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APC - Mandatory > Conduct Rules and Ethics > Flashcards

Conduct Rules and Ethics Flashcards

1
Q

What is the Structure of the RICS?

A

Privy Council - regulates RICS, gives royal charter and vets any changes
International governing council
regional governing council
regulatory boards - set policies and run ways of RICS
professional groups - set specialisms of the professions
administration

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2
Q

Who is the president of the RICS?

A

Timonthy Neal 2019/2020

Kathleen Fontana 2020/2021

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3
Q

Who is the Chair of RICS Scotland?

A

Richard Burnett has been announced as the new chair of the RICS Scotland board.
Montana Management director Richard Burnett has now taken over from John Edwards who served as chair from July 2019 – June 2020.

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4
Q

Your setting up in business, what do you need to do as a chartered surveyor?

A
  1. Inform RICS – Complete firms detail form i.e. Name, address, type of work, staff levels etc.
  2. Appoint a contact officer for all RICS communication
  3. Register with RICS for regulation of form by Regulatory Board
  4. Arrange for PI insurance
  5. Set up client account for handling client money
  6. Set up complaints policy
  7. Appoint a complaints handling officer
  8. Staff training and CPD
  9. All practice material to be in compliance with RICS rule 13 for firms
  10. Regulated by RICS if more than 50% of partners are chartered
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5
Q

What are the steps required for closing down a practice?

A
  1. Inform the RICS and your clients
  2. Inform your clients at earliest opportunity and hand over arrangements made to the new firm
  3. Return money from clients accounts
  4. Inform insurers and maintain minimum 6 years run off cover, minimum £250k cover – RICS recommend 15 years cover
  5. Retain client files for minimum 6 years
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6
Q

What is PII? Is there anything in place that covers after I stop trading?

A

Professional Indemnity Insurance protects a firm should an employee provide negligent advice.
There is run off cover which provides a minimum of 6 year cover after a company stops trading.

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7
Q

What advice would you give a client wishing to pay you in cash?

A

My firm have a policy in place where they do not accept cash payments, however I am aware that the RICS have a client’s money policy for firms that do accept this.
Money laundering and terrorist financing (amendment) regulations 2020 - maximum of 10,000 euros
It would have to be easily accessible by all parties at any time and a fee drawdown would be agreed so that we knew how often they would get paid.

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8
Q

What are the RICS 5 professional and ethical standards?

A

Act with intergrity, always provide a high standard of service, act in a way that promotes trust in the profession, treat other with respect, take responsibility.

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9
Q

What is the status of an RICS professional statement?

A

Mandatory requirements for RICS

members and regulated firms.

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10
Q

What is the status of an RICS Guidance note?

A 
A document that provides users with
recommendations or an approach for
accepted good practice as followed
by competent and conscientious
practitioners.
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11
Q

What is the RICS code of practice?

A

A document developed in collaboration with
other professional bodies and stakeholders
that will have the status of a professional
statement or guidance note.

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12
Q

What is the purpose of the RICS?

A

To promote and regulate surveyors
To set the highest technical and professional standards
To provide clients with a high standard of service

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13
Q

What is the purpose of RICS Matrics?

A

RICS Matrics was created to look after the interests of members entering or not long in the profession of surveying.

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14
Q

A client advises that they have received a lower fee proposal from another firm but would prefer to work with you, can you reduce your fee in such circumstances?

A

No it would be unethical to reduce your fee as your proposal should be your best offer.
Advise the client that by reducing your fee you may be unable to provide the service the client deserved or that your business could lose money.
You could look at ways to reducing the scope.

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15
Q

What are the laws and regulations that govern the RICS?

A

The laws and regulations that govern the RICS are those applicable to the country the works are being carried out. RICS is regulated by itself.

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16
Q

What is the BCIS and what is its relationship to RICS?

A

Building Cost Information System (BCIS) is an online database and is owned by the RICS.

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17
Q

What is governing council and how is it elected?

A

Governing Council is established under the RICS Royal Charter and Bye Laws and is the decision making body,
which sets the strategic direction and monitors the performance of the organisation as a whole.
There are 60 RICS Members on the Governing Council in Various geographical areas and professional specialisms.
Candidates are required to submit a written nomination form and obtain the signed support of 10 other members. 24 seats elected every two years.

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18
Q

What sort of information is contained in the RICS Standard Form of Consultants Appointment?

