Ethics Flashcards
Rule 1
Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS.
Rule 2
Members and firms must maintain their professional competence and ensure
that services are provided by competent individuals who have the necessary
expertise
Rule 3
Members and firms must provide good-quality and diligent service.
Rule 4
Members and firms must treat others with respect and encourage diversity and
inclusion.
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
What and when did the rules of conduct change?
New rules took effect in 02nd Feb 2022.
They changed from rules which had previously been in place since 2007, they were updated to provide a single document to give greater clarity to RICS firms & members.
There is now clearer focus on example behaviours , understanding evolving technology and tackling climate change.
Professional obligations of RICS members?
1 - Members must comply with the CPD requirements set by the RICS which required 20 hours of CPD for each calendar year, 10 hours of which must be formal.
2 - Members must co-operate with RICS.
3 - Members must promptly provide all information reasonably requested by the standards and regulations board, or those exercising delegated authority on it’s behalf.
Professional obligations of RICS firms?
1 - Firms must publish a complaints handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
2 - Firms must ensure that all previous and current professional work is covered by adequate and appropriate PII that meets the standards approved by RICS.
3 - Firms with a sole principal must make an appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from inability to work.
4 - Firms must co-operate with RICS.
5 - Firms must promptly provide all information reasonably requested by the standard and regulation board, or those exercising delegated authority on it’s behalf.
6 - 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.
7 - Firms must report to RICS any matter that they are required to repot under the Rules for the registration of firms.
What are regulations?
Rules, procedured and processes for members and firms,
The regulations add further detail to the bye-laws and sets out the difference classes of membership and contains further details of when fees are payable etc.
There are 10 regulations in total.
When was RICS founded?
1868
RICS motto
‘Est Modus in Rebus’ which in Latin translates to ‘There is measure in all things’.
RICS leadership team - Governing council
Governing council is the highest governing body and sets RICS global strategy and ensured RICS fulfils its Royal Charter obligations
RICS president
Tina Paillet FRICS
RICS President elect
Justin Sullivan FRICS
RICS Chief executive
Justin Young
RICS mission statement
To qualify and equip their members to offer the highest standards of professional service.
To promote and enforce standards.
To lead solutions to the major challenges facing the built environment through the professional expertise.
How is the RICS governed
Royal charter being granted by the privy council in 1881.
The RICS is self regulated and internally monitored meaning that it is not regulated by the Government or external parties.
The Bye-Laws determining 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.
Five principles of better regulation
Proportionality
Accountability
Consistency
Targeting
Transparency
Why have rules of conduct?
To provide a framework and set standards that we can all work to and so the client knows what they are getting.
Also a useful professional guide for individual institutions.
Senior Vice President
Nicholas Maclean FRICS
What are the RICS PII max uninsured excess requirements?
Updated and in effect from April 2022.
Introduced changes to the max uninsured excess of PII.
For companies with a turnover in excess of £10M there is no max of uninsured excess.
less than £10M the max uninsured excess is the greater of £10k or 2.5% of the insured sum.
Limitation periods for under hand and deed forms of contract.
Under hand 6 years
12 years as a deed
Minimum levels of indemnity?
Turnover £100k or less = £250k
Turnover £100-200k = £500k
Turnover £200k+ =£1M
Merrit VS BABB
2001 case highlights the importance of run off cover
A surveyor was sued for negligence by a former client.
The surveying firm was no longer in existence therefore the individual surveyor was perused for damages successfully.
Highlighted the need for run off for all previous employees.