Conduct Rules & Ethics Flashcards
What are different types of Standard documents within the RICS. Which of these are mandatory ?
- Professional Statements.
- These contain ‘musts’.
- Guidance Notes.
- These contain ‘should’. They are a recommendation of best practice.
- APC
- The requirements and guidelines for entry into the profession
- Data Standards
- These ensure software programmes and tech can adopt RICS standards
What are 5 ethical standards?
- Act with integrity
- Always provide a high standards of service.
- Always act in a way that promotes trust in the industry
- Treat others with respect
- Take responsibility
How many rules are there for firms and members?
- 15 for firms
* 9 for members
Can you tell me the rules for firms?
- Communication
- Professional behaviour
- Competence
- Service
- CPD
- Complaints handling procedure
- Clients money
- Professional Indemnity Insurance
- Advertising
- Solvency
- Arrangements to cover the death or incapacity of a sole practitioner
- Use of designation
- Information to RICS
- Co-operation
Can you tell me the rules for members?
- Interpretation
- Communication
- Ethical behaviour
- Competence
- Service
- CPD
- Solvency
- Information to RICS
- Co-operation
What do you require to set up your own practice?
- RICS rules of conduct for firms
- Adequate level of Professional Indemnity Insurance
- A training programme
- RICS professionals required to carry out CPD
- Others insurance
- Money laundering behaviour rule 3 ethical behaviour
Can you tell me the 5 principles for better regulation?
- Proportionality
- Accountability
- Targeting
- Consistency
- Transparency
Can you tell me about rule 8 clients money?
A firm shall preserve the security of clients money
Can you tell me about handling clients money?
A firm shall ensure that clients money can be clearly linked to the client it belongs to and is protected on their behalf at all times. Especially in the event of insolvency, death of sole practitioner, misappropriation by any party, transfer of all clients money to another organisation.
Can you tell me some client money issues?
- The word client not appearing on the clients bank account
- Over drawn client bank account
- Electronic payments not being signed off by Principal or Senior member of staff
Can you tell me about the claims handling procedure?
A firm shall operate a complaints handling procedure and maintain a complaints log. There should be an ADR mechanism within it that is approved by the regulatory board. ADR redress system for business to consumer, adjudication for business to business.
What are the timescales for responding to complaints?
A full response and if that’s not possible then an update within 28days
Can you tell me what a bribe is?
A bribe is anything that may influence a business decision or impair independence or judgement or give the appearance of doing so
Can you tell me about the bribery act and the offences?
Creates a criminal offence to those who give and or receive a bribe, bribing a foreign official or commercial organisations failing to prevent a bribe.
Can you tell me the consequences of an individual or firm giving or receiving a bribe?
Under section 7 of the act it creates an offence for commercial organisations who do not have procedures in place to prevent their employees from committing bribery on their behalf. The individual can receive 12 months in prison and up to a £5,000 fine
Can you tell me how a company can help prevent bribery?
- Procedures
- Top level commitment
- Risk assessment
- Due diligence
- Communication
- Monitoring and reviewing
- Organisations should develop and implement procedures. A clear policy to all employees, training and make aware the consequences if they give or receive a bribe
Is there any training on ethics?
Yes on the RICS website. There is a free refresher walkthrough of ethics that contributed to 1 hour CPD
Can you tell me what a conflict of interest is?
Anything that impedes on an individual or firms ability to act impartial and in the best interest of their client.
Can you tell me the different types of a conflict of interest?
- Party conflict
- Own interest conflict
- Confidential interest
How would you identify a conflict of interest?
When taking on new clients and new work I would ask myself am I able to act impartial and in the best interest of my client. If I personally know the client could this create a conflict of interest?
How would you proceed with a conflict of interest?
- Prior informed consent of all who may be affected
- Is it lawful to do so
- Is it the best interest of all parties
- Will it stop the requirement for professional and ethical advice
- Will I be able to act impartial and in the best interest of my client
Can you tell me the ethical decision tree?
It had 6 questions to ask when dealing with an issue
- Do you have sufficient facts on the issue
- Is it legal
- Is it in lie with the global professional and ethical standards
- Have you consulted with the appropriate people to ensure your decision is informed
- Do you have a clear reasoning for reaching your decision
- How would you feel if your actions were made public
Can you tell me what RIDDOR stands for?
Reporting of Injuries, Diseases & Dangerous Occurrences Regulations 2013
What is Professional Indemnity Insurance?
- If the firm faces a claim then is is protected against financial loss that it cannot meet from its own resource.
- Work on a claims made basis, doesn’t matter when the negligent act occurred
- Retroactive date stated as none for the above to apply
- Run off Cover
What are the levels of PII?
If turnover is:
- Less that £100k is £250k cover
- Between £100-£200k £500k cover
- £200k or more £1m cover
Can you tell me about the Bribery act 2010?
- Two general offences which are active bribery(giving) and passive bribery(receiving)
- Creates and offence under section 7
- An individual can face 12 months in prison and £5,000 fine.
- Organisations should implement procedures to prevent this 3.g. Training
- Maintain a gift register for networking
What is the significance of the RICS?
RICS regulates and promoted the profession around the world. It maintains the highest educational and professional standards, protects clients and consumers via a strict code of ethics and provides impartial advice and guidance.
What is the RICS motto
Est modus in rebus.
There is measure in all things
