Ethics Flashcards
What are the 5 Rules of Conduct for members and firms
- 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.
Give me an example of Rule 1
Being open and transparent with a client about fees and services
Give me an example of Rule 2
Only undertaking work i am experienced and competent to undertake
What is PII
Professional Indemnity Insurance
How is the level of PII calculated
The level of PII is calculated based on a businesses turnover:
- £100,000 or less = £250,000
- 100,000 to £200,000 = £500,000
- £200,000 and above = £1,000,000
What is runoff cover?
Run Off cover ensures firms, members and clients are not exposed to financial determent in the period following the cessation of a firm.
The requirement is for a limit of £1,000,000 for a period of 6 years.
What do the RICS require for PII
The policy must be fully retroactive
Certificate to be sent to the RICS every year
What is PII for
To cover a firm against professional negligence claims
What is Negligence?
Members have a duty of care to clients and third parties using reasonable care and skill
When this duty of care is broken, claims of negligence can arise.
What would you do if you received a complaint
I would inform the nominated complaints handling officer.
They would send the complainant a copy of our complaints handling procedure.
The complainant is to make the complaint in writing
The firm has 7 days to acknowledge the formal complaint
The nominated person then has 28 days to investigate the complaint and inform the complainant of the outcome.
What is a conflict of interest?
Where a firms independence and impartiality is threatened due to a conflict between two clients.
- Financial interest
- Personal interest
- Commercial relationship
- Acting on both sides of a transaction
What should be done if a conflict arises?
Conflict avoidance - where the instruction is declined
Conflict management - Where the instruction is accepted, but steps are put in place to to manage the conflict.
e.g. Information barriers with written consent from both parties.
How is a conflict handled
- Conflict Avoidance
- Consider if the conflict is irresolvable with your impartiality compromised. - Written advice to both parties
- If the conflict can be managed, write to both parties explaining the nature of the conflict and how the firm proposes to deal with the conflict - Information Barriers
- Request written consent from both parties. - Conflict Management
- Set up an information barrier in accordance with the provisions agreed between the two parties.
Conflict of interest examples
- Personal Financial Interest
Scenario: You are asked to value a property that you have a direct financial interest in, such as one you are looking to purchase or have invested in.
Conflict: Your financial stake in the property could influence your valuation, even subconsciously, leading to a biased outcome. - Family or Close Relationship with a Client
Scenario: You are appointed to assess the value of a property owned by a close family member or friend.
Conflict: The close relationship could lead to biased advice or a perception of unfairness, even if you strive to be objective. - Acting for Multiple Parties in the Same Transaction
Scenario: You are appointed by both the buyer and seller to provide valuation advice on the same property transaction.
Conflict: Each party may expect you to act in their best interest, but these interests may conflict, compromising your ability to provide impartial advice.
What is a Gift policy
A written policy covering anti-bribery and corruption including a risk assessment detailing the nature and impact of risk affecting the business – this policy should be reviewed and updated periodically as appropriate
What is the key legislation relating to Gifts and Bribes
Bribery Act 2010
- aims to reduce bribery in businesses in the UK and abroad.
Proceeds of Crime Act 2000
What is a bribe?
Giving, offering, promising or receiving of an advantage such as:
- Payment
- Gift
- Service
** For and Action which is illegal
What are the main principals?
Proportionality:
Certain forms of hospitality can be classified as a bribe.
Offering a client reasonable and proportionate hospitality does not count as a bribe.
All gifts must be recorded in the firms Gift Register.
Never accept gifts from third parties such as contractors.
What should members do with regard to receiving gifts?
declare certain items to their employer, including but not limited to:
– gifts
– hospitality, entertainment and expenses
– customer travel and hospitality
– charitable donations and sponsorships
What are the penalties for breaching the Bribery Act 2010
Policed by the Serious Fraud Office
Max - 10 years in prison and or an unlimited fine
What is your firms Gift Policy
Do not, without express prior written approval from the Business Manager or the Partnership Secretary, offer or accept any gifts, hospitality or services to or from clients, contractors, suppliers, other third parties or public officials.
What do you know about GDPR
Policed by the Information Commissioners Office
Implemented by the Data Protection Act 2018
Ensures data is:
- Used fairly and lawfully
- Used in a way that is limited only to the intended purpose
- Is retained for no longer than necessary
- Processed securely
What are the main methods of alternative dispute resolution
Mediation
Conciliation
Negotiation
What are formal methods of dispute resolution?
Arbitration
Litigation
Adjudication
