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?
To ensure that firms, members and their clients are not exposed to financial detriment in the
period following a firm ceasing to trade, RICS requires firms to obtain fully retroactive run-off
cover.
Minimum 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 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.
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
