Ethics Flashcards
1
Q
What is the role of the RICS?
A
To advance the highest ethical and technical standards.
To protect clients and consumers by enforcing standards and code of best practice.
To provide expert impartial advice.
2
Q
Who is the president of the RICS?
A
Tina Paillet
3
Q
Who is the president elect of the RICS?
A
Justin Sullivan
4
Q
Who is the vice president of the RICS?
A
Nicholas Maclean
5
Q
Who is the head of regulation in the RICS?
A
Nigel Clarke
6
Q
Who is the CEO RICS?
A
Justin Young
7
Q
How many members of the RICS are there?
A
140,000 across 146 countries
8
Q
What is the RICS London HQ address?
A
12 Great George Street (Parilament Square)
Westminster
London
SW1P 3AD
9
Q
What does RICS stand for?
A
Royal Institution of Chartered Surveyors
10
Q
What is the meaning of the RICS Motto?
A
The motto is ‘Est Modus in Rebus’ which in Latin translates to ‘There is measure in all things’.
11
Q
What is Lionheart?
A
An independent charity run by RICS professionals, for RICS professionals.
Benevolent fund established over 100 years ago.
Services include a range from financial support, health and wellbeing packages, free professional counselling, work related support and legal advice.
12
Q
When was the RICS Founded?
A
1868
13
Q
Why do you want to be a chartered surveyor?
A
RICS is the largest international property institution in the world. I will receive global recognition and become part of an international professional community.
I will have elite professional status, guidance, information and support.
14
Q
What is the role of the Standards and Regulation Board?
A
It has exclusive responsibility for strategy, policy and operational oversight of the standards, entry and admission to the profession, as well as regulatory functions of the RICS.
15
Q
What is the RICS Matrics?
A
It supports new members entering the profession, as well as helping shape the future of surveying and grow the size and respect of the profession.
16
Q
What is the Royal Charter?
A
Awarded in 1881 by Queen Victoria.
The Royal Charter requires the RICS to promote usefulness in the profession.
17
Q
What are the various RICS statuses?
A
Trainee
Student
Graduate
Assoc RICS
Member RICS
Fellowship RICS
18
Q
How many RICS professional groups are there?
A
18
19
Q
Name some RICS faculties?
A
Quantity Surveying
Building Surveying
Project Management
Valuation
Facilities Management
Dispute Resolution
20
Q
What is the role of the Governing Council?
A
Set global strategy, ensure RICS fulfils its Royal Charter obligations and enforce professional standards.
21
Q
How many Global Professional and Ethical standards are there?
A
There are 5:
1. Act with Integrity
2. Provide a high standard of service
3. Treat others with respect
4. Promote trust in the profession
5. Take responsibility
22
Q
What is the difference between RICS ethics and rules?
A
Ethics are a set of moral values.
Rules of conduct are a framework that we work to.
23
Q
What are the RICS’ 5 principles of better regulation?
A
Proportionality.
Accountability.
Consistency.
Targeting.
Transparency
24
Q
What are the New Rules of Conduct?
A
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.
25
Why did the previous Rules of Conduct change?
The previous rules had been in place since 2007.
Following research and consultation with RICS Members, Firms and Members of the public, the majority voted in favour of replacing the existing Rules of Conduct and separate Global Professional and Ethical Standards.
To provide a single document to enable greater clarity for RICS members and firms.
26
What are the professional obligations of members?
Members must comply with the CPD requirements set by the RICS which requires 20 hours of CPD for each calendar year, 10 hours of which must be formal CPD.
Members must cooperate with RICS.
Members must promptly provide all information reasonably requested by the Standards and Regulation Board, or those exercising delegated authority on its behalf.
27
What is the RICS black book?
A suite of guidance notes that define good technical standards for a QS & other construction professionals.
28
What are there RICS black books on?
Cost Reporting
Interim Valuations and Payment
Management of Risk
Tendering Strategies
Surveying Safely
29
Are guidance notes compulsory to follow?
No. They outline best practice. However, if there was a case of professional negligence, the court would take into consideration whether or not guidance notes were followed.
30
Are practice notes compulsory?
Yes.
