Conduct, Rules and Ethics Flashcards
What is your complaints handling procedure?
- First complain to my manager, if not resolved then complain to designed complaint handler in company
- Complaint acknowledged within 7 days, responded to within 28 days
- If not resolved then RICS approved redress scheme and ADR
You mentioned being offered a bottle of wine, what is your companies policy with regards to accepting gifts?
Decline politely first, if client insists then we are allowed to accept gifts with a value up to £20 without checking with our manager first as along as we record it on our gifts and hospitality form
Are there any situations where you could accept a gift?
Yes, as long as it is proportionate and doesn’t suggest improper obligation, and declared in line with your policy.
What is your companies whistle blowing policy?
We have an independent body which we can report to
You mentioned being offered private work, which of the RICS ethical standards would this have gone against?
Integrity - be honest and straight forward in all that you do
Who is RICS president?
Kath Fontana
Who is RICS chief exec?
Dr Sean Thompkins
Who is RICS president elect?
Clement Lau
When was RICS founded?
1868, royal charter granted in 1881
What is the RICS governing structure made of?
Governing council, regulatory board, audit committee, management board
What are the rules of conduct for firms?
1- interpretation 2- communication 3- information 4- advertising 5- solvency 6- indemnity 7- incapcity or death 8- use of designations 9- CPD 10-professional behaviour 11- clients money 12- complaints handling procedure 13- cooperation 14- Service 15- competence
What are the rules of conduct for members?
1- interpretation 2- information 3- competence 4-ethical behaviour 5-CPD 6- service 7- solvency 8- cooperation 9- communication
What are the requirements to set up your own practice?
- Inform RICS, appoint contact officer, register with RICS for regulation, arrange PII and send to RICS, procedures for handling clients money/register with RICS Client Money Protection Scheme, complaints handling policy, RICS annual return form - nature of clients, staff information, training, responsible principle
What statutory compliance is applicable when setting up your own firm?
Equality Act 2010, Bribery Act 2010, Money Laundering Regs, Health and Safety Act, Data Protection
How would you close down a practice?
- Inform RICS, inform clients, return any money to clients, inform insurers, run off cover for PII, keep client records for 6 years
What are the 6 principles of the Bribery Act 2010?
- Top level commitment, - due diligence, - proportionate procedures, - risk assessment, - communication - monitor and review
What is the role of a contact officer?
main liaison point between the Firm and RICS and the person authorised to submit the Firm’s Annual Return.
What is the role of the responsible principal?
- primary contact for RICS within the firm. Responsible to ensure firm has appropriate measures in place for its Principals and employees to fully comply with RICS standards and requirements and provide evidence
- ensuring the firms systems and controls meet legal requirements and provide evidence
- ensuring all information provided to RICS is truthful and report any material changes to
- ensuring that there are adequate processes and systems to record any failures to
comply with RICS and/or legal requirements and provide evidence
What is next action if client refuses to accept remedy of complaint?
They can be given access to an independent redress scheme. List of approved providers on RICS website under regulation
Where would you go to find out about complaints handling procedure?
RICS website under upholding standards and regulation section
Who does PII protect?
- ensure that if the firm faces a claim, it is protected from financial loss that it cannot meet from its own
resources - protect the insured member or firm against the consequences of its liability to pay damages to third
parties for breaches of professional duty that it commits through its professional activities and - ensure that the firm’s clients do not suffer financial loss, which the firm cannot meet
Where would you buy PII from?
From RICS approved insurer, website will give list of approved insurers or speak to insurer directly
What are the required levels of PII insurance in relation to turnover?
0 - £100k = 250k
£100k - 200k = £500k
£200k+ = £1 million
What is run off cover?
- ensure that firms, members and their clients are not exposed to financial detriment in the period
following a firm ceasing to trade, RICS requires firms to obtain fully retroactive run-off cover
What are key requirements of PII cover?
- fully retroactive, claims made basis
- underwritten by RICS approved insurer
- can no longer exclude for fire safety 4 stories or less
- cyber cover
- run off cover required for minimum 6 years but can extend if firm deems appropriate
Could run off cover be extended to 12 years?
- Yes under deed
What are the new requirements of PII and when did they come in to force?
- no fire safety exclusion for blocks of flats under 4 stories
- cyber protection
- 1st May 2021
What is clients money?
Payment on account, rent, service charges, money held but due to contractors.
How do you deal with clients money?
If client gives us money to pay contractor for remedial works. Held clearly identifiable client account
Why do we ringfence clients money?
To make sure that a sum of money is protected and only used for a particular purpose, also done to reduce taxes on company. It is a virtual barrier
When would you employ services of a LOCUM?
Death or incapacity of sole trader
What is the duty of a LOCUM?
