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APC > Ethics > Flashcards

Ethics Flashcards

1
Q

What are the rules of conduct?

A

The fundamental expectations for the professional practice of members and firms set out by the RICS

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2
Q

Who do the rules of conduct apply to?

A

All individual members and firms who are regulated by the RICS

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3
Q

When did the new rules of conduct come into effect?

A

February 2022

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4
Q

What are the five rules of conduct?

A
  1. Members and firms must act with honesty and integrity and must comply with their professional obligations
  2. Members and firms must maintain their professional competence and ensure services are provided by competent individuals who have the necessary experience
  3. Members and firms must provide good quality and diligent service
  4. Members and firms must treat others with respect and encourage diversity and inclusion
  5. Members and firms must act in the public interest, take responsibility for their actions and act to maintain public confidence in the profession
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5
Q

Give an example of Rule 1 (acting with honesty, integrity and complying with professional obligations)

A

Not misleading others through your actions or omissions

Not allowing yourself to be influenced improperly by others

Being open and transparent with clients about fees and services

Have effective processes to identify actual or potential conflicts of interest

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6
Q

Give an example of Rule 2 (maintaining professional competence and ensuring services are provided by competent individuals)

A

Only undertake work that you have the knowledge, skill and resources to carry out competently

Check that subcontractors have the necessary knowledge, skill and resources to carry out their tasks competently

Stay up to date with the relevant legislation, codes of practice and technical standards

Maintain and develop your knowledge and skills throughout your career. Keeping up with CPD requirements set out by the RICS

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7
Q

Give an example of Rule 3 (providing a diligent and high quality service)

A

Understand your clients needs and objectives before accepting any work

Agree the scope of works, timescales and limitations with client at the outset

Seek clients agreement if the terms of engagement or costs have changed

Encourage sustainable solutions when advising clients about projects

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8
Q

Give an example of Rule 4 (treating others with respect and encouraging diversity and inclusion)

A

Treat everyone fairly and do not discriminate against anyone

Do not bully or harass anyone

Check that supply chains do not involve modern slavery

Develop an inclusive culture in the workplace - equal access and opportunity for all

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9
Q

Give an example of Rule 5 (members and firms must act in the public interest, take responsibility and maintain public confidence)

A

Question practices or decisions that you suspect are not right or ethical

Support any employee or client who has acted in good faith to report a concern

Manage professional finances responsibly

Take appropriate action when the rules have been breached and report suspected significant breaches to the RICS

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10
Q

What is a Royal Charter?

A

A Royal Charter is an instrument of incorporation, granted by the King, which confers independent legal personality on an organisation and defines its objectives, constitution and powers to govern its own affairs

Our Royal Charter requires the RICS to act in the public interest

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11
Q

What is a bye law?

A

A bye law is a rule or law established by an organisation or community in order to regulate itself

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12
Q

What is the role of the RICS?

A

To advance the highest ethical and technical standards for professionals in land, property and the built environment

Protect and provide benefits to consumers by enforcing standards and codes of best practice

Provide expert impartial advice to governments, business and the public

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13
Q

Who is the current RICS president?

A

Ann Gray

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14
Q

Who is the current RICS CEO?

A

Justin Young

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15
Q

Give an example of an RICS bye law?

A

Members must conduct themselves in a manner befitting membership of the RICS

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16
Q

What does self regulation mean?

A

The RICS is self-regulating, meaning that it operates within it’s own published regulatory framework rather than being legislated by Government

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17
Q

Which documents have the new rules of conduct replaced?

A
  1. Rules for firms
  2. Rules for members
  3. Global ethical principles
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18
Q

What disciplinary actions can the RICS impose?

A

Less serious offences - impose a Regulatory Compliance Order to ensure future compliance, such as fines or conditions of membership

More serious offences - face a disciplinary panel and levy sanctions, including fines and expulsion

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19
Q

What money laundering and bribery legislation are you aware of?

A

Bribery Act 2010

Proceeds of Crime Act 2002

The Money Laundering, Terrorist Financing and Transfer of
Funds (Information on the Payer) Regulations 2017

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20
Q

What do you know about the Bribery Act?

