Ethics

Question 1

RICS stands for?

Answer 1

Royal institution of Chartered Surveyors

Question 2

New Rules of Conduct (WEF 2 Feb. 2022)

Answer 2

1. A simpler structure - easier for RICS members and firms to understand our rules, providing more confidence for clients and the public
2. Clear examples

Question 3

5 ethical standards

Answer 3

1. Be honest, act with integrity and comply with their professional obligations and obligations to RICS
2. Maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise
3. Provide good-quality and diligent service
4. Treat others with respect and encourage diversity and inclusion
5. Act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession

Question 4

9 protected characteristics protected under Equality Act 2010

Answer 4

• Gender reassignment
• Sex
• Sexual orientation
• Age
• Disability
• Race
• Religion or belief
• Marriage and partnership
• Pregnancy and maternity

Question 5

What are the 4 types of discrimination

Answer 5

1. Direct
2. Indirect
3. Harassment
4. Victimisation

Question 6

When was RICS founded and who is the current president

Answer 6

Found 1868 with RICS Royal Charter granted 1881
Ann Gray FRICS

Question 7

3 market sectors covered by RICS

Answer 7

1.Land
2. Property
3. Construction

Question 8

What is a conflict of interest

Answer 8

Arises when a members independence / impartiality is threatened due to existence of conflict between clients

Question 9

Types of Conflict

Answer 9

1. Party Conflict
2. Own Interest Conflict
3. Confidential Information Conflict

Question 10

Managing conflict of interest (COI)

Answer 10

• Conflict Avoidance - do not accept instruction
• Conflict Management - set up procedure agreed in informed consent (information barrier
• Written Advice to Both Parties
  a. Disclose nature of conflict and set our how firm wishes to deal with conflict (information barrier)
  b. Be clear – ensure parties make own decision (suggest independent advice)
  c. Request written informed consent to act in accordance with procedure proposed

Question 11

Definition of RICS Assigned Risk Pool

Answer 11

insurance available at cost for members who cannot arrange cover
Can remain in for 3 years until they can acquire formal cover

Question 12

Definition of Run Off Cover

Answer 12

Required following the cessation of trading
* Consumer claims - minimum cover of £1,000,000 over minimum of 6 years
* Commercial claims – firms must decide cover, minimum of 6 years
* Firms unable to obtain run-off cover, can apply for RICS Run-off Pool

Question 13

Levels of Professional Indemnity Insurance (PII) needed

Answer 13

Firms Turnover £100,000 or less = £250,000 minimum PII
£100,001-£200,000 = £500,000
OVER £200,000 = £1,000,000

Question 14

What is Professional Indemnity Insurance (PII)

Answer 14

To protect clients, surveyors and third parties against negligence claims where a duty of care breached and a claim for damages rises

Question 15

What is a Locum

Answer 15

Another professional who is appointed to ‘stand in’ for the surveyor/sole practinioner if they are unable to work eg incapacity or death

Question 16

What is a Chinese wall

Answer 16

An information barrier- requires physical or electronic separation of individuals within the same firm which prevents confidential information from being passed between them