Ethics Flashcards
What is the role of the RICS?
To advance the highest ethical and technical standards.
To protect clients and consumers by enforcing standards and code of best practice.
To provide expert impartial advice.
What is your RICS membership number?
6781766
Who is the president of the RICS?
Ann Gray (April 2023)
Who is the president elect of the RICS?
Tina Paillet (April 2023)
Who is the vice president of the RICS?
Vacant (April 2023)
Who is the head of regulation in the RICS?
Dame Janet Paraskeva
Who is the head of the privy council?
Lord President - Jacob Rees Mogg
Who is the CEO RICS?
Richard Collins (Oct 2021) - Interim
Replaced Sean Tompkins
How many members of the RICS are there?
140,000 across 146 countries
What is the RICS London HQ address?
12 Great George Street (Parilament Square)
Westminster
London
SW1P 3AD
What does RICS stand for?
Royal Institution of Chartered Surveyors
What is the meaning of the RICS Motto?
The motto is ‘Est Modus in Rebus’ which in Latin translates to ‘There is measure in all things’.
What is Lionheart?
An independent charity run by RICS professionals, for RICS professionals.
Benevolent fund established over 100 years ago.
Services include a range from financial support, health and wellbeing packages, free professional counselling, work related support and legal advice.
When was the RICS Founded?
1868
Why do you want to be a chartered surveyor?
RICS is the largest international property institution in the world. I will receive global recognition and become part of an international professional community.
I will have elite professional status, guidance, information and support.
What is the role of the Standards and Regulation Board?
It has exclusive responsibility for strategy, policy and operational oversight of the standards, entry and admission to the profession, as well as regulatory functions of the RICS.
What is the RICS Matrics?
It supports new members entering the profession, as well as helping shape the future of surveying and grow the size and respect of the profession.
What is the Royal Charter?
Awarded in 1881 by Queen Victoria.
The Royal Charter requires the RICS to promote usefulness in the profession.
What are the various RICS statuses?
Trainee
Student
Graduate
Assoc RICS
Member RICS
Fellowship RICS
How many RICS professional groups are there?
18
Name some RICS faculties?
Quantity Surveying
Building Surveying
Project Management
Valuation
Facilities Management
Dispute Resolution
What is the role of the Governing Council?
Set global strategy, ensure RICS fulfils its Royal Charter obligations and enforce professional standards.
What is the ISO Standard for anti-bribery?
37001
What is the ISO Standard for Corporate Social Responsibility?
26000
How many Global Professional and Ethical standards are there?
There are 5:
1. Act with Integrity
2. Provide a high standard of service
3. Treat others with respect
4. Promote trust in the profession
5. Take responsibility
What is the difference between RICS ethics and rules?
Ethics are a set of moral values.
Rules of conduct are a framework that we work to.
What are the RICS’ 5 principles of better regulation?
Proportionality.
Accountability.
Consistency.
Targeting.
Transparency
What are the New Rules of Conduct?
Rule 1. Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
Rule 2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Rule 3. Members and firms must provide good-quality and diligent service.
Rule 4. Members and firms must treat others with respect and encourage diversity and inclusion.
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.
Why did the previous Rules of Conduct change?
The previous rules had been in place since 2007.
Following research and consultation with RICS Members, Firms and Members of the public, the majority voted in favour of replacing the existing Rules of Conduct and separate Global Professional and Ethical Standards.
To provide a single document to enable greater clarity for RICS members and firms.
What are the professional obligations of members?
Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
Members must cooperate with RICS.
Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
What is the RICS black book?
A suite of guidance notes that define good technical standards for a QS & other construction professionals.
What are there RICS black books on?
Cost Reporting
Interim Valuations and Payment
Management of Risk
Tendering Strategies
Surveying Safely
Are guidance notes compulsory to follow?
No. They outline best practice. However, if there was a case of professional negligence, the court would take into consideration whether or not guidance notes were followed.
Are practice notes compulsory?
Yes.
Can you provide some behavioural examples that comply with Rule 1, of the Rules of Conduct?
Do not mislead others by their actions or omissions.
Members and firms are open and transparent, and do not take unfair advantage of others.
Can you provide some behavioural examples that comply with Rule 2, of the Rules of Conduct?
Only undertake work that they have the knowledge, skills and resources to carry out competently.
Supervise any employee undertaking work for them to ensure competence.
Maintain and develop their knowledge and skills throughout their career. Undertake necessary CPD.
Can you provide some behavioural examples that comply with Rule 3, of the Rules of Conduct?
Understand clients’ needs and objectives before accepting work.
