myself as a member of the profession.

Honesty
integrity
competence
service
respect
responsibility.

53
Q

Examples of unbefitting behaviour

A

Examples which may bring profession into disrepute maybe:

  • misuse of client funds
  • criminal activity
  • drunk and disorderly
  • dishonest / deceit
  • misuse/abuse of social media
  • failure to cooperate or report a member/firm in breach of regulations/rules.
54
Q

What are ethics?

A

The moral of right and wrong in human character and behaviour.

Consequentialism = (utilitarian view) “the greatest happiness of the greatest number”

55
Q

Explain to me you understanding of Regulation, Rules, and Principles

A

Regulation = A rule or principle governing behaviour or practice; especially, such as a directive established and maintained by an authority.

Rules = imperative directions to do or not do something. Coercive on basis there is consequence for non-compliance.

Principles = Aspirational standards of conduct.

56
Q

How do you develop trust as a professional?

A
  • ensuring competence by developing and maintaining specialist knowledge
  • affiliate with a professional body and follow their code of practice
  • commit to putting client and public interests first
  • delivering on promises/objectives.
57
Q

What are the 4 professional statements that have been issued by the RICS?

A

Countering Money Laundering, Bribery, Corruption and Terrorist Financing
- What constitutes a bribe?
- What are the signs of Money Laundering?
- Systems and training for prevent ML or Bribes
- Suspicions to be submitted to Commericial Crime Agency
- Gifts and hospitality
- Failure to declare a conflict
Conflicts of Interest
- Types of conflict?
- How should conflicts be dealt with?
- Keeping records
- Training and CPD to upskill on Conflicts of Interest
Client Money
- Holding in a client account
- Process for withdrawals
- Receipts
- Reconciling the account
- Cashflow
- Prevent misappropriation
RICS Property Measurement
- RICS Professional Statement & makes IPMS mandatory
- Aligns with the IPMS
- Provides guidance on how to measure IPMS1, IPMS2, IPMS3

58
Q

What is the RICS Birchard Review?

A

review was a key recommendation of Levitt Report (published Sep 2021) into historic issues at RICS

RICS appointed Lord Michael Bichard 01 Dec 2021 to lead a wide-ranging independent review into the governance, purpose and strategy of the institution.

“Call for evidence” 07 Dec – 21 Jan 2022
372 Round table participants / 551 Consultation submissions / 90 one-to-one meetings.

 “to help create a new sense of purpose and direction so that RICS can once more stand tall as an exemplar professional institution, capable of tackling challenges which will shape the way we live in the years to come”

 “I have tried to produce recommendations that will create greater clarity about RICS’ purpose, roles and responsibilities, improve accountability and increase engagement with members”

59
Q

What are summary aims of Bichard Review?

A

13 aims of recommendations overall:

  • A renewed and increased focus on the public interest remit of RICS, including amending the Royal Charter and creating a public interest panel to advise Governing Council
  • Maintaining self-regulation, through greater independence for regulatory functions
  • Increased focus on Diversity and Inclusion across the profession and within RICS governance;
  • Empowering and enabling members through greater support for regional boards, alongside increased member engagement, with renewed focus on younger members;
  • Undertaking an independent review of RICS’ governance and effectiveness at delivering against its Charter for the public advantage once every five years.
  • A new simplified, clear, accountable governance structure
  • Showing greater leadership on the issues that matter most to society, such as sustainability and climate change
60
Q

What did Bichard Review find about the RICS?

A

 “The problems which arose in 2018/19 have taken their toll, damaging the reputation of the RICS and leaving many long standing members and employees with a sense of betrayal”
 “The need for change is urgent and, in my view, unarguable” “There is no time to waste”
 “no time for the profession to remain preoccupied with internal politics”

61
Q

What are the key headings from the Bichard Review?

