Ethics Flashcards
Can you explain the significance of the RICS Rules of Conduct and why they were updated in 2021?
Answer: The RICS Rules of Conduct are essential because they set the professional and ethical standards expected of RICS members and firms. The 2021 update reflects the need to modernize these rules to keep pace with changes in the industry, societal expectations, and regulatory environments. The update also emphasizes transparency, sustainability, and the protection of public interest, which are increasingly important in the built environment sector.
How do the Rules of Conduct guide your daily professional behaviour as a surveyor?
Answer: The Rules of Conduct provide a clear framework for decision-making and behavior. They ensure that I act with integrity, transparency, and professionalism in all my dealings. For example, the rule on ethical behavior reminds me to avoid conflicts of interest and to always act in the best interests of my clients and the public.
What are the potential disciplinary actions that can be taken against members or firms who fail to adhere to the RICS Rules of Conduct?
Answer: Disciplinary actions can range from formal warnings and fines to suspension or expulsion from RICS membership. Firms can also face similar penalties, including the loss of RICS accreditation. These actions are taken to maintain the integrity of the profession and ensure public trust in RICS members and firms.
What are the 5 rules?
- Rule 1 - Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to RICS.
- Rule 2 - Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Rule 3 - Members and firms must provide good-quality and diligent service.
- Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion.
- Rule 5 - 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 an example behaviour for each.
- Rule 1 - Members and firms do not mislead others by their actions or omissions, or by being complicit in the actions or omissions of others.
- Rule 2 - Members and firms only undertake work that they have the knowledge, skills and resources to carry out competently.
- Rule 3 - Members and firms understand clients’ needs and objectives before accepting any professional work.
- Rule 4 - Members and firms respect the rights of others and treat others with courtesy.
- Rule 5 - Members and firms respond to complaints made against them promptly, openly and professionally.
Why is it important for RICS members to understand and apply the five rules of conduct?
Answer: Understanding and applying the five rules is crucial because they ensure that members uphold the highest standards of professionalism and ethical behavior. This not only protects the reputation of the individual member and their firm but also ensures that the public can trust RICS members to act in their best interests.
Can you tell me about the RICS requirements in relation to PII?
- All RICS regulated firms and individuals members who provide a professional service to the public are required to have PII
- Minimum coverage levels, which is based on a firms turnover in the preceding year
o £100,000 or less = £250,000 minimum limit of indemnity
o £100,001 to £200,000 = £500,000 minimum limit of indemnity
o 200,001 and above = £1,000,000 minimum limit of indemnity - Maximum level of uninsured excess
o Up to and including £500,000 = Either 2.5% of the sum insured or £10,000, whichever is greater.
o Over £500,000 limit of indemnity = 2.5% of sum insured. - PII must be obtained from an insurer that is authorized by the Financial Conduct Authority (FCA) and meets RICS’ criteria for providing such cover.
- Firms are required to make an annual declaration to RICS confirming that they have appropriate PII in place.
What is Professional Indemnity Insurance (PII)?
Answer: Professional Indemnity Insurance (PII) is a type of insurance that provides coverage for professionals against claims of negligence, errors, or omissions made by clients or third parties. It is designed to protect professionals from the financial consequences of claims arising from their professional services or advice.
What disciplinary procedures can the RICS impose?
Answer: RICS’s disciplinary procedures are designed to address breaches of its standards and codes of conduct effectively and fairly. The process includes investigation, hearings, and various sanctions, with a clear appeals process to ensure fairness. By enforcing these procedures, RICS aims to uphold the integrity and professionalism of its members and firms, protecting the public and maintaining high industry standards.
What does ‘claims made’ mean in terms of PII?
- Type of policy typical with PII
- Covered by insurnace policy at the time of claim.
- E.G negligent design work would be covered by insurer at the time of claim and not at time of design work.
- Potentially means insurers take on past negligence of a firm.
Is a PII excess usually paid for per claim? (Aggregation Clause)
Answer: In most Professional Indemnity Insurance policies, the excess is paid per claim. This means the insured must pay the specified excess amount for each individual claim made under the policy.
Aggregate clause allows multiple claims to be grouped under one excess. Benefitial to insurer as they are only liable to pay to the limit once.
What does ‘claims made’ mean in terms of PII?
Answer: A “claims made” PII policy provides coverage for claims made and reported during the active policy period, regardless of when the incident occurred, provided it falls within the retroactive date.
Is a PII excess usually paid for per claim?
Answer: A “claims made” PII policy provides coverage for claims made and reported during the active policy period, regardless of when the incident occurred, provided it falls within the retroactive date.
