Conduct, Rules, Ethics & Professional Practice (Level 3) Flashcards
(102 cards)
1
Q
Can you explain the general overview of the New Rules of Conduct (February 2022)
A
- The new rules of conduct replace the previous version which as been in place since 2007.
- Simpler structure with clear examples of each rule.
- Focus on respect, diversity and inclusion.
- Understanding evolving technology and its benefits/ risks.
- Supporting sustainability
2
Q
There are 5 New Rules of Conduct, can you pick one and explain what it is
A
Rule 1 – Must be honest, act with integrity and comply with professional obligations.
The rule sets out 12 example behaviour points on how members and firms are to act. For example:
* Do no mislead others.
* Do not allow themselves to be influenced by others.
* Identify conflicts of interest.
* Provide honest advice which is evidence based.
3
Q
Name the 5 rules of conduct
A
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Members and firms must provide good-quality and diligent service.
- Members and firms must treat others with respect and encourage diversity and inclusion.
- 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
4
Q
Give an example of one Rule that you comply with every day?
A
Rule 4 – Must treat others with respect and encourage diversity and inclusion.
I respect the rights of others with courtesy and do not discriminate against anyone on any improper grounds.
5
Q
What is included in Appendix A (Professional Obligations) in the New Rules of Conduct
A
Appendix A sets out the professional obligations for members and firms:
Members (3 obligations)
- Comply with CPD
- Cooperate with RICS
- Provide information when requested by Standards and Regulations Board
Firms (7 obligations)
- Publish CHP which includes ADR
- Current and previous work covered by PI insurance
- Arrange for their work to continue if they are unable to
- Cooperate with RICS
- Provide information when requested by Standards and Regulations Board
- Display they are regulated by RICS on business literature
- Must report to RICS any matter required to report under RICS Rules of Registration of Firms
6
Q
What do you need to do if you set up in practice?
A
Legal:
* Register the business with Companies house and/ or HMRC
* Obtain PI insurance
* Employers liability insurance
* Comply with H&S regulations
* Adhere to GDPR and the Data Protection Act 2018
RICS:
* Abide by the RICS Rules of Conduct
* Correct level of PI cover
* Register the practice with RICS
* Commitment to ongoing CPD
* Complaints handling procedure
7
Q
When would you arrange PII run off cover and why and how long is it held for?
A
To ensure that firms, members and their clients are not exposed to financial detriment in the period following a firm ceasing to trade.
Period of six years from the expiry date of the policy in force at the time of cessation.
7
Q
What are the CPD requirements for a chartered surveyor? What about ethics?
A
20 hours CPD each calendar year (10 hours formal).
All members must maintain a relevant understanding of the professional and ethical standards during a rolling three year period.
8
Q
How would you assess the level of PII you would need when setting up in private practice?
A
A firms turn over in the preceding year:
* £100,000 or less = £250k minimum limit of indemnity
* £100,0001 to £200,000 = £500k minimum limit of indemnity
* £200,001 and above = £1,000,000 minimum limit of indemnity
8
Q
What would be your approach if the client wished to pay you in advance for your services?
A
- Establish a clear agreement outlining T&C’s and timescales.
- Scope of work agreement.
- Formal invoice.
- Designated account for clients’ funds.
- Agreed refund policy.
9
Q
Why would you require Professional Indemnity Insurance (PII) if you were to set up in private practice?
A
- Legal requirement when providing professional services.
- Risk management against claims for errors, omissions or negligence.
- Protection of assets and reputation in the event of a claim.
10
Q
With regards to client’s money, how should you name the bank account you are required to set up for this purpose?
A
- Include the word ‘client’.
- Name of the firm in the in the title of the account.
- Discrete client money accounts include an identifier (e.g. the client or property name.)
10
Q
If a conflict of interest arose within your business, what advice would you give to colleagues or clients on how to deal with it?
A
- Acknowledge and discuss the conflict of interest without delay.
- Evaluate the impact.
- Seek guidance and advice from professional colleague on what measures are to be taken.
10
Q
How would you protect your client’s interests if you decided to give up practice?
A
- Inform the client.
- Deal with client money outstanding in your client account.
- Notify PII and arrange run off cover.
- Protect confidential information.
