Conduct Rules, Ethics... Flashcards
Name and describe 3 rules from the RICS rules of conduct for members
- Ethical behaviour - Members act with integrity, avoid conflict of interest and act in consistently with their professional obligations
- Competence- carry out professional work with due skill care and diligence
- Service - carry out service in a timely manner with good customer care
Name 3 rules from the RICS for firms and explain them
- Service - firm must carry out service in a timely manner with good customer care
- Advertisement - firm shall promote their service only in a truthful and responsible manner
- Solvency - a firm must ensure its finances are managed appropriately
Name 3 of the RICS 5 ethical standards
- High level of service
- Act with integrity
- Show respect to others
Explain 1 of the RICS ethical standards
High level of service
Ensuring your client receives the best possible service and performance upon what you have agreed
Be clear about services you are providing
Be transparent about fees and payments
What is a conflict of interest?
Where someone’s personal interests conflict with their professional interests owed to their employer
What does the RICS conflict of interest professional statement say a member MUST do, including informed consent?
1 - identify and manage conflict of interest in accordance with the RICS statement
2 - keep records of decisions made in relation to accepting individual assignments, obtaining informed consent and measures taken to avoid conflict of interest
What is an information barrier?
Physical or electronic separation of individuals within the same firm which prevents confidential information passing between them
What must a complaints procedure have?
1 - consideration of the complaint by senior management of the firm
2 - if the complaint cannot be resolved, a third party must be given authority to resolve
What professional indemnity (PI) insurances does a firm require?
1 - each and every claim basis
2 - RICS minimum policy wording
3 - PI cover minimum level of indemnity
£100k or less = £250k
£100.01k to £200k = £500k
£200.01k or above = £1m
What does the bribery act say?
Bribery act 2010
Promotes anti bribery practices amongst businesses
Is an offence to fail to prevent bribery that is intended to improve business
What is your opinion on gifts and hospitality?
Politely decline
Don’t want to accept something that affects my impartiality or influences my professional decision making
What are the requirements for a firm to be registered by RICS?
Notify the RICS Have adequate PI insurance, based on estimated turnover Register with RICS Regulated by RICS Clients money obligations Complaints handling procedure Staff training and development
How would you correctly hold clients money?
Hold it in a separate bank account
Bank account to have clients in the title
What are the CPD requirements for an RICS member?
20 hours of CPD
At least 10 hours must be formal training
What are the disciplinary procedures of the RICS?
1 - Make further enquiries
2 - inform the person of the enquiry, they can respond within 28 days
3 - Decide whether there are grounds for the complaint
4 - If there is, issue consent order or fixed penalty
Why does RICS have Rules for members and firms?
- Ensure high standards among its members and firms, failure to meet these rules could end in expulsion from RICS
Who do the RICS rules for members and firms protect?
They protect members, employers, clients, the public – they are there to protect everyone.
Who regulates RICS?
RICS is a self- regulating body
How does RICS maintain standards?
It has a set of rules of conduct for both members and firms that they are expected to follow
Why is it important that RICS have rules?
To ensure that its members work to a high professional standard and to give clients and the public confidence in their ability.
RICS has based its rules on a set of 5 principles of good regulation. Can you tell me what they are? What does this tell you about RICS?
- Proportionality - regulators should only intervene when necessary. Remedies should be appropriate to the risk posed and costs identified and minimised.
- Accountability - regulators must be able to justify decisions and be subject to public scrutiny.
- Consistency - Government rules and standards must be joined up and implemented fairly.
- Transparency - regulators should be open and keep regulations simple and user-friendly.
- Targeting - regulations should focus on the problem and avoid a scattergun approach.
It tells you that RICS takes its rules and ethical standards very seriously and that it is transparent about this.
What areas do the rules for members cover?
- Ethical behaviour, members shall act with integrity and avoid conflict of interest.
- Competence, members carry out their work with due care, skill and dilligence.
- Service, members shall carry out with in a timely manner with a high standard of service.
- CPD, members shall comply with CPD requirements.
- Solvency, members shall ensure their personal and professional finances are managed appropriately.
- Information to RICS, submit info in a timely manner in the correct format.
- Cooperation, members shall cooperate fully with RICS staff.
What areas do the rules for firms cover?
- Professional behaviour, firm shall act with integrity and avoid conflicts of interest.
- Competence, firms carry out their work with due care, skill and dilligence.
- Service, firms shall carry out with in a timely manner with a high standard of service.
- Training & CPD, ensure staff are properly trained and competent to do their work.
- Complaints handling, operate and maintain a complaints handling procedure
- Clients money, preserve the security of clients money
- PI Insurance, shall ensure that all previous and future work is covered by adequate PI insurance.
- Advertising, promote services in a truthful and responsible manner.
- Arrangements to cover in event of incapacity or death of sole practitioner.
- Use of designation, must display its regulated by RICS
- Information to RICS, submit info in a timely manner in the correct format.
- Cooperation, shall cooperate with RICS staff
If you are successful today you may decide to set up your own business. What does RICS expect you to have in place?
PI Insurance Complaints handling procedure Security of clients’ money Trained and competent staff Finances are managed properly