A
  1. Details of appointment
  2. Consultant obligations
  3. H&S, statutory requirements
  4. Limitations of Liability
  5. Collateral warranties
  6. Consultant’s personnel
  7. Client’s obligations
  8. Payment details
  9. Additional services
  10. Consultant’s authority
  11. Insurance
  12. Copyright and confidentiality
  13. Assignment, Transfer of rights and obligations and sub-contracting
  14. Termination and suspension
  15. Dispute resolution
  16. Notices
  17. Entire Agreement
  18. Governing Law
  19. Appendices
    Services
    Fees and payment
    Client’s brief
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19
Q

What qualifies as CPD?

A

Formal CPD can be any form of structured learning that has clear learning objectives and outcomes, such as a professional course, structured online training, technical authorship, learning that includes an assessment measure.
Informal CPD is any self-managed learning that is relevant or related to your professional role. This could include activities such as private study, on-the-job training, attendance at informal seminars or events where the focus is on knowledge sharing.

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20
Q

How are the RICS Rules of Conduct structured?

A

RICS Rules of Conduct are mandatory for all members, students and trainees, and all firms RICS regulated.
There is the:
1. Rules of conduct for members
Made by regulatory board
Version 7 of these Rules shall apply from 02 March 2020
Shortcomings or failure will not always provoke disciplinary proceedings, but may provoke investigation & a request to justify steps taken
Act with integrity/ avoid conflicts of interest
2. Rules of conduct for firms

They both include the 5 Principles of better regulation:
1. Proportionality
Different levels of regulation required for different size of firms, small vs large.
2. Accountability
RICS regulators are accountable to members and general public.
3. Consistency
4. Targeting
Regulators will target the vital areas such as areas of malpractice.
5. Transparency

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21
Q

Core Rules of conduct for firms and members?

A
  1. Ethical behaviour
  2. Competence
  3. Service
  4. CPD
  5. Solvency
  6. Information to RICS
  7. Co-operation
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22
Q

Differences between Rules of conduct for firms and members?

A 
Rules of Conduct for Firms includes, which the members rules do not:
Rule 7 – Complaints Handling
Rule 8 – Client Money
Rule 9 – Indemnity
Rule 10 – Advertising
Rule 12 – LOCUM
Rule 13 – Use of designations
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23
Q

Give me an example of RICS International Standards that you must adhere to in your job role.

A

The 5 standards that all members must be aware of are:

  1. Act with integrity
  2. Always provide a high standard of service
  3. Act in a way that promotes trust in the profession
  4. Treat others with respect
  5. Take responsibility
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24
Q

Explain key points of acting with integrity.

A

Be honest and straightforward in all that you do. This is one of our five professional and ethical standards.

  • Being open and transparent in the way you work.
  • Respecting confidential information of your clients and potential clients.
  • Not allowing bias, conflict of interest to override your professional judgements and obligations.
  • Not offering or accepting gifts, hospitality or services, which might suggest an improper obligation.
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25
Q

Explain key points of providing a high standard of service.

A

Always ensure your client, or others to whom you have a professional responsibility, receive the best possible advice, support or performance of the terms of engagement you have agreed to. This is one of our five professional and ethical standards.
This standard includes, but is not limited to, the following behaviours or actions:
- Be clear about what service your client wants and the service you are providing.
- Act within your scope of competence
- Be transparent about fees and any other costs or payments such as referral fees or commissions.
- Communicate with your client in a way that will allow them to make informed decisions

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26
Q

Explain key points of acting in a way that promotes trust in the profession.

A

Act in a manner, both in your professional life and private life, to promote you, your firm or the organisation you work for in a professional and positive way. This is one of our five professional and ethical standards.
This standard includes, but is not limited to, the following behaviours or actions:
- Promoting what you and the profession stand for - the highest standards globally
- Understanding that being a professional is more than just about how you behave at work; it’s also about how you behave in your private life
- Fulfilling your obligations. Doing what you say you will
- Always trying to meet the spirit of your professional standards and not just the letter of the standards

27
Q

Explain key points of treating others with respect.

A

Treat everyone with courtesy, politeness and respect and consider cultural sensitivities and business practices.

28
Q

Explain key points of taking responsibility.

A

Be accountable for all your actions - don’t blame others if things go wrong, and if you suspect something isn’t right, be prepared to take action.

29
Q

What is the CPD requirements for chartered members?

A

Minimum 20 Hours per year, with a minimum of 10 formal.

30
Q

What do you know about the Bribery Act?

A

There are four offences under the Bribery Act 2010:

  1. Giving a bribe
  2. Receiving a bribe
  3. Bribing a foreign public official
  4. Failing to prevent bribery
31
Q

What procedures do you adopt on the subject of giving and receiving hospitality?