31
Can you provide some behavioural examples that comply with Rule 1, of the Rules of Conduct?
Do not mislead others by their actions or omissions.
Members and firms are open and transparent, and do not take unfair advantage of others.
32
Can you provide some behavioural examples that comply with Rule 2, of the Rules of Conduct?
Only undertake work that they have the knowledge, skills and resources to carry out competently.
Supervise any employee undertaking work for them to ensure competence.
Maintain and develop their knowledge and skills throughout their career. Undertake necessary CPD.
33
Can you provide some behavioural examples that comply with Rule 3, of the Rules of Conduct?
Understand clients' needs and objectives before accepting work.
Agree the scope of service with the clients, including limitations and timescales for the work.
Work must be undertaken in a timely manner; with due care, skill and dilligence.
Communicate with clients and others clearly.
34
Can you provide some behavioural examples that comply with Rule 4, of the Rules of Conduct?
Respect the rights of others and treat others with courtesy.
Do not bully, victimise or harass.
Develop an inclusive culture in their workplace, support equal access and opportunity for all. Address unconscious bias.
35
Can you provide some behavioural examples that comply with Rule 5, of the Rules of Conduct?
Support directors, partners, employees, colleagues or clients who have acted in good faith to report concerns.
Respond to complaints promptly, openly, and professionally.
Take appropriate action when they consider that the rules have been breached, and report breaches to RICS.
36
What is an RICS Code of Practice (CoP)?
A document developed in collaboration with other professional bodies and stakeholders that provide users with recommendations on best practice. Have the status of a professional statement or guidance note.
37
What is an RICS professional Statement (PS)?
Mandatory requirements for RICS members and regulated firms.
38
What is an RICS Guidance Note?
A document that provides users with recommendations or an approach for accepted good practice as followed by competent and conscientious practitioners.
39
What is an International Standard
High-level standard developed in collaboration with other relevant bodies - MANDATORY.
40
What is an RICS Jurisdiction Guide?
This provides relevant local market information associated with an RICS international standard or RICS professional statement.
This will include local legislation, associations and professional bodies as well as any other useful information that will help a user understand the local requirements connected with the standard or statement.
41
When was the Bribery Act introduced?
2010, came into force in 2011.
42
What are the principles of the Bribery Act? (6)
PACT-DRM
Proportionate procedures
Communication
Risk assessment
Top-level commitment
Due diligence
Monitoring and review
43
What do you know about the Bribery Act?
It is legislation that makes bribery illegal for companies working in UK.
Also holds UK companies accountable for failing to prevent such acts by those working for or on its behalf, no matter where the act takes place.
44
What happens if you commit an act of bribery?
Up to 10 years in prison.
Excluded from RICS.
Unlimited fine.
Banned from being a director of any company.
45
How do you deal with a conflict of interest?
Openness and transparency.
46
What is PII?
Professional Indemnity Insurance.
Covers a firm for a claim for financial loss.
Clients can recover their financial losses.
Minimum level of cover based on turnover in the previous year.
47
What are the levels of cover advised by the RICS?
£100k or less turnover - £250k
£100k - £200k turnover - £500k
£200k or over - £1,000,000
48
What is the Assigned Risk Pool?
An assigned risks pool (ARP) is a facility that provides temporary insurance to firms that have trouble getting professional indemnity insurance (PII) in the open market.
It comprises a panel of a RICS chairman, members of the professional indemnity insurers and RICS members.
The initial period of cover is 12 months, to allow the firm time to return to the open PII market.
49
What does the RICS advise as the maximum level of uninsured excess on a PII policy?
Firm turnover in the preceding year
£10,000,000 or less - The greater of 2% of the sum insured, or
£10,000
£10,000,001 and above - No limit set
50
What is run-off cover?
Ensures firms, members and their customers are not exposed to detriment in the period following a firm ceasing to trade. Minimum run-off cover is 6 years.
51
Your brother-in-law is a chartered surveyor. You find out that he is
working outside the RICS Rules of Conduct. What do you do?
I verify the facts and confront him reminding him of his duties as a member of the RICS.
I inform the RICS specifying my relationship to the person and any corrective action which I believe my brother-in-law is committed to put in place.
