Ethics Flashcards
Information required for a business to register with RICS
Business type. Whether they hold client money. PII. CHP
6 rules of firm administration
Advertising. Solvency. Arrangement for death. Use of designations. Co operation. Info provided to RICS.
Triggers for RICS disciplinary procedures
Complaint to RICS. Allegation by client. Info received by RICS.
Levels of disciplinary action
AHA
- Action by head of regulation
- regulatory tribunal
- appeal panel
3 common breaches that result in disciplinary action
- professional behaviour
- CPD
- protecting client money
4 stages of action for disciplinary procedures
- initial investigation
- regulatory compliance orders
- CPD sanctions
- regulatory tribunal
4 actions from initial investigations for disciplinary action
- fixed penalty notice
- regulatory compliance order
- CPD sanctions
- refer to disciplinary panel
2 examples of RICS international standards
- RICS valuation - global standards 2022
- IPMS
2 examples of RICS professional statements
- conflicts of interest
- code of leasing business premises
2 examples of RICS guidance note
- surveying safely 2019
- comp evidence in real estate valuation 2019
Example of a code of practice
- code of measuring practice 2018
3 elements to consider when negotiating fees
- no price fixing
- in line with the market
- consider bribery act 2010
Main contents of terms of engagement
- fee
- CHP
- work to be done
3 key steps in accepting instruction
- competence
- conflict of interest check
- signed terms of engagement
3 reasons for declining an instruction
- competence
- conflict of interest
- client won’t sign TofE
3 types of conflict of interest
- financial
- personal
- commercial relationship
2 options for proceeding when COI is recognised
- avoidance - decline instruction
- management - letter of instruction
What are the consequences of breach of the ethical standards?
Disciplinary action
Tell me about the RICS global professional statement regarding COI 2017
- RICS cannot work for a client where there is COI
- need informed consent from both parties to proceed
- keep full records to ensure compliance
3 types of COI defined by RICS professional statement on COI
- party - working for two diff parties
- personal
- confidential info - NDA
How long should old files be held for?
Minimum 6 years. Destroyed securely
What to do if you receive confidential info in error
- securely dispose of info
- inform firms compliance officer
What level of PII is require
-£200k = £1m
What is the maximum level of uninsured excess?
- up to £500k - 2.5% of the sum insure or £10k, whichever is higher
- over £500k - 2.5% of the sum insured
