Ethics Flashcards
How many rules of conduct are there?
5
What is rule 1?
Act with honesty, integrity and comply with professional obligations
What is rule 2?
To maintain professional competence
What is rule 3?
To provide good quality and diligent service
What is rule 4?
To treat others with respect and encourage diversity and inclusion
What is rule 5?
To act in the public interest, take responsibility, prevent ham and maintain public confidence
Where are the rules of conduct found?
RICS Rules of Conduct effective 2 Feb 2022
What are the example behaviours of rule 1?
Members:
Not mislead
Not to be influenced
Identify areas of conflict of interest,
Firms:
Identify conflict of interests
Provide honest advice
Be open and transparent with clients about fees and services
Prevent others being misled
Do not take unfair advantage
Keep information confidential
Keep client money safe
No to facilitate financial crime
What are the example behaviours of rule 2?
Members & Firms:
Only undertake work within knowledge and skill set
Supervise employees undertaking work and ensuring training
Check subcontractors have knowledge and skills
Reflect on work undertaken
Maintain CPD
Keep up to date with legislation
What are the example behaviours of rule 3?
Members & firms:
Understand client needs and objectives Understand client services and timescales Inform client of RICS regulated and need to disclose records where requested
Seek client agreement for proposal change
Work in timely manner
Communicate material information
Communicate so clients understand
Referrals in clients best interest
Keep records
Encourage sustainable solutions
Understand risk and benefits of tech
Check accurate data and keep secure
Have effective quality assurance process
What are the example behaviours of rule 4?
Members & firms:
Treat others with respect
Treat everyone fairly and do not discriminate
Do not bully
Check supply chain for modern slavery Report abuse
Cooperate with others
Develop inclusive culture
What are the example behaviours of rule 5?
Members & Firms:
Question things not right and raise concerns
Support those acting in good faith
Do not undermine public confidence
Respond to complaint promptly
Do not dissuade complaints from ADR
Cooperate over complaints
Consider effects of health conditions
Manage professional finances responsibly
Take appropriate action when rules breached
What is the guidance on conflict of interest called?
Conflicts of interest, eff 11 Jan 2018, professional standard
What are professional standards?
Requirements or expectations for members and regulated firms about how they provide services and outcomes of their actions
Where a professional standard applies to an area of practice they set:
-mandatory requirement use ‘must’
-best practice use ‘should’
What do professional standards include?
Mandatory requirements using the word must
And / or
Recommended best practice using the word shoud
What is the Royal charter?
Requires the RICS to act in public interest
Royal charter dates
Founded June 1868
Incorporated by Royal Charter August 1881
What is the RICS motto?
Est modus is rebus
There is measure in all things
What is the RICS mission statement?
To qualify and equip members to offer the highest standards
Promote and enforce standards
Lead solutions facing the built environment through professional expertise
What is the RICS structure?
Self regulated
Bye-laws determine how the RICS is regulated
Governing council manage and agree the strategy
Who is the president and vice president?
President is Tina Paillet
Vice president is Justin Sullivan
What does RICS standard for?
Royal institution of chartered surveyors
What is the structure of the RICS?
Governing Council
Standards and Regulation Board & RICS Board
What is the RICS Strategy?
Five future foundations:
Vision, mission, strategic goals, values and World class organisation
Break down the five sections of the RICS strategy?
Vision - sustainable natural and built environment for all
Mission - inspire, advance and uphold standards
Strategic goals - lead on sustainability, diversify, strengthen trust, enhance value
Values - professional, collaborative, inclusive
World call - efficient, effective and inspiring
What are the five principles for better regulation?
P roportionality
A ccountability
C onsistency
T argeting
T ransparent
What are ethics?
Moral values
Why did the Rules of Conduct change?
Been in place since 2007, consultation with members, vote, single document and focus on behaviours
What were the changes to Rules of Conduct?
Three documents into one - Rules of conduct for Firms, RoC for Members and Global Professional Ethics
Obligations in appendix A
What are the obligations for members
Three - CPD, cooperate with RICS, provide information RICS require
What are the obligations on firms?
7=
Complaints handling
Locum
PII
RICS designation
RICS information requested
Cooperate
Report matters under Rules for the Registration of Firms
Why do we need rules of conduct?
