Ethics Flashcards
1
Q
What does RICS stand for?
A
Royal Institution of Chartered Surveyors – a royal charter body
2
Q
What is the role of the RICS?
A
- To promote and enforce the highest professional qualifications and standards
- To promote the usefulness of the profession for the advantage of the public
3
Q
When was it formed?
A
1868 – 12 Great George Street
4
Q
Who is the current CEO?
A
Justin Young
5
Q
Who is the current president?
A
Tina Paillet
6
Q
Who is the president elect?
A
Justin Sullivan
7
Q
Who is the current chairman?
A
Martin Samworth
8
Q
What is the RICS motto?
A
Est Modus in Rebus “There is measure in all things”
9
Q
What is the RICS vision?
A
The vision outlined in future foundations is ‘a natural and built environment that is sustainable, resilient and inclusive for all’
10
Q
What is the RICS mission statement?
A
We are a leading professional body working in the public interest to advance knowledge, uphold standards, and inspire current and future professionals.
11
Q
What are ethics?
A
Morales and values
12
Q
What are rules?
A
A framework that we work within
13
Q
As a new member how much CPD do you need to do? What is formal CPD?
A
20 hours a year, 10 must be formal. Can be any form of structured learning that has clear learning objectives and outcomes.
14
Q
How many professional groups are there? Can you name some?
A
- 18
- Quantity Surveying and Construction, Building Surveying, Project Management
15
Q
What is a Royal Charter?
A
- Our royal charter requires us to promote the usefulness of the profession for the advantage of the public.
- The charter means that changes to our constitution – bye-laws – have to be ratified by the government, through the privy council, even after they have been approved by a majority of members voting.
16
Q
Governance Structure?
A
- Privy Council – deals with amendments to our Royal Charter
- Governing Council - Highest governing body of the RICS, sets global strategy and ensures RICS fulfils its Royal Charter obligations, all seats are elected
- Governing Council is supported by the RICS Board and the Standards and Regulations Board
- The RICS board oversees multiple committees and groups including the audit, risk assurance and finance committee.
- The Standards and Regulation Board oversees various committees and groups and also the regulatory tribunal and the dispute resolution appointment boards
- Structure is currently under review following the Bichard review, updates include a sustainability panel and diversity and inclusion panel
17
Q
RICS constitutional documents?
A
- Royal Charter & Bye-Laws (changes can only be approved by membership vote and approval of Privy Council)
- Regulations & Standing Orders (Governing Council can approve changes)
18
Q
What are the RICS Professional Standards vs Practice Information
A
- Following Birchard Review, RICS have introduced two new definitions for professional guidance which are now split into Professional Standards and Practice Information
- Professional standards – set out expectations with a focus on baseline expectations for competence and ethical behavior. They contain mandatory requirements that surveys must follow where the word ‘must’ is used with best practice that surveyors must follow where the word ‘should’ is used
- Practice information – set out supporting guidance to advise surveyors, not mandatory and does not provide explicit recommendations.
19
Q
Professional Standards vs Practice Information - What did they replace?
A
- Professional statements
- Guidance notes
- Codes of practice
19
Q
Professional Standards vs Practice Information - Which is mandatory?
A
Professional standards where the word ‘must’ is used
20
Q
What are the Professional Standards?
A
- Conflicts of interest
- Countering bribery, corruption, money laundering and terrorist financing
- Client Money Handling
- Cost prediction
21
Q
What insurances are required for firms?
A
- Public liability
- Employers liability
- Professional indemnity
Should also consider: - Directors insurance
- Building/contents insurance
22
Q
Purpose of Professional Indemnity Insurance
A
To protect both the client and firm against the financial loss from a claim
23
Q
Who does PI protect?
A
Client and individual/firm
24
RICS Document relating to PI?
UK Professional Indemnity Insurance Requirements
25
Requirements of PII
* An ‘each and every’ claim basis or aggregate plus unlimited round the clock reinstatement basis
* RICS’ minimum policy wording
* Minimum level of indemnity cover is in line with firms annual turnover for previous year (100k or less = 250k, 100k-200k = 500k, over 200k = £1m)
* Maximum levels of excess
* Fully retroactive
* Covers all past and present employees
* Run off cover
* RICS approved assurer
o Run off pool – for those who can’t get suitable run off
o Fire safety exclusion – insurers may propose but now any exclusion will not apply to work relating to buildings four storeys or under
26
Why have the Rules of Conduct been updated?
* A single document for both members and firms
* Each rule has a list of behaviours
* New emphasis on diversity and inclusion
* Focus on sustainability
27
What are the new Rules of Conduct?
* Rule 1 – members and firms must be honest, act with integrity and comply with their professional obligations (conflicts of interest)
* Rule 2 – members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise (cooperate with RICS, CPD, quality management)
* Rule 3 – members and firms must provide good quality and diligent services (client care, good communication, handling data carefully)
* Rule 4 – members and firms must treat others with respect and encourage diversity and inclusion (not discriminating, developing a culture that gives fair and equal opportunities to everyone, modern slavery)
* Rule 5 – 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 (complaints handling, social media)
28
What are the Professional Obligations to RICS?
