Ethics Flashcards
1
Q
Motto
A
Est Modus in Rebus = There is measure in all things
2
Q
Mission statement
A
- Qualify and equipment members to provide highest standard of professional service
- Promote and enforce standards
- Lead solutions
3
Q
RICS Structure
A
- Founded in 1868 and Royal Charter by Privy Council in 1881
- Self-regulated via byelaws
- Governing Council = manage/agree strategy
- Regulatory board, audit committee and management board (Execute strategy)
4
Q
5 Principles of Better Regulation
A
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
5
Q
Ethics versus Rules
A
Ethics = moral values, and Rules = mandatory framework
6
Q
Prior to Feb-2022 = 5nr Global Professional and Ethical Standards
A
Service, Trust, Integrity, Respect and Responsibility
7
Q
After Feb-2022 = New Rules of Conduct
A
- Honest, integrity and comply with professional obligations
o Members = CPD, information and cooperation
o Firms = Complaints handling, PII, alt. arrangements, reporting, cooperation and info to RICs, & designations - Maintain competence and ensure services delivered by competent persons
- Good-quality and diligent service
- Respect others and encourage diversity/inclusion
- Act in public interest, take responsibility, act to prevent harm and maintain public confidence in the profession
8
Q
Why change rules?
A
outdated, single doc w/ greater clarity, greater focus on examples, and focus on evolving technology and climate
9
Q
Rules of conduct. Why?
A
consistency to public/client, and professional guide to members/firms
10
Q
Decision Tree
A
- Sufficient facts?
- Is it legal?
- Does it comply with RICS rules of conduct?
- Consulted with appropriate person(s)?
- Basis = clear reasoning/informed
- Public test
11
Q
Breach procedure
A
- Proceedings depend on breach
- Formal investigation by the Head of Regulation
- Request information and/or visit and inspect to investigate compliance
- Members must cooperate
12
Q
Disciplinary procedure trigger
A
- Someone complaining
- Allegation by client or third party
- Information received and/or established by RICS
13
Q
Disciplinary actions
A
- Fixed penalty (i.e. fine)
- Consent order (written agreement = corrective actions, conditions)
- Disciplinary panel (serious breach, public, balance of probability)
14
Q
Expulsion breaches
A
- Gross, persistent or wilful failure to comply with RICS Rules of Conduct, etc
- Fraud, dishonesty, conviction of serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of client money
15
Q
Starting a practice
A
- Contact RICS = company start-up pack
- Inform RICS and register for regulation
- Appoint contact officer
- Prepare complaints handling procedure
- PII
- Abide by rules of conduct
- Use designations – “Regulated by RICS”
16
Q
Advertising
A
trustful & responsible manner = Rules of Conduct
17
Q
Insurance required for own firm?
A
PII, public, employers and building (office)
18
Q
Annual Return
A
- Type of business & staffing
- Nature of clients
- Training provisions
- Complaints handling
- PII details
- Whether hold client’s money
19
Q
Client Money
A
- Preserve security (doesn’t belong to company)
- Segregate
- Principal oversight but cannot override controls
- Account in joint names = dual authorisation
- Competent & knowledgeable staff for processing and cover for long term absences
- Secure accounting and data systems
- Clearly identifiable (“Client” in account name)
- Client must always be able to access
- Agree terms and provide Client the account details
- Must not be overdrawn
- Maintain client ledger and provide running balance
- Discrete = single client, and general = >1 clients
20
Q
Negligence
A
breach of duty of care via a failure to due skill/care as a reasonable person/surveyor
21
Q
Merret v Babb (2001)
A
- Erroneous valuation 7 years earlier
- Company = insolvent
- Sued personally
- Run-off cover = important
- RICS setup fund
22
Q
Underhand versus Deed?
A
Underhand = 6 years limitation, Deed = 12 years limitation
23
Q
Complaints handling guidance?
A
- RICS model
- Redress mechanism
- Included in Terms of Business provided to client
- Clear, quick, transparent, impartial
- First stage = free
- Names & contact details of nominated investigating person
- Investigated in 28 days
- Complaint, progress and outcome = recorded
- Advise PII
- Two stages (min)
o Consideration by senior member/complaints handling officer
o Independent 3rd party (complainant may need to contribute £)
24
Q
“Client Money Protection Scheme”
A
RICS = insurance = client recover RICS regulated firm loss
25
CPD?
continuing professional development = 20 hours (50% formal)
- Formal = structured training in classroom-like setting, assessed, learning outcomes
- Informal
26
PII?
financial cover in event client suffers loss due to breach of professional duty
- Protects self/firm and client
- Underwritten on a “claim made” basis (date of claim = date of loss event)
- RICS requirements
o Each and every
o Minimum levels (£200k = £1m)
o Maximum levels of uninsured excess (
27
Fee proposal?
T&Cs, scope, exclusions and assumptions
28
Conflict of interest?
- Position of trust has competing personal or professional interests which affect impartial fulfilment of duties
- Chartered have obligation to make client aware
- Conflicts
o Party = +1 clients
o Self = Client versus firm
o Confidential = Duty to provide versus duty to keep confidential
- Informed consent/Letter of instruction
o Client informed & understand
o All parties receive proper service
o Difficult when contentious party conflict (adjudication) and own interest
o Methods of control
Information barriers
Separate offices
NDA
29
Bribery Act 2010
making or receiving, public official and failure to prevent (corporation)
- Unlimited fine + 10 years
30
6 Principles of prevention (Bribery)
1. Proportionate procedures
2. Top level commitment
3. Risk assessment
4. Due diligence
5. Communication
6. Monitoring & review
31
Facilitation payment?
only under duress = limb/life/liberty?
32
Gifts & Hospitality?
- Open, occasional and modest
- >£200 = LM & register
- Public test (decision tree)
- Not intended to influence
- Cash or equivalent
