Ethics Flashcards
RICS Ethical Principles
honesty, integrity, competence, service, respect and responsibility.
What does professional & ethical practice by RICS members provide?
- foundation for effective markets,
- pioneers better places to live and work,
- is a force for positive social impact.
What are the RICS 5 Rules of Conduct
- Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS. - Members and firms must maintain their professional competence and ensure
that services are provided by competent individuals who have the necessary
expertise. - Members and firms must provide good-quality and diligent service.
- Members and firms must treat others with respect and encourage diversity and
inclusion. - 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.
Examples of RICS Rule 1 (be honest, act with integrity)
- do not mislead others
- do not allow themselves to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments)
- identify actual and potential conflicts of interest
- be open and transparent about fees and services
- do not take unfair advantage of others
- protect confidential information
- do not misuse client money or facilitate any financial crime
Examples of RICS Rule 2 (maintain professional competence)
- only undertake work that they have the knowledge, skills and resources to
carry out - supervise employees undertaking work for them and ensure they have the knowledge, skills and resources
- check that subcontractors have the necessary knowledge, skills and
resources - reflect on the work they have undertaken and how to apply lessons learned to their future work.
- maintain and develop knowledge and skills throughout their careers (CPD)
- Stay up to date and comply with relevant legislation, codes of practice and
other professional and relevant technical standards
Examples of RICS Rule 3 (good quality service)
- understand clients’ needs and objectives before accepting work
- agree with clients the scope of the service to be provided and its
limitations, and timescales - inform clients and seek their agreement if any
of the terms of engagement or estimated fees or costs be changed - undertake their work in a timely manner; with due care, skill and diligence
- communicate with clients and others clearly and in a way they can understand
- ensure that any referral or introduction they make for a client is in the best
interests of the client - keep proper records of their work to allow their work to be audited
- when advising clients about projects, encourage solutions that are sustainable
- understand the risks and benefits of using relevant technology.
- check that all data used is accurate and up to date, is kept securely
Examples of RICS Rule 4 (respect & diversity)
- respect the rights of others
- treat everyone fairly and do not discriminate against anyone
- do not bully, victimise or harass
- report abusive labour practice
- work cooperatively with others
- develop an inclusive culture in their workplaces
Examples of RICS Rule 5 (act in public interest & take responsibility)
- question practices and decisions that they suspect are not right
- ensure that public statements do not undermine public confidence in the
profession - respond to complaints
- do not dissuade complainants from approaching an alternative dispute resolution
- cooperate with investigations into complaints
- consider the effect that any health conditions may have on their competence
or ability to undertake professional work - manage their professional finances responsibly
- take appropriate action when they consider that the rules have been breached
Professional Indemnity Requirements
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 and is underwritten by a listed insurer.
PII must include for an each and every claim basis, a claims made basis and have the RICS minimum policy wording and the minimum cover required
The policy must include for all past and present employees and include a run off clause to cover for a minimum of 6 years after the company ceases trading (e.g. retirement, liquidation) or greater if executed as a deed/ limitations act could apply
what are the purposes of having PII
- ensure that if the firm faces a claim, it is protected from financial loss that it cannot meet from its own resources
- protect the insured member or firm against the consequences of its liability to pay damages to third parties for breaches of professional duty that it commits through its professional activities
- ensure that the firm’s clients do not suffer financial loss, which the firm cannot meet
PII limits
Turnover £100k or less then minimum £250k
Turnover £100k-£200k then minimum £500k
Turnover over £500k then minimum £1m
What does Professional code of ethics serves to do?
- guide ethical/ professional behaviour
- provide consistency in decision making
- Set levels of professional expectation
- Promote trust from the public
- justification for course of action
- protection in case of misconduct
- point of reference in discipline hearing
- decisions are unbiased
- professional standards across the board
- promote ethical culture
Procurement Regulations
The key procurement regulations l that relate to my business are
-Public Contracts Regulations 2015
- Utilities Contracts Regulations 2016
They state all public procurement must be based on value for money, and achieved through competition, unless there are compelling reasons to the contrary.
The public procurement regulations set out the thresholds of when a procurement must comply with the regulations and the process it must follow in terms of publishing the procurement, inclusion of SME’s etc.