Guide for all members and firms
Framework for all to work towards and sets the standard of service
What if a relation who is MRICS is acting outside the Rules of Conduct
Verify the fact and confront
Inform RRICS and advise for the corrective action
What is the procedure for breach of the Rules of Conduct?
Not all breaches bring proceedings
Investigation by Head of Regulation, RICS request info and inspect, member must comply with request
How is a disciplinary triggered?
Complaint
Allegation
Information received/established by RICS
What are the actions after investigation?
Penalty fine
Consent order - written agreement between RICS and party re the issue
- require corrective action, restrain or fine
Disciplinary panel - for serious breaches, held in public domain, burden on RICS proving, balance of probabilities
What are the steps to setting up an RICS regulated firm?
Contact RICS and obtain pack
Information RICS and register
Appointment of contact officer
Complaint handling procedure
PII
Abide by Rules of Conduct - Firms
Use designation
What are the required insurances?
Professional indemnity insurance
Employers liability
Public liability
Buildings insurance
What annual information is required by the RICS?
Annual return done online - failure = fine
Includes: type of business, nature of clients, training provisions, CHP, PII, if holds clients money
What is the process for handling clients money?
Segregate employee duties
Principle oversee client money
Principle not override
Have competent staff
Secure data files
Money kept separately using the term ‘client’
Agree terms and client have bank details
Not be overdrawn
Maintain ledger and running balance
What are the types of client money account?
General = money for one or more client
Discrete = single named client
what is negligence?
Failure to provide a duty of care
Breach - damages or PII claim
Merrit V Babb - surveyor pursued after firm no longer in existence
What is the limitation period for negligence?
3 years after the date the claimant learned of their entitlement
12 years executed under a deed
Included within a complaint handling process?
RICS model form include redress mechanism
Details included in ToB
Clear, quick, transparent and impartial
Contact details of investigator
28 days to investigate
Record outcome
Advise PII
Complaints handling procedure include?
2 stages
- Consideration by senior member of firm
- Unresolved then referred to third party, award redress or complainant concedes
What is the independent redress scheme?
Handles small issues
If in favour of complainant = binding
If in favour of firm = complainant my escalate
Firms must specify redress scheme
Could cost large sums if proceeds to court
How to deal with a complaint?
Acknowledge - forward to the handler and provide all information
Inform PII
What is the client money protection scheme?
Operated by the RICS
Public reimbursed loss of funds
Provided through RICS insurance policy
Detail the CPD requirements?
Undertake and record for lifetime
Providence to RICS on request
20hrs = 10hrs formal
Ethics every 3 years
Record online
Need clear objectives
Difference between formal and informal CPD
Formal - assessment, seminar, research and preparation
Informal - private reading, internal CPD
Refer to RICS decision tree
Where to find CPD articles?
RICS website, EG, BCIS, RICS journals, internal comms
How to keep updated with topical issues?
Mailing lists, employer info, articles, research, RICS
Detail Professional Indemnity Insurance
Financial cover in the event of financial loss from professional breach
Benefits: professional - protected from financial loss, firm not meet costs
Benefits: client - recover financial loss
Underwritten on a claims basis
Policy responsible is that at the time the breach is discovered
RICS requirements for PII
Cover each and every claim
RICS set minimum indemnity
RICS set max uninsured excess
Cover at least 6 years
Cover past & present staff, directors, partners
Minimum lndemnity Levels
Turnover vs Limit
100k less. 250k
100k-200k. 500k
200k +. 1m
Max Level of Uninsured Excess - RICS PII Requirements 2022
Turnover. Vs. Excess
10m or less. Greater of 2.5% of sum or £10k
10m+. No limit
How to avoid PI claims?
Keep records of meetings and conversations
Record recommendations and advice
Use letter’s of engagement, scope of services and ToE
Only advise within expertise
Use RICS guidance
Avoid poor management
What actions to take if there is a mistake in a cost plan given to a client?
Notify them immediately
Company with any condition and procedures
What if a Quantity Surveyor’s quote is incorrect?
Not a right of redress in itself
Demonstrate warranted accuracy
Or
Incorrect due to skill and care
How to limit your liability when agreeing terms of appointment?
Appointment based on care and skill not fitness for purpose
Performance based requirements imply fitness for purpose - clause to limit appointment
Run off cover in place
Execution of appointment under hand mean liability for 12 years