What would you do if offered a gift?
If offered a gift, I consider the value and context of the gift, i.e if a contractor is trying to influence my decision. If small such as branded pens etc I would be inclined to accept, but I avoid gifts of significant value. If a gift is offered I declare to my employer and document the value, the giver and the context in the companies gift and hospitality register.
What is run off cover?
Answer: Run-off cover, also known as run-off insurance, is a type of Professional Indemnity Insurance (PII) that provides continued coverage for claims made against professionals after they have ceased trading, retired, or otherwise stopped practicing.
Gift Policy and RICS takes on gifts?
Answer: Rules of Conduct Rule 1 states: Members and firms do not allow themselves to be influenced improperly by others (as a result of, for example, giving or receiving work referrals, gifts, hospitality or payments) or by their own self- interest.
Explain the key steps you would take if you decided to set up in practice as a sole trader after qualifying.
- Define the service I would offer and a scope of service for each.
- Develop a business plan.
- Register business with HMRC.
- Set up financial systems.
- Obtain professional indemnity insurance, public liability insurance and employers liability insurance (if plan to employ), building and contents insurance.
- Set up standard documents and terms of service.
- Complaints handling procedure.
What changes did RICS recently make to the Minimum Approved PII Wording?
Answer: As of 1 April 2021 RICS new Minimum Policy Wording and insurance rules for professional indemnity insurance (PII) are in effect, which will allow more chartered surveying firms to obtain improved fire safety cover in their PII. The new Minimum Policy Wording and insurance rules will mean that from 1 May 2021*, PII policies will provide greater fire safety cover for chartered surveyors. Under the new rules insurers are not permitted without specific dispensation to exclude fire safety claims on a property four storeys or less and fire safety coverage must be provided as a minimum on an aggregate, defence cost inclusive basis
What RICS requirements are there relating to run off cover?
Answer: In the UK and Ireland, RICS requires regulated firms to have in place six years of run-off cover for consumer claims (insurers will provide £1,000,000 any one claim and in the aggregate limit automatically in the RICS Approved Minimum Wording). For non-consumer claims we require regulated firms to have ‘adequate and appropriate’ run-off cover but would expect that run-off to be maintained for a minimum of six years from the cessation of the practice.
Can you discuss a situation where you applied the RICS Rules of Conduct to resolve a conflict of interest? What was the outcome?
Answer: I was involved in a project where I had a prior personal relationship with one of the contractors. Recognizing this as a potential conflict of interest, I disclosed it to my employer and removed myself from any decision-making related to the contractor. This ensured transparency and maintained the integrity of the process.
If a client asked you to act in a way that would put you in breach of the RICS Rules of Conduct, how would you respond?
Answer: I would explain to the client that the requested action would violate RICS rules and could have serious consequences for both myself and the client. I would offer alternative solutions that comply with the rules, ensuring that the client’s objectives can still be met ethically and professionally.
Imagine you are working on a project where a colleague suggests a course of action that could potentially breach one of the RICS Rules of Conduct. How would you handle this situation?
Answer: I would address the situation directly by discussing my concerns with the colleague, referring to the specific rule of conduct that could be breached. If the issue is not resolved, I would escalate it to a higher authority within the firm or seek guidance from RICS to ensure that the action taken aligns with professional standards.
Suppose you discover that a firm you are working with is engaging in unethical practices. What steps would you take in accordance with the RICS Rules of Conduct?
Answer: I would first gather all relevant information and document the unethical practices. Then, I would raise the issue with the firm in question, giving them an opportunity to address the problem. If the practices continue, I would report the matter to RICS, following the guidelines for whistleblowing and ensuring that my actions are in line with the RICS ethical framework.
How has the RICS online ethics training course influenced your approach to ethical decision-making in your work?
Answer: The RICS online ethics training course has reinforced the importance of ethical principles in every aspect of my work. It has provided me with practical tools and frameworks to identify and address ethical dilemmas, ensuring that my decisions are always aligned with RICS standards.
What measures do you have in place to ensure compliance with the RICS Rules of Conduct in your professional activities?
Answer: I have implemented regular ethical reviews and audits in my professional activities. This includes checking for compliance with the RICS Rules of Conduct, maintaining detailed records of decisions, and ensuring transparency in all transactions.
How do you ensure that you remain up-to-date with changes to RICS ethical guidelines and rules?
Answer: I regularly review RICS publications, attend CPD events, and participate in online forums and training sessions. This ensures that I am always informed about the latest changes to ethical guidelines and can apply them effectively in my work.