A

As with conflicts of interest, gifts and hospitality should not be accepted or offered if they are likely to compromise you or your firm’s impartiality or integrity, or if this gives the impression of doing so.
Hospitality, promotional or other business expenditure which seeks to genuinely promote and improve the image of your firm or organisation, in order to present its products and services, is an acceptable and key part of doing business.
In making a decision about whether to accept or provide gifts or hospitality, the following questions may provide a useful starting point:
1. What is the value of the gift or hospitality?
2. Is the gift or hospitality reasonable and proportionate?

32
Q

Have you ever advised a friend or neighbour on a construction matter? If so what would your response be?

A

I haven’t, but my response would be to contact my office during working hours, to ensure appropriate terms of business are in place, especially considering PII.
I would also advise that they would be treated like any other client.

33
Q

What advice would you give a client wishing to pay you in cash?

A

You can only accept cash payments of 10,000 euros or less, in accordance with Money Laundering Regulations 2020.
However, in line with the RICS Ethical standard of acting with integrity, it is best practice to ask for bacs or direct debit so then the onus is on the bank to determine where the money has come from.

34
Q

What advice would you give a client about how you could look after their money?

A

Rule 8 of Rules of Conduct for Firms:
“A Firm shall preserve the security of clients’ money entrusted to its care in the course of its practice or business”
I would advise that:
General
- A Principal or appropriately qualified individual oversees the client accounting function
- Accounting systems and client data are securely controlled and protected
- There is adequate cover for holiday and long term absence
Client Bank Account
- We hold clients’ money in one or more client bank accounts separate from all other monies.
- Client money should be available on demand
- Systems provides details of all money paid into and from client account
- Current balances are always available
- Overdrawn balances are prevented
Controls over receipt of money
- Only Principle opens incoming post
- All clients’ money should be lodged within 3 days of receipt
- Record kept of all clients’ money received by post
Controls over payment of money
- Adequate authorisation and supervision procedures in place for payments made
- Cash payments are avoided
- Blank cheques are not signed

35
Q

What level of PII would you advise having in place if you were to start up as a sole practitioner Chartered Surveyor? How would that alter as you grew your business?

A

You will need to buy a minimum level of indemnity and your firm’s turnover in the previous year (or an estimate if you’re a new firm) will be a factor in finding the right level.
You should consult an insurance broker.
They will be able to offer guidance on appropriate limits andexcesses and they will be able to explain the nature of the cover provided under the RICS minimum terms.

Using only turnover as a guide, the minimum level of indemnity cover you will require is:

36
Q

What else would you advise having in place as a sole practitioner?

A
  • LOCUM - Comply with Rule 12 - A firm which is a sole practitioner shall have in place appropriate arrangements in the event of that sole principal’s death or incapacity or other extended absence.
    A locum is a person who will stand in for you while you are away from the office, could be:
  • Solicitor
  • Chartered QS
  • Accountant
  • Arrange for PI insurance, probably £250,000 cover required
  • Set up complaints policy – ensure a third party independent procedure is available
37
Q

Can you give me an example of a CPD module you have recently undertaken?

A

I recently attended a technical workshop on fire design in domestic buildings, where I learned about some of the recent changes to the building regulations

38
Q

What were your key learning outcomes?

A

I learned that combustible cladding panels are prohibited on residential buildings above 11m

39
Q

What is a conflict of interest?

A

A conflict of interest is anything that impedes or might be perceived to impede an individual’s or firm’s ability to act impartially and in the best interest of a client.
A conflict of interest can cast doubt on your integrity; it can also have a damaging effect on your firm and the profession as a whole.
The RICS Conflicts of Interest professional standard and guidance note.

40
Q

From when will you have to follow the mandatory guidance contained in the RICS Professional Statement on Conflicts of Interest?

A

1st January 2018.

41
Q

How do you ensure you protect yourself if in a CofI situation?

A

Party Conflict - Conflicted by a situation by owing a duty to another client in relation to same professional assignment
Own Interest Conflict - Interests of a client in a professional assignment conflicts with the interests of that same RICS member
Confidential Information Conflict - to provide material information to one client, and the duty of that RICS member to another client to keep that same information confidential.

42
Q

The UK MoJ published a guide on compliance with the Act including six principles of adequate procedures to prevent bribery?