- Inform RICS to deregister your firm.
11
Q
If you carried out work for a client and he decided to pay you in cash, what advice would you give to them and would you readily accept it?
A
- Advise them on the legal and regulatory requirements related to financial transactions.
- Encourage transparency and accountability.
- Highlight risks and concerns such as loss, theft of difficulty tracking.
If the client insists, then I would accept. I would ensure that they are banked promptly and they are given a pre-numbered duplicate receipt. I would account for it in a cash book.
11
Q
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?
A
- ensure compliance with all anti-money laundering legislation, rules and regulations for all receipts of client money.
- Separate account titled in accordance with RICS requirements.
- Ring fenced.
11
Q
What would happen if your employer’s rules conflicted with the RICS rules? Which takes precedence?
A
RICS would take precedence, members are bound by the RICS Code of Conduct and are expected to adhere to its principles and guidelines.
It may be appropriate to raise any concerns or conflicts with the employers’ rules with relevant stakeholders.
11
Q
Why do we ring-fence Clients’ Money placed in our trust?
A
Separate assets or entities to shield them from risks that they may otherwise be exposed to.
Examples include market volatility, taxation, creditors, and bankruptcy.
11
Q
Ensure that you are familiar with the UK Bribery Act 2010?
A
Act covers criminal law relating to bribery, four main offences are:
- Bribing another person
- Being bribed
- Bribing a foreign public official
- Failure by a commercial organisation to prevent bribery
.
12
Q
Can you explain the process for safeguarding clients’ interests in the event of death or prolonged illness of a sole trader Chartered Surveyor?
A
- Notify the client, explaining the situation and introducing the deputy.
- Inform PI insurance and the RICS.
- Ensure the client is satisfied with the deputy.
- If yes, they take over ongoing projects and continue to work.
- If no, deal with handling clients money and keep information confidential
13
Q
When does a firm have to register with the RICS?
A
When you are a firm that offers surveying services to public and where 50% or more of the principals are RICS members.
14
Q
What is a Locum employed for?
A
A locum is effectively another professional who is appointed to ‘stand in’ for the surveyor if they are unable to work, e.g. in the event of an accident/illness, unforeseen circumstances, prolonged absence (e.g. holiday or a sabbatical) or death.
15
Q
Who can take on the role of a Locum?
A
Typically, a locum will be another Chartered Surveyor, although they could also be a solicitor or accountant by trade, i.e. a trusted professional.
15
Q
How would you describe ‘conduct befitting’ a Chartered Surveyor?
A
Commitment to ethical behaviour, professionalism, competence, integrity, and accountability.
Reflecting the core values and responsibilities of the surveying profession.
16
If you received a complaint about the service you had provided, how would you deal with it and what are the timescales for responding?
* Ensure the complaint is recorded at the earliest opportunity.
* Notify PII and insurer and solicitor.
* Establish a review process to ensure effective management to resolution.
* Acknowledge in writing within 28 days.
17
Discuss a relevant third-party redress mechanism and their role?
ADR (Alternative dispute resolution) – mediation, adjudication and negotiation (disputes outside of court).
Its role is to facilitate constructive dialogue and negotiation between parties in dispute, with the aim of reaching a mutually acceptable resolution.
17
If a friend asked you for an opinion on a project they were considering carrying out, what advice would you give them?
You are to treat them like any other client.
You require contractual terms in place to provide services with reasonable skill and care.
Once you give advice, you create a legal working relationship and potential liability for that advice.
It is likely that a liability could still arise if your friend has acted in reliance on your advice and suffers a financial loss as a result.
18
What would you advise if a client approached you and asked if you would work for them directly instead of your employer to reduce their cost?
* It may breach my contractual obligations and ethical standards.
* It could create a conflict of interest and confidentiality breach.
* Explore alternative compromises that could address the clients concerns.
18
If you and a colleague were invited to a consultants Christmas Party, what advice would you give to your colleague, what are the guidelines for dealing with an offer or a gift or hospitality and when may acceptance be appropriate?
I would not accept gifts, hospitality or services which may suggest an improper obligation.
They can be accepted, however by consulting with the ethics decision tree first.
I'd consider the value, timing and proportionality of the gift prior to accepting.
