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APC Revision > Conduct Rules, Ethics & Professional Practice > Flashcards

Conduct Rules, Ethics & Professional Practice Flashcards

1
Q

When was the RICS founded?

A

15th June 1868

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2
Q

When was the RICS incorporated with the Royal Charter?

A

26th August 1881

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3
Q

What is the address of the RICS Headquarters

A

12 Great George Street, Westminster, London

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4
Q

What is the RICS’ motto?

A

Est Modus in rebus – there is measure in all things

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5
Q

What is the purpose of the RICS?

A

To regulate and promote the profession and maintain the highest educational and professional standards that protects both clients and consumers via a strict code of ethics and providing a high standard of impartial advice.

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6
Q

What are the benefits of the RICS?

A

Status – profesisoinal credentials give unrivalled client confidence
Recognition – promotion of your professional excellence
Market advantage – RICS status and standard gives competitive advantage
Knowledge – International practice standards and professional guidance
Network – Access to 140,000 worldwide members

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7
Q

Who are the key persons in the RICS?

A

CEO – Richard Collins
President – Ann Gray FRICS
President Elect – Tina Pillet FRICS
Senior Vice President – Currently vacant

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8
Q

What is the Presidents main aim?

A

Driving engagement and inspiring change in the built environment and is a passionate promoter of technology, social impact and diversity as drivers in long term value.

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9
Q

What is a Royal Charter?

A

An instrument of incorporation granted by The Queen, giving independent legal personality on an organisation (becomes a single legal entity) giving it the power to govern its own affairs. It reflects a high status for a body or corporation.

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10
Q

What is the RICS Structure?

A

Formal governance bodies required by Royal Charter
Independent decision-making body reporting on activity and performance only

Privy Council – grants and awards charter, formal body of advisors to the Sovereign and comprises non-RICS members, mainly politicians who are present or former members of the House of Commons

Governing Council – sets the top level strategy and chaired by the current president. Made of RICS members and responsible for delivering the requirements of the Royal Charter

Standards and Regulatory Board – formulates and delivers the regulatory policy objectives of the RICS. Meetings are chaired by a non-member to demonstrate the regulation is independent from the interest of its members. Enforces highest standards.

Management Board – Governing Council delegates day to day operational accountability of RICS to the Management Board. Approves the business plan and made up of nominated members, non-members and executive staff

Audit Committee – responsible for reviewing internal systems and risk management whilst monitoring standards and quality service

Regulatory Tribunal – Provides RICS with an effective fair and independent judicial body. Responsible for dealing with the regulatory tribunal rules made my the standards and regulation board

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11
Q

What other RICS initiatives do you know of?

A

Lionheart – independent charity run by members for past and present members.

RICS Foundation – independent of the RICS, founded in 2000, is a worldwide charitable foundation. Supports and promotes research

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12
Q

What are the five global professional and ethical standards?

A

ISTRR (I Stroke Trees Rather Rigorously)

Act with INTEGRITY – not offering or accepting gifts/respecting confidential information – Cullum Centre tendering example

Always provide a high standard of SERVICE – giving best possible advice to clients.

Act in a way that promotes TRUST in the profession – Do what you say you will

Treat others with RESPECT – treat people how you wish to be treated, no discrimination
Take RESPONSIBILITY – Be accountable for your actions

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13
Q

What are the 5 principles of better regulation?

A

PACTT
1. Proportionality
2. Accountability
3. Consistency
4. Targeting
5. Transparency

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14
Q

What are the five RICS rules of conduct?

A
  1. Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
  2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
  3. Members and firms must provide good-quality and diligent service.
  4. Members and firms must treat others with respect and encourage diversity and inclusion
  5. Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
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15
Q

What are the RICS rules for registration of Firms?

A

Firms required to register if at least 50% of directors are MRICS

Firms eligible to register if 25% of directors are MRICS

Responsible principal – registered firm must have a responsible principle who must be an RICS member. Responsible for ensuring firm complies with legal and RICS standards/obligations. They are the primary point of contact to the RICS.

