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RICS APC Preparation > Ethics > Flashcards

Ethics Flashcards

1
Q

What are the five professional and ethical standards?

A 
Act with integrity; 
Provide a high standard of service;
Act in a way that promotes trust in the profession;
Treat others with respect;
Take responsibility
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2
Q

How would you set up a practice with the RICS?

A

Inform the RICS, appoint a contact officer, register with the RICS for regulation, obtain PI insurance, set up a business account to handle clients’ money, set up a complaints procedure, set up staff training and CPD

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3
Q

Would you accept a gift or offer of hospitality from someone in a work capacity?

A

Check that the gift was acceptable in accordance with the Bribery Act 2010, i.e. the gift was reasonable and proportionate.
Nominal value, not cash, offered openyly and not regularly.
I would be open and transparent and keep records of any gifts

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4
Q

What steps must you take when handling clients’ money?

A

Always provide the client with access to their funds and bank details
Keep the money separate and clearly identifiable
Include “client” within the account name
Agree the interest and terms with the client
Maintain a ledger

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5
Q

What are the RICS’ five principles of better regulation?

A 
Proportionality
Accountability
Consistency
Targeting
Transparency
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6
Q

Why does the RICS have rules of conduct?

A

They act as a framework that ensures a client is getting a set level of service
They also act as a professional guide for individual members

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7
Q

How many rules of conduct for members are there?

A 
Nine:
Interpretation
Communication
Ethical behaviour
Competence
Service
CPD
Solvency
Information to RICS
Cooperation
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8
Q

How many rules of conduct for firms are there?

A 
Fifteen:
Interpretation
Communication
Professional behaviour
Competence
Service
Training & CPD
Complaints handling
Client money
Indemnity
Advertising
Solvency
Death / incapacity arrangements
Use of designations
Information to RICS
Cooperation
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9
Q

What information do registered firms have to send to the RICS annually?

A

Annual return which is completed online
Advise the RICS of the type of business and staff levels
Nature of clients
Training provisions
Complaints handling procedure and records
PI insurance
Whether client money is held

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10
Q

What must a complaints handling procedure include?

A

RICS provides a model form
Must include a redress mechanism
Should be issued to the client with the terms of business
Must be clear, quick, transparent, impartial and free of charge
Name and details of the nominated investigating person must be stated
Must have a minimum of two stages; consideration by a senior team member, if not resolved then referred to an independent third party with authority to redress
Complaints must be investigated within 28 days

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11
Q

If a friend asks for QS advice, how would I deal with it?

A

I could not answer alone without PI insurance
If I did have insurance, any advice I provided would be subject to the normal checking procedures for any other form of advice
I would ask them to contact me during business hours to discuss T’s and C’s
I would always ensure the rules of conduct are followed

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12
Q

What does PII stand for?

A

Professional Indemnity Insurance

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13
Q

What is the purpose of PII?

A

To provide financial cover in the event that a client suffers losses as a result of a breach of professional duty (i.e. neglect, error, omission)

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14
Q

What are the benefits of PI insurance?

A

The professional is covered from financial loss and does not need to meet a claim from his own assets

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15
Q

What basis should PI insurance be underwritten?

A

On a claims made basis

This means that cover is provided only for claims that are notified during the term of the policy

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16
Q

Tell me about Merrett v Babb?

A

2001 court case where Babb had carried out a valuation of a house purchased by Merrett
The valuation was found to be negligent
The original company which Babb worked for no longer existed
The court ruled that Babb could be pursued for the losses

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17
Q

What is the significance of Merrett v Babb?

A

Highlights the importance of run-off cover

This is cover for individuals against claims brought directly against them for advice given on behalf of employers

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18
Q

How long should run-off cover be in place?

A

Depends on the type of contract; under hand = 6 years, under deed = 12 years

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19
Q

What is run-off cover?

A

Type of PI that covers historic liabilities of a business after it ceases to trade.

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20
Q

What are the RICS’ PI requirements?

A

Must be on an each and every claim basis
Minimum wording is provided, with minimum indemnity levels and maximum uninsured excess
Run off cover to be in place for six years
Cover to be provided for past and present employees of the firm

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21
Q

How would you determine the level of PI cover?

A

Based on a firms turnover:
>£100k = £250k
£100-200k = £500k
£200k+ = £1m

22
Q

What are the maximum levels of uninsured excess?

A

Dependant on the level of PI indemnity
Up to £500k = greater of 2.5% of the insured sum or £10k
over £500k = 2.5% of insured sum

23
Q

What measures should be taken to avoid PI claims?

A

Keep detailed records of meetings and conversations
Record recommendations and advice provided
Use proper letters of engagement, scope of services and T’s and C’s
Do not advise outside area of expertise
Use RICS guidance
Avoid poor management and excessive workload

24
Q

If a fee proposal has been under forecasted, would you ask the client for more money?

A

If the project requirements have increased, yes.

If not, no and do not reduce the level of service originally offered.

25
Q

What are the CPD requirements?

A

Members must undertake and record life long learning to maintain and improve levels of professional competence.
20 hours/ year minimum, 10 hours formal with set learning outcomes.

26
Q

How is the RICS structured?

A

Executive team
Presidential team
Governance bodies:
Privy council - grants royal charter
Governing council - presidential team and elected members. Set RICS strategies
Management Board - oversee RICS affairs and approves business plan
Standards and regulation board - uphold professional standards and provide independent oversight to regulatory processes
Audit committee - monitor integrity of RICS reporting and control systems

27
Q

Who is the RICS CEO?

