Ethics Flashcards
What is the purpose of the RICS?
a) Global professional, standards and regulatory body
b) secure the advancement and usefulness of the profession for the public advantage - provide expert advice to governments, business & the public
c) set standards in the public interest
d) deliver support that is valued by RICS members and their employers
e) develop professional skills and knowledge
f) expand opportunities for members to apply professional skills
g) regulating skilled professionals with the highest ethical and technical standards
How does the RICS fulfil it’s purpose? - wide!
- Maintains trust and confidence in the profession
- Maintains its own and professions relevance
- Remains financially secure to maintain the RICS for future generations
What does the RICS do to achieve it’s purpose?
- Set standards for entry into membership
- Support trainees
- Maintain a register for members and assuring members continuing competence
- Setting professional and technical standards and regulating against these
- Engaging with members, facilitating networking, gain insight and input to support the work of RICS and members
- Understanding differing markets that global membership works in and ensuring strategies are targeted to be relevant to all members
- Providing guidance, information, knowledge and training
- Working with employers to help them train, develop and support members
- Provide leadership on major issues affecting the natural and built environment and surveying practice
- Engaging with market participants such as governments to increase understanding of the profession, its standards and work to increase professionalism in the sector
- Delivering relevant products and services to third parties to reinvest profits in delivery the purpose of RICS
What is the purpose of the Royal Charter?
-Changes a body from a collection of individuals into a single legal entity
-Requires the RICS to develop the profession for the public advantage
-Requires changes in RICS constitution (bye-laws) have to be ratified by the UK Gov (Privy Council) even after they are approved by the majority of members
-Allows members to use the term ‘chartered’ in their job title
What is the RICS Governance Structure?
Privy Council - grants & award the royal charter
Governing council - made up of:
- Standards and regulation board
- Management board
- Audit, risk assurance & finance committee
- Nominations & remuneration committee
What is better regulation?
It means members aren’t regulated by government. They are internally monitored to meet Government principles
Explain the relationship between the Privy Council and the RICS.
Privy Council - a body set up in the early days of the monarchy to advise the king/queen on matters of state and not put before parliament
Any changes to the bye-laws have to be approved by the UK Government, through the Privy Council, even if the changes have already been approved by a majority vote of RICS members
What are the new rules of conduct?
Members and firms:
1) Must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS. E.g. do not mislead others by their actions or omissions, identify potential conflicts of interest, be open and transparent on fees
2) Maintain professional competence and ensure services are provided by competent individuals with necessary expertise. E.g only undertake work with knowledge and skill for, supervise work undertaken, reflect on work they have done and undertake CPD
3) Provide good quality and diligent service. E.g. Understand client needs before accepting work, agree scope of services, communicate to clients the information that advice is based on
4) Treat others with respect & encourage diversity and inclusion. E.g. respect the rights of others and treat them with courtesy, di not discriminate, work co-operatively with others
5) Act in public interest, take responsibility for actions and act to prevent harm and maintain public confidence in the profession. E.g question decisions suspected that are not right, support colleagues who have acted in good faith to report concerns, respond to complaints made against them properly, openly and professionally, take appropriate action when they consider rules have been breached
What are individuals professional obligations to the RICS?
‘1) Must comply with CPD requirements
2) Must cooperate with RICS
3) Must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising authority on their behalf
What are firms professional obligations to the RICS?
‘1) Must publish complaints handling procedure, which includes ADR provider approved by RICS and maintain a complaints log
2) Ensure all previous and current professional work is covered by adequate and appropriate PII that meets standards approved by RICS
3) Firms with sole principal must make appropriate arrangements for their professional work to continue in the event of incapacity
4) Must cooperate with RICS
5) Must promptly provide all information reasonably requested by the Standards and Regulation Board
6) Must display that they are regulated by RICS on their literature
7) Must report to RICS any matter that they are required to report under the Rules for the Registration of Firms
Give an example of when you acted with integrity on your project?
Client requesting reduction of capex cost for purpose of selling with planning permission and making more desirable. I assessed that this was not ethical and declined the request for cost amendment
What are the ethical standards?
Honesty, Integrity, Competence, Responsibility, Service and Respect
Why were the rules of conduct updated?
- To provide a simpler structure (replaced individual documents for rules for members, firms)
- Provide clear examples to support members’ professional judgement
- Focus on respect, diversity and inclusion
- Understanding evolving technology
- Tackling global challenges including sustainable development
What documents relate to Conflicts of Interest?
RICS PS Conflicts of Interest January 2018, amended in January 2022 to reflect New Rules of Conduct
How is the Conflicts of Interest document built up?
3 parts:
- RICS mandatory rules and definitions
- General commentary as to how firms and members apply the professional statement
- Supporting commentary on how firms and members can meet obligations
Under Conflicts of Interest, what are the mandatory rules?
