Ethics Flashcards
Name the 5 Rules for Members & Firms
1- Honest and with Integrity. Members and Firms must comply with Professional Obligations
2- Maintain Professional Competence and ensure tasks are carried out by competent individuals.
3- Good Quality & Diligent Service
4- Treat others with respect and encourage diversity and inclusion
5- Act in public interest and take responsibility for actions
Who is the President of the RICS and when were they elected?
Clement Lau - September 2021
President elect and Vice president of RICS
Ann Gray & Tina Paillet
What is the RICS decision tree
A decision tree to assist in making the correct decisions when challenged by ethical dilemmas
What are the RICS standards of Conduct?
1- Rules of Conduct
2- Bribery, Corruption, Money Laundering and Terrorist financing
3- Conflicts of Interest
4- Client Money
5- Risk, Liability and Insurance
6- Client Relationships and Handling data
What are the PI requirements for firms
£100k or less - £250k
£101k - £200k - £500k
£201k+ - £1m
What is Run off cover and what are the requirements?
Designed to protect against claims if the business is no longer operating
Requirements are;
Consumer claims - £1m
Non-Consumer claims - Adequate
What does RICS stand for
Royal Institution of Chartered Surveyors
When was the RICS founded?
1868, in London
Name the RICS publications
- International standards
- Professional statements
- Code of practice
- Guidance notes
- Information papers
- Insights
- Consumer guides
- Research
What is the RICS structure
- Privy council
- Governing council
- Regulatory Tribunal
- Standards and Regulation Board
- Management Board
- Audit, Risk assurance and Finance committee
- Nominations and Remuneration Committee
- World Regional Boards and Market Advisory Panels
Why RICS?
RICS promotes and enforces the highest professional standard in my field as a QS. I believe my professional and ethical standard aligns with the RICS and joining the RICS would bring confidence to my clients and drive my career.
Other RICS basic facts
- Founded 1868
- Awarded Royal Charter in 1881
- c140k members
- Operates in c146 countries
Requirements for setting up a business
- Register with RICS - assess whether regulation by RICS required (over 50% MRICS (CHARTERED)
- PI
- Fee for registering schemes i.e client money
- Complaints handling procedure
- CPD for staff
- LOCOM?
How would you approach accepting gifts?
Would need to consider the following;
- Value
- Given to whom
- reasonable and proportionate (can reciprocate?)
- Proximity
- Firms gift policy
- Decline
What is a conflict of interest?
- An event which may impede your decision making and not act in the best interest for your client
- Party conflict, own conflict and confidential information conflict
What is the Royal Charter?
- Awarded in 1881 by Queen Victoria, to maintain and promote the usefulness of the profession for the public advantage.
Where is the RICS headquarters?
- Parliament Square, London.
What would you say the RICS is?
Through the respected global standards, leading professional progression and the trusted data and insight, RICS promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure. RICS’ work with others provides a foundation for confident markets, pioneers better places to live and work and is a force for positive social impact.
What current themes does Clement Lau FRICS RICS President promote?
- Sustainability
- Connecting with more members
What is the Role of the RICS?
- To Regulate and promote the profession.
- To Maintain the highest standards.
- Protect Clients and consumers through the strict code of ethics.
- Provide impartial advice and guidance.
What are the three market sectors of the RICS?
- Land.
- Property.
- Construction.
What is the Governing Structure of the RICS?
- They meet three times a year.
- New president every year.
- There is a 70 strong governing council chaired by the president.
What is the RICS Matrics?
- A division of the RICS dedicated to student surveyor training.
- Produces a network of Charity and Networking events.
- Promotes seminars and lectures.
What is the Carsberg Report?
- A report undertaken in 2005 as a result of members general dissatisfaction with the RICS’ internal Regulatory procedures.
How many levels of RICS membership are there?
4
- Trainee
- Associate
- Member
- Fellow
How do you become a Fellow?
- 5 years post award MRICS.
- Managerial positions.
- Significant contribution to the profession.
What is the APC?
