ETHICS Flashcards
Why do you want to become a member of RICS?
- Globally recognised qualification.
- Great for career development.
- Huge personal achievement.
- CPD - continued knowledge
What is the role of RICS?
- To promote and enforce highest professional qualifications
- Provide impartial advice to public and clients
- To protect clients through a strict code of conduct.
- To educate the industry
What is a Royal Charter?
Achieved charter status in 1881 and is used to promote the usefulness of the profession to the wider public.
Who is the current RICS president?
Kathleen Fontana
What do you understand by the term self-regulation?
The RICS as an institution is self-regulating meaning that changes and decisions are made by those within the organisation.
Can you tell me what you understand by the principles of better regulation?
There are five principles of better regulation. Proportionality, Accountability, Consistency, Targeting and Transparency.
What is a Bye-Law?
Local laws (specific to RICS) made by the RICS governing council.
Tell me what the 5 professional & ethical standards are.
Integrity, Trust, High standard of Service, Respect and Responsibility.
Tell me about a key principle of the Rules of Conduct for Firms.
15 rules of conduct - must have correct insurances in place, be compliant and have complaints handling.
Tell me about a key principle of the Rules of Conduct for Members.
9 rules of conduct for members - undertake CPD, good communication and ethical behaviour.
What disciplinary procedures can the RICS impose?
Expulsion from the RICS & possible fine.
In what circumstances can these be imposed?
If you do not follow the rules of conduct
When did RICS last update their disciplinary panel rules?
1st October 2019.
What do you understand by the term professional practice?
Conducting yourself in a professional and ethical manner.
What money laundering regulations or legislation are you aware of?
Anti-money laundering 2020
What bribery legislation are you aware of
Bribery Act 2010.
What is a bribe?
The giving or receiving of a gift for an advantage that is illegal.
What are the penalties for accepting a bribe?
10 years in prison & unlimited fine.
What are the penalties for being involved in money laundering?
14 years in jail or unlimited fine.
What constitutes an offence under relevant money laundering regulations?
Concealing the source of money from illicit criminal activity.
What is Professional Indemnity Insurance (PII)?
Insurance / surety that protects against professional negligence.
Can you tell me about the RICS requirements in relation to PII?
Based on companies turnover. Less than 100k = 250k. 100k-200k = 500k over 200k = 1m
What would you do if you received a notice of a PII claim from a client or their solicitor?
Notify CBRE’s complaints handling team / solicitor?
Tell me what you understand about Complaints Handling Procedures (CHP).
- Clear and quick
- Regularly updated and reviewed
- Understood by all staff
- Dealt with in 28 days
- Have a redress scheme
When and how can the RICS be involved in a complaint about a firm or member?
If not dealt with within 28 days a complaint gets referred to the RICS.
Can you tell me about the CPD requirements for members of RICS?
20 hours per year. 50/50 formal informal.
Why is CPD important?
To stay up to date with construction industry information and develop skills and knowledge outside of your day to day role.
Tell me about the RICS’ guidance on dealing with Conflicts of Interest.
Conflict of Interest guidance note 2017. Inform client of potential conflict that would impact impartiality, get written confirmation to proceed.
Are you aware of any new Conflict of Interest guidance?
Conflict of interest implementation and impact research 2019 to ensure it still adheres to the highest professional standards.
How would you close down a regulated firm?
Follow closing down checklist: Agree closure date, inform staff and clients, deal with remaining clients money and obtain run-off cover.
How would you open a regulated firm?
- Inform RICS
- Appoint RICS officer
- Set up procedure for handling clients money
- PII
What can you tell me about RICS guidance relating to bribery, corruption or money laundering?
Professional statement on countering bribery, corruption and money laundering.
What status does the guidance relating to bribery, corruption and money laundering hold?
Professional Statement - mandatory requirement
What must/should firms/members do to comply with the guidance relating to bribery, corruption and money laundering?
All firms must have a written policy covering anti-bribery. Have appropriate governance and system controls in place and encourage transparency.
What are the current RICS rules for registration of firms?
- Inform RICS
- Appoint RICS officer
- Set up procedure for handling clients money
- PII
RICS rules for registration of firms - when did they change?
April 2020
Who is a ‘qualified member’ of RICS?
Someone who has passed their APC.
What are the registration eligibility criteria?
If the firm is providing advice to the public, and 50% of employees are RICS members.
Who is a Responsible Principal?
Ensures the firm takes all reasonable steps to comply with regulation.
What are the rules around use of the RICS logo and ‘Regulated by RICS’ designation?
Cannot use unless a RICS member or regulated firm.
When did the rules on RICS designation last change?
December 2018
How do you ensure that you comply with bribery legislation?
- When getting appointed on a new project I always consider who I am working with.
- Ensure necessary commercial checks are done.
- Keep up to date with CBRE’s policy.
How do you ensure you comply with money laundering regulations?
- When getting appointed on a new project I always consider who I am working with.
- Ensure necessary commercial checks are done.
- Keep up to date with CBRE’s policy.
How do you ensure you comply with your firm’s bribery and gifts policy?
Regularly review CBRE’s policy and up to date regulation to ensure that I as a RICS member comply with the latest regulations.
Tell me about an instance of when you have been offered a gift or hospitality by a client.
I was offered a gift at Christmas by a contractor however I did not deem the gift to be reasonable and proportionate. Regardless I would not do anything to impact my impartiality.
Tell me about what you would do if you felt that an instruction was outside your scope of experience or knowledge.
I would not act on behalf of a client if I did not believe I had the sufficient knowledge or experience to provide a high level of service. To do so would not be acting with integrity.
Give me an example of when you have acted with integrity?
Not accepted a gift.
Tell me about when you have provided a high standard of service.
Bespoke reporting.
Tell me about how you have promoted trust in the profession.
Keeping my word and doing what I say I will.
Explain how you have taken responsibility in your current role.
Health and Safety - ensure all workers are wearing PPE.
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.
Notify RICS, appoint a RICS officer, establish a CHP, get PII, clients money handling procedure in place.
If a prospective purchaser offered you a financial incentive to accept their offer, explain how you dealt with this.
I would politely decline and say that that that is not ethically correct.
What would you do if you were asked by a client to reduce a fee proposal to win new work?
Reduce scope of work.
What would you do if you became suspicious that a client was involved in money laundering?
Approach a senior collage to discuss and then potentially submit a suspicious activity report to national crime agency.
If you were to set up in practice on your own, tell me about the types of insurance you would need.
PII, Employers Liability, Public Liability.
