Ethics Flashcards
What are the Rules of Conduct?
Set core expectations for professional practice by members and firms.
Who do these rules apply to?
All members and firms regulated by the RICS (ByeLaw 5.1)
When are they effective from?
2nd February 2022
What are the five rules?
“Rule 1 - Members and firms (M’s & F’s) must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS.
Rule 2 - M’s & F’s must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
Rule 3 - M’s & F’s must provide good quality and diligent service.
Rule 4 - M’s & F’s must treat others with respect and encourage diversity and inclusion.
Rule 5 - M’s & F’s must act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence the profession”
“Rule 1 Example? - Honest, act with integrity
and comply with their professional obligations”
I always act with professional integrity.
For example, I was offered the opportunity to attend a sporting event as a guest of another company. I declined the offer as it was not proportionate.
“Rule 2 Example? - maintain their professional competence
and ensure that services are provided by competent individuals”
“I was asked professional advice by a friend.
I declined as I felt I could not do this without correct PII in place and proper TOE. I referred them to the RICS find a Surveyor service.
Rule 3 Example? Provide good quality and diligent service.
I take the time at the start of a project to meet my Client, understand their objectives for a project, and clarify these in writing from the start
What is a royal charter?
“Oldest form of sovereign incorporation (creation of legal entity).
Today new charters are usually conferred on bodies such as professional institutions and charities working in the public interest, which are able to demonstrate financial stability and permanence, and pre-eminence in their field.”
What is the role of the RICS?
Advancing the highest ethical and technical standards for professionals in land, property and the built environment. Protecting and providing benefits to consumers by enforcing standards and codes of best practice. Providing expert impartial advice to governments, business and the public.
Who is the current RICS president?
Ann Gray (1st Jan 2023)
Give one example of an RICS bye law?
“Members must conduct themselves in a manner befitting membership of the RICS
“
What is self regulation?
RICS self-regulates, meaning that it operates within it’s own published regulatory framework, rather than being legislated by Government.
What do the new rules of conduct replace?
“3 documents:
Rules for firms,
Rules for members,
Global ethical principles.
In effect from Feb 2022.”
What disciplinary actions can RICS take/impose?
For less serious offences a Regulatory Compliance Order to ensure future compliance. Can include fines, caution or conditions of membership. Serious offences may mean facing a disciplinary panel and can levy sanctions incl expulsion and costs.
What money laundering and bribery legislation are you aware of?
“Bribery Act 2010;
Proceeds of Crime Act 2002;
The Money Laundering, Terrorist Financing and Transfer of
Funds (Information on the Payer) Regulations 2017.”
What is the RICS requirements for PII, including run-off cover and levels of cover
“RICS require regulated firms have adequate PII cover including a min of 6
years run-off cover with £1m aggregate cover on a claims made basis with
availability also through Assigned risk pool. Min levels required =
£250,000 for £100,000 income or less,
£500,000 for £101,000 - £200,000 income and
£1m for £201,000 +”
What are the professional Obligations of Members?
“CPD Requirements of 20 hours, minimum 10 Formal
Cooperate with RICS
Provide all information reasonable and requested by RICS.”
What are the professional Obligations for Firms?
“Those with sole principal must have adequate arrangements for their work to continue in the event of incapacity.
Co-operate with RICS
Display that they are regulated by RICS on literature
Report to RICS any matter that are required to under the rules of Registration of Firms.
PII Cover
rules of Conduct”
Why do RICS have rules of conduct?
“Framework can all work to so that any clients know they are getting a set level of service
Tool for institution and professional guide.
“What steps would you need to take when
setting up in Practice?”
“nform RICS that you are registering as a regulated practice
Appoint a contact officer
Register for Regulation with RICS
Arrange PII
Set up Client Account for Handling Client money
Set up a complaints handling procedure
Set up arrangements for CPD and Staff training
Run off cover?”
“What requirements for handling Clients Money
are there?”
“Clients must always have access to funds
Must be kept separately and clearly identifiable
Interest on account must be agreed with client
Maintain clear ledger/running balance of any transactions
agree terms and advise clients on the bank details
must never be overdrawn”
What are the 5 principles of better regulation?
“PACCT
Proportionality
Accountability
Consistency
Targeting
Transparency”
What sort of information do registered firms have to provide RICS with annually?
“Annual Return (on-line) -
Types of business and staffing.
Nature of clients
Training Provisions
Complaints procedure & log
PI insurance details
Details on whether any client moneys are held”
What are the components for a complaints handling procedure?
“RICS provides a model form….
Redress mechanism
Provided in terms of business
Clear, quick, transparent, impartial and free of charge
Name & contact info of nominated investigator
Complaint to be investigated in 28 days
All complaints, progress and outcomes to be recorded
Advise PI of complaints
2 Stages: Complaint considered by internal senior member of firm, if not resolved then referred to independent 3rd party with the authority to award redress”
Why do you want to be a surveyor?
I want to be part of a prestigious organisation that works toward the promotion of the industry I am passionate about
“How many years after instruction has been completed can a
professional indemnity insurance claim be made?”
15 years
“What type of cover is needed to cover a claim brought after a
firm/member ceases to trade?”
Run-off Cover
What is the role of RICS?
Global leading professional body promoting the highest standards in the property industry
When did the Bribery Act 2010 come into force
1st July 2011
If you are sole practitioner what do you need to have in place?
A locum to cover incapacity/death
Name some potential sanctions by the RICS
“Fixed penalty notice
Consent order
Interim measure
Panel hearing
Expulsion”
What is the Key objective of the RICS? Hint - usefulness
To promote usefulness of the profession for the public advantage.