Conflict of interest
A conflict of interest is where an agent acts for clients who have competing interests, or where an agent’s personal interest conflicts with that/those of their client.
There are 3 types of conflict of interest;
Party conflict- if you act in the interest of one client it conflicts with the interest of another
Own interest- the interest of the client conflicts with your own interest
Confidential information conflict- your duty to provide information to one client conflicts with your duty of confidentiality to another client for the same piece of information
RICS guidance on conflict of interest
Effective identification and management of conflicts of interest is an essential component of professionalism.
RICS members or regulated firms must not advise or represent a client where doing so would involve a Conflict of Interest or a significant risk of a Conflict of Interest.
Every RICS member must identify and manage Conflicts of Interest in accordance with the RICS conflict of interest professional standard
TfL declaration of interest process
Everyone who works within P&C must complete an annual Declaration of Interest form via PowerApps.
Declaration of Interests will also be requested for all individuals when they become involved in any activity which involves our current or prospective suppliers.
A new Declaration of Interest should be completed upon becoming aware of any changes or new potential interests.
The reviewer of the DoI must ensure that appropriate steps are taken to identify, mitigate or remove any conflicts, or potential conflicts, of interest in respect of the specific procurement activity. Each conflict, or potential conflict, of interest, must be considered on its own merits.
RICS guidance on gifts & hospitality
All surveyors need to consider how to deal with gifts, hospitality and bribery, in line with the Bribery Act 2010
In relation to bribery and corruption RICS members must:
- not offer or accept, directly or indirectly, anything that could constitute a bribe
- ensure they have adequate knowledge of bribery and corruption
- report any activity they are aware of that breaches applicable anti-bribery and corruption laws
Further info on RICS Gifts & Hospitality can be found in the Countering bribery and
corruption, money laundering and terrorist financing professional standard
TfL guidance/ process on gifts & hospitality
- You must avoid accepting any hospitality or gift that could create an expectation that you could be influenced by it, or be perceived by anyone else that you are influenced by it.
- All offers of gifts and hospitality in excess of £25 to any staff must be recorded on the Gifts and Hospitality Register and acceptance of any such offers must be approved by your line manager.
- The below can be used to assess if you can accept a gift;
Genuine: Is this offer made for reasons of genuine appreciation for something I have done, without any encouragement from me?
Independent: If I accept it, would a reasonable bystander be confident that I could be independent in doing my job?
Free: Could I always feel free of any obligation to do something in return for the donor?
Transparent: Would I be comfortable if the gift was transparent to my organisation, its clients and to the public? - TfL board members or staff on the top level of the TfL structure are required to record a nil return each month.
- All other TfL staff are only required to complete a nil return if they have previously received an offer of gift or hospitality. They must then submit a nil return each month until they have 3 consecutive months of nil returns.
RICS guidance on complaints handling
RICS state every RICS firm should have a CHP and an effective CHP should:
be fit for purpose – it should reflect the size and structure of the business
made available to all staff – a CHP is intended to provide clarity and consistency to staff and clients
be understood by all staff – keep records of staff training
publish your complaints-handling procedure and signpost your clients to this – supplying them with a copy should be routine
be regularly reviewed at a senior level – record evidence of review, to include reviewer details and review date
provide details of access to independent redress if the firm cannot resolve the complaint, RICS provide guidance on approved ADR mechanisms in its ADR mechanisms UK & Ireland document e.g. The Centre for Effective Dispute Resolution
it is good practice to have an audit process for complaint files in place
TfL process on complaints handling
The first point of contact for customers are the frontline staff
Where a complaint requires investigation or a formal response, staff will encourage customers to contact the Customer Services team, alternatively customers can submit a complaint directly to the customer services team who can be contacted call, text, online or post and all details on how to contact them can be found online or on posters on our network
All complaints will be acknowledged within 48 hours, and a full response provided within 10 working days.
Complaints can be escalated to a Customer Services team manager if requested by the customer and they will review and respond within 10 working days.
In line with our obligations under the Alternative Dispute Resolution
for Consumer Disputes Regulation 2015 our official redress scheme is the Consumer Ombudsman. However there is also the London TravelWatch or Rail Ombudsman who can provide third party redress.