A

It is legislation that makes bribery illegal for companies working in UK

It also holds UK companies accountable for failing to prevent such acts by those working for or on its behalf, no matter where the act takes place

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21
Q

What is the RICS requirements for professional indemnity insurance, including run-off cover and levels of cover?

A

Minimum level of indemnity:
Turnover of £100,000 or less - £250,000 min. cover
Turnover of £100,001 to £200,000 - £500,000 min. cover
Turnover of £200,001 and above - £1,000,000 min. cover

‘Each and every’ claim basis

Run off cover ensures firms, members and their customers are not exposed if a firm ceases to trade - min. run-off cover is 6 years

Use an RICS approved provider - RICS publishes a list

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22
Q

Where can you go if you can’t secure PII?

A

Assigned Risk Pool

ARP panel is a facility for trading members or firms who are unable to obtain insurance in the open market
It comprises a panel of a RICS chairman, members of the professional indemnity insurers and RICS members.
The initial period of cover is 12 months, to allow the firm time to return to the open PII market

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23
Q

What are the professional obligations of RICS members?

A

Annual CPD requirements - 20 hours (minimum 10 hours formal)

Co-operate with the RICS

Provide information to the RICS promptly when requested

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24
Q

What are the professional obligations of RICS-registered firms?

A

Have a complaints handling procedure

Have PII

Firms with a sole principal have arrangements for a Locum

Co-operate with the RICS

Provide information to the RICS promptly when requested

Must display ‘regulated by the RICS’ on their business literature

25
Q

Why does the RICS have rules of conduct and why were they updated?

A

The previous rules had been in place since 2007

To provide a single document to enable greater clarity for RICS members and firms

There is now a greater focus on clearer example behaviours, tackling climate change and understanding evolving technology

26
Q

What steps would you need to take when setting up a new practice/firm?

A

Inform the RICS that you are registering as a regulated practice

Notify companies house

Obtain PII (professional indemnity insurance)

Obtain employers liability insurance

Set up a client account for handling clients money

Appoint a Locum

Set up a complaints handling procedure

Set up arrangements for CPD and staff training

27
Q

What are the requirements for handling client’s money?

A

Clients must always have access to their funds

Clients money must be kept in a separate account and be clearly identifiable

Interest on the account must be agreed with the client

Maintain a clear running balance of any transactions and advise the client on the details

Account must never be overdrawn

28
Q

What sort of information do registered firms have to provide the RICS with annually?

A

Annual return

Nature of clients

Complaints procedure and up to date log

PII details

Details on whether any clients money is being held

29
Q

What are the main components of a complaints handling procedure?

A

Two stage process
Stage one - your company reviews the complaint in full and attempts to resolve
Stage two - if one if unsatisfactory to the client then they have the opportunity for the complaint to be reviewed by an independent RICS-approved party

Listen to the complaint, take any many details as possible and try to resolve with the client - acknowledge receipt of complaint within 7 days and give full response within 28 days

Inform your PII providers of the complaint

30
Q

What are the five principles of better regulation?

A
  1. Proportionality
  2. Accountability
  3. Consistency
  4. Targeting
  5. Transparency
31
Q

What does RICS stand for?

A

Royal Institution of Chartered Surveyors

32
Q

What are the various RICS membership statuses?

A

Trainee
Student
Graduate
Assoc RICS
Member RICS
Fellowship RICS

33
Q

What is the RICS black book?

A

A collection of technical practice documents which covers all processes throughout the construction project life cycle - more specific to quantity surveying

34
Q

Are RICS guidance notes compulsory to follow?

A

No - they are a recommendation or an accepted good practice. You need to have a good reason to not be following a guidance note (especially if something goes to court!)

35
Q

Are RICS practice notes compulsory to follow?

A

Yes - Professional statement are also mandatory

36
Q

What is an RICS professional statement?

A

A mandatory requirement for RICS members and regulated firms

37
Q

What is PII?

A

Professional indemnity insurance. It protects you and your business from the cost of compensating a client if you make a mistake in a piece of work for a client that causes them reputational or financial loss

38
Q

What are the levels of PII cover? - as advised by the RICS

A

£100k or less turnover - £250k PII

£100k to £200k turnover - £500k PII

£200k and over turnover - £1m PII

RICS advise that the cover should be on an ‘each and every claim’ basis

39
Q

What is the Assigned Risk Pool?