A
  1. Proportionate procedures – the procedures adopted should be proportionate to the risk faced.
  2. Top-level commitment – the company should adopt a culture of zero tolerance through a commitment by senior management.
  3. Risk assessment – the company should identify its bribery risks and prioritise its actions in high risk areas.
  4. Due diligence – the company should take appropriate care when entering into relationships or markets with a risk of bribery.
  5. Communication – the company’s policy should be clearly communicated to all relevant parties, supported by appropriate training and “speak up” procedures.
  6. Monitoring and review – the procedures put in place should be reviewed and updated as the company’s risks change over time.
43
Q

What does RICS stand for?

A

Royal Institution of Chartered Surveyors (founded 1868)

44
Q

Why was this a conflict of interest? Aren’t F+G PD on other projects where EA role is being undertaken?

A

This was a party conflict as F+G would have been responsible for acting on behalf of the Employer and the Contractor on the same project
The Contractor was responsible for acting as principal designer and principal contractor

45
Q

How do you avoid conflict of interests?

A

By complying with rule 3 for members ethical behaviour and the RICS professional statement on Conflicts of Interest

46
Q

Should you highlight errors in applications? Does this not go against your role representing the Employer?

A

Yes, I have a duty to value the works correctly.

47
Q

What was your error in your cost plan?

A

There was a late change to the external play space equipment.
My cost plan was issued based on the original landscaping design.
The revised designs were issued directly to me so my director wasn’t aware that the landscape architect had changed the design.
I realised the error the day after the cost plan was issued and highlighted this to my director and then the client

48
Q

Where are the RICS headquarters?

A

RICS’ headquarters are based in London on Great George Street, Parliament Square

49
Q

What are professional groups? Can you name 5?

A 
Professional groups are the way that RICS segments the various technical specialisms of the profession. In total there are 17 groups covering the broad spectrum of surveying services.
Quantity Surveying and Construction
Building Surveying
Commercial Property
Dispute Resolution
Project Management
50
Q

What is the duty of a professional group?

A

The professional groups set the technical standards for each specialism

51
Q

What can the RICS investigate?

A

Misconduct
Serious professional incompetence
Concerns about service

52
Q

What are the Five Principles for Better Regulation?

A 
Proportionality.
Accountability.
Consistency.
Targeting.
Transparency.
53
Q

What RICS initiatives are you aware of?

A

Diversity and inclusion
The surveying profession needs a diverse workforce in order to utilise the innovative skills and technologies required by consumers in the built and natural environments; it is our responsibility to tackle barriers to entry and encourage a more diverse profession.

54
Q

What would you do if you accidentally forwarded someone sensitive information to someone you shouldn’t have?

A

Check if the information was received by the third party, try to recall if possible.
If received, I would inform my firm and the particular client and try to recover the information. I would put mitigation measures in place to ensure that the issue didn’t happen again.

55
Q

When would you accept a late tender return? What do you advise clients about late tender returns?

A

I would advise against accepting a late tender return.
Public sector - the tender should be rejected
Private sector - I would advise against this, however acceptance would be at the client’s discretion.

56
Q

Assuming you were successful in getting Chartered, how would you deal with a situation such as a friend who asks you to provide them with QS advice for a house extension that they are about to undertake?

A

Firstly, you cannot operate as a Chartered Quantity Surveyor without Professional Indemnity Insurance. You would not be able to provide advice and put your name to it unless you held the appropriate level of PII cover.
Secondly, you still need to make sure that any advice you provide goes through the necessary and relevant checks and balances prior to it being issued. Just because it is for a friend, it does not mean that an appropriate checking process can be bypassed.

57
Q

What must be in place for a client bank account?

A 
Holding client money 
Information to clients
Receipts of client money
Payments from client account
Accounting records and controls
Compliance
58
Q

Does the RICS provide any assistance to clients regarding money handling?

A

RICS Client Money Protection Scheme

59
Q

How can a disciplinary proceeding be triggered?

A

complaint / allegation by client or 3rd party / info received

60
Q

What actions can be imposed?

A

penalty / consent order / disciplinary panel

61
Q

You hear that a contractor was going bust and you were asked to minimise his payment would you do so?

A

No the Contractor is due to be paid for works completed.

62
Q

The client informs you that he does not have enough money to pay the contractor this month but everything will be OK next month, what do you do?

A

No the Contractor is due to be paid for works completed.

63
Q

If a client phoned you and said the need to spend money before the end of the year for
accounts purposes so could he pay you now for work you will be doing next year what would
you say?

A

I would advise the client that the moneies could be transferred into a separate client bank account and that I would draw down on the monies periodically or in stages are completion of works.

APC - Mandatory (10 decks)

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