We should also be aware of our own internal escalation routes e.g. to line manager/ department lead and the complaints process for our suppliers/ third parties (dispute resolution processes in contracts)
Modern Slavery Act 2015
Modern Slavery is the expression for
- slavery,
- forced or compulsory labour,
- human trafficking.
The Modern Slavery Act 2015 is designed to encourage businesses to tackle modern slavery.
Key offences under Modern Slavery Act 2015
hold another person in slavery or servitude;
require a person to perform compulsory or forced labour;
or arrange or facilitate a person’s travel with a view to that person being exploited. This includes aiding, abetting, counselling or procuring any of these.
Forced labour indicators
- Abuse of vulnerability
- Deception
- Restriction of movement
- Isolation
- Physical and sexual violence
- Intimidation and threats
- Retention of identity documents
- Withholding wages
- Debt bondage
- Abusive working and living conditions
- Excessive overtime
My role in Modern Slavery
consideration at the ITT stage- understanding where there may be risks of modern slavery, requesting and assessing modern slavery policies including processes to mitigate/ identify from all tenderers, inclusion of modern slavery clauses (duty to assess risk and report and mitigate risks) within contracts. We should also consider modern slavery throughout contract management process, are the suppliers carrying out appropriate checks as per their policies.
Equality Act 2010
Equality Act legally protects people from discrimination in the workplace and in wider society.
The public sector Equality Duty came into force across Great Britain on 5 April 2011. It means that public bodies have to consider all individuals when carrying out their day-to-day work – in shaping policy, in delivering services and in relation to their own employees.
Types of discrimination
- direct discrimination - treating someone with a protected characteristic less favourably than others
- indirect discrimination - putting rules or arrangements in place that apply to everyone, but that put someone with a protected characteristic at an unfair disadvantage
- harassment - unwanted behaviour linked to a protected characteristic that violates someone’s dignity or creates an offensive environment for them
- victimisation - treating someone unfairly because they’ve complained about discrimination or harassment
9 protected characteristics
It is against the law to discriminate against anyone because of the following 9 protected characteristics:
- age
- gender reassignment
- marital status
- being pregnant or on maternity leave
- disability
- race including colour, nationality, ethnic or national origin
- religion or belief
- sex
- sexual orientation
New PII requirements in 2022
- RICS PII requirements updated following UK PII requirements version 9 effective from April 2022
- Changed maximum uninsured excess for companies with a turnover greater than £10m to no limit
- For companies with a turnover less than £10m the limit is the greater of £10,000 or 2.5% of insured sum
- Maximum uninsured excess is the part of the claim the firm must pay itself
Who regulates RICS?
Interim Standards and Regulation Board
How do RICS regulate?
Regulatory Compliance- published information on how to comply with professional obligations
Disciplinary Process- investigations if concerns raised and disciplinary processes to address this, from fines to expulsion. The highest level is Regulatory Tribunal
Regulatory Schemes- Client Money Protection Scheme, Firm Registration
What can the Standards Regulations Board update rules on?
- Registration of Members and Firms on regulatory schemes
- Regulatory Support (including regulatory schemes)
- Investigation and Disciplinary Process
- Readmission following disciplinary expulsion
What is the purpose of the RICS regulations?
Delegated responsibility for;
- setting professional standards
- overseeing entry to the profession
- providing assurance that members and firms operate to the required standards
- maintain trust in the profession
What sets out the standards for PII?
The RICS rules of conduct Annex A professional obligations states the requirement for adequate PII
RICS release professional statements setting out the requirements for PII (latest is version 9 April 2022)
Purpose of RICS Client Money Handling professional statement
- ensure client money is kept safe
- ensure client money accounts are used for appropriate purposes only
- ensure RICS firms have appropriate controls and procedures to safeguard client money
What should you do with surplus client money in a client account
- ensure that all efforts are made to trace the clients or owners of the money
- hold the surplus money in a client suspense account
- hold surplus money for at least three years
- If, after three years, the client or owner of the money has not been found and no true claimants to the money have come forward, it must be donated to a registered charity
- A receipt must be obtained for this transaction so should a true claimant come forward to collect the money it can be made available to them
- The receiving charity should offer the donating firm an indemnity to enable the firm to recover a donation in the event of a claim