A

A facility for trading members or firms who find themselves unable to obtain insurance in the open market - it is collectively underwritten by all RICS listed insurers

40
Q

What is run-off cover?

A

Run off cover ensures firms, members and their customers are not exposed if a firm ceases to trade - min. run-off cover is 6 years

41
Q

What is the name of the RICS journals?

A

Modus

42
Q

What is the RICS motto?

A

Est modus in rebus

There is measure in all things

43
Q

What is a conflict of interest?

A

Anything that may impede (or be could be seen to impede) the ability of a firm or an individual to act impartially and in the best interest of the client

44
Q

When was the RICS founded?

A

1868

45
Q

What is your firm’s complaints handling procedure?

A

A senior director is appointed to take charge
We are committed to acknowledging any complaint within 3 days
We request a written statement from the client, this is reviewed by the senior director and they provide a response within 7 days of receipt of the statement
Clients who are still dissatisfied can contact our CEO who will then undertake another review

We maintain a complaints log to learn from mistakes and take corrective actions

46
Q

What is an NDA?

A

Non-disclosure agreement - a legally binding contract that establishes a confidential relationship which is usually based upon sensitive information

47
Q

What is Lionheart?

A

A charity and support organisation for past and present RICS members and their families. Provides financial support, health and well-being support and counselling

48
Q

What is the junior branch of the RICS called and what does it do?

A

Matrics - it provides educational support and networking activities for students and surveyors (including chartered surveyors) with less than 10 years post-qualification experience

49
Q

Can you give an example of a conflict of interest?

A

Being approached to represent a tenant in a dilapidations claim against a landlord who is former/current client in another capacity

3 types of conflict are party (acting behalf of two business with the same interests - like 2 supermarket chains), own interest (your own personal interests conflict with the clients - including personal relationships) and confidential information (where the obligation to provide information to one party conflicts with confidential agreements of another)

50
Q

How do you manage a conflict of interest?

A

Surveyors must check they have no conflicts of interest before accepting client instructions

TFT carry out a check of the client’s identity, property ownership and whether we have had any previous involvement with the client

Need to be open and transparent - if a conflict is identified then the RICS professional standard should be followed and the instruction is to be declined if necessary

We would need to obtain informed consent from the client in order to proceed if our process has highlighted a conflict

May need to set up an information barrier within the company

51
Q

Who does professional indemnity insurance protect?

A

The client and my employer - in the event that I make a mistake which leads to a financial loss

52
Q

What impact has Brexit and Covid-19 had on surveying ethics?

A

Brexit - changes to UK GDPR rules that members need to be aware of

Covid - put pressure on businesses to act responsibly around staff safety and working remotely

53
Q

What is the RICS guidance regarding accepting gifts and hospitality? What is your firms policy?

A

You must not accept gifts or hospitality from anyone which might reasonably be seen to compromise your judgement or integrity

Any gifts are recorded and declared in order to manage any possible conflict of interest

TFT rule - modest is good. Low value or company branded items are likely to be acceptable eg. lunch or social event where the host is present. Anything more expensive than a bottle of wine is likely to be unacceptable

If ever in doubt - a polite but firm refusal is the right action and speak to your senior director

54
Q

What needs to be in place if a business is to cease trading?

A

PII run off cover

Return any client money

Hold client files for minimum 6 years

Hand over work to another company to ensure continuity of work

55
Q

What would you do if you suspected money laundering?

A

Report it to a senior manager or compliance officer

Notify the PII provided and police if necessary

56
Q

What is the difference between ethics and rules of conduct?

A

Ethics are a set of moral values

Rules of conduct are a framework that we work to

57
Q

Why is client care important?

A

Surveying practices that provide excellent client care are likely to retain existing clients and develop new business leads by receiving positive testimonials

A failure to provide good client care is likely to lead to client dissatisfaction, complaints and in the worst-case scenario, Professional Indemnity insurance claims for professional negligence

58
Q

What is a client brief?

A

A formal statement of the objectives and functional/operational requirements of the finished project

An essential reference for the project team - it provides a foundation for the initiation of the project and needs sufficient detail to allow a specification or design to be built around it

59
Q

How would you limit the risk of working with a client who may be financially unstable?

A

Have a screening process and carry out a credit check

APC (20 decks)

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