Conduct, Rules, Ethics and Professional Practice Flashcards
What are Synergy’s Gift Policy?
You cannot accept anything that could affect your impartiality but specifically it cannot exceed £50. Everything is declared on register and it is raffled for everyone winning.
If I am a contractor and I have this pen in my hand and give it to you, would you accept it?
Yes, I can accept items that are promoting another business but I will not accept it, if it was made out of gold unbranded.
Would you accept a bottle of wine?
I would politely decline the bottle of wine. I would question the timing of the gift and would not accept.
Tell me about your company’s antibribery policy?
Synergy have an anticorruption and bribery policy 2019 and a Gifts and Hospitality Policy. It outlines how the members of the organisation should Act
What procedures does your company have in place to deal with Bribery?
Synergy have an Anti-corruption and bribery policy. It states that there is zero tolerance approach to corruption and bribery policy, training and guidance. The business carries out risk assessments of all business activities, employees, business partners and countries in which it operates. All staff will accept responsibility for preventing, detecting and reporting corruption and bribery as per the Act.
A contractor wants to give you a case of wine, would you accept this?
Kindly thank them but decline the offer- acceptance would be against professional conduct.
Your client is going away on holiday for two months and wants to leave you with £2,000 in cash to pay your fees over this period, what would you do? Are there any alternative approaches they could take?
Set up Client Account and follow the RICS Practice statement. Ensure the account is properly named and make sure it is never overdrawn. Ensure the client has access and ensure there is a record of all transactions that they can be privy too.
Give an example of where you have adhered to one of the 5 ethical standards?
1) Act with Integrity – Honest and Transparency, reject gifts from contractors – golf day – Thomas More Language College
2) Act in a way that promotes Trust in profession – always follow the ethical standards and this promotes confidence in the profession
3) Always provide a high level of service – I always act within my scope of confidence and will recommend a structural consultant when the client asked whether the column could be removed
4) Always take responsibility – always acting professional – I spotted a H&S risk on site where the scaffold boards had been moved. I recorded the incident and ensured that the boards were put back as it was a risk from falling from height
5) Always treat others with respect – treating everyone the same in my professional and personal life.
What are the International Ethical Standards (10)?
A FIRST TLCC – Accountability Financial Responsibility Integrity Reflection Standard of service Transparency Trust Lawfulness Confidentiality Conflict of Interest.
What are the RICS code of conduct for members/firms?
9 rules for members, and 15 for firms. 1. Interpretation 2. Communication 3. Ethical Behaviour 4. Solvency 5. CPD 6. Service 7. Information to RICS 8. Cooperation 9. Competence (Members)…
Interpretation Communication 9. Professional Behaviour Competence Service Training Solvency Information Cooperation 10. Advertisement 11. Designations 12, PI Insurance 13. CHP 14. HCM 15. Arrangements for Loss of Director.
What is your firms code of conduct?
Synergy have Policies in place for Gifts and Hospitality, Sustainability, Complaint Handling Procedure, Green Procurement, Privacy Policy.
What is your company’s policy on accepting gifts?
Synergy has a Gift and Hospitality Policy, which the staff are made aware of.
What are the requirements for PI?
Minimum liability based on turnover. Maximum level of uninsured excess is based on limit of indemnity. Must hold PI Insurance using an RICS Approved Broker. PI Insurance should work on a claims-made basis. Run off cover should be obtained for past work to match the last longest liability.
What are the requirements if you had a turnover of £200,001?
You are required to have a minimum liability of £1,000.000.
What are the RICS PII Requirements?
£100,000 or less - £250,000
£100,001 to £200,000 - £500,000
£200,001 and above - £1,000,000
What happens if you cannot obtain PI Insurance?
The RICS offer a service called the Assigned Risk Pool which is available to firms that cannot obtain insurance. If you are an RICS Regulated UK firm you are entitled to this option.
What are the indemnity limits when firms cannot get insurance?
Assigned Risk Pool - Up to £1mil
Run Off Pool Cover - Up to £1mil
What happens if you cannot obtain PI Insurance?
The RICS offer a service called the Assigned Risk Pool which is available to firms that cannot obtain insurance. If you are an RICS Regulated UK firm you are entitled to this option.
What happens when the yearly insurance cover expires, how does the firm manage run off cover?
There is Run-off Pool (ROP) cover. The ROP is collectively underwritten by all RICS Listed Insurers and managed on behalf of insurers.
What limit of indemnity do the ARP offer?
Up to £1 million.