What steps do you take to promote ethical behaviour within your team or organization?
Answer: I lead by example, ensuring that I always adhere to RICS ethical standards. I also encourage open discussions about ethics within the team, provide training on ethical issues, and create an environment where team members feel comfortable raising concerns about unethical behaviour.
How do you assess the ethical implications of your decisions in your day-to-day work?
Answer: I use a decision-making framework that considers the impact on all stakeholders, the long-term consequences, and alignment with RICS ethical standards. I also seek advice from colleagues or RICS when faced with particularly challenging ethical decisions.
How would you advise a junior colleague on the importance of adhering to the RICS Rules of Conduct?
Answer: I would emphasize the long-term benefits of ethical behaviour, such as maintaining professional reputation and avoiding legal issues. I would also explain how the Rules of Conduct provide a clear guide for making difficult decisions and why it’s essential to build a career based on integrity and professionalism.
Can you explain how Rule 3 of the Rules of Conduct 2021 influences your approach to delivering services?
Answer: Rule 3 emphasizes the importance of providing a good-quality and diligent service. This rule guides me to be thorough and conscientious in my work, ensuring that I fully understand the client’s needs and deliver solutions that meet or exceed their expectations. It also means that I recognize the limits of my expertise and seek additional guidance when necessary to provide the best possible advice and service.
What steps do you take to ensure that the service you provide is of good quality and meets professional standards?
Answer: I take several steps to ensure quality, including following our company’s established quality control procedures, which involve self-checking my work and undergoing a peer review process. I also ensure that I am up-to-date with relevant regulations and standards, and I seek advice from senior professionals when dealing with complex issues. Additionally, I maintain clear and transparent communication with clients to manage their expectations and ensure that they are fully informed at every stage.
Why is it important for professionals working in an RICS-regulated company to adhere strictly to the Rules of Conduct?
Answer: Adherence to the RICS Rules of Conduct is crucial because it ensures that professionals maintain high standards of integrity, competence, and transparency. This not only protects the reputation of the individual and the firm but also upholds the public’s trust in the profession. It ensures that clients receive consistent and reliable service, and that the actions of professionals are in line with the ethical expectations set by RICS.
Imagine a client requests advice on a matter outside of your expertise, but there’s pressure to respond quickly. How would you handle this situation to ensure compliance with Rule 3?
Answer: I would explain to the client that the matter falls outside my area of expertise and that, to ensure they receive the best advice, I need to consult with a senior professional or specialist. I would emphasize the importance of providing accurate and reliable advice over speed. I would then seek the necessary guidance, ensuring that the advice given is both informed and compliant with RICS standards.
If a peer review identified significant errors in one of your reports, how would you respond to this feedback, and what actions would you take to rectify the situation?
Answer: I would view the feedback as an opportunity for learning and improvement. I would first thoroughly review the identified errors and understand the reasons behind them. Then, I would make the necessary corrections to the report and discuss the changes with the peer reviewer to ensure they meet the required standards. Going forward, I would implement additional checks or seek further training in the areas where the errors occurred to prevent similar issues in the future.
Can you describe a situation where adhering to the company’s quality control procedures helped you to deliver a higher standard of service? (Feasibility study).
Answer: In a previous project, my initial report was flagged during the peer review process for potential gaps in the analysis. By revisiting the report and making the suggested revisions, I was able to provide a more comprehensive and accurate assessment to the client. This not only improved the quality of the service but also reinforced the client’s trust in our firm’s diligence and commitment to high standards.
Suppose a client questions a clause in your standard terms and conditions that you included in a fee proposal. How would you address their concerns while maintaining ethical and professional standards?
Answer: I would listen carefully to the client’s concerns and explain the rationale behind the clause, highlighting how it aligns with RICS standards and protects both parties. If the client’s concerns are valid, I would discuss potential adjustments or clarifications to the terms that still maintain transparency and fairness. The key is to ensure that the client feels their concerns are taken seriously while upholding the ethical and professional standards required by RICS.
How has working in an RICS-regulated company shaped your understanding of professionalism and ethical behavior in your role?
Answer: Working in an RICS-regulated company has ingrained in me the importance of consistently upholding ethical standards and professionalism. It has taught me the value of integrity, transparency, and accountability in all my actions. This environment has reinforced the idea that ethical behavior is not just about following rules, but about fostering trust and long-term relationships with clients and colleagues.
What have you learned from seeking guidance from senior professionals when faced with tasks outside your expertise? How has this impacted your professional development?