19
Ensure that you are familiar with the Money Laundering Regulations 2017?
The Money Laundering Regulations 2017 require businesses to
1. implement measures to detect and prevent money laundering,
2. conducting customer due diligence,
3. reporting suspicious activities,
4. keeping records,
5. and training employees on anti-money laundering practices.
20
Do you have any personal involvement with matrics or LionHeart?
No, I am aware that:
* Matrics is a network designed for young surveyors early in their career designed for networking and professional development.
* Lionheart is a charitable organisation to provide financial, practical and emotional support to RICS members and their families.
I always advise younger QS’ to enrol a RICS student membership which will automatically enrol them as a member of RICS Matrics.
20
How does ethics and conduct affect the environment we live and work in?
* Builds trust and reputation.
* Positive organisational culture.
* Legal compliance.
* Conflict resolution.
20
What Laws and regulations govern the formation and workings of RICS?
* RICS Byelaws.
* RICS Governing Council.
* Standards and Regulations Board.
21
What is a Money Laundering Red flag? Example?
Unusual transaction patterns:
* Large or frequent cash deposits.
* Round dollar amounts.
* Structured transactions to avoid thresholds.
21
Have you checked the terms of an appointment document for compliance with RICS rules?
* Consultant obligations
* H&S requirements
* Payment requirements
* Insurance
* Dispute resolution
22
Can you provide an example of where you have identified a conflict of interest?
A subcontractor who I had worked closely with on various projects questioned the details of the tender comparison for a new package of work. I could not advise them of the details they were after as this would put me in a conflict of interest. I denied the request, however, gave them feedback on their submission for areas which could improve.
23
Can you provide an example when you have treated others with respect and/or encouraged diversity and inclusion?
Start of a new project meeting new team members treating them with courtesy and working collaboratively
24
Can you give an example when it would be appropriate to accept gifts or hospitality?
* Reasonable value in line with common business practices.
* Inform their employer and obtain approve.
* Avoids conflicts of interest.
* Tracked on the gift register.
25
How do you know that your company’s policy on gifts and hospitality is compliant with the RICS rules?
We have undergone mandatory training surrounding bribery and corruption which mentions the same requirements that of the RICS.
26
By protecting confidential information, which of the Rules of Conduct are you complying with?
Rule 1 – point 1.9:
Members and firms protect confidential information and only use or disclose it for the purposes for which it was provided, where they have the necessary consent to do so or where required or permitted by law.
27
How have you dealt with a complaint?
No, however I have the following in place if one arises:
* Published complaints handling procedure,
* Deal with smaller complaints myself, however if more serious it needs to be formalised.
* Take it seriously and maintain professionalism.
* Handle it in a timely manner.
28
Which Rule of Conduct are you complying with when you advised your colleague about procurement of a sub-contractor?
Rule 1 – be honest and act with integrity.
* Not allowing myself to be influenced by others.
* Providing advice and opinion in a professional context and do so honestly.
29
Do you think your statement about handling the client’s money is what the RICS means by client’s money?
No, the RICS defines It more as the protection of client’s funds. Of which my company, as a main contractor, does not do per say.
However, another example of advice for this competency would be dealing with a complaint.
Discuss the Chorley complaint for housing/ fencing.
30
Can you think of a situation when you are able to advise the sub-contractor as to how their price compared? What could you tell them and when?
You can provide constructive feedback to subcontractors about certain elements of their bid which are identified as outliers or discrepancies.
You can clearly feedback specific information regarding elements higher than expected and use benchmarks against similar projects or standards to illustrate your point.
31
What is the RICS motto?
“Est modus in rebus” (which translates into English as: “There is measure in all things”)
32
Who is the RICS CEO and President?
CEO = Justin Young
President = Tina Paillet
33
When was the RICS founded?
1868
34
Where is the RICS international HQ?
Parliament Square, London.
35
What is the RICS mission statement?
Enforce and promote the highest ethical and technical standards for professionals in land, property and the built environment worldwide.
36
What are the maximum levels of uninsured excess
37
Tell me about Merrett v Babb case law
2001
Babb carried out valuation as an employee of a company for a house purchased by Merrett
Valuation later found to be negligent
Company no longer existed
Court ruled Merrett could pursue Babb for the losses they incurred
38
What measures should be taken to try and avoid PI claims?