A

Findings and recommendations set out in 6 chapters and 36 recommendations
o Chapter 1 = Purpose of RICS
o Chapter 2 = Strategy
o Chapter 3 = Regulation and Public Interest
o Chapter 4 = Member Engagement
o Chapter 5 = Culture and Values
o Chapter 6 =Governance Structure

 Chapter 7 = Transitional Arrangements (timeframes / phases)

62
Q

Can you tell me 3 of the recommendations

A

Chapter 1: Purpose of RICS:
o Recommendation 1: RICS Seeks to amend Charter with revised purpose
o “institution exists for benefit of society to deliver positive change in built/natural environment in UK/globally…by advancing and facilitating access to surveying knowledge, by maintaining and promoting the usefulness and of the profession ….by leading, supporting and regulating a body of skilled professional surveyors and firms who demonstrate highest ethical and technical standards.

Chapter 2: Strategy
o Recommendation 4: RICS to reinvigorate Matrics
 Give younger members stronger voice in institution and to sit on Governing Council and throughout governance structure.

Recommendation 6: RICS needs to significantly improve its technology
 Confirm and update technology plan
 Appoint member of Board with technology experience

Chapter 3: Regulation and Public Interest
o Recommendation 9: RICS put public interest at heart of its work
 Establish fund for public activity to include pro-bono work and scholarships for underrepresented communities.

Chapter 4: Member Engagement
o Recommendation 15: Build upon Member Engagement, Experience and Value (MEEV) programme)
 Ensure members have access to high quality offering including content and events

63
Q

What is timeframe of Bichard recommendations?

A
  • Phase one would focus on transitioning the Chair of Governing Council’s responsibilities to the President; recruiting a new Chair of the Board, a permanent leader for the Executive and a Chair of the combined Nominations and Recruitment Committee. There would be a consultation over changes to professional groups and a framework document for SRB.
  • Phase two would focus on creating the new RICS Board; recruiting a Senior Independent Governor and independent member and appointing Board members; and conducting elections for geographic Governing Council seats in early 2023.
  • Phase three would focus on the establishment and population of the five key Committees; the new Professional Group Panels; and World Regional Boards. Elections for the new disciplinary Governing Council seats.
64
Q

Explain your understanding of Rule 1

A
  • Having reviewed the example behaviours in adhering to Rule 1 RICS Members and firms should not allow themselves to be influenced improperly through the acceptance of work referrals, gifts or hospitality.
  • Members and Firms must also be sure to identify conflicts of interest and not provide services or advice where these conflicts of interest occur.
  • Ensure I dont mislead others by my professional opinion
  • Ensure client money is kept safe and not misused
  • Not facilitate any financial crime including money laundering, bribery or corruption
65
Q

Explain your understanding of Rule 2

A
  • Members and firms only undertake work they are competent to undertake.
  • Provide supervision to ensure works are undertaken with the necessary skills, experience and resources.
  • Maintain professional development, identify training needs and have a plan in place to maintain and develop knowledge, skills and experience.
  • Ensure keep up to date with changes in legislation and professional standards etc
66
Q

Explain your understanding of Rule 3

A
  • As an RICS member or regulated Firm we must also be sure to understand a clients’ project specific requirements before acting on their behalf.
  • The clients’ scope of services should be agreed along with any exclusions and timescales for achieving each of the deliverables before signing up to formal terms of engagement
  • Keep proper records of the work I undertake and communications sent to provide sufficient information for quality assurance / regulatory purposes.
67
Q

Explain your understanding of Rule 4

A
  • The RICS also expects its members to respect the rights of others and treat others with courtesy.
  • We need to ensure that everyone is treated fairly and look to eliminate any instances of discrimination on the basis of age, disability, gender, pregnancy, race, religion or sexual orientation.
  • RICS members and firms also need to adopt a no tolerance policy of bullying or harassment.
68
Q

Explain your understanding of Rule 5

A
  • Members and firms are required to question practices and decisions that they suspect are not right and raise concerns with colleagues, senior management, clients or the RICS.
  • When making public statements we need to ensure these do not undermine public confidence in the profession.
  • When receiving and processing complaints, we need to ensure these are dealt with promptly, openly and professionally.
  • In complying with Rule 5, a useful sense check to ensure compliance is to ask ourselves if we would be comfortable in standing behind our actions if these were brought into the media or a public forum.

Adam's APC Q&A (20 decks)

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