Ethics Flashcards
What are the RICS Rules of Conduct?
- Honesty- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Skills/experience- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Service- Memebers and firms must provide good-quakity and diligent service.
- Respect- Members and firms must treat others with respect and encourage diversity and inclusion.
- Public Interest- 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.
What are the 6 sections under Conduct & Competence?
- Rules of Conduct
- Conflicts of Interest
- Bribery, Corruption, Money Laundering & Terrorist Financing
- Risk, Liability & Insurance
- Client Relationships and Handling Data
- Client Money
What is Better Regulation?
Better Regulation relates to RICS’ efforts to improve the regulatory framework and processes that govern the land, property, and construction sectors.
RICS aim to strike a balance between protecting the public interest and enabling economic growth and innovation.
The 5 principles are:
- Proportionality.
- Accountability.
- Consistency.
- Targeting.
- Transparency.
What were the recent changes in the RICS Rules of Conduct?
Revised rules are simpler and highlight transparency, ethical behaviour and sustainability
- New Rules of Conduct to underpin confidence of clients, markets and the public
- Principles and standards of professional practice set out for RICS members worldwide
- New emphasis on diversity and inclusion
- Focus on sustainability in professional development to help clients meet climate targets
What is the CPD requirement for a chartered surveyor?
20 hours per year, with a minimum of 10 formal hours.
What is the structure of the RICS?
The RICS is self-regulated and internally monitored meaning that it is not regulated by the Government or external parties.
* The Bye-Laws determine how the RICS is regulated.
* The Governing council manage and agree the strategy for the RICS.
* The Regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them.
What are the professional obligations of firms?
- Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
- Firms must ensure that all previous and current professional work is covered by adequate and appropriate professional indemnity cover that meets the standards approved by RICS.
- Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work.
- Firms must cooperate with RICS.
- Firms must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
- Firms must display on their business literature, in accordance with RICS’ published policy on designations, a designation to denote that they are regulated by RICS.
- Firms must report to RICS any matter that they are required to report under the Rules for the Registration of Firms.
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 in a complaints proceeding?
- Fixed penalty.
- Consent order.
- Disciplinary panel.
What are Fixed Penalties?
A fine by 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.
What sort of breaches would expulsion from the RICS be suitable for?
- Gross, persistent or willful failure to comply with an RICS rule of conduct.
- Fraud, dishonesty, conviction of a serious criminal offence, gross incompetence, deliberate discrimination, misappropriation of a client’s money.
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 is meant by the term Negligence?
- Negligence is a failure to provide the duty of care that is owed to the client.
- 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.
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:-
o Stage 1 is where there needs to be consideration of the complaint by a senior member of the firm or the complaints handling officer.
o 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 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 purpose of Professional Indemnity Insurance?
To provide financial cover in the event a client suffers financial loss as a result of a breach of professional duty e.g. neglect, errors or omissions.