Don’t advise on anything you aren’t a specialist in
Keep full and detailed records
Use proper contracts
Follow RICS guidance
39
Why was the Levitt review commissioned?
Investigate governance and management issues within RICS, following concerns about its handling of internal reports and financial management
40
What were some of the conclusions of the Levitt Review?
Sound governance principles were not followed by RICS
Non exec board members were wrongly dismissed from their roles
Lack of clarity around roles and responsibilities of the various RICS boards and management.
41
What are the five principles of better regulation
Proportionality
Accountability
Consistency
Targeting
Transparent
42
Name some topics on which the RICS publishes help sheets and policy documents
CPD
Handling clients money
PI insurance
CHP
43
What is the clients money protection scheme
Run by the RICS to cover reimbursement for direct loss of funds through RICS insurance policy
44
What sort of information do registered firms have to send to the RICS annually?
Annual return done online, failure leads to penalty
Whether the firm holds clients money
Training provisions
Complaints handling procedures.
45
What are the RICS bye laws and give an example of a rule.
**Governing rules and regulations **that outline the structure, functions, and operations of the Royal Institution of Chartered Surveyors, ensuring members uphold professional standards and ethical practices.
Conduct (Bye-law 5)
46
How do firms comply with GDPR
1. Implementing data protection policies,
2. securing personal data
3. and regularly training staff on GDPR requirements.
47
What are the 3 main roles of the RICS?
1. To **maintain** the highest standards of education and training
2. To **protect** consumers and businesses through strict regulation of the profession
3. To be the **leading** source of information and independent advice
48
How do RICS regulate and promote best practice?
RICS regulate is self-regulatory.
- PACTT.
49
What are the 5 principles of better RICS regulation?
P.A.C.T.T
Following the Carsberg Report. Purpose: members/firms can use 5 principles to decide how best to meet requirements of Rules of Conduct.
1. PROPORTIONALITY – making the penalty proportional to the breach
2. ACCOUNTABILITY – to all members and the public
3. CONSISTENCY – treating all members the sam, level playing field
4. TARGETING – targeted to be relevant and useful, but not prescriptive
5. TRANSPARENCY – to all members, clients and the public
50
What is the Royal Charter?
Awarded in 1881 by Queen Victoria
It requires RICS to promote the usefulness of the profession for the advantage of the UK public and in other parts of the world.
It outlines the organization's purpose, governance, and responsibilities **(PGR)**
51
Why do you want to be a Chartered Surveyor?
1. Largest international property institution in the world. Global recognition and part of international community.
2. Elite professional status, guidance, information and support.
3. Part of promoting the best practice in the profession.
52
What is the role of the standards and regulations board?
Exercise RICS regulatory functions including strategy, governance, structure and policy.
Oversees RICS professional standards and entry/ admission into the profession.
53
Can you give me an overview of the RICS governing structure?
Under the Royal Charter, RICS’s governing body is the Governing Council, responsible for
1. Strategy
2. Vision
3. Approving changes to the RICS constitution
Reporting to them is the Standards and regulations board and the RICS board.
54
What is the RICS Black Book?
A collection of technical practice documents which cover all processes throughout the construction life cycle. Useful guides for best practice.
55
What additional guidance did the RICS recently publish for the Rules of Conduct?
Additional guidance for DEI (Diversity, Equity and Inclusivity) surrounding
1. Inclusive culture
2. Inclusive recruitment
56
RICS have introduced two new definitions for professional guidance, what are they called?
Professional Standards & Practice Information
57
Can you explain how you act with integrity?
1. Be trustworthy
2. Be open and transparent
3. Don’t take advantage
58
Why must you act within your professional capabilities/ competence?
To ensure I do not advise my clients incorrectly which could lead to a complaint or claim of negligence.
59
Can you explain how you take responsibility?
1. Be accountable for my actions
2. Act with skill, care and diligence
3. Respectfully challenge things that do not seem right
60
How do you provide a high standard of service?
1. Always ensure my clients receive the best advice and support
2. Acting and advising within my scope of competence
3. Being transparent about fees and any other costs
61
How do you promote trust in the profession?