A

Sean Tompkins

28
Q

Who sits on the presidential team?

A

Kathleen Fontana - President
Clement Lau - President Elect
Ann Gray - Snr VP

29
Q

What are the RICS bye-laws?

A 
There are ten:
Application & definitions
Membership & registration
Designations
Contributions to funds
Conduct
Governing Council, officers and staff
Subordinate boards, committees and groups
General meeting procedure
Accounts and audit
General
30
Q

What are the presidential team upto?

A

Value the Planet campaign - implementation of sustainable development goals
Responding to covid and providing guidance to safely restart operations
Providing guidance on fire safety for external wall systems (Grenfell)

31
Q

When was the RICS established?

A

26 August 1881

32
Q

What is the RICS motto?

A

Est modus in rebus

There is measure in all things

33
Q

What would you say if you were asked to reduce your price to win a job?

A

Not acting with integrity
This is a form of a bribe
Devalues the profession
I would not conduct business in this way

34
Q

What is a consent / regulatory compliance order?

A

Agreement between RICS and a member that they are liable for disciplinary action
The member admits they have fallen short of the standards and agrees to a sanction and steps to prevent it happening again

35
Q

What is a fixed penalty?

A

Administrative fine or caution issued when a regulated member fails to provide requested information.
Will remain on the members’ record for a fixed period unless rescinded

36
Q

What are the principles of the Bribery Act?

A

The Act applies to bribery of local officials
Bribery defined as “The offering, receiving, giving or soliciting something of value for the purpose of influencing the action of an official in the discharge of their legal duties.”
Companies operating in the UK have a duty to impose corporate measures to prevent bribery, fine due if not
Fine and/or imprisonment for up to 10 years

37
Q

What are the principles of GDPR?

A 
General Data Protection Regulations
7 principles:
Lawfulness, fairness and transparency
Purpose limitation
Data minimisation
Accuracy
Storage limitation
Integrity and confidentiality
Accountability
38
Q

What are the principles of the money laundering regulations 2017?

A

Obligations for firms working in high risk areas to stop criminals using professional services to launder money. Involves a risk based approach.

39
Q

You find a chartered surveyor is working outside RICS standards, what do you do?

A

Establish the facts and confront them, reminding them of their duties as an RICS member
Inform the RICS, specifying my relationship and corrective actions put in place

40
Q

Can you tell me about a piece of CPD you have done recently?

A

‘Lifting the fog on provisional sums’
Formal training webinar hosted by Fenwick Elliott Learning outcomes were to understand what provisional sums are, common issues encountered when operating them and how they are treated in some standard forms of contract.
Defined vs undefined PS were discussed, meaning the level of definition provided for the work. If work is sufficiently defined (i.e. nature of work, quantities) then the contractor is deemed to have allowed for it in his prelims/programme.
JCT and FIDIC include provisions for PS to be instructed.
NEC does not mention PS, change managed through CE’s.

41
Q

What is the difference between formal and informal learning?

A

Formal is structured learning with clear objectives and outcomes
Informal is any self managed learning relevant to my professional role

42
Q

How do you record CPD?

A

Using the RICS online portal

Including date, type, subject, hours, objective and outcomes

43
Q

What is your CPD strategy?

A

I have biannual professional development reviews with my line manager to review my development plan and objectives, CPD is targeted at these objectives.
This year my main objectives are to better understand the arbitration process and to understand recent case law and how it may impact dispute avoidance and resolution

44
Q

Why do you want to become chartered?

A

MRICS designation is the gold standard of surveying
RICS guidance notes and advice will help me better serve clients
Further my career development and progression

45
Q

What is the purpose of the RICS?

A

To promote and enforce the highest professional qualifications and standards in the development and management of the built environment, land and real estate

46
Q

What is a conflict of interest?

A

According to the RICS professional statement on conflicts of interest, there are three types:

  1. Party Conflict - a situation where a member or firm is asked to act in the interests of a client that conflicts with a duty owed to another client.
  2. Own interest conflict - duty of a member/firm to act in the interests of a client that conflicts with the interests of that same member/firm.
  3. Confidential information conflict - conflict between the duty of a member/firm to provide material information to one client that breaches the duty to another client to keep that information confidential.
47
Q

What is the Defining our Future campaign?

A

Programme of consultation with RICS members aimed at shaping how the RICS enhances professionalism in the coming years.

48
Q

What is the role of the professional groups within RICS?

A

The aim of the professional groups is to shape the various technical standards of the surveying profession. There are 18 in total.

49
Q

What is the hierarchy of documents?

A 
Rules of conduct
International standards
RICS professional statements
RICS guidance notes
RICS code of practice
RICS jurisdiction guide
50
Q

Tell me about the RICS practice statement and guidance note for surveyors acting as expert witnesses?

A

Sets out best practice for any surveyors who are appointed as experts within a dispute before a tribunal.

Principle message is that the primary duty is to the Tribunal and any evidence provided must be:

  • Independent, unbiased and within area of expertise
  • State the main facts and assumptions it is based upon, not omitted material information that might be relevant
  • Impartial and uninfluenced by those instructing you
51
Q

Who is the RICS head of regulation?

A

Sir Michael Burton GBE

RICS APC Preparation (13 decks)

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