Ethics Flashcards
Ethics, Rules of Conduct, Professionalism
Rules of Conduct introduced when?
February 2022
What are the Rules of Conduct
Members and firms must:
- be honest.
- maintain professional competence.
- provide good quality service.
- treat others with respect, encourage D&I.
- act in public interest.
HCSRP (Honesty, Competence, Service Quality, Respect, Public Interest)
5 examples of behaviours for rule 1?
- do not mislead others.
- identify conflicts of interests.
- open and transparent.
- don’t take advantage of others.
- don’t facilitate financial crime.
5 examples of behaviours for rule 2?
- Undertake work that they have knowledge to carry out.
- supervise employees undertaking work for them.
- reflect on impacts of work completed.
- CPD.
- legislation awareness.
5 examples of behaviours for rule 3?
- Clients needs.
- Client scope of service.
- Communicate clearly.
- understand risks and benefits of technology.
- Quality assurance process.
5 examples of behaviours for rule 4?
- respect rights of others.
- do not bully.
- ensure no modern slavery.
- work cooperatively.
- develope inclusive culture.
5 examples of behaviours for rule 5?
- report others who report concerns.
- respond to complaints made.
- do not dissuade use of ADR.
- manage professional finances.
- report breaches of conduct.
What are the obligations for MRICS?
- CPD Requirements.
- RICS cooperation.
- provide info requested by SRB.
Obligations for RICS firms?
- complaints handling procedure.
- covered by PI.
- arrange for work to continue in event of being unable to.
- RICS cooperation.
- provide info requested by SRB.
- Display RICS on business literature.
- report to RICS under Rules for Registration of Firms.
CPURSDR
RICS Regulation for social Media?
Use of Social Media Guidance note - 2021. Standards do not change compared to other forms of comms.
RICS Guidance notes - do MRICS have to follow them?
During disputes, they have to evidence that they acted with competence. Done by complying with guidance notes.
What is the black book?
Technical practice documents covering all processes during construction projects.
Regulations associated with RICS logo?
Rules of use of logo and designation by firms. Guidelines for personal use of RICS logo.
RICS definitions for professional guidance.
Professional Standards and Practice Information.
Purpose of Professional Standard document?
- Set expectations for RICS members/firms.
- Set requirements and best practice.
Purpose of Practice Information document?
- supplementary guidance to deliver in specific areas, not mandatory.
How do you act with integrity?
- being trustworthy.
- being open and transparent.
- respect confidential information.
- not take advantage.
- not allowing conflicts of interest.
- not accepting gifts hospitality or services which might suggest improper obligation.
T&T Gift Policy?
Gifts under £120 GBP, hospitality under £310.
Why must you act within your competence?
To ensure I advise clients correctly.
How do you take responsibility?
- be accountable for my actions.
- act with skill and care.
How do you provide a high standard of service to execute professional appointments?
Act within my competence.
Being transparent about fees.
Communicate with my client.
How do you promote trust in the profession?
Act in a trustworthy manner both personally and professionally.
How does an individual maintain high ethical standards?
Maintain CPD.
Follow professional body advice on ethics.
How do employers create ethical environments?
Whistleblowing policy.
Encourage chartership.
Promote CPD.
Difference between ethics and integrity?
Integrity is internal. (Moral code)
Ethics is external. (Rules)
Tools produced by RICS to help members make ethical decisions?
Ethics decision tree.
RICS document for Registration of firms with RICS?
Rules for the Registration of firms - version 8, 2022.
When is a firm required to register?
- Firm provides surveying services to the public.
- Firm operates in UK.
- At least 50% of firm Principals are MRICS.
When is a firm eligible to register?
Provides surveying service to the public and at least 25% of principals are MRICS.
What is a locum?
Another professional who is appointed to stand in for a sole principal if they cannot work.
Who can be a locum?
Another MRICS, but could be an accountant or solicitor.
PI relation to locums?
Must be covered for work while sole principal is unavailable. This could be under their own cover or under the firms.
Can you accept a gift from client or contractor?
Not any that suggest improper obligation, but sometimes. Consult the ethics decision tree.
Timing, value and intent.