1. Understand how my actions will affect others
2. Fulfil my professional obligations
3. Act in a trustworthy manner
62
What should an individual do to maintain a high ethical standard?
1. Maintain CPD
2. Follow advice of professional bodies
3. Keeping their own actions under review
63
How would you define formal and informal CPD?
Formal is structured learning with clear objectives and outcomes
Informal is self-managed learning relevant to my professional role
64
Name 3 different types of Conflict outlined in the 2017 Professional Statement.
1. Party Conflict – Member or firm conflicts with a duty owed to two clients in the same professional assignment.
2. Own Interest Conflict –The interests of their client conflicts with another RICS member or firm.
3. Confidential Information Conflict – a professional holds sensitive information about one client that could affect another client's interests if disclosed
65
What is informed consent?
Occurs when a party who may be affected by a conflict acknowledges the existence of that risk but still agrees to instruct the proceeding of the assignment.
66
What are some principles of the Bribery Act?
1. Proportionality – the action taken should be proportionate to the risk and size of the organisation
2. Top level commitment – senior management should ensure the organisation conducts business without bribery
3. Communication – Employers must communicate their policies and procedures to staff
67
How do you report Money Laundering?
Legally obliged to submit an SAR (Suspicious Activity Report) to the National Crime Agency
68
What is corruption?
The abuse of entrusted power for private gain
69
What is Modern Slavery and its legislation?
Illegal exploitation of people for personal or commercial gain.
Modern Slavery Act 2015.
70
What is the difference in 'Any one claim' and 'Aggregate'?
"Any one claim" coverage limits apply to each individual claim, providing separate coverage for each incident. "Aggregate" coverage limits the total amount paid for all claims within a policy period, capping the overall payout.
71
Name another example of where you have advised clients in the context of Ethics.
Another CoI on the Forton project again with a civil subcontractor asking about the bids to date and estimated price range.
Confidential information conflict.
72
Who is the Royal Patron of the RICS?
King Charles III
73
What are RICS regulations on the use of social media?
Guidance document called 'Use of social media' from 2021.
The basis is: Standards do not change between face to face and social media communications.
74
Explain the purpose of a Professional Standard document?
They set mandatory requirements about how they are to provide services
75
Explain the purpose of a Practice Information document?
They provide supplementary guidance to support surveyors in delivering specific services
76
What are the grounds for a disciplinary under the RICS?
1. Professional misconduct
2. Incompetence
3. Criminal convictions
4. Failure to comply with RICS requirements (e.g CPD)
77
What is the RICS disciplinary process?
1. Complaint or allegation
2. Initial assessment
3. Investigation
4. Interim measures
5. Panel
6. Decision
78
What is the difference between RICS ethics and rules?
Ethics are a set of moral values
Rules of conduct are a framework we work to
79
Please explain the steps of the RICS ethics decision tree?
1. Sufficient facts?
2. Is it legal?
3. In line with RICS rules?
4. Consult with relevant people?
5. Clear reasoning?
80
What is the procedure when a rule of conduct is breached?
Formal investigation by Head of Regulation
RICS request information
Members must cooperate with all enquiries
81
What actions can be imposed after an investigation?
1. Fixed penalty (fine)
2. Consent order (Written agreement concerning breach)
3. Disciplinary panel (more serious matters)
82
What is negligence?
A failure to provide a duty of care
83
What are the requirements regarding PI insurance set by the RICS?
1. Policy must be ‘each and every’ claim
2. Minimum levels of indemnity
3. Maximum levels of uninsured excess
4. Run off in place for 6 years
5. Policy covers past and present employees
84
What is a conflict of interest?
When ones interests could conflict and compromise their professional judgement and advice.
85
How could a conflict of interest be managed internally if 2 departments were working for the same client?
Ensure exclusivity of staff
Separate communication lines to the client
Confidentiality/ NDA's
86
What is a bribe?
A bribe is an illegal payment or gift given to someone to influence their actions
87
Name 2 types of clients accounts
General - hold money not specifically related to a particular transaction
Discrete - specific accounts to hold money for a particular client/ transaction
88
Name some Bye Laws
Membership and registration
Conduct
Accounts and audit
