Ethics Flashcards
What is the mission statement of the RICS?
- To qualify and equip members to offer the highest standard of service
- To promote and enforce standards
- To lead solutions to challenges facing the built environment through professional service
When was the RICS founded?
1868
What are the RICS 5 principles of better regulation?
- Proportionability
- Accountability
- Consistency
- Targeting
- Transparency
What is the difference between RICS rules and ethics?
- Ethics are a set of moral values
- Rules of Conduct are the framework that one must work to
What is negligence?
Failure to provide a duty of care a client is owed
What is the Merit v Babb case law?
- A surveyor was sued for negligence by a former client
- As the firm did not have run off cover the individual was sued for damages
What is the limitation period for underhand contracts?
- 6 years for underhand
- 12 years for a deed
What are the different types of money account?
- General accounts hold money for more than one client
- Discrete accounts reference a single named client
What should a complaints handling procedure include?
- The RICS provide a model form
- The process should contain a redress mechanism
- The details of the policy should be issued to the client
- It must be quick, clear, transparent and free in it’s first stage
- Name and contact details of the nominated person must be stated
- The complaint, the progress and the outcome must be recorded
- The complaint must be investigated within 28 days
- The complaint must be notified to the PI insurer immediately
- If not resolved the complaint must be referred to a third party
What is a redress mechanism?
- A scheme designed to handle small issues that would be disproportionately expensive to go to court
- If the scheme judges in favour of the complaint it is binding
- RICS firms must specify which scheme they want to use e.g. ombudsman or adjudication
What would you do if you received a complaint?
- I would acknowledge the complaint
- I would would forward it to my complaints handler in line with our complaints handling procedure
- I would stress the importance of notifying the professional indemnity insurer immediately
What are the Continuous Professional Development requirements?
- Members must undertake and record appropriate life long learning
- Members must provide evidence if requested by the RICS
What is your CPD strategy?
I meet with my manager twice a year to discuss plan my career development plan
What is the clients money protection scheme?
- A money protection scheme operated by the RICS
- It contains a provision for any member of the public to be reimbursed their direct loss of funds when using an RICS regulated Firm
- Provided through the RICS insurance policy
What are the professional obligations of firms?
- Firms must publish a complaints handling procedure, which includes a ADR provider approved by the RICS and maintain a complaints log
- Firms must ensure that all previous and current work is covered by adequate PI cover that meets RICS standards
- Firms with a sole principal must make appropriate arrangements for their professional work to continue in the event of incapacity, death, absence or inability to work
- Firms must cooperate with the RICS
- Firms must provide all information reasonably requested by the standards and regulations board
- Firms must display on their literature, in accordance with the RICS policy for designations, to denote that they are regulated by the RICS
- Firms must report any matter that they are to report under the rules for the Registration of Firms
What are the professional obligations of members?
- Members must complete 20 hours of CPD per year (10 formal, 10 informal)
- Members must cooperate with the RICS
- Members must provide all information reasonably requested by the standards and regulation board
What were the changes to the Rules of Conduct?
Previously there were separate documents for:
- Rules of Conduct for members
- Rules of Conduct for firms
- Global Professional and Ethical Standards
Why did the previous Rules of Conduct change?
- Previous rules had been in place since 2007
- Following research, the majority of members, firms and the public voted in favour of replacing the existing Rules of Conduct and Global Professional and Ethical Standards-
- This provided a single document with greater clarity for members and firms
What procedures must you follow if starting up a firm?
- Contact the RICS for guidance and start up pack
- Inform the RICS and register for regulation
- Appoint a contact officer for all RICS communication
- Prepare a complaints handling procedure
- Obtain PI insurance cover
- Abide by the RICS Rules of Conduct
- Use designated ‘Regulated by the RICS’ on all practice material
What insurances would you need when starting up a firm?
- Professional Indemnity
- Employers Liability
- Public Liability
- Building Insurance for office premises
What information do firms have to send to the RICS annually?
An annual return, which is completed online
- Type of business
- Staffing
- Nature of clients
- Training provision
- Complaints handling details and records
- PI insurance
- Whether the firm handles clients money
Why does the RICS have Rules of Conduct?
To provide a framework to work to and so clients know they are getting a set level of service
What would you do if you faced an ethical issue you weren’t sure of?
I’d refer to the RICS ethical decisions tree
What is the procedure if the Rules of Conduct are breached?
- A formal investigation is held by the Head of Regulation
- The RICS can request information and/or visit and inspect to investigate
- Members must cooperate with all enquiries
How can disciplinary proceedings be triggered?
- Someone complaining to the RICS
- An allegation by a client or third party
- Information received or established by the RICS
What actions can be imposed at the end of an investigation?
- Fixed penalty
- Consent Order
- Disciplinary Panel