What would you consider when assessing a gift?
Value, timing, intent, who is it being given to, RICS RoC.
CPD
Continuing Professional Development.
CPD requirements?
20 hours each year, 10 must be formal CPD.
Professional development you have completed?
In-house training.
External training.
Mock Assessments.
Seminars.
Define formal and informal CPD.
Formal - Structured learning that has clear objectives and outcomes.
Informal - Self-managed learning that is relevent or related to my professional role.
Tools to determine formal vs informal CPD?
RICS CPD Decision Tree.
Activities that don’t count toward CPD?
Not having a clear learning purpose, or not related to members role.
How is CPD recorded?
RICS website or app.
How do you select CPD?
Target areas of weakness, industry hot topics and future projects.
How do you keep up to date with hot topics?
RICS website.
CPD providers.
Colleagues.
News.
What is a conflict of interest?
Situation where an RICS firm or members professional judgment may be compromised.
RICS info on conflicts of interest?
Conflicts of Interest 2017. Professional Standard.
3 types of conflict in 2017 Professional standard.
Party conflict.
Own Interest Conflict.
Confidential information conflict.
Example of conflicts?
Acting for developer and contractor on same project.
Obligations that detract from your relationship with the client.
What is informed consent?
Occurs when a party who might be adversely affected acknowledges the risk, but agrees to instruct the assignment anyway.
Action to take if conflict of interest arises?
Disclose to the client in writing, detailing the nature.
What is a bribe?
Reward offered, promised or provided to gain advantage.
Key offences under Bribery Act 2010?
Bribing another person.
Being bribed.
Bribing a foreign public official.
Failure by an organisation to prevent bribery.
6 principles of the Bribery Act?
MCDRTP - My Cat Died Running from The Police
Proportionality.
Top Level Commitment.
Risk Assessment.
Due Diligence.
Communication.
Monitoring and review.
Who does the Bribery Act apply to?
British citizen anywhere in the world.
British associate with UK connections, anywhere in the world.
Organisation incorporated in the UK.
Organisation has carried out business in the UK.
What is T&Ts position for compliance with Bribery Act?
ABC policy which applies to me.
Report any act to National Crime Agency.
Consequences for not adhering to the Bribery Act?
Unlimited fines and sentencing up to 10 years.
What is money laundering?
Process of disguising original ownership of money through appearing to be from a legitimate source.
How do you report money laundering?
Legal obligation to report to National Crime Agency.
Client gives cash (500k) to make interim payments to contractor, what do you do?
Do not accept cash and encourage bank deposits. Report to the National Crime Agency if you have concerns.
What is corruption?
Abuse of power for private gain.
What is a price fixing cartel?
Independent businesses acting together as a single producer, fixing prices.
What is terrorist financing?
Solicitation, collection or provision of funds with intention to support terrorist acts or organisations.
What is a facilitation payment?
Payment made to public or government official to incentivise an action to be expedited.
RICS mandatory requirement for ABC?
Countering bribery and corruption, money laundering and terrorist financing 2019.
What is modern slavery?
Illegal exploitation of people for gain. e.g. Forced labour, debt bondage, human trafficking, child slavery.
Legislation related to slavery?
Modern Slavery Act 2015.
How do you report modern slavery?
The police or modern slavery helpline.
Professional Indemnity Insurance?
Covers cost of legal action made against them in respect to financial loss due to negligence, error or omission in advice given.
RICS PII requirements?
UK Professional Indemnity Insurance Requirements - 2022.
Purpose of having PII?
Protection from financial loss.
“Any one claim” vs “aggregate” policies?
Any one claim covers for each claim while aggregate covers all claims total.
Fully retroactive PII?
Former work covered by the firm if its fully retroactive.
Measures taken to avoid PII claims?
Full and detailed records of meetings.
Record advice given.
Avoid advice outside of competence.
Follow Rules of Conduct.
Follow company policy.
What is Merrett v Babb? (2001)
Babb completed a valuation for a house purchased by Merrett.
Valuation was negligent.
Company did not exist anymore, and was not covered under PII.
Merrett could pursue the individual for losses.
Minimum limits of indemnity?
