Conduct rules, ethics and professional practice Flashcards
What are the are RICS rules of conduct for members?
ECS CPD SIC
Part 1: General
Sets out Interpretation and how RICS can communicate with members.
Part 2: Standards
E. Ethical behaviour
C. Competence
S. Service
CPD. Continuing professional development
S. Solvency
I. Information to RICS
C. Cooperation
What are the main roles of the RICS?
Hint: Three main roles
- To maintain the highest standards of education and training .
- To protect consumers through strict regulation and professional standards .
- To be the leading source of information and advice within the industry.
What are the rules of conduct for firms?
PCS CPD CCP
Part 1: General
Sets out definitions only for regulated firms.
Part 2: Conduct of business
P. Professional behaviour
C. Competence
S. Service
CPD. Training and continuing professional development
C. Complaints handling procedure
C. Clients money
P. Professional indemnity insurance (PII)
Part 3: Firm Administration
Advertising Solvency Arrangements (death or illness of sole practitioner) Use RICS designation Information Co-operation
Why do you want to be a surveyor?
Why do you want to be a member of the RICS?
What are the benefits of being a member of the RICS?
SRMKN
Status
Recognition
Market advantage
Knowledge
Network
What are the RICS 5 Core Values?
Act with INTEGRITY
Always provide a high standard of SERVICE
Act in a way that promotes TRUST in the industry
Always treat others with RESPECT
Take RESPONSIBILITY
What are the principals of RICS Regulation for Members and Firms?
PACTT
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
What are the International Ethics Standards, 2016?
- Accountability
- Confidentiality
- Conflicts
- Financial responsibility
- Integrity
- Lawfulness
- Reflection
- Standard of service
- Transparency
- Trust
What are the Rules of Conduct, 2007 (amended 2017)?
Introduced following the Carlsberg Report
2 separate documents for members and firms
Set out standards of professional conduct
Follow a risk based approach and target serious breaches
What disciplinary procedures are there for breaching the rules of conduct for members and firms?
Three levels:
- Action by head of regulation
- Disciplinary panel (a hearing)
- Appeal panel
How can a disciplinary procedure triggered?
By someone complaining to the RICS
An allegation by a client or a third party
As a result of information received or established by the RICS
NOTE: Not all shortcomings will give rise to disciplinary action. However failure to follow our RICS guidance will be considered.
What are the three most common breaches of the Rules of Conduct?
Rule 3: Breaches of professional behaviour
Rule 6: CPD
Rule 8: Protecting clients money
What actions can the RICS head of regulation take?
Formal investigation
Possible actions:
Fixed Penalty Notice (supply of info to RICS)
Consent Order (Minor breaches)
- states terms member/firm must take in a specified time period.
- up to £2000 fine
Refer matter to Disciplinary Panel
What actions can the RICS Disciplinary Panel take?
More serious breaches
Panel usually sits in public (50% lay members)
Penalties:
Consent order Unlimited fine (proportionate to offence) Impose conditions on RICS registration Expulsion Publication of results required
What does the RICS appeal panel do?
Consider member/firm’s appeal
Review decision based on previous and new evidence
50% of panel must be lay members
What RICS guidance notes are you aware of?
Complaints handling 2016
Conflicts of Interest 2016
What is the bribery act 2010?
What principles is it based on?
Came into force – 1 July 2011
To reduce bribery in business in the UK and abroad.
Failing to prevent bribery is a criminal offence.
Six principles:
- Proportionality
- Top level commitment
- Risk assessment
- Due diligence
- Communication
- Monitoring and review
Under the bribery act 2010 what are the offences?
Four offences:
- Bribing
- Receiving a bribe
- Bribing foreign public official
- Failing to prevent bribery
What constitutes bribery?
A bribe can be the giving, offering, promising or receiving of an advantage in return for an action.
Hospitality that is not reasonable and proportionate can be classified as bribery.
Are company is responsible for employees corrupt acts?
Yes, unless adequate policies and procedures are in place to combat bribery.
What is the maximum amount of cash that can be received as a payment?
€10,000 (reduced from €15,000 in June 2017)
Who polices the bribery act 2010?
The serious fraud office
What is the penalties for breaching the bribery act 2010?
For individuals: Maximum penalty is 10 years imprisonment and/or an unlimited fine.
For companies: An unlimited fine
Give me a recent example of when the bribery act 2010 has been breached?
2016 – Sweett Group
Serious fraud office successfully prosecuted Sweett Group for there subsidiary company offering a bribe to win business.
Fined £1.4 million
RICS find company £125,000
What are your firms procedures with regards to bribery?
My firms procedures include:
Whistleblowing procedures
Training is provided during induction for new employees with employees receiving regular updates and training and being asked to formally accept compliance every year.
Gifts register
Gifts/hospitality policies.
Have you received the gift?
What do you consider when excepting a gift?
I always consider the bribery act 2010 and my firms procedures and gifts policy.
Is it reasonable and proportionate?
What are the circumstances?
As a member of the RICS how many hours CPD would you have to undertake?
20 hours of which at least 10 must be for me
What would you say is the benefit of appointing a chartered surveyor as opposed to a non-chartered surveyor?
You are appointing a qualified professional.
Chartered surveyors are regulated.
Confidence of competence
Who runs the RICS?
It is a members institution run by the members for the members.
There is a Governing Council who run the RICS on behalf of the members.
What are the punishments for a surveyor if they breach regulation?
(Follow up question: can you appeal?)
Expulsion
Consent order
Fixed penalties
Appeal Panel can review and change decisions.
(Made up of 50% lay members)
Why is it important that a surveyor remain solvent?
Firstly, it’s regulation.
On top of this, one needs to manage their own finances before being trusted with others.
What professional groups are there in the RICS?
Hint: there are 17!
Commercial surveyor
Quantity surveyor
Building surveyor
Project management
Residential surveyor
Valuation
Environmental surveyor
Facilities management
How often does a member need to undertake the ethics assessment?
Every three years
When must CPD be recorded by?
31st December
What constitutes formal CPD?
If there is a formal learning structure.
If there is a learning objective and outcome.
i.e. Seminars
RICS decision tree!!
Why is it important to include a complaint handling procedure in your terms of engagement?
It is a requirement of the RICS.
Tell me about your company’s complaints handling procedure.
There is a designated complaints handling officer.
The first step is to see if the complaint can be dealt with by whoever receives a complaint.
If the complaint cannot be resolved then a formal complaint must be made in writing.
If the complaint can still not be resolved then it would go to a third party dispute resolution.
Provide me with an example of when you have shown integrity.
When I was acquiring an office for client they asked me for advice on the rent deposit which they were being asked to provide, as to how this would be held. Whilst I felt I had a general understanding of this I did not feel confident providing them with advice so I was honest and recommended that they seek further advice from their solicitors.
Tell me about a time when you have provided a high standard of service.
I acted on behalf of a client who had a short time frame in which to find an office. I had been instructed to provide a report of the available office space within the market, and to do so I worked on the weekend to make sure the report was complete in time.