Ethics Flashcards
Why do you want to become a member of the RICS?
I want to achieve a gold standard in my profession and be able to give back to the industry by educating and training aspiring surveyors
What is the role of the RICS?
To promote and enforce the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure
What are the key functions of the RICS?
- Maintain the highest standards of education and training
- Promote trust in the industry through strict regulation and standards
- Be a leading source of information and independent advice
What is a Royal Charter?
A Royal Charter is a instrument of incorporation, granted by the Queen, which confirms independent legal personality on an organization, and defines its objectives, constitution and powers to govern its own affairs
Who is the current RICS president?
Clement Lau FRICS (September 2021 - )
What do you understand about the term self-regulation?
The fact of something or someone regulating itself without intervention from external bodies
i.e. Upholding high standards, acting with integrity, acting in the best interest of the Client
What are the functions of the RICS?
- Consumer protection
- Influence policy
- Set standards
- Accredit professionals
- Quality assurance
at Can you tell me what you understand about the 5 principles of better regulation?
TPACT
- Transparent
- Proportional
- Accountable
- Consistent
- Targeted
What is a Bye-Law?
A regulation made by a local authority or corporation
When were the RICS Bye-Laws updated?
February 2020
What are the 5 professional and ethical standards?
- Act with integrity
- Always provide a high standard of service
- Act in a way that promotes trust in the profession
- Treat others with respect
- Take responsibility
Tell me about the latest edition of the Rules of Conduct
Rules of Conduct 2022
Combines the previous rules of conduct for members and firms, which were in place since 2007
What changes were made to the Rules of Conduct 2022?
- Simpler structure
- Clear examples
- Focus on respect, diversity and inclusion
- Understanding evolving technology
- Tackling global challenges
What is Rule 1?
Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS
Give 3 examples of Rule 1
- Members and firms do not take unfair advantage of others
- Members and firms act to prevent others being misled about their professional opinion
- Firms keep Client money safe and have appropriate accounting controls
What is Rule 2?
Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
Give 2 example behaviours of Rule 2
- Members and firms only undertake work that they have the skills, knowledge and resources to carry out competently
- Members and firms supervise any employees undertaking work for them and ensure that these employees have the necessary skills, knowledge and resources to do their tasks competently
What is Rule 3?
Members and firms must provide good-quality and diligent service
Give 3 example behaviours of Rule 3
- Members and firms must understand Client’s needs and objectives before accepting any professional work
- Members and firms communicate with Clients and others clearly in a way they can understand
- Members and firms understand the risks and benefit of using relevant technology
What is Rule 4?
Members and firms must treat others with respect and encourage diversity and inclusion
Give 3 examples of Rule 4
- Members and firms respect the right of others and treat others with courtesy
- Members and firms do not bully, victimise or harass anyone
- Members and firms work cooperatively with others
What is Rule 5?
Members and firms must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
Give 2 example behaviours Rule 5
- Members and firms respond to complaints made against them promptly, openly and professionally
- Members and firms do not dissuade complaints from approaching an ADR, RICS or other regulatory board
Name 2 mandatory professional obligations for RICS members
- Members must cooperate with RICS
- Members must comply with CPD requirements set out by RICS
Name 3 mandatory professional obligations for RICS frims
- Firms must cooperate with RICS
- Firms must publish a CHP, which includes ADR, approved by RICS, and maintain and complaints log
- Firms must display on their business literature, in accordance with RICS published policy on designations, a designation to denote they are regulated by RICS
What disciplinary procedures can RICS impose?
Head of Regulation can sanction through:
- Fixed penalty notices
- Consent order/Regulatory compliance order
- Interim measures
- Panel hearings/refer to disciplinary panel
- Expulsion from RICS
What disciplinary and regulatory sanctions can RICS impose?
- Caution
- Reprimand - another form of warning
- Undertakings - condition imposed
- Fine
- Condition - condition to carry out or restrict activities
- Expulsion/removal
When did RICS last update their disciplinary panel rules?
RICS Disciplinary, Registration and Appeal Panel Rules (October 2019)
What are the different levels of action within the disciplinary panel rules?
- Decision to begin investigation upon receipt of information/allegation
- Decision as to realistic prospect
- If realistic prospect: disciplinary proceedings
What do you understand about the term professional practice?
Professional practice refers to the conduct and work of someone from a particular profession
What money laundering regulations or legislation are you aware of?
- The money laundering, terrorist financing and transfer of funds regulations 2017
- The proceeds of crime act 2002
- RICS Professional Statement: Countering bribery and corruption, money laundering and terrorist financing, 1st Edition, February 2019
What is a red flag of money laundering?
- If a client is secretive about who they are, the beneficial owner, the source of funds or the reason for the transaction
- If the parties appear multiple times in transactions over a short period of time
- if the transaction has unusual features, such as: is loss making or has no obvious commercial purpose
What bribery legislation are you aware of?
- Bribery Act 2010
- RICS Professional Statement: Countering bribery and corruption, money laundering and terrorist financing, 1st edition, February 2019
What is a bribe?
The offer, promise, giving , demanding or receiving of an advantage or an inducement for an action that is illegal, unethical, or a breach of trust
What are the penalties for accepting a bribe?
- Fixed penalty, i.e Fine (unlimited)
- Imprisonment (up to 10 years)
What are the penalties for being involved with money laundering?
Fixed penalty (fine) - unlimited
Imprisonment (up to 14 years)
What constitutes an offence under the bribery Act 2010?
Offences of bribing another person:
- offers, promises or gives an advantage to another person, to induce a person to perform improperly or reward for improper performance
Being bribed:
- Requests, receives or accepts an advantage for improper performance
What constitutes an offence under the current money laundering regulations?
Under The Proceeds of Crime Act 2002:
- Concealing, disguising, converting, transferring or removing criminal property
- Entering into or becoming concerned in an arrangement and knowing or suspecting that it facilitates the acquisition, retention, use or control of criminal property on behalf of another person
- Acquiring, using or processing criminal property
What is professional indemnity insurance?
A commercial policy designed to protect business owners, freelancers and self-employed if clients claim service is inadequate
Can you tell me about RICS requirements in relation to PII?
RICS Professional Indemnity Insurance requirements 2022:
Turnover £100,000 or less = minimum limit of indemnity £250,000
£100,001 - £200,000 = £500,000 minimum
£200,001+ = £1,000,000 minimum