Ethics

Question 1

What action did the individual take when invited to corporate hospitality during an active tender process?

Answer 1

The individual opted to decline the invitation to corporate hospitality extended by one of the prospective contractors. It is crucial, as per RICS guidelines, to maintain impartiality and avoid any situations that could potentially compromise the fairness and transparency of the tender process. By declining the invitation, the individual demonstrated a commitment to upholding ethical standards and avoiding conflicts of interest. It is essential to remain vigilant in such situations to ensure compliance with RICS ethics and professional conduct standards.

Question 2

what are the rules of conduct

Answer 2

there are two sets, one for members and one for firms

Question 3

rules of conduct for firms

Answer 3

General Interpretation
Communication
professional behaviour
competence
training and continued professional development
complaints handling
clients money
indemnity
advertising
solvency
arrangements to cover the incapacity/death of a sole practitioner (having a locum)
use of designations
information to the RICS
cooperation

Question 4

rules of conduct for members

Answer 4

interpretation
communication
ethical behaviour
competence
service
continuing professional development
solvency
information to RICS
cooperation

Question 5

rics professional standards

Answer 5

professional statements- mandatory requirements
guidance notes- non-mandatory requirements
assessment of professional competence- APC
data standards

Question 6

what is an rics black book

Answer 6

suite of guidance notes that define good technical standards

Question 7

what are the 5 ethical standards

Answer 7

act with integrity
always provide high standard of service
act in a way that promotes trust in the profession
treat others with respect
take responsibility

Question 8

example of when you have acted with integrity

Answer 8

• issued a report to the client with a mistake. Told the client straight away, fixed the mistake and reissued.
  ensured this wouldnt happen again by have additional 4 eyes checks on all reports

Question 9

what insurance requirements are there for RICS regulated firms

Answer 9

public liability
buildings insurance
employer liability cover
directors and officers cover
contents insurance
business interruption insurance

Question 10

conflict of interest RICS information

Answer 10

2017- professional statement on conflicts of interest
became effective from January 2018

Question 11

3 types of conflict of interest highlighted in this professional statement

Answer 11

party conflict- acting in a way that goes against a duty- eg acting for two parties on one project eg developer and contractor
own interest conflict-
confidential information conflict

Question 12

what is the bribery act 2010

Answer 12

contains 4 main bribery offences
general offence of bribery
general offence of being bribed
offence of bribing a foreign public official
corporate offence of failing to prevent bribery by persons associated with relevant commercial organisations

Question 13

the principles of the bribery act

Answer 13

proportionality- action taken should be proportionate to the risk and size of the organisation
top level commitment
risk assessment
due diligence
communication
monitoring and reviewing

Question 14

regulations to do with money

Answer 14

money laundering and terrorist financing regulations 2019

Question 15

modern slavery act 2015

Question 16

types of modern slavery

Answer 16

forced labour
debt bondage
human trafficking
child slavery
forced and early marriage

Question 17

professional indemnity insurance

Answer 17

all firms must be covered
merrett v babb case 2001- valuation carried out by Babb for Merrett was negligent, PII was cancelled. Merrett was able to go after Babb for the losses

Question 18

minimum limits for indemnity

Answer 18

if turnover is less than £100,000- minimum amount of indemnity is £250,000
£100,001-£200,000- £500,000
£200,001 or more- £1,000,000

Question 19

maximum level of uninsured excess

Answer 19

limit of indemnity- up to £500,000- maximum uninsured excess - greater of 2.5% of the sum insured or £10,000
over £500,000- 2.5% of the sum insured

Question 20

run off cover

Answer 20

covers historic liabilities

in place for minimum of 6yrs , if deed was underhand, 12 if it was witnessed and usually lasts 15yrs

Question 21

complaints handling

Answer 21

alternative dispute resolution