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16
Q

If you were to set up your own chartered company what would you need in place?

A
  • Set up company with companies house
  • Employ an accountant to set up accounts
  • Take out PI insurance (covers financial loss and or injury resulting from an act of negligence)
  • Take out employer’s liability and public liability insurance if opening an office outside of your home
  • Ensure a CHP is in place and your insurers are consulted and satisfied with its content
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17
Q

What are the minimum RICS requirements for PI Insurance?

A
  • Cover past and present employees
  • Must have RICS minimum wording
  • Must be taken out on a ‘each and every’ or ‘any one claim’ basis
  • Underwritten by an RICS listed insurer
  • Fully retroactive (current insurer responds not insurer when the negligent act occurred)
  • Fire Safety Exclusions (NEW 2020) RICS excluded this from minimum requirements
18
Q

What is the RICS minimum level of indemnity cover for PI Insurance?

A

£100k or less - £250k
£101k - £200k - £500k
£200k+ - £1m
Levels of Uninsured Excess:
Up to £500k level of indemnity – 2.5% of sum insured or £10k, whichever is greatest
£500k + level of indemnity – 2.5% of sum insured
What is the minimum run off cover required?
Minimum of 6 years from ceasing to trade
Minimum limit of £1m

19
Q

How would you define a conflict of interest and can you give me some examples?

A

A conflict of interest is where there may be an actual or potential risk that the professional judgement of an RICS member will be compromised and will likely impact on the ability for them to give impartial judgement or professional advice
There are 3 main types of conflict of interest:
- Party conflict – 2 competing parties represented by the same firm
- Own interest conflict – family/personal relations within a team or between 2 parties - my uncle owning a main contracting business if working on the same project
- Confidential information – ensure you identify who should and shouldn’t be party to certain confidential information

20
Q

How do you identify a conflict of interest?

A

Take it upon myself to identify whether my ability to act in the best interests of my client is impaired in any way, e.g.:
* Financial interest
* Personal relationship
* Commercial relationship
* Interests of the firm

21
Q

How would you deal with a conflict of interest?

A

Be open and transparent, honesty in this scenario is key. Declare the conflict of interest to all parties involved as soon as possible and offer to stand down from acting for any party involved in that instruction. If there was written informed consent from all parties, I would need to make a final decision as to whether I felt comfortable proceeding with the instruction

22
Q

What are the RICS CPD requirements for members?

A

20 hours per year with at least half being formal CPD. Ethics course to be undertaken every 3 years.

23
Q

What can be used if uncertain about how to act regarding professionalism and ethics?

A
  • Liaise with another MRICS in my company to obtain their advice
  • Use the RICS Decision Tree
24
Q

What would you do if a contractor gave you a gift or hospitality invite?

A

I would ask myself some questions depending on the scenario:
1. What is its value?
2. Who is it being given to? A range of people or just me?
3. Is it reasonable and proportionate?
4. Does it have a genuine business purpose?
5. When is it being given? At a crucial stage or a regular event?
6. Can you decline it there and then?

I would then consult Modus’ Gift and Hospitality Policy an ensure I wasn’t in breach of this. If accepted I would ensure it is logged in the Register of Gifts and Hospitality as appropriate.

25
Q

What would you do if a client wanted to pay for their fee upfront?

A
  • Set up a client account correctly titled to include the name of the firm and word ‘client’ to distinguish the account from any other type
  • Advised to the client in writing the account details and agree account handling terms
  • Obtained written consent from the client if the firm is to retain interest
  • Accounting records and systems suitable and protected adequately
26
Q

Can you name some legislation relating to Bribery?

A

Bribery Act 2010 – covers criminal law relating to bribery. The penalties for committing a crime under the Act are a maximum of 10 years’ imprisonment along with an unlimited fine. It covers 4 prime offences:
1. 2 general offences covering the offering and accepting an advantage
2. Discrete offence of bribery of a foreign public official
3. Failing to prevent a bribe by a commercial organisation

27
Q

What are the RICS requirements for members relating to bribery and corruption?