To ensure the continued running of the firms active activities, access to clients money as necessary and complaints handling log
What denomination of cash are you allowed to accept?
10,000 euros
What are the RICS Bye-laws
1) application and definition 2) membership & registration 3) designations 4) contributions to funds 5) conduct 6) governing council, officers and staff 7) sub-ordinate boards, committees and groups 8) procedure for general meeting 9) accounts and audit 10) general
In the case of a breach of a rule of conduct what is the procedure?
formal investigation by head of regulation at RICS.
What three actions can be imposed by Head of Regulation after an investigation for breach of rules?
- fixed penalty
- consent order
- disciplinary panel
What is a fixed penalty by the RICS?
A fine by the RICS
What are consent orders by RICS?
Written agreement between RICS and member or firm agreeing to take corrective action
What penalties can RICS issue after disciplinary panel?
Caution, reprimand, fines, expulsion
What insurances would you need to set up your own firm?
- PII
- Employers Liability
- Public Liability
- Building insurance
Which firms are regulated by RICS?
- 50% plus partners/directors are RICS
- those with less than 50% but have applied
What is money laundering?
exchanging money or assets that were obtained criminally for ‘clean’ assets or money
What should firms do to prevent money laundering?
- internal policy and procedures
- keep records
- customer due diligence checks
What can you do if you suspect money laundering?
- report to your money laundering officer
- officer can submit a suspicious authority report to national crime agency
What is the purpose of PII?
To provide financial cover in the event a client suffers financial loss as a result of a
breach of professional duty e.g. neglect, error or omission. Also protects the professional from financial loss.
On what basis is PII underwritten in the UK?
On a claims made basis. Means can claim at time breach is discovered, not when breach was made
How long should run off cover be in place?
6 years minimum if underhand, 12 years if executed as deed
Do you know of any current topics being discussed by RICS?
Diversity and inclusion panel, rising prices of materials, sustainability, covid
What are signs of modern slavery?
very cheap labour, wearing damaged uniforms, continuing to work despite injuries, looking malnourished. Modern Slavery Act 2015
What RICS guidance can you use if you need help regarding an ethical situation?
RICS Ethics Decision Tree
What are the fines involved with failure to comply with the Bribery Act 2010?
Unlimited fine, up to 10 years in prison
What are the fines involved with failure to comply with the Money Laundering Regulations 2017?
unlimited fine, up to 14 years in prison
What are the new topics on the 2018 pathway guide of Building Control?
Diversity and inclusive, inclusive environments
What is required to be submitted in the firms annual return form?
- annual turnover
- PII details
- nature of clients
- client money handling info
- complaints log
- staff information
- CPD/training
What is the level of PII uninsured excess?
up to £500k - greater of 2.5% of sum insured or £10k
over £500k - 2.5% of sum insured
Are you aware of any proposed changes to the RICS ethical standards?
Plan to merge RICS Ethics and Rules of conduct and provide examples on expected behaviours. Focusing on conduct, competence, diversity and inclusion
What are the four offences under the bribery act 2010?
1- offer a bribe 2- receive a bribe 3- failure to prevent a bribe 4- bribing a foreign official
What is a bribe?
Offer, promise, demand of acceptance of an advantage as an inducement for an action that’s illegal or unethical
Tell me what you understand about conflicts of interest?
- where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
- 3 types of conflict, party, own interest, confidential information
How would you manage a conflict of interest if two separate departments were working for the same client?
- exclusivity of staff to each department
- separate communication lines in to the client
- non disclosure agreements
- monitor conflict and keep client updated
What do we need to have in place if a conflict of interest existed but the client insisted on proceeding?
- check the clients understanding around the conflict
- make them aware of potential for reduced impartiality
- seek letter of instruction to continue
- discuss procedures to manage conflict
What does it mean to act with integrity?
To be honest and straightforward in all that you do
What does it mean to provide a high standard of service?
Ensure that your client receives the best advice and terms of engagement that you agreed to
What does it mean to promote trust within the profession?
Act in a manner in both professional and personal life that promotes you in a positive way
What does it mean to treat others with respect?
To act courteous and polite to everyone you deal with
What does it mean to take responsibility?
To be accountable for your actions, if you suspect something isn’t right, be prepared to take action
What is the RICS and what is its purpose?
A professional body that promotes and enforces the highest professional standards in development and construction to positively effect the built and natural environment
What does it mean that RICS self regulates?
Members aren’t regulated by the Government, but internally monitored. Complying with the Royal Charter, bye-laws and principals of better regulation through the governing structure allows RICS to self regulate.
Why do you want to join the RICS?
I want to be recognised as a skilled building control surveyor under the gold standard of chartered surveyors
