Conduct rules, ethics and professional practice Flashcards
What standards are required for sole practitioners to be compliant with the RICS regulations ?
Rules of conduct for firms.
What are the RICS rules of conduct for members?
-ICE SSI CCC Interpretation Communication Ethical Behavior Services Solvency Information to RICS CPD Competence Co-operation
What are the RICS rules of conduct for firms?
-IC
Interpretation
Communication
-CCC PAPA SICCUS
Competence
Cooperation
CPD
PI insurance
Advertising
Professional Behaviour
Arrangements to cover death of sole practitioner
Service Information to RICS Complaints handling procedure Client's money handling procedure Use of designations Solvency
What are the different status types of RICS documents?
- Mandatory (Information standards, professional statements)
- Recommended best practice (RICS guidance note, Code of practice)
- Information only (RICS information paper, RICS insight, RICS economic report, research)
What is meant by ‘treat others with respect’?
Be courteous, polite and consider cultural sensitivities and business practices
Never discriminate, encourage the fair and respectful treatment of clients
Why are the ethical standards important?
Create a clear and streamlined guide to members to ensure that clients and anyone else who deals with the RICS has confidence in the profession
What factors does the RICS Decision Tree consider?
Sufficient facts Legality Ethical standards Consultation of appropriate people Clear reasoning Impact if actions made public
Give some examples of how you reflect the RICS ethical standards in your work.
- Integrity - turning down an invitation from the client whilst bidding for consultancy services
- High standard of service - referring clients to specialists when scope is outside competence EG. VAT is not my speciality.
- Trust - Letting the contractor know that they have undervalued their work
- Respect - Despite being in a dispute over a variation, I spoke in a respectful manner
- Responsibility - reporting dangerous practices on site, such as spanner falling between scaffold board.
What is the RICS Decision Tree?
Flowchart to help members decide how to act in difficult situations where their professional ethics may be at stake
What is a ‘Chinese Wall’? (now informed consent/ information barrier)
An information barrier within an organisation used in order to prevent exchanges or communication that could lead to a conflict of interest
What is meant by ‘act with integrity’?
Being honest and trustworthy in all that I do
Transparent, respecting confidential information, not taking advantage of anyone, not allowing bias or pressures affect my judgement or obligations, not accepting gifts or hospitality that might suggest an improper obligation, acting in the interest of the public
What is meant by ‘take responsibility’?
Be accountable for my actions and don’t blame others if things go wrong
Always act with skill, care and diligence, respond to complaints in the appropriate professional manner, prepare to question things that don’t seem right
What is a bribe?
The exchange of something of value in return for someone doing or agreeing to do something improper in a business context
Bribery also covers the offer or request for a bribe, even if it is not completed
What is meant by ‘provide a high level of service’?
Ensuring the best possible advice, support or performance is given to my clients
Be clear about the service being provided, act within my scope of competence, transparent about fees and any other costs or payments, communicate with clients in a way that allows them to make informed decisions
What are the penalties under the current bribery legislation?
A maximum 10 years’ imprisonment and/or an unlimited fine
Give some examples of where conflicts of interest may arise.
- Acting for two different parties with competing interests at the same time
- Financial interests (e.g. gaining over and above your normal fee)
- Personal relationship
- Commercial relationship
- Interests of your firm conflict with that of your client
What is a conflict of interest?
A situation which effects the impartiality of one party. 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.
What should a surveyor do if a conflict of interest arises?
Should be dealt with by implementing openness and transparency
Declare any conflicts of interest clearly to all parties ASAP and offer to stand down from acting for any party
All parties can then decide how they wish to proceed and if there are any objections you must stand down
Your neighbour asks you for help in designing a loft conversion - what would you do?
No terms and conditions
No PII
Potential conflict of interest
Follow the RICS Decision Tree
Say no and offer to set up a formal meeting with a director of my firm
Alternatively, refer them to the RICS ‘Find a Surveyor’ service
Who does the current bribery legislation affect?
Near-universal jurisdiction, allowing for prosecution of UK individuals or companies doing business overseas, as well as overseas individuals or companies doing business in the UK
What is meant by ‘promote trust within the profession’?
Act in a manner, both in professional and private life, that promotes me and my firm in a positive way
Promote the highest standards globally, amending behaviour to suit others, fulfil obligations
What legislation exists in relation to bribery in the UK?
Bribery Act 2010
How would you define ethical behaviour for a chartered surveyor?
Acting in accordance with the 5 RICS professional and ethical standards
What procedures should RICS corporate members follow in relation to preventing bribery?
RICS corporate members should follow the 6 principles in preventing bribery practices:
Proportionate procedures - procedures should be proportionate to the bribery risks the company faces
Top level commitment - zero tolerance to bribery
Risk assessment - the company should periodically assess the internal and external risks of bribery
Due diligence - systematically investigate employees and business partners (the level of which should be informed by the risk assessment)
Communication (including training) - communicate policies, operate confidential whistle-blowing service, provide training
Monitor and review - periodically review procedures and make improvements where necessary