A
  • Not offer or accept anything that could constitute a bribe
  • Ensure adequate knowledge of bribery and corruption to comply with the law
  • Report any activity that you are aware breaches anti-bribery and corruption laws
28
Q

What are the RICS requirements for firms relating to bribery and corruption?

A
  • Not offer or accept anything that could constitute a bribe
  • Have plans in place to comply with the law
  • Report any activity that you are aware breaches anti-bribery and corruption laws
  • Act with due diligence
  • Retain information detailing how the firm has met the RICS requirements
29
Q

What do the RICS recommend firms have in place relating to bribery and corruption?

A
  • Have a written policy including a risk assessment
  • Update the policy annually
  • Have appropriate system controls in place
  • Have a gift/hospitality/charitable contributions/conflict of interests register/tracker
30
Q

What is money laundering?

A

The act of exchanging money or assets that were obtained through criminal activity

31
Q

In relation to money laundering, what must RICS members do?

A
  • Not facilitate or be complicit in money laundering or terrorist financing
  • Report any suspicions
32
Q

In relation to money laundering, what must RICS firms do?

A
  • Not facilitate or be complicit in money laundering or terrorist financing
  • Have systems and training in place
  • Report suspicions
  • Review and evaluate the risks
  • Ensure appropriate responses to risk and checks on clients
  • Perform basic identity checks on clients
  • Retain information detailing how the firm has met the RICS requirements
33
Q

In relation to money laundering, what should RICS firms do?

A
  • Have a policy in place
  • Appropriate governance and system controls in place
  • Provide training to staff
  • Keep reports on suspicions
  • Appoint a senior member responsible for ensuring policies are in place and complied with
34
Q

Report any suspicions What are the penalties to individuals found guilty?

A
  • Up to 2 years in prison
  • Unlimited fine
35
Q

What happens if a client wanted to pay you in cash?

A

As a general rule I would not accept payments in cash and it is company policy that we don’t accept cash payments.

36
Q

Who can use designations?

A

A sole practitioner, firms with 50% directors/partners who are members, no partners or directors who have been expelled from the RICS or refused reinstatement

37
Q

What is a fixed penalty and when are they applicable?

A

A fixed penalty is a caution and or fine for breach of the rules and is applicable of the following rules:
* Rules of conduct for members – Rule 6 CPD
* Rules of conduct for members – Rule 8 Information to RICS
* Rules of conduct for firms – Rule 14 – information to RICS
* Rules for registration of firms – Rule 10.1a Fees

38
Q

What is a regulatory compliance order?

A

They are sanctions that can be imposed by The Disciplinary and Appeal Panel and include:
* Caution
* Reprimand
* Undertakings as to future conduct
* Fines
* Conditions on Member’s continued membership
* Conditions on the Firm’s registration for regulation
* Expulsion
* Removal of firm’s registration for regulation

39
Q

What is the RICS disciplinary process?

A
  1. Investigation has revealed a serious matter supported by evidence
  2. For less serious cases where the member admits to the allegation, a Regulatory Compliance Order can be used
  3. Where the member does not admit the allegations, the case can be referred to a single member of the Regulatory Tribunal to decide the disciplinary outcome.
  4. For more serious cases, the case may be referred to a Disciplinary Panel, drawn from the independent Regulatory Board
40
Q

Can you give an example of a fixed penalty fine?

A

Depends on time and differs for members and firms:
Delay in Time Members Firms
1 – 28 days late £150 £300
29 – 56 days late £250 £500
57 – 84 days late Refer to Disciplinary Panel Refer to Disciplinary Panel

41
Q

What are the 4 policies of the RICS Modern Slavery Act?

A
  1. Anti-Slavery Policy – zero tolerance
  2. Recruitment Policy – eligibility checks
  3. Raising Concerns Policy – whistleblowing policy, members can speak up
  4. Procurement Policy – preferred suppliers lists and emphasis on due diligence

APC Revision (3 decks)

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