(RULES OF CONDUCT – APPENDIX A)
Members:
Comply with CPD requirements
Cooperate with RICS
Promptly provide all information requested by the Standards and Regulation Board
Firms
Publish a complaints-handling procedure
Cooperate with the RICS
Promptly provide all information requested by the Standards and Regulation Board
Ensure that all professional work is covered by the appropriate PI cover
Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of death or inability to work – locum
Display their business literature in accordance with RICS’ policy on designations
Report to the RICS any matter that they are required to report under the Rules of Registration of Firms
29
Pick one of the rules of conduct and tell me how you would adhere to them?
I have demonstrated adhering to rule 3 which is providing good quality and diligent services by not issuing a piece of work to the client without having time to consult with the relevant design disciplines or have a peer review undertaken even though I was being pressured by an internal stakeholder. Issuing a piece of work to the client with errors or impacted quality would not be providing a high quality service and may have impacted my reputation and trust with the client.
30
What would you do if you were offered a gift by a culture where gift giving is acceptable?
Would still reviewing timing and proportionality and value. Review the business implications and relationship, accept the gift but declare to employer and take appropriate action.
31
What is the RICS disciplinary procedure?
* Covered under the Regulatory Tribunal Rules.
* Reported to the head of regulation and a formal investigation is undertaken
* Depending on seriousness of the issue will determine the procedure and outcome such as a fixed penalty, consent order or disciplinary hearing
32
Why would the RICS investigate?
When concerns about an RICS Regulation Member (professionals or firms) have been reported to the RICS, where there may be a need to take disciplinary action in the public interest and to maintain professional standards.
33
When do firms need to register with RICS?
Rules for the registration for forms
* The firm provides surveying services to the public
* The firm operates in regulated area A (UK)
* At least 50% of the Firms principles are RICS Members
34
What would you do to register?
* Ensure the minimum eligible criteria - at least 25% of the firms principals are RICS members and the firm provides surveying services
* Follow the rules for the registration of firms:
- Appoint a responsible principle as point of contact
- Provide all relevant information to the RICS
- Comply with the rules of conduct and professional statements
* Set up a CHP
* Client money handling
* Take out PI cover and other insurances
* Assign locum
* Set up an ADR process
* Display the registered firm designations ‘registered by RICS’
35
RICS Decision trees?
* CPD
* Ethics
* Conflicts of interest
36
What is a conflict of interest?
in ordinary terms it is a situation where your duty to someone is potentially compromised by the fact that you have a material interest at stake in the matter, affecting judgement, decisions and actions
37
What types of things do you consider with a conflict of interest?
Mine and firms reputation, risk, ability to act impartially, only proceed with informed consent.
38
Types of conflict of interest
* Party conflict
* Own interest conflict
* Confidential information conflict
39
Conflict of interest process?
Must not advise or represent a client where doing so would involve a conflict of interest or a signification risk of a conflict of interest. Can only proceed if there is informed consent.
40
Countering Bribery, Money Laundering & Terrorist Financing - What does the professional standard include?
* Sets out rules for members and firms
* Members and firms must not be involved or party to either
* Any known of suspicions activity must be reported to relevant authorities
* Firms must have appropriate systems, checks in place to ensure compliance
* Must evaluate risks on a periodic basis
41
What requirements do members have with regards to bribery?
* Do not offer or accept anything that could constitute a bribe
* Report any activity that breaches laws to relevant authority – if no authority, report to senior management
* Act with due diligence and perform periodic evaluations of risks
* Record and retain information detailing how the firm has met the requirements
* Have plans in place to comply with applicable laws
42
What requirements do members have with regards to money laundering and terrorist financing?
* Not facilitate or be complicit in money laundering or terrorist financing activities
* Report any suspicious activity to the relevant authorities
* Perform periodic evaluations of risks
* Record and retain information detailing how the firm has met the requirements
* Take measures to understand all client transactions and purpose of, verify the identity of the client
43
What UK legislation is there on Bribery?
* Bribery Act 2010
* Outlines 4 key offences relating to bribery:
- Giving or receiving a bribe
- Requesting or offering a bribe
- Bribing a public foreign official
- Failure of a firm to prevent bribery
* 10 years imprisonment or unlimited fine
44
What are the principles of adequate procedures to prevent bribery under the Bribery Act?
PTRD-CM
Proportionality (proportional to business risk)
Top level commitment (integrity from the top)
Risk assessments
Due diligence
Communication
Monitoring and review
45
What does HRCM consider as money laundering?
The process by which the proceeds of crime are converted into assets which appear to have a legitimate origin, so that they can be retained permanently or recycled into further criminal enterprises
46
What UK legislation is there on Money Laundering & Terrorist Financing?
* Money Laundering & Terrorist Financing Regulations 2017
* Limits on cash payments (10,000 euros or more)
* Outlines what firms should do to prevent:
- Training to employees
- Procedures in place
- Risk assessments
- Due diligence
- Keeping record
* 2019 updates include advanced reporting to companies house in relation to discrepancies
* 2 years imprisonment and unlimited fine
47
How does you firm abide by Bribery and Money Laundering Requirements?
