Ethics Flashcards
RICS
Royal Institution of Chartered Surveyors
Date founded
1868
Current President
Kath Fontana FRICS
CEO
Sean Thompkins
President Elect
Clement Lau FRICS
RICS Global Professional and Ethical Standards
Act with integrity
Always provide a high standard of service
Act in a way that promotes trust in the profession
Treat others with respect
Take responsibility
Example of Act with Integrity
- Disclosed all cost info to client prior to commencing marketing and disclosed all info on brochure
- Informed client that report going to be delayed
Example of high standard of service
- Report provided in timely manner
2. Undertook high level of due diligence for valuation report
Example act in a way that promotes trust in profession
- Arranging key organisation for viewings
2. Used ethical decision tree to ensure making correct decision - illustrates trustworthiness as based on own judgement
Example treat others with respect
- Informing tenant of inspection and being respectful of their operations
- Contacting all parties who were not successful in bid process
Example take responsibility
- Submit report in timely manner
2. Organising inspections and covid 19 protocols
Royal charter
Granted 1881
Obliges RICS to act for the public advantage in surveying services
5 benefits of becoming an RICS member
- Status of organisation internationally, providing client confidence
- Recognition that you’re promoting professional excellence
- Market advantage as status provides competitive advantage
- Better knowledge and professionalism due to adherence to standards and guidance
- Access to strong network of professionals
Role of RICS
- Maintain Highest standards of education and training
- protect consumers to strict regulation of professional standards
- Leading source of information and professional advice in surveying
Benefits of regulation for firms
- Confidence (as firms monitored by RICS)
- Professionalism
- Security (as need to have PII cover/ CHP etc)
Why new Ethical Standards and Rules of Conduct?
Simplify existing rules into 5 new rules for all and deal with modern day societal issues (eg sustainability/ D&I)
What else will new rules include?
Professional Obligations for Member and Firms
Eg comply with CPD/ have appropriate PII cover and CHP
What is ethical decision tree?
Framework used to determine whether member should act in a situation that they think is unethical
Steps on ethical decision tree
Do you have sufficient facts?
Are you acting in line with RICS Rules of Conduct and ethical standards?
Would you be happy for your actions to be published in the press?
Requirements to register as an RICS regulated firm
- Providing surveying services to public
- Firm operating in the UK
- At least 50% of principals are RICS members
Responsible person
Someone elected within a firm Who is responsible for ensuring the firm complies with its regulatory and statutory obligations of the RICS
New rule from 1 April 2020
Information required for registration
- Type of business and staffing details
- Statutory related activities
- Nature of clients
- Complaints handling procedure and records
- PII details
- Whether the firm holds client money
ALSO INCLUDED AS PART OF ANNUAL RETURN
Process for setting up and RICS regulated firm
RICS COMPLIANCE
Complete RICS firm details form
Setting up CHP/ PII Cover
Register for RICS Registered Valuers scheme
Obtain logo kit (Use of Designations rule)
Log CPD
Appoint responsible person/ locus (if sole trader)
STATUTORY COMPLIANCE
Adhering to legislation eg Equality Act/ Estate Agents Act/ Bribery Act/ appointment of money laundering officer
Closing a practice
Transfer all money back to clients and transfer clients to another firm
Ensure still keep client folders for 6 years and have 6 years PII cover to cover any complaints (still need cover following cease of trading)
Disciplinary procedure
Self regulated by RICS
3 x levels
- Action by Head of Regulation
- Regulatory tribunal
- Appeal panel
Professional Indemnity Insurance
PII Cover
Minimum required PII based on turnover of firm
£100,000 or less = £250,000 minimum cover
£100,000 to £200,000 = £500,000
£200,000+ = £1 mill
Run off cover
Need 6 years PII cover following cease of trading
Assign risk pool
Scheme by RICS for firms who are unable to arrange cover
Eg if firm needs to renew cover and still had claims to sort so obtain temp cover from RICS whilst dealing with claims
PII policies made on a…
… claim by claim basis
Ie doesn’t matter when negligence occurs, use current insurer when claim is made
Rules for holding clients money
Client accounts must be kept separately
‘Client’ must be name on account
Client must be able to have access to their money on demand
Annual audit by certified accountant
types of bribe offences
Act?
Bribery Act 2010
Aim- reduce bribery in UK and abroad
4 offences: 1 bribing 2 receiving a bribe 3 bribing a foreign official 4 failing to prevent a bribe
Money Laundering
Money Laundering Regulations 2007
Concealing origins of illegally obtained money and using for legitimate business
Types of DD for money laundering
- Customer Due Diligence
Identify client and verify identity
(Ie usual AML checks) - Enhanced Due Diligence
Additional procedures needed when dealing with politically exposed person or person from a high risk third country - Simplified Due Diligence
Politically Exposed Person
Someone who has been entrusted with a prominent public function and therefore is at higher risk of bribery due to their influence
RICS doc concerning bribery and ML
RICS Countering Corruption, Bribery, Money Laundering and Terrorist Financing Professional Statement
Defining our future
Consultation to review RICS strategic direction
Defining our future issues being addressed
8
- purpose of RICS as a professional body
- Qualification and entry to the profession
- Membership engagement and involvement