52
In the case of a breach of a rule of conduct what is the procedure?
Not every shortcoming will necessarily give rise to proceedings.
A formal investigation by the Head of Regulation of the RICS is the first step in the process.
The RICS can request information and/or visit and inspect to investigate compliance.
Members must cooperate fully with all enquiries.
53
How can a disciplinary proceeding be triggered?
Someone complaining to the RICS.
An allegation by a client or third party.
Information received or established by the RICS.
54
What three actions can be imposed after the end of the investigation
stage?
Fixed penalty.
Consent order.
Disciplinary panel.
55
What are fixed penalties?
A fine by the RICS/ and or caution
56
What are consent orders?
It is a written agreement between the RICS and a member or firm concerning a disciplinary issue on a breach of the RICS rules.
It can require the member to take certain corrective actions, or restrain them from taking certain actions for a specified period of time and may require them to pay a fine or costs.
57
Do you know any case law regarding run-off cover?
Merrett v Babb (2001)
The defendant, a chartered surveyor, was employed by a firm of valuers (owned by an individual) as manager of one of the firm's branch offices. In the course of his work the defendant carried out a mortgage valuation for a building society, signing the valuation report in his own name and stating his professional qualifications. By the time the house purchaser sought to bring an action for negligence on the basis of this report the owner of the firm had become bankrupt and the firm's professional indemnity insurance policy had been cancelled. The firm was therefore not worth suing.
The Court of Appeal held by a majority that the purchaser was entitled to recover damages from the defendant personally, despite the fact that the purchaser had not actually seen the valuer's report and was unaware, at the time of purchase, of his identity.
Can come after the individual if business ceases trading therefore need to keep PI run off.
58
What is the name of the RICS journals?
MODUS
59
Are you aware of any RICS Regulation on the use of social media accounts?
Use of Social Media: Guidance for RICS members V1 - Effective 30th June 2021.
60
What are the various professional standards?
Professional Statements - Contain mandatory requirements.
Guidance Notes - Non mandatory requirements.
Assessment of Professional Competence (APC) - Requirements and guidelines for entry into the profession.
Data Standards - Software programmes and technology can adopt RICS standards into their offering.
61
Are you aware of any regulation associated with the use of the RICS logo?
RICS Rules for the use of the RICS logo and designation by firms.
62
What complaints can the RICS investigate?
Any breach of their conduct.
They will not investigate whether a high level of service is provided.
63
What is the RICS ethics decision tree?
Sufficient facts?
Legal?
In line with RICS Rules of Conduct?
Consulted with appropriate people?
Clear Reasoning?
Is your decision informed?
Would you be ok if your actions were made Public
64
What should you send accompanying a fee proposal?
A set of T&Cs.
A scope of services document.
65
What is your company's business plan?
My company has a 2030 strategy to:
Lead by example striving to uphold our high performance.
Focused on profitable outcomes to create sustainable shareholder returns.
Embracing our evolving industry, taking a considered approach to innovation.
Growth led with positive ambition.
66
What are your company's KPIs?
Carbon Footprint
Profitability
Employee Training
Employee Satisfaction
67
What is the client's money protection scheme?
A scheme run by the RICS for clients to recover money that is lost by a firm.
68
What is the IES?
International Ethical Standards.
69
What is a conflict of interest?
Anything that may impede, or be could be seen to impede, and firm or individual's ability to act impartially and in the best interest of the client.
70
Can you explain how you act with integrity?
Do not mislead others.
Being open and transparent in the way I work.
Not offering or accepting gifts, hospitality or services.
71
Why must you act within your professional competence?
To ensure I do not advise my clients incorrectly which could lead to a complain or claim of negligence.
72
Can you explain how you take responsibility?
Be accountable for my actions and act with skill, care and diligence.
Ensure an appropriate complaints handling procedure is in place.
Carry out appropriate risk assessments.
Wear appropriate PPE.
73
Can you explain how you treat others with respect?
I treat others with courtesy and politeness.
I am considerate to clients and I never discriminate.
74
Can you explain how you provide a high level of service?
I always ensure my client receives the best possible advice and support.
I act within my scope and competence.