Agree the scope of service with the clients, including limitations and timescales for the work.
Work must be undertaken in a timely manner; with due care, skill and dilligence.
Communicate with clients and others clearly.
Can you provide some behavioural examples that comply with Rule 4, of the Rules of Conduct?
Respect the rights of others and treat others with courtesy.
Do not bully, victimise or harass.
Develop an inclusive culture in their workplace, support equal access and opportunity for all. Address unconscious bias.
Can you provide some behavioural examples that comply with Rule 5, of the Rules of Conduct?
Support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns.
Respond to complaints promptly, openly, and professionally.
Take appropriate action when they consider that the rules have been breached, and report breaches to RICS.
What is an RICS Code of Practice (CoP)?
A document developed in collaboration with other professional bodies and stakeholders that provide users with recommendations on best practice. Have the status of a professional statement or guidance note.
What is an RICS professional Statement (PS)?
Mandatory requirements for RICS members and regulated firms.
What is an RICS Guidance Note?
A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
What is an International Standard
High-level standard developed in collaboration with other relevant bodies - MANDATORY.
What is an RICS Jurisdiction Guide?
This provides relevant local market information associated with an RICS international standard or RICS professional statement.
This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement.
When was the Bribery Act introduced?
2010, came into force in 2011.
What are the principles of the Bribery Act? (6)
Proportionate procedures
Communication
Risk assessment
Top-level commitment
Due diligence
Monitoring and review
What do you know about the Bribery Act?
It is legislation that makes bribery illegal for companies working in UK.
Also holds UK companies accountable for failing to prevent such acts by those working for or on its behalf, no matter where the act takes place.
What happens if you commit an act of bribery?
Up to 10 years in prison.
Excluded from RICS.
Unlimited fine.
Banned from being a director of any company.
How do you deal with a conflict of interest?
Openness and transparency.
What is PII?
Professional Indemnity Insurance.
Covers a firm for a claim for financial loss.
Clients can recover their financial losses.
Minimum level of cover based on turnover in the previous year.
What are the levels of cover advised by the RICS?
£100k or less turnover - £250k
£100k - £200k turnover - £500k
£200k or over - £1,000,000
What is the Assigned Risk Pool?
The ARP panel is a facility for trading member / firms who find themselves unable to obtain insurance in the open market.
It comprises a panel of a RICS chairman, members of the professional indemnity insurers and RICS members.
The initial period of cover is 12 months, to allow the firm time to return to the open PII market.
What does the RICS advise as the maximum level of uninsured excess on a PII policy?
Firm turnover in the preceding year
£10,000,000 or less - The greater of 2.5% of the sum insured, or
£10,000
£10,000,001 and above - No limit set
What is run-off cover?
Ensures firms, members and their customers are not exposed to detriment in the period following a firm ceasing to trade. Minimum run-off cover is 6 years.
Your brother-in-law is a chartered surveyor. You find out that he is
working outside the RICS Rules of Conduct. What do you do?
I verify the facts and confront him reminding him of his duties as a member of the RICS.
I inform the RICS specifying my relationship to the person and any corrective action which I believe my brother-in-law is committed to put in place.
In the case of a breach of a rule of conduct what is the procedure?
Not every shortcoming will necessarily give rise to proceedings.
A formal investigation by the Head of Regulation of the RICS is the first step in the process.
The RICS can request information and/or visit and inspect to investigate compliance.
Members must cooperate fully with all enquiries.
How can a disciplinary proceeding be triggered?
Someone complaining to the RICS.
An allegation by a client or third party.
Information received or established by the RICS.
What three actions can be imposed after the end of the investigation
stage?
Fixed penalty.
Consent order.
Disciplinary panel.
What are fixed penalties?
A fine by the RICS.
What are consent orders?
It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS rules.
It can require the member to take certain corrective actions, or restrain them from taking certain actions for a specified period of time and may require them to pay a fine or costs.
Do you know any case law regarding run-off cover?
Merrett v Babb (2001)
The defendant, a chartered surveyor, was employed by a firm of valuers (owned by an individual) as manager of one of the firm’s branch offices. In the course of his work the defendant carried out a mortgage valuation for a building society, signing the valuation report in his own name and stating his professional qualifications. By the time the house purchaser sought to bring an action for negligence on the basis of this report the owner of the firm had become bankrupt and the firm’s professional indemnity insurance policy had been cancelled. The firm was therefore not worth suing.
The Court of Appeal held by a majority that the purchaser was entitled to recover damages from the defendant personally, despite the fact that the purchaser had not actually seen the valuer’s report and was unaware, at the time of purchase, of his identity.