What level of PI Insurance cover would you require if your firm had a turnover of around £250,000?
£1 million in accordance with the RICS guidance.
What do you need to do when you set up a new company?
Register with the RICS
Take out PI Insurance
Have a Complaints Handling Procedure, Have a procedure for handling Clients Money
Have training procedures in place
Have contact officer in the business for the RICS.
Have the appropriate insurances in place for having employees and a business.
What are the RICS requirements for regulation of a firm?
The Firm provides surveying services to the public.
The Firm is operating in Regulated Area A.
At least 50% of the Firm’s Principals are RICS Members.
Can you be regulated if 25% RICS?
Yes, if there are 25% principals who are members of the RICS, then they can register if they are providing surveying services.
Tell me what you would have to do if you intended to start up your own firm?
1) Contact the RICS for guidance – provide a company start up pack,
2) Inform the RICS and register for regulation,
3) Appoint a contact officer for all RICS communication,
4) Prepare a complaints handling procedure,
5) Obtain PI cover,
6) Abide by the Rules of Conduct for Firms, including handling clients money,
Use the designation ‘Regulated by RICS’ on all practice material.
Name some of the statutory obligations for starting a new surveying business?
1) Comply with employment legislation (e.g. HASAWA, Equalities Act)
2) Follow statutory policies for staff recruitment, contracts, hours, pay, holidays, illness, paternity/maternity, grievances, disciplinary, dismissals, redundancy
3) Comply with other legislation:
○ Data Protection Act 1998
○ Money Laundering Regulations 2007
○ Bribery Act 2010
What do you need to do when you close a company?
- Ensure that you take out run off cover for the length of your latest liability
- Inform the RICS.
- Agree the closure date
- Inform clients
- Deal with client money outstanding in your client account in accordance with the Client Money Handling professional statement
What is your company’s complaints handling procedure?
Three stage CHP. Initial complaint is logged in writing, complaints to Head of Building Surveying, if unresolved, it is then escalated to complaint handling officer and they respond within 7 day time frame to respond to complaint, 21 days if no response after. If unresolved, referral to independent redress scheme and in this instance, Mediation at the Centre for Effective Dispute Resolution.
How and when do you notify clients of your complaints handling procedure?
The CHP is issued during the initial appointment when I share Synergy’s Terms of Business. The details are summarised in the Terms of Business.
What is the requirement of a complaints handling procedure?
Complaints handling procedure require complaints to be in writing. A complaints handling officer needs to be selected by the business. A two stage process is required with timescales. An independent redress system is required should the complaint not be resolved internally.
What would you do if client wasn’t happy with your report?
I would try to resolve why to salvage relationships. Then if they were still unhappy then I would refer them to my line manager but also remind them of my firms complaints handling procedure.
What’s the definition of a complaint?
A statement or expression of dissatisfaction.
Does the client pay if the complaint gets sent to the Ombudsman for settling?
If the company is a signed up the scheme, they pay a fee to have each complaint reviewed.
How would you deal with a complaint as a sole practitioner, how would this differ from your current firm’s CHP?
If you are a sole practitioner, you may have to review the complaint yourself, in the knowledge that, if it cannot be resolved, it must be referred to an independent redress scheme.
What’s the different forms of conflict of interest?
Own interest, Party Conflict and Confidential Information.
Give example of personal conflict of interest
A personal conflict of interest could be when a family member is a QS for a contractor who is tendering for the works. This could be seen as bias and therefore I would avoid working on the project and disclose this to the Client.
Give example of party conflict of interest?
A party conflict is when my duty to one client conflicts with my duty owed to another client. It could be when your duties to one client conflict with another. within the same assignment.
Can you give an example of an Own Interest conflict?
E.g. 1 - A client asks you to carry out due diligence on a company which you or your spouse/partner own shares in.
E.g. 2 - Where you are asked to advise on a claim against a relative of yours, a friend or someone with whom you are involved with in a common financial enterprise.
An ‘own interest’ conflict is a situation in which the duty of an RICS member or a regulated firm to act in the interests of a client in a professional assignment conflicts with the interest of that same member or firm.
What is a confidential information conflict?
A confidential information conflict occurs between the duty of an RICS member where they are required to provide material information to one client and they have another duty to keep that same information confidential. It is important to note that the obligation to provide material information to a client is restricted to the individual member, so it depends on such information that they have rather than what the firm has.
Can you give me an example of a Party Conflict?
