Conduct, Rules, Ethics & Professional Pract (Level 1) Flashcards
Can you explain the general overview of the New Rules of Conduct (February 2022)?
The new rules of conduct contains 5 rules of conduct that apply to all members and firms regulated by RICS.
There are 5 New Rules of Conduct, can you pick one and explain what it is
Rule 1 requires members and firms to be honest, act with integrity and comply with professional obligations.
Example behaviours include:
1.1 Not to mislead others by acts or omissions
1.2 Not to be influenced improperly by others, such as awarding contracts due to receiving work referrals, gifts or hospitality.
Give an example of one Rule that you comply with every day?
Rule 4 - treat others with respect and encourage diversity and inclusion
What is included in Appendix A (Professional Obligations) in the New Rules of Conduct
Core professional obligations for members and regulated firms.
1. members must comply with CPD requirements
2.Members must cooperate with RICS
3.
4.
5.
6.
7.
What do you need to do if you set up in practice?
Publish a complaints handling procedure
Ensure current and previous professional work is covered by indemnity cover
Sole principal firms make arrangements for work to continue i their absence due to incapacity, death, absence or inability to work
What are the CPD requirements for a chartered surveyor? What about ethics?
Members must undertake at least 20 hours of CPD each year, including 10 hours of formal.
Members are required to undertake learning in relation to the RICS Global Professional and Ethical Standards at least once every three years. Members are required to complete the Professionalism module once every 3 years.
Why would you require Professional Indemnity Insurance (PII) if you were to set up in private practice?
To indemnify you against any claims for advice you have provided in a professional capacity.
How would you assess the level of PII you would need when setting up in private practice?
By referring to the current version of the RICS UK professional
indemnity insurance requirements Regulation document which sets out the minimum level of cover, maximum uninsured excess and other requirements such as run-off cover.
Would the PII indemnity levels increase as your business expanded?
yes, if your firm’s previous years turnover exceeded the threshold
When would you arrange PII run off cover and why and how long is it held for?
When the firm ceases to trade, such as due to retirement or closing the firm. Run-off cover indemnifies against claims for work completed for a period of six years
from the expiry date of the policy in force at the time of cessation. Run off cover should run for a minimum period of six years from the cessation of the practice.
How would you protect your client’s interests if you decided to give up practice?
How would you determine the time-period that run off cover would need to be provided?
Six years from the expiry o the policy in force at the time the practice ceased to trade.
With regards to client’s money, how should you name the bank account you are required to set up for this purpose?
client money accounts should include the word CLIENT and the name of the firm. Discrete client money accounts should include an identifier such as the name of the client or property.
How would you advise your client to give assurance as to how you were going to hold their money, so that it would be securely kept and accounted for?
Provide the client written confirmation that client money will be held in a client money account, provide account details and confirm that the RICS-regulated firm has exclusive control over the money.
Why do we ring-fence Clients’ Money placed in our trust?
To ensure client money is kept safe is immediately available, and the bank is not entitled to offset or transfer client money against any money owed on other accounts.