* All employees undertake annual e-learning covering policies and procedures
* Integrity officers who review and undertake due diligence into processes, can report issues to them
* Does not accept cash payments
* Has strict corporate governance procedures on any monetary amounts/payments
48
Who enforces the Bribery Act?
Serious Fraud Office
49
How do you report money laundering?
* Report to relevant contact/level within my firm
* Suspicious activity report to National Crime Agency
50
If offered a cash payment, would you accept it?
* No, my firm has a no cash policy
* Review money laundering regulations, need to ensure appropriate source
* Would suggest a bank payment as the bank is well positioned to check for money laundering
51
What are the key objectives of the professional statement on client money handling?
* Client money is kept safe
* Client money accounts are used for appropriate purposes only
* RICS firms have appropriate controls and procedures to safeguard client money
52
What is the RICS Client Money Protection Scheme?
A scheme operated by the RICS in the UK that provides protection, as a last resort, in instances where an RICS regulated firm is unable to repay a clients money, up to the limits set out in the rules.
53
What are the rules around handling of client money?
* Must be held in a client money account
* Must be designated and easily distinguished from other accounts
* All clients must be notified of the details of the client money account
* Keep records which show all dealings with client money and demonstrate that client money held by the firm is in a client money account
* Publish their procedures for handling client money/provide copies to any person who may reasonably require a copy
* Repay client money without delay
54
What would you do if you suspected a colleague of being in breach of Bribery or Money Handling regulations?
* Understand the facts
* Politely raise it with the colleague
* Raise it to line manager and integrity officer to seek clarity on appropriate next steps
* If no action is taken and its very serious, report to the serious fraud office and RICS
55
What is modern slavery and regulations?
Signs such as injuries, malnourishments or payments of multiple wages paid into a single bank account. Modern Slavery Act 2015.
56
What would you do if you suspected modern slavery?
* Report it to the home office via the modern slavery hotline
57
What are the levels of membership under Royal Charter?
* Fellows
* Professional members
* Non-chartered members
* Honorary members
58
What do registered firms need to send to the RICS every year?
* Annual return
* Type of business and staffing
* Nature of clients
* Training provisions
* CHP & complaints log
* Any client money held
* PI insurance in place
59
What is a responsible principal?
* Firms are required to appoint one
* Have primary responsibility for ensuring that RICS' professional, technical and ethical standards are applied, upheld and supported by an appropriate assurance framework within a regulated firm.
60
What Case Law are you familiar with?
Merit v Babb - run off cover
Ampleforth v Turner & Townsend 2012 - Letter of Intent
61
What is the new name of the black book?
RICS QS & Construction Practice Information
62
What is modus/journals?
* Modus – external publication with insight and opinion
* Journals – sector-specific content for RICS professionals and candidates e.g., technical updates, best practice guidance
63
What is lionheart?
An independent charity for RICS members, to support members through difficult times, whether personal or professional.
64
Why do you want to be chartered?
want to be chartered as I feel like it’s rubber stamp of approval for a QS, it will demonstrate that I adhere to the highest standards and best practice and it would mean so much to me to say I am chartered
65
Example for rule 1
Rule 1 behavior - Members and firms do not allow themselves to be influenced improperly by others – I declined an invite for drinks with a contractor who was tendering for a project, as the timing of this was inappropriate and could affect my impartiality
66
Example for rule 2
Only undertaking services that I am qualified to undertake, an example of this was being asked to draft and LOI, also undertaking the required CPD for the APC process and undertaking the annual requirement once chartered
67
Example for rule 3
I have demonstrated adhering to rule 3 which is providing good quality and diligent services by not issuing a piece of work to the client without having time to consult with the relevant design disciplines or have a peer review undertaken even though I was being pressured by an internal stakeholder. Issuing a piece of work to the client with errors or impacted quality would not be providing a high-quality service and may have impacted my reputation and trust with the client.
68
Example for rule 4
I spoke up for a colleague who was the center of a joke with the project team that quickly escalated, she was not comfortable and the jokes were also disrespectful for to her. The team apologized and she did not wish to take the matter any further. Lesson to the team for future.
69
Example for rule 5
I do not have a relevant experience relating to rule 5 but I would adhere to this rule by complying with RICS social media guidance by using social media professionally and adhering to my firms complaints handling procedure which is in line with RICS complaints handling procedure requirements.
70
How do RICS ensure that standards and quality are maintained in terms of both conduct and advice provided by chartered surveyors?
CPD
71
Can you give me an example of when you've acted with integrity?
72
What is the RICS 'Black Book'?
A collection of technical practice documents which covers all processes throughout the construction project life cycle.
73
What is a RICS professional statement?
Has been replaced with professional standards, mandatory where the word must is used. Best practice and guidance.
74
What do you do if client wants to pay fees up front?
Client money account, professional standard says it acceptable
75
Client asks you to reduce your fee, what do you do?
Advise that price is based on the scope, could potentially look at changing resource or reducing the scope.