Where a colleague from another office is acting on behalf of the Diocese and my office is working on behalf of the School direct. A party conflict is a situation in which the duty of an RICS member or a regulated firm to act in the interest of a client or other party in a professional assignment conflicts with a duty owed to another client or party in relation to the same or a related professional assignment.
Could you still proceed if there is a Party Conflict?
Yes, If there is a conflict and it is possible to obtain informed consent from both parties, the use of information barriers should be considered. Information barriers are arrangements that are designed to prevent the flow of information between separate departments or individuals. In practice, they may consist of restricting access to electronic documents; and/or separating personnel so that they are located on separate floors of the same office or in different locations completely
Who is the current President of the RICS?
Clement Lau
How can you easily recognise a firm that is regulated by the RICS?
By the strapline “Regulated by the RICS” used on their business stationary.
What is the RICS?
One of the most highly respected, high profile international institutions that offers advise on property, construction, Land, project management, dispute resolution and environmental issues to the client and the public and private sectors.
Name some facts on the RICS.
Established in 1868 in the UK, by Royal Charter
First president – John Clutton
Charter was founded in 1881.
RICS Regulations – rules of the RICS – covers firm registration, subscription payment, disciplinary action
Governed by 70 strong council (elected RICS members) lead by President
Meets three times per year
The RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards,
Currently 130,000 RICS members
17 professional groups, e.g. arts and antiques, commercial, valuation, building surveying
8 specialist interest groups, e.g. building construction, dilapidations, health and safety, recovery and insolvency, telecoms
Current President is Clement Lau.
What are the RICS help sheets?
They provide help in complying with the Rules of Conduct.
Maintaining Professional and Ethical Standards
Advice for Sole Practitioners
CPD for Members
Complaints handling procedure
Clients’ Money: General advice for firms
• Training for Firms
• Registration
Sustainability
What help sheets do the RICS publish?
Help sheets on:
- CPD.
- Complaints Handling Procedure.
- Handling Clients Money.
- PII Requirement
How do the RICS ensure that standards and quality are maintained in terms of both the conduct and advice provided by chartered surveyors?
You must be familiar with the latest RICS Rules of Conduct.
What are the FIVE principles of better regulation:
Proportionality Accountability Consistency Targeting Transparency
What does the term “Firm” mean?
Body corporate, Partnership, Limited Liability Partnership, Sole Practitioner, A Global Equivalent of the above companies
What will it mean to you to join the RICS?
I will be joining a profession that is respected and is an international institution. It will give me a competitive advantage to be a member. It will give my clients quality assurance as it is a sign of trust and transparency.
What is the BCIS? What is its relationship to the RICS?
Building Cost Information Service collates and collects data submitted my members and incorporates material from other relevant sources to provide members with data
It’s a trading division of RICS
Established in 1962
What is the Governing Council and how is it elected?
·Responsible for delivering the requirements of the Royal Charter
I·t approves strategic direction of RICS and its key objectives
The council is elected by RICS members
What is Matrics?
RICS is for students/trainees and members with less than 10 years post qualification experience.
It provides support and networking opportunities for all involved.
Membership is free as part of RICS annual subscription.
What is Lionheart?
It is a benevolent fund for past and present members of the RICS and their families
It’s an independent charitable company
It is not funded or managed by RICS
Governed by a board of trustees who are RICS members
What sort of information is contained in the RICS appointment document for a BS?
· Outlines the service offerings which client can select under the following headings:
- Core Services (general, preparation, design, pre and post construction)
- Supplementary services (financial, contractual, project specific services)
- Schedule of meetings
·
Document is intended to list services that a consultant can offer a client and provide basis of agreement for clients expectations and remove ambiguity
Explain the relationship between the Privy Council and the RICS?
RICS operates a self regulatory body without direct government control
The RICS does have a Royal Charter though and must meet certain standards as a result
Privy Council ratifies and approves changes that RICS wishes to make to ensure they are compliant with Royal Charter
Explain the function of the professional group?
Groups are co-ordinated by individual boards and a designated staff director, who:
- Set standards and guidance internationally
- APC and ATC competencies
- Contribute to policy formation
- Contribute to CPD topics
- Quality Control
What is the status of guidance notes?
Guidance notes provide advice to RICS members
These may be used to determine if a members conduct has been professional
How does RICS communicate with members?
Through the magazine “Modus”
Which is name taken from motto “est modus in rebus” which translates to “there is measure in all things”
RICS also issues email briefings and regular CPD updates
Explain to your client the main benefits of employing a chartered surveyor?