- Conflicts of Interest - must not advise or represent a client where it would involve a CoI or a significant risk of a COI other than where those who may be affected have provided prior informed consent where it is in the interest of those affected and not prohibited by law and competent, diligent advise is not impacted. Where working independently, records of the decisions must be kept
- Confidential information - Must maintain confidentiality unless disclosure is required or permitted by law. Must provide every client with all the information that is material to that client’s professional assignment
- Firm systems and controls - Firm must have in place effective systems and controls appropriate to the size and complexity of their business to ensure compliance with PS
Under Conflicts of Interest, what Parts of the professional statement ? (incl. types of CoI)
1- Conflicts of Interest
2- Confidential information
3- Firm systems and controls
4- Definitions
5- Scope and application
6 - Effective date (Jan 2018 with 2022 amendments)
What are the commentary notes on Conflicts of Interest?
- Advisory guidance on how to adhere to mandatory professional statements
- Prevent anything getting in way of duty to advise and represent clients objectively and independently
- Protection of development of the profession for public advantage
- Prohibits continuing where no Informed Consent is obtained
- Should only continue with Informed Consent should all parties interests be able to be served
- The uncertainty of the impact of the conflict of interest should be continued even with Informed Consent
- Where a CoI does not exist at the outset and should be considered as assignments progress
What documents are you aware of relating to Bribery and Money Laundering?
RICS PS Countering Bribery and Corruption, Money Laundering and Terrorist Financing 2019
Bribery Act 2010
Sanctions and Anti-Money Laundering Act 2018
Arup’s Business Integrity Code of Practice
What are the three parts of the RICS PS on Bribery & Money Laundering?
1: Mandatory requirements
2: Guidance on good practice
3: Supplementary guidance
What must RICS firms /members do in relation to bribery & corruption?
Firms
- Not offer or accept anything that could constitute a bribe
- Have plans in place to comply with applicable laws
- Report activity / breaches they are aware of
- Act with due diligence to perform periodic evaluations of risks facing the firm
- Retain information on how firm meets the requirements
- Register gifts etc
- Provide guidance to staff
- Appoint contactable person for ethical matters
Individuals
- Ensure adequate knowledge on bribery and corruption
- Report
- Not offer or accept
What are the 4 crimes under the Bribery Act 2010?
- Receiving a bribe
- Giving a bribe
- Bribing a public figure
- To not have procedures in place to mitigate / prevent bribery
What policies does Arup hold relating to Bribery, Money Laundering and Conflicts of interest?
Business Integrity Code of Practice sets out firms policies and requirements for members on Bribery & Corruption; H&S; Gifts & Hospitality; Conflicts of interest etc
What is Arup’s policy on Gifts and Hospitality?
- Regard cultural perspectives when considering gifts
- Consider the implications of offering / accepting
- Not accept or offer where it is felt objective judgement will be impaired
- Request gifts or hospitality
What is Arup’s policy on fraud?
- Maintain strong internal controls, checks and balances
- Make sure expenditures are approved
- Only make financial commitments on behalf of Arup where we have authority to do so
- Report any suspected
- Not claim recompense for something not believed entitled to
What is Arup’s policy on Conflicts of Interest?
- Monitor throughout project’s lifestyle
- Be objective and transparent in managing a COI
- Seek guidance from the Legal team
- Don’t act as an expert in a case where Arup has an interest
- Judge one part of Arup’s designs in an external competition
How does the RICS ensure members abide by the Rules of Conduct for Members?
- Regulatory Tribunal Rules set out processes
- Where serious enough Head of Regulation will consider disciplinary action
- Where less serious and member admits allegations, Head of Regulation may impose Regulatory Compliance Order
- Where less serious and member does not admit allegations, case may be referred to Single Member of the Regulatory Tribunal
- Most serious, Disciplinary Panel may be drawn from the independent Regulatory Tribunal and conduct hearing and impose sanctions
Head of Regulation at the RICS investigates claims of misconduct. They have the power to:
1. Serve a Fixed Penalty notice
2. Make a Regulatory Compliance Order
3. CPD sanctions
4. Refer to a Disciplinary Panel
Member has right to appeal decision made at a Disciplinary Panel by going to an Appeal Panel
What are the aims of Rules of Conduct? 2022
Support positive change in the built environment through promoting and enforcing highest ethical standards. Based on ethicalprinciples of honesty, integrity, competence, service, respect & responsibility
What are the 5 rules of conduct? 2022
- Members must act with honesty, integrity and comply with professional obligations
- Must maintain professional competence and ensure services are provided by competent individuals
- Must provide good quality and diligent service
- Must treat others with respect and encourage diversity and inclusion
- Must at in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession
What professional obligations to the RICS do members have? 2022
- Must comply with CPD requirements
- Must co-operate with the RICS
- Must promptly provide all information reasonably requested by the Standards and Regulation board
What professional obligations to the RICS do firms have? 2022
-Must publish complains handling procedure including dispute resolution provider and complaints log
- Ensure previous and current work is covered by PII that meets RICS standards
- Sole principals must make appropriate arrangements for professional work in the event of being unable to continue e.g. death
- Must co-operate with RICS
- Must provide all information reasonably requested by Standards and Regulation Boar
Must display on their business literature a designation to denote they are regulated by RICS
Must report to RICS any matter that they are required to report under the Rules for the Registration of Firms
What is the RICS Governing Council?
Manages the Royal Charter Obligations, setting direction and strategy
Establishes the Regulatory Board, Management Board and other committees (e.g. Audit Committee)
