Ethics Flashcards
What is the RICS background
(2 Points)
Founded in 1868
Granted Royal Charter by Privy Council in 1881
Role of RICS
(3 Points)
1) Maintain high standards of education and training
2) Protect consumers through regulation of professional standards
3) Leading source of information
Major Challenges to the RICS
(3 Points)
Lord Bichard Review
- New Sense of Purchase and Direction-
- 36 Recommendations across 7 areas-
- I.e Desire to make RICS population more diverse by surveyors reaching out to schools
What is a Royal Charter/ RICS Royal Charter
Formal document issued by the King, granting a right or power to an individual or a corporate body. It defines its objectives, constitution and powers to govern its own affairs.
The royal charter requires the RICS to “promote the usefulness of the profession for the public advantage in the UK and in other parts of the world.”
Ultimate Duty
Duty to Public Good
Who is the current CEO
Justin Young
Who is the current president
Justin Sullivan
(Wef 16 Jan 2025)
5 Benefits of being an RICS member
1) Status- Provide Client Confidence
2) Recognition- Promote professional excellence to governments and markets
3) Market Advantage
4) Knowledge- CPD, Professional Standards
5) Network- Access to professionals worldwide
Who is your Responsible Principle
Nicola McGinnis CFO
5 Rules of Conduct
Effective 2nd Feb 2022:
1) Members and firms must act with honesty and integrity
2) Members and firms must maintain their professional competence and ensure that all services provided by competent individuals who have the necessary expertise
3) Members and firms must provide a good quality and diligent service
4) Members and firms must treat others with respect and promote diversity and inclusion
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
Requirements for Registration
(2 Points)
- If 50% of principles are RICS members must be regulated, if 25% can apply to be.
- Firm must have a responsible principle
Rules of Conduct- Appendix A
(3 Points)
Sets out Professional Obligations:
Member Must:
- CPD requirement of 20 hours per year
Firms Must:
- Have a Complaints Handling Procedure - including a ADR approved by RICS
- Professional Indeminity Insurance
RICS Future Foundations
(6 Points)
Published Nov 2023, following Bicard Review
- Vision
-Mission
-Strategic Goals
-Values
- World Class Organisation
Three Types of Conflict
Party - work on same instruction
Own- personal interest
Confidential Information Conflict
Terms of Engagement- 3 Steps
1) Check professional competence
2) Check no conflicts
3) Confirm terms in writing with written approval
General Terms of Engagement- What they need
(3 Points)
Proposed Fee Basis
Payment of Expenses
Copy of Firms Complaints Procedure
What is the RICS document for Conflict of Interest
RICS Global Professional Standard: Conflict of Interest, 2017
- Came into effect Jan 2018
Complaints Handing Procedure Stages
S1- In House
- Send details of CHP, including a nominated person
- Must be made in writing
- Acknowledge in 7 days, investigated in 28
S2- ADR- Alternative Dispute Resolution
- Independent redress system
What is the CPD requirements for member? ( 4 Points)
1) 20 hours of cpd in a calendar year
2)10 must be formal
3)Members must maintain a understanding of Rules of Conduct
4)Record cpd on RICS CPD Management System
What is Negligence
When a duty of care is breached, could result in a loss and then claim for damamge
What is the Act in relation to Negligence Claims
Limitations Act 1980
- 6 Years…
the statute of limitations for unpaid debt is six years after which time the debt becomes unenforceable or ‘statute barre
What is PII and relevent RICS Material
Professional Indemnity Insurance- Protect clients, suveyors and 3rd Parties when duty of care is breached
RICS PII Requirements wef july 2024
Minium Requirements of PII
Based on Turnover
100,000 or less - £250,000
100,000-200,000- £500,000
200,000 or more - £1,000,000
RICS Requirements for New Practice (5 Points)
- Responsible Principle
- Register with RICS for regulation
- Arrange PII with RICS approved insurer
- Set up CHP, with a log and officer
- Complete RICS annual Return
Legal Requirements for New Practice
(4 Points)
- Appoint a Money Laundering Reporting Officer
- Register for Data Protection
- Public Liability Insurance
- Inform HMRC for VAT and Tax registation
What is a red flag of money laundering? (4 Points)
- Unwillingness to provide documents
- Unusual patterns of transaction i.e. undue urgency, potential loss-making
- Changing currencies/ unusual currency
- Changes to parties involved
What money laundering regulations or legislation are you aware of?