Can come after the individual if business ceases trading therefore need to keep PI run off.
What is the name of the RICS journals?
MODUS
Are you aware of any RICS Regulation on the use of social media accounts?
Use of Social Media: Guidance for RICS members V1 - Effective 30th June 2021.
What are the various professional standards?
Professional Statements - Contain mandatory requirements.
Guidance Notes - Non mandatory requirements.
Assessment of Professional Competence (APC) - Requirements and guidelines for entry into the profession.
Data Standards - Software programmes and technology can adopt RICS standards into their offering.
Are you aware of any regulation associated with the use of the RICS logo?
RICS Rules for the use of the RICS logo and designation by firms.
What complaints can the RICS investigate?
Any breach of their conduct.
They will not investigate whether a high level of service is provided.
What is the RICS ethics decision tree?
Sufficient facts?
Legal?
In line with RICS Rules of Conduct?
Consulted with appropriate people?
Clear Reasoning?
Is your decision informed?
Would you be ok if your actions were made Public
What should you send accompanying a fee proposal?
A set of T&Cs.
A scope of services document.
What is your company’s business plan?
My company has a 2030 strategy to:
Lead by example striving to uphold our high performance.
Focused on profitable outcomes to create sustainable shareholder returns.
Embracing our evolving industry, taking a considered approach to innovation.
Growth led with positive ambition.
What are your company’s KPIs?
Carbon Footprint
Profitability
Employee Training
Employee Satisfaction
What is the client’s money protection scheme?
A scheme run by the RICS for clients to recover money that is lost by a firm.
What is the IES?
International Ethical Standards.
What is a conflict of interest?
Anything that may impede, or be could be seen to impede, and firm or individual’s ability to act impartially and in the best interest of the client.
Can you explain how you act with integrity?
Do not mislead others.
Being open and transparent in the way I work.
Not offering or accepting gifts, hospitality or services.
Why must you act within your professional competence?
To ensure I do not advise my clients incorrectly which could lead to a complain or claim of negligence.
Can you explain how you take responsibility?
Be accountable for my actions and act with skill, care and diligence.
Ensure an appropriate complaints handling procedure is in place.
Carry out appropriate risk assessments.
Wear appropriate PPE.
Can you explain how you treat others with respect?
I treat others with courtesy and politeness.
I am considerate to clients and I never discriminate.
Can you explain how you provide a high level of service?
I always ensure my client receives the best possible advice and support.
I act within my scope and competence.
I am transparent about fees and communicate in a way that allows my client to make informed decisions.
Can you explain how you promote trust?
Act within my scope of competence.
Provide a high level of service.
I am open and honest.
I act in a trustworthy manner
What insurances would you need if you were starting up your own
firm?
Professional Indemnity Insurance.
Employer’s Liability.
Public Liability.
Building’s insurance of an office premises.
What processes do regulated firms need to put in place when handling Clients’ Money?
Preserve the security of clients’ money which does not belong wholly to the company.
RICS regulated firms that operate a client account must:-
- Set clear segregation of duties for employees.
- A Principal oversees the client money accounting functions.
- Competent and knowledgeable staff are to process clients’ money with cover provided for long term absence.
- Accounting systems and data must be secure.
- Client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name.
- Clients must always have access to funds.
- We must agree the terms and advise the client on bank details.
- The account must not be overdrawn.
- We must maintain client ledgers and provide a running balance.
What are the different types of client money accounts?
General accounts hold money for more than one client.
Discrete accounts reference a single named client.
Accounts should be separate and clearly identifiable.
The word ‘client’ should be used in the account name.
Money should be available on demand.
You should have written agreement with client regarding the payment of interest.
What is meant by the term Negligence?
A duty of care is owed to all clients and 3rd parties using reasonable skill and care.
If it is breached due to Negligence a claim may arise resulting in damages being paid or a Professional Indemnity Insurance claim.
Negligence is a failure to provide the duty of care that is owed to the client.
What limitation periods are associated with underhand and deed
forms of contract?
6 years when executed under hand.
12 years when executed as a deed.
What must a complaints handling procedure include?
The RICS provides a model form.
The process must include a redress mechanism.
Details of the policy should be issued to the client with the Terms of Business.
It must be clear, quick, transparent and impartial and free of charge within the first stage.
Names and contact details of the nominated investigating person must be stated.
The complaint must be investigated within 28 days.
All complaints, their progress and outcomes must be recorded.
We must note the need to advise PI insurers of a complaint immediately.