Turnover - Minimum limit of indemnity
<100,000 - 250,000
100,001 to 200,000 - 500,000
>200,001 - 1,000,000
Maximum level of uninsured excess?
Turnover - maximum uninsured excess
<£10m - Greater of 2.5% of sum insured or 10,000
>£10m - no limit.
If you make a mistake, what does your insurance company expect?
Notify them.
Comply with insurance policy.
Advise client of the error.
Correct error.
Does PII cover private advice?
No, I would decline and suggest they contact the firm I work for.
What is PII run-off cover?
PII that covers historic liabilities of a business after trading ceasing.
How long should you have run-off cover?
RICS expects minimum 6 years from cessation of practice.
What are the RICS byelaws?
Gives the Head of Regulation and Regulatory Tribunal the power to make disciplinary and regulatory decisions against members.
Why did the Rules of Conduct change in 2022?
Simpler Structure
Clear examples of each behaviour
Further focus on DEI
What are the grades of RICS?
AssocRICS, MRICS, FRICS.
What are some professional groups within the RICS?
18 Groups
e.g. Building Surveying, QS & Construction, PM, Valuation, Dispute Resolution.
If you pay money out of a client account, what do you need to do?
Client matters only.
Return to client.
Payments by instruction only.
Invoice client.
Check sufficient funds.
Commission payments identified.
What do you need to start a firm?
PI Insurance/other insurance.
Register with Companies House.
Register with RICS.
Complaints Handling.
Client Money handling.
Branded biro given to you in the Clients office?
A cheap biro is not going to affect my impartiality, however I would return it at the end of the day to be safe.
What are some regulatory bodies in the industry?
MPA, DLUHC, DEFRA, HSE.
How did I demonstrate diversity in my case study?
PRM bathrooms included as part of cost plans.
Tell me about responsible use of AI?
Prioritises tasks and resources efficiently, and frees up time to focus on decision making.
Who is T&T’s PI insurer?
Lockton
Laws related to money laundering?
Proceeds of Crime Act 2002
What is the mission statement of the RICS?
1 - Qualify and equip members to offer the highest standards of professional service.
2 - Promote and enforce standards.
3 - Lead solutions to major challenges facing the built environment through professional expertise.
When at NNEP, would you give the same advice if wrong rates for staff were lower than framework rates?
Depends how the rates are treated: the only chargeable values, capped value, or estimating only.
What is Rule 1 of the RoC?
Be honest, act with integrity, and comply with professional obligations, including obligations to RICS.
What is rule 2 of RoC?
Must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
What is rule 3 of the RoC?
Must provide good quality and diligent service.
What is rule 4 of the RoC?
Must treat others with respect, and encourage diversity & inclusion.
What is rule 5 of RoC?
Act in the public interest, take responsibility for their actions and act to prevent harm and maintain public confidence in the profession.
What is “CAP”?
Conflict Avoidance Process
Why does RICS recommend 15 years of run off cover?
Signed under deed = 12 years liability. If a claim is made on the last day, resultant claims period is 3 years after that date, so 15 years in total.
What legislation covers liability?
Limitations Act 1980
What legislation covers latent defects?
Latent Damages Act 1986
How would you establish whether a duty of care is owed?
Is there reasonable foresight that failure to take care could cause damage to others?
Is there a relationship of proximity?
Is it fair, just, and reasonable that the law should recognise a duty to take reasonable care not to cause that damage?
What is unconscious bias?
How my actions are affected unknowingly by sub-conscious pre-conceptions.
What is an example for each of the types of conflicts of interest?
Self - owning shares in a contractor that I’m working with on a client. (i.e. Jacobs)
Party - a sibling working for a contractor on my client.
CI - being in a shared space where other clients may have access to my clients information, without use of information barriers.
Could you give me an example of CPD you did?
Heathrow LOD1 and DART training - Delivery Assessment Review Tool - Assigns complexity and level of assurance needed for a project.
What is your most recent CPD?
APC Mock exam in August, which helped to develop my weaknesses and strengths before sitting today.
What is the regulators code?
PACTT
Proportionate
Accountable
Consistent
Targeted
Transparent
