Ethics Flashcards
Can you explain your use of the ethics decision tree
Supports the new rules of conduct
Connects the ethical, professional and more requirements for RICS members, providing a decision-making framework to deal with testing ethical dilemmas
What does the ethics decision tree actually do?
Helps support decisions on when to act and what you can do to ensure you’re are approaching ethical dilemmas appropriately
Has several check stages to go through to ensure you have considered all factors in your decision making
What is the role of RICS?
Support highest standards of ethics in the industry
Maintain highest standards of education and training in the industry
Promote public confidence in the profession through strict regulation
Be a leading source of information and advice
What are the key functions of RICS?
Consumer protection
Quality assurance
Set standards
Accredit professionals
Influence policy
Can you tell me what you understand by the principles of better regulation?
TPACT
Transparency
Proportional
Accountable
Consistent
Targeted
What is a bye-law?
Regulation made by a local authority or corporation
Give an example of one of the RICS bye-laws?
2 Membership and Registration
3 Designations
4 Contributions to funds
5 Conduct
Explain to me the new RICS Rules of Conduct - what do they replace?
RICS Rules of Conduct 2022 replaces RICS rules for members and firms
What are the core professional obligations of firms and members to RICS?
Cooperate with RICS
Comply with CPD requirements
Publish complaints handling procedure including ADR
Designation of what is means to be regulated by RICS included within ToE
When did RICS last update their discplinary panel rules?
RICS Disciplinary, Registration and Appeal Panel Rules, 2019
What does ‘claims made’ mean in terms of PII?
Insurer will only cover you for claims that are brought against you during the term of your policy
What RICS requirements are there relating to run off cover?
Minimum limit of £1,000,000 for period of 6 years from expiry date of policy
How long can a PII claim arise after the work is undertaken
6 years – Limitations Act 1990
What is the Assigned Risks Pool (ARP)?
For firms who are unable to obtain PII in the insurance market – provides emergency cover for a period of up to 2 years so that firms can continue to practice
Who might need to access the ARP?
Firms who are unable to obtain PII in the insurance market
What RICS guidance is there on PII?
Professional Indemnity Insurance Requirements, 2022, Regulation note
Explain your understanding of the RICS Guidance Note Risk, Liability and Insurance
RICS, Risk, Liability and Insurance, 2021 guidance note
Assists members and Clients in understanding the main risks and liabilities associated with surveying
- Liability caps
- Third party reliance
- Terms and conditions
- PII
Explain when you might agree a liability cap
Contractual agreement that a Client can only claim damages up to the amount agreed
Ensure there is a fair allocation of risk and reward between members and their clients - regulate risk
How would you set out third party reliance in Terms of Engagement?
Firms make clear in their ToE that their advice may only be relied upon by the named Client – this gives control over future requests for third party reliance
What are the three key terms that should be considered from a risk perspective in the context of every instruction you undertake?
Scope of the work
Basis on which the fee will be calculated
Liability cap
What is double dipping (dual agency)?
Conflict of interest – representing both seller and buyer
Why is double dipping (dual agency) an unacceptable practice?
Cannot act in the best interest of both Clients
Conflicts of interest
How would you close down a regulated firm?
Agree closure date
Inform staff and take necessary steps to end employment
Inform Client and recommend another firm
Deal with / return Client money
Notify PII insurers and arrange run-off cover
Keep files for minimum 6 years
Inform RICS
What are the current RICS rules for registration of firms?
RICS Rules for registration of firms, 2022, Regulation note
What is a phoenix firm?
When a firm closes in a disorderly way and then re-registers as a new trading entity
Who is a Responsible Principal?
Someone who has primary responsibility for ensuring that RICS professional, technical and ethical standards are applied, upheld and supported
Explain the key themes from the RICS Futures 2020 Report
About change and how we respond to change
- Building roads from plastic
- Extracting utility form big data
- Adopting drone technology
- Protecting cities form Climate change
Explain your understanding of the RICS Levitt review
RICS audit in 2021
No evidence of misconduct – wholly avoidable problem - moral of story is to be transparent if problems are uncovered.
What is whistleblowing?
A person who reveals information about activity within a private or public organization that is deemed illegal, immoral, unsafe or fraudulent
RICS have new whistleblowing procedure
Explain what the Pandora Papers are and the ethical issues raised within them.
2021 leak of nearly 12 million documents incriminating politicians in tax avoidance and corruption
Important to ensure RICS members are not facilitating or involved in criminal activities
What are the key values of the interim Governing Council statement relating to ethics, behaviour and culture?
Integrity
Transparency
Inclusion
Collaboration
Advocacy
Passion
Explain what you understand by the RICS Bichard Review
Commissioned following the 2021 Levitt review to investigate the purpose, governance and structure of RICS
Explain some of the recommendations of the Bichard Review
36 recommendations published
Public interest panel should be established to advise the governing council
A commercial committee should be established to have oversight of RICS commercial activities
How will these Bichard recommendations be implemented by RICS?
5 new working groups established to take them forward
What is modern slavery and how would identify red flags of it?
Modern Slavery Act 2015
- Evidence of workplace being used for accommodation
- Workers look distrustful, uneasy, or malnourished
- Signs of psychological trauma
- Untreated injuries
Explain the implications of the Sanctions and Anti-Money Laundering Act 2018
Allows UK to impose economic and other sanctions, and money laundering and terrorist financing regulations once it left the EU
What is the Sanctions List and why should you be aware of it?
Countries, regimes, and individuals who are subject to sanctions in response to illegal activity
Why was the Register of Overseas Entities introduced?
Register of Overseas Entities under the Economic Crime (transparency and enforcement) Act 2022
Strengthen UKs fight against economic crime
Explain the impact of the Economic Crime (Transparency and Enforcement) Act 2022
Requires anonymous foreign owners of UK property to reveal their identities
When was the money laundering and terrorist financing legislation updated?
The Money Laundering and Terrorist Financing (amendment) regulations 2022
Updated to expand information on transfers involving cryptoassets and cryptocurrency