Has met a recognised standard of professional competency and is more accountable for their actions as a professional performance which offers safeguards for client
If you were setting up your own practice as a chartered surveyor, what employment policies would you need to have by law?
1) All employees working for you longer than one month are entitled to receive a written employment contract
2) Must be presented to employee within two months of their start date
3) Statutory obligation for company directors to have employment contract
4) Known as Executive Directors Contract
5) Employer must establish a disciplinary and grievance procedure and have awareness of statutory redundancy policies
6) Also need to have a Health and Safety at Work Policy in place (written if more than 5 employees)
If you were setting up your own practice as a chartered surveyor, what insurances would you need to have in place?
· PI Insurance
· Public Liability Insurance
· Employers Insurance
- Buildings and Contents Insurance
What are CPD requirements for a member of the RICS?
20 hours minimum per year, this should be recorded on RICS system.
10 hour split between formal/informal CPD.
Why do we have to carry PI Insurance?
PI Insurance is a liability insurance that covers a business in the event a third party claims to have suffered a loss as a result of professional negligence.
Protects the insured and client from financial loss.
Explain the term, “claims made basis”.
Type of insurance policy which pays only those claims that occur and are filed during the period of cover under the policy
What happens to PI Insurance when you retire?
- If you retire it doesn’t mean you may still not get a claim as a result of previously completed projects
- Board recommends that a minimum of 6 years run off cover in place
- If you don’t have a policy in place and a claim is made it could be financially devastating
- Should also consider making the necessary provisions for run off cover in the event of your death as claims can be made against your estate
- Should consider the result of Merret V Babb case
What were the implications of the Merret v Babb case?
Confirmed employee can be liable for a claim where they have been negligent in their performance on behalf of their employer. Emphasises the importance of having run off cover in place
Who does interest earned on a client’s account belong to?
The client
What determines when a firm has to register with RICS?
If a firm has 50% or more principles who are RICS members in your firm
Or if you have less than 50% but offer surveying services to the public you can register for regulation
What is RICS Complaints Handling Procedure?
Every regulated firm must have a CHP in place
Firm should inform clients about it in T&C’s of engagement
Complaints will be handled by an appointed Project Director or a designated complaints handler
Should notify client you’ve received complaint within 7 days
Propose and agree solution within 28 days
If complaint cannot be resolved it will be referred to an independent redress scheme such as an ombudsman
The redress scheme will be noted in the CHP policy
If a client came up to you with a complaint about your work for him, what would you do?
Firstly, with a Senior try to resolve issue with client
If not possible advise them of CHP policy (which they will already have)
If cannot resolve complaint then pass on to redress scheme
Should notify the insurer of PI as soon as complaint is mad
How quickly should a complaint be answered?
Should be acknowledged within 7 days and responded to in full within 28 days
i.e. Holding email within 7days and full response within 28 days.
Do the RICS need to get involved with a complaint?
The RICS only investigate the following types of complaint:
o Failure to use CHP o Misuse of client’s money o Failure to answer correspondence o A conviction or criminal offence
The RICS cannot:
o Deal with concerns or complaints
about anyone who’s not an RICS
member
o Pay compensation or instruct a
member/firm to do so- that is for
redress to do
o Determine whether member/firm
acted negligently- that is for courts
to decide
o Interfere or get involved in court
action against member/firm
f you hold clients’ money, how do you set up an appropriate account?
Set up a project account through an approved provider
Keep client’s money in designated account
Include name of client and the word “client” in account name to make it clearly identifiable
Obtain bank confirmation of account conditions
Advise client of agreed terms of account handling in writing
Ensure they have sufficient funds in account to pay amounts
Obtain clients written approval to make payments from their accounts
How would you define ethical behaviour for a chartered surveyor?
Should act with integrity at all times, avoid conflicts of interest and avoid any situations or actions that are inconsistent with my professional obligations
What must you do if a conflict of interest exists?
Notify all the parties who may be or have been affected and identify suitable actions which can mitigate the risk
What do you do if a contractor’s surveyor says he will buy you lunch on the day of an interim valuation, how do you respond?
I would decline the offer as it could be seen to affect my ethical behaviour and act in a manner that is not professional or befitting of an RICS member
What is a Chinese Wall?
In business, a Chinese Wall or firewall is an information barrier implemented within a firm to separate and isolate persons who make investment decisions from persons who are privy to undisclosed material information which may influence those decisions. This is a way of avoiding conflict of interest problems