The process must have two stages as a minimum:-
- Stage 1 is where there needs to be consideration of the complaint by a senior member of the firm or the complaints handling officer. Response within 28 days.
- Stage 2 if the issue is not resolved, the complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costs at this stage.
What is an independent redress scheme?`
It is a consumer scheme designed to handle small issues that would be disproportionally expensive to take to court.
If the scheme judges in favour of the complainant, it is binding.
If it judges in favour of the firm, the complainant can escalate the matter to court.
RICS firms must specify which redress scheme they want to use, it could be an ombudsman, arbitration or sometimes adjudication.
If the complaint relates to a large amount of money or if the complainant wishes so, he can take the matter to court.
What do you do if you receive a letter of complaint?
I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing additional information as required.
I would also highlight the importance of informing our Professional Indemnity insurance providers immediately.
What is the ‘Clients’ Money Protection Scheme’?
This is a money protection scheme operated by the RICS.
It contains provision for any member of the public to be reimbursed their direct loss of funds when using an RICS regulated firm.
This is provided through an RICS insurance policy.
What is the purpose of the joint names on a client account?
For the purpose of dual authorisation.
What are the continuous professional development (CPD)
requirements?
A minimum of 20 hours CPD must be achieved per calendar year, of which a minimum 10 hours must be formal.
On request by the RICS they must provide evidence that they have carried out the CPD to maintain and improve their levels of professional competence.
How do you differentiate between the different categories of CPD?
CPD Decision Tree
What types of articles do you read?
I read the RICS journals (Modus, Construction Journal, RICS regional magazine).
I also keep up to date via the RICS website, Building Magazine, Estates Gazette and BCIS updates.
What recent article have you read from the RICS?
MODUS
What are the latest trends in modular construction?
In the UK - the largest housebuilders are seen to be using MMC at around 27%, with the aim of increasing this to 30% by 2025. This leads to increased quality, reduced waste and less time on site.
Timber framing is one of the most frequent uses that is being seen, saving 7 tonnes of C02 emissions over its lifetime.
There have been concerns over build quality in recent times, although improved laser technologies have minimised defects.
Simplifying the manufacturing process and prefabricating off site will lead to a reduction in housing shortage, whilst also reducing the price if building taller.
How do you keep up to date with topical issues?
I am on the mailing list for several CPD providers.
I follow updates on the RICS website and Construction Journals.
What are the requirements regarding Professional Indemnity
Insurance set by the RICS?
The policy cover must be made on an ‘each and every’ claim basis.
The RICS sets out the minimum levels of indemnity.
The RICS sets out the maximum levels of uninsured excess.
Run off cover must be in place for at least 6 years.
The policy should include cover for past and present employees, directors and partners.
What measures should be taken to try and avoid PI claims?
Keep full and detailed records of meetings and conversations.
Record recommendations and advice given.
Use proper letters of engagement, scope of services and terms of engagement.
Don’t advise on a specialism outside your field of experience.
Use RICS guidelines.
Avoid poor management and excessive workloads.
If you made a mistake in your cost plan what would your insurance company expect?
For you to notify them and comply with any conditions & procedures set out in the insurance policy.
If an estimate prepared by a QS is incorrect can the client claim damages?
An estimate that is incorrect in itself will not provide the client with a right of redress.
The client must demonstrate that the QS warranted the accuracy of the estimate or that it was incorrect due to a lack of reasonable skill and care.
It could have been incorrect due to reasons outside their control for example market conditions or an item referred to in their exclusions.
How can you limit your liability when agreeing terms of appointment
with a client?
Base the appointment on reasonable care and skill rather than fitness for purpose which is more onerous.
If the client’s requirements are performance based, this may imply fitness for purpose. It is advisable to request a clause limiting the appointment to reasonable skill and care only.
Run off cover must be in place.
Execution of the appointment under hand will result in a reduced liability period of 6 years instead of 12.
What are the main elements included within a fee proposal?
Terms and conditions.
Scope of services.
Exclusions.
Assumptions.
If you put together a fee proposal, but a couple of months into the job
you realise that you have under forecasted your resources, would you
go back to the client and ask for more money?
If project requirements such as the services, scope or value of the project has increased then I would go back to client and request a fee increase.
If the scope of works had remained the same, this highlights a mistake within our fee bid and the additional work would need to be carried out without reducing the level of service being offered and without requesting additional fees from the client.
Once you and your client agreed the services that are to be provided
verbally what would you do next?
Follow up with a formal letter which includes the terms and conditions, fees and scope of services that are to be provided.