Terrorist Financing, and Transfer of Funds Regulations (Amended 2023)
It covers estate agency.
What is Money Laundering
When proceeds of criminal activities are disguised or converted and then realised as legitimate assets.
What is a bribe?
The giving or receiving of an advantage such as payment for an action - which is illegal.
What bribery legislation are you aware of?
Bribery Act 2010 - Aims to reduce bribery in business
What are the penalties for accepting a bribe?
Maximum 10 years in prison and /or unlimited fine.
What are the penalties for money laundering? (2 Points)
Assisting - Max 14 years imprisonment and/or unlimited fine
Tipping off someone- Max 5 years and/or unlimited fine
What constitutes an offence under the Bribery Act 2010? (4 Points)
Bribing
Receiving a bribe
Bribing a foreign public official
Failure to prevent bribery
How long should you keep anti money laundering records for?
5 years
Can you give me an example a key regulation in the TF and ToF regs (4 Points)
- Provide staff training
- Complete due diligence checks i.e passport, bank statement
- Comply with PEPs
- Have policies and risk assessments
What is the RICS document which covers money laundering and bribery
RICS Professional Standard: Countering bribery , corruption, money laundering and terrorist financing, 2019
What are the 4 disciplinary actions by the head of regulation ( PRTB
P - PENALTY - Fixed Penalty Notice
R - ) Regulatory Compliance Order
T - refer to a single member of the regulatory tribunal
4) BOARD - Refer the matter to the disciplinary board
Give 4 examples of action by the disciplinary board
1) Regulatory Compliance Order
2) Expulsion
3) Reprinmand
4) Unlimited Fines
Three Levels of Disciplinary Action by RICS
1) Action by Head of Regulation
2) Disciplinary Panel
3) Appeal Panel
When can you proceed with a Conflict of Interest
When it is in the best interest of both parties to do so.
What is the last step of the RICS decision tree
Would you be happy for your actions to be made public.
Outcomes of RICS decision tree
Act and reflect, and record OR do not proceed
What is a regulatory compliance order?
A Regulatory Compliance Order is an agreement between RICS and a Regulated Member (either an RICS professional or a RICS-regulated firm) that they are liable for disciplinary action.
In the agreement the Regulated Member:
accepts that they have fallen short of the standards expected; and
accepts the proposed sanction; and, in some cases,
accepts to take steps to meet the standards expected and/or to prevent it happening again.
What actions must you take when closing a firm
- Inform the RICS
- Inform your clients
- Return any monies
- Have a minimum of 6 years run off cover and retain client records for that period
What is Run off cover and what is required?
Aqequate and appropriate run-off cover is required when a firm stops trading
Min 6 yrs
What is the RICS Risk pool
RICS offer coverage for those firms unable to obtain run off cover.
What would you do if a client offers you 5,000 euros in cash
I am aware the legal limit to accept it 10,000 euros. however, it is my company’s policy not to accept cash. Do not accept, cash should be paid into a bank and then transferred so it can be subject to checks
What is formal CPD and gives an example of when you have done it?
Structured learning that has clear objectives and outcome e.g Argus Developer Training
Guidelines on RICS logo
Split between personal and firms
RICS specific guidelines
As a member you could use it on a business card or email but colour and font must not be adjusted
What is the Levitt Report
Commissioned by the RICS following a treasury audit: led to the reform of the governing council
As part of version 10 of the prof indemnity insurance regulation doc (2024) what changes were included?
Updated requirements for
surveyors engaged in work relating to ….
asbestos
and external wall surveys/
fire risk
if you were offered a sizeable gift what would you do?
Decline and REPORT (FAILING TO REPORT BREACHES BRIBERY ACT 2010)
what if your client tried to give you a gift over £50 and insisted / it would cause offence ?
Take the gift, report it and then give it to firm - it may be used in a raffle for charity
What is your firms gift policy!!?
5 Standards which underpin conduct?
R respect and responsibility
I Integrity
C competency
H honesty
S service
What is the Hierarchy of documents?
Royal Charter
10 BiLaws
RICS Regulations
Rules of Conduct
Structure of the RICS
Governing Council (Tina Pailet President, Justin Sulivan President-Elect)
- RICS Board- Justin Young CEO
- Standard and Regulations Board