Answer: Seeking guidance from senior professionals has been invaluable in expanding my knowledge and understanding of complex issues. It has taught me the importance of humility and the willingness to learn from others. This practice has not only improved the quality of my work but has also helped me develop a network of mentors who provide ongoing support and insight, significantly contributing to my professional growth.
How do you ensure that your fee proposals are transparent and aligned with both client expectations and RICS standards?
Answer: I ensure transparency by clearly outlining the scope of work, the associated fees, and any exclusions in the fee proposal. I include our standard terms and conditions and discuss them with the client to ensure they understand the agreement. I also make sure that the proposal aligns with RICS standards by following best practices in fee structuring and client communication.
What processes do you follow to self-check your reports before they undergo peer review? How do you ensure they meet the required quality standards?
Answer: My self-checking process includes reviewing the report for accuracy, consistency, and completeness. I cross-check data and calculations, ensure that all references and sources are properly cited, and verify that the analysis aligns with the scope of work. I also review the report for clarity and readability, ensuring that it is well-structured and free of errors before it goes to peer review.
How would you handle a situation where a senior colleague disagrees with your assessment during the peer review process?
Answer: I would approach the situation with an open mind, seeking to understand the colleague’s perspective and reasoning. I would review the assessment in light of their feedback and engage in a constructive discussion to resolve any differences. If needed, I would consult additional resources or seek a second opinion to ensure that the final assessment is accurate and aligns with professional standards.
Why is it important to maintain transparency with clients regarding the scope of service and any exclusions? How do you ensure this in your practice?
Answer: Transparency is crucial because it manages client expectations, reduces the risk of misunderstandings, and builds trust. By clearly defining the scope of service and any exclusions upfront, clients can make informed decisions and are less likely to feel misled. In my practice, I ensure transparency by clearly communicating these details in writing, discussing them with the client, and confirming their understanding before proceeding.
Can you provide an example of a time when upholding RICS ethical standards led to a positive outcome for a client or project? (Client expedited service)
Answer: In one instance, a client requested an expedited service that would have compromised the quality and thoroughness of my work. By upholding RICS ethical standards, I explained the importance of maintaining due diligence and the potential risks of cutting corners. The client ultimately agreed to a more realistic timeline, which led to a well-executed project with accurate results. This not only safeguarded my professional integrity but also resulted in a satisfied client who appreciated the value of a job well done.
Why is it important to follow the rules and guidelines regarding tender submissions, even if a late submission offers potential financial benefits?
Answer: Following the rules and guidelines for tender submissions ensures fairness, transparency, and integrity in the procurement process. Allowing a late tender would undermine these principles, potentially creating an uneven playing field for other bidders and exposing the process to legal challenges or reputational damage. It’s essential to uphold these standards to maintain trust and avoid any perception of favoritism or bias.
How do you balance the need for diligence with the commercial pressures of delivering services efficiently and on time?
Answer: Balancing diligence with efficiency requires careful planning and prioritization. I manage my time effectively by breaking down tasks, setting realistic deadlines, and allocating resources where needed. I also communicate clearly with clients about timelines and any potential constraints. This approach allows me to maintain high standards of quality while meeting commercial expectations.
Can you explain the ethical considerations involved when advising a client to dismiss a non-compliant tender submission?
Answer: Ethical considerations include upholding fairness, transparency, and adherence to established procedures. Advising the client to dismiss a non-compliant tender protects the integrity of the process and ensures that all bidders are treated equally. It also prevents any potential conflicts of interest and aligns with professional obligations to act in the best interest of the client while maintaining ethical standards.
Suppose a client pressures you to include the late tender in your evaluation. How would you handle this situation to ensure you remain compliant with RICS ethical guidelines?
Answer: I would firmly but diplomatically explain that including the late tender would breach the established tendering process and contravene RICS ethical guidelines. I would suggest alternative options, such as re-opening the tender process if feasible, to maintain fairness. If the client insisted, I would document my objection in writing and seek further guidance from senior colleagues or RICS to ensure that I maintain my professional and ethical responsibilities. Check with contractor for reason why late.
How do you determine the limits of your professional competence, and why is it important to communicate these limits to clients?
Answer: Determining the limits of my professional competence involves understanding my qualifications, experience, and the scope of work I am capable of handling. It’s important to communicate these limits to clients to ensure that they receive accurate and reliable advice. Doing so also helps manage expectations, prevents the risk of errors, and ensures that specialists are engaged where necessary to provide the best possible outcomes for the project.
