Ethics Flashcards
If you wanted to set up by yourself, what things would need to be in place?
Notify the RICS
Adequate professional indemnity cover
Run off cover
Locum cover - Make appropriate arrangements for my professional work to continue in the event of incapacity, death or inability to work
Complaints Handling Procedures
At least 25% of firms principles are RICS members
What is the minimal level of PI insurance?
£250k (turnover £100k or less)
£500k (turnover of £100 - £200k)
£1m (£200k and above)
What is run off cover?
Run off cover is a form of PI insurance that applied when a business or individual stops trading to provide protection for historic liabilities
Came about via merit and babb – case law
When is run off cover required?
If C5 decide to cease trading they every individual chartered surveyor should get run of cover.
If you are a sole practitioner and cease trading
What is the minimum amount of run off cover required by RICS?
6 years
However if you deal with contracts as a Deed it should be 12 years
What documents do RICS produce about handling client money?
Client money handling 1st edition, October 2019 (Professional statement)
What are the requirements for RICS firms when handling client money?
- Keep all client money in a client money account
- Client money accounts only contain the clients money, nothing else
- Ensure client account is not overdrawn
- Don’t hold office money in the client account
- Ensure the account includes the name of the ‘client’ in the title of the account
- Ensure the money is held in an account that is immediately available, even at the sacrifice of interest (unless agreed otherwise with the client)
- Interest from client accounts go to the client (unless agreed otherwise)
- Record all transactions relating to client money
What are the requirements for RICS members when handling client money?
- Ensure compliance with anti money laundering legislation
- Ensure compliance with RICS professional statement ‘Countering bribery and corruption, money laundering and terrorist financing’
- Follow procedures for handling client money at the firm they work
- Make appropriate disclosures to the firm or regulators immediately if you become aware of any risk or misappropriation of client money and keep a written record of disclosure
What firms need to be registered and regulated by the RICS?
Those with 50% of partners / directors that are members of the RICS, or sole practitioners which are RICS members
What firms are eligible to register with RICS?
Firms providing surveying services
Firms with at least 25% of the firms principals are members
What is a principal?
Sole practitioners
Director / management position
Who is a ‘Responsible Principal’?
Howard – C5
A responsible principal will have primary responsibility for ensuring that RICS’ professional, technical and ethical standards are upheld
Where are the rules of conduct mandatory, are they mandatory in other countries?
Rules of conduct apply to all members and firms wherever they work or practice – worldwide!
Laws may differ between jurisdictions and members / firms must consider the legal obligations that apply to them.
Why is it important to follow RICS guidance (even if its not mandatory)?
In the event the company is sued the PI insurance would ask did you follow any practice statements of guidance.
It’s a robust way of proving you have not been negligent by following best practice.
Company principle to carry out works using best practice
If legal or disciplinary proceedings are taken it can be evidence that I acted professionally and with reasonable competence following best practice guidance
If a Client said they needed you to provide a cost plan in 2 days time, what would you do?
It would depend on if it was feasible or not and my current workload and commitments.
For a big project where I knew this wasn’t possible in 2 days I would explain to the client that in order to provide them with a good and diligent service that I would need more time and a agree a suitable timescale
How do you ensure your advice is honest and professional?
Following rules of conduct and other RICS guidance
I would not mislead anyone and prevent others from being mislead
Can you give an example of how you act with respect?
I take part in company events to encoring inclusivity (ie at C5 we celebrate religious holidays)
I respect people of all faiths and religions
I always treat others with fairly and courtesy
Can you give an example of how you act with integrity?
Informing contractors where I know they have undervalued valuations to ensure it is valued fair and reasonable
Not accepting gifts or hospitality at sensitive points in the project (ie tender / final account)
Can you give an example of how you apply ethics / professionalism in your private life?
Don’t post social media posts that might harm the publics confidence in the profession
What RICS guidance have you referred to when providing services?
NRM
Cost Reporting GN
Management of Risk GN
Cashflow forecasting GN
What do you do if a family member asked for advice on construction work?
Say I don’t hold the PI insurance out of my role at C5 and direct them to a partner within my firm to set up a formal appointment
Giving advice without correct insurances etc could undermine the publics confidence in the profession
What is ethics?
moral standards in how we judge our actions
thinking about ethics in situations can help to ensure the morally right thing is done
What is integrity?
broader concept than honesty - having strong moral principals
What is a conflict of interest?
RICS defined 3 types:
Party conflict - where you act in the interest of a client conflicts with another client
Own interest conflict - Conflict between client and RICS member / firm
Confidential information conflict
Information Barrier
means: the physical and/or electronic separation of individuals (or groups of individuals) within the same firm that prevents confidential information passing
between them.