- The Assessment of Professional Competence is a period of structured training followed by a Final Assessment Interview.
What is LionHeart?
- A charitable fund dedicated to providing support and financial aid to current and past members and their families.
If you become qualified, how will you become involved with the RICS?
- I will attend RICS events.
- Become and APC supervisor.
- Respond to Surveys and Consultations.
- Promote the profession
Would you like to become an APC Assessor?
- Yes, I would like to keep learning and broadening my understanding of the profession.
How do you become an assessor?
- Must be MRICS for three years, plus a 1 day training course.
What benefits will you gain from becoming MRICS?
- International Recognition from clients and peers.
- Competitive Advantage.
- A known level of professional standards.
- Quality assurance to my clients.
- Access to information and training resources.
What is the ‘Black Book’?
- A suite of best practice guidance notes and technical standards for Quantity Surveying and Construction professionals
What is the ‘Red Book’?
- Mandatory rules and Practice guidance for Valuation Surveyors.
What is the difference between a Guidance note and a Practice note?
Guidance Note - Defines good technical standards for quantity surveying and professional standards
How much CPD will i need to complete per year as a member?
At least 20 hours of CPD, 10 formal and 10 informal.
What would I be able to offer as a RICS member?
- International Recognition from clients and peers.
- Competitive Advantage.
- A known level of professional standards.
- Quality assurance to my clients.
- Access to information and training resources.
What are the typical rules for offering PI for your services on a project?
x10 of the fee
What was the last RICS code of practice that you read?
RICS Code of Measuring Practice
CEO of the RICS
Richard Collins
What was the last Professional Statement you read?
How many Professional Statements are there?
5 plus the Rules of Conduct.
They are;
- Bribery, corruption, money laundering and terrorist financing
- Conflicts of interest
- Client money
- Risk, Liability and Insurance
- Client relationships and handling data
Rules for handling client money?
What is CPC’s complaints handling procedure?
Published on what is known as the CPC way.
Outlines that the complaint is to be registered with the project partner, and with a decision tree plan to close out the complaint within 24 hours or 5 days or further if a follow up period is required.
What would i do if i was offered money or a holiday by a client or contractor?
If a client wanted to pay upfront for your service how would you manage it?
How do you come up with a fee for a project?
Give an example of something you learnt from the Client Money Handling professional statement
- Hold all client money in a client money account over which the RICS-regulated firm
has exclusive control at a bank - ensure that money held in a client account is immediately available even at the
sacrifice of interest, unless other arrangements are in the best interests of the client
and the client has given express instructions in writing - ensure that a client money account does not contain any sums other than the
whole or any part of client money paid into it - not hold office money in a client money account
Give an example of something you learnt from the Risk, Liability and Insurance professional statement / guidance note
- a third party is any party who is not party to the member’s contractual
engagement, i.e. parties other than the firm’s client - RICS recommends that members retain their files for 15 years after providing any professional services, to ensure that they have the records necessary to respond to a claim.
- An engagement letter is the contract between the member and the client and sets out the scope of the appointment (i.e. what it is that the member/firm has agreed to do) and the terms governing the appointment.
- Frequently, claims arise because of a mismatch between the work the member intended to do to provide the services, and the work the client anticipated the member would do. The engagement letter is the member’s opportunity to ensure that the client’s expectations match those of the member as to what the member is going to do and, just as importantly, what the member is not going to do.
How long should I keep data for?
RICS recommends that members retain their files for 15 years after providing any professional services, to ensure that they have the records necessary to respond to a claim.
Give an example of something you learnt from the professional statement
Give an example of something you learnt from the professional statement
Give an example of a conflict of interest?
- Party conflict - act in interest of the client as well as another client or party to the same related professional assignment
- Own interest conflict - act in interest of the client which conflicts the interest as the RICS member or firm
- Confidential information conflict - Providing confidential information to one client to hold it from another client when it would benefit that client
What is the structure of RICS?
- Privy Council
- Governing Council
- Standards and regulation board + RICS board
- audit, risk assurance and finance committee + nominations and remuneration committee