I am transparent about fees and communicate in a way that allows my client to make informed decisions.
75
Can you explain how you promote trust?
Act within my scope of competence.
Provide a high level of service.
I am open and honest.
I act in a trustworthy manner
76
What insurances would you need if you were starting up your own
firm?
Professional Indemnity Insurance.
Employer’s Liability.
Public Liability.
Building’s insurance of an office premises.
77
What processes do regulated firms need to put in place when handling Clients' Money?
Preserve the security of clients' money which does not belong wholly to the company.
RICS regulated firms that operate a client account must:-
- Set clear segregation of duties for employees.
- A Principal oversees the client money accounting functions.
- Competent and knowledgeable staff are to process clients' money with cover provided for long term absence.
- Accounting systems and data must be secure.
- Client money must be kept separate and clearly identifiable with the word ‘client’ included in the bank account name.
- Clients must always have access to funds.
- We must agree the terms and advise the client on bank details.
- The account must not be overdrawn.
- We must maintain client ledgers and provide a running balance.
78
What are the different types of client money accounts?
General accounts hold money for more than one client.
Discrete accounts reference a single named client.
Accounts should be separate and clearly identifiable.
The word 'client' should be used in the account name.
Money should be available on demand.
You should have written agreement with client regarding the payment of interest.
79
What is meant by the term Negligence?
A duty of care is owed to all clients and 3rd parties using reasonable skill and care.
If it is breached due to Negligence a claim may arise resulting in damages being paid or a Professional Indemnity Insurance claim.
Negligence is a failure to provide the duty of care that is owed to the client.
80
What limitation periods are associated with underhand and deed
forms of contract?
6 years when executed under hand.
12 years when executed as a deed.
81
What must a complaints handling procedure include?
The RICS provides a model form.
The process must include a redress mechanism.
Details of the policy should be issued to the client with the Terms of Business.
It must be clear, quick, transparent and impartial and free of charge within the first stage.
Names and contact details of the nominated investigating person must be stated.
The complaint must be investigated within 28 days.
All complaints, their progress and outcomes must be recorded.
We must note the need to advise PI insurers of a complaint immediately.
The process must have two stages as a minimum:-
- Stage 1 is where there needs to be consideration of the complaint by a senior member of the firm or the complaints handling officer. Response within 28 days.
- Stage 2 if the issue is not resolved, the complaint is referred to an independent third party with the authority to award redress. The complainant may be expected to contribute towards costs at this stage.
82
What is an independent redress scheme?`
It is a consumer scheme designed to handle small issues that would be disproportionally expensive to take to court.
If the scheme judges in favour of the complainant, it is binding.
If it judges in favour of the firm, the complainant can escalate the matter to court.
RICS firms must specify which redress scheme they want to use, it could be an ombudsman, arbitration or sometimes adjudication.
If the complaint relates to a large amount of money or if the complainant wishes so, he can take the matter to court.
83
What do you do if you receive a letter of complaint?
I would acknowledge receipt and I would forward it to my firms designated complaint handler, as per our complaint handling procedure, providing additional information as required.
I would also highlight the importance of informing our Professional Indemnity insurance providers immediately.
84
What is the ‘Clients’ Money Protection Scheme’?
This is a money protection scheme operated by the RICS.
It contains provision for any member of the public to be reimbursed their direct loss of funds when using an RICS regulated firm.
This is provided through an RICS insurance policy.
85
What is the purpose of the joint names on a client account?
For the purpose of dual authorisation.
86
What are the continuous professional development (CPD)
requirements?
A minimum of 20 hours CPD must be achieved per calendar year, of which a minimum 10 hours must be formal.
On request by the RICS they must provide evidence that they have carried out the CPD to maintain and improve their levels of professional competence.
87
How do you differentiate between the different categories of CPD?
CPD Decision Tree
88
What types of articles do you read?
I read the RICS journals (Modus, Construction Journal, RICS regional magazine).
I also keep up to date via the RICS website, Building Magazine, Estates Gazette and BCIS updates.
89
What recent article have you read from the RICS?
MODUS
What are the latest trends in modular construction?
In the UK - the largest housebuilders are seen to be using MMC at around 27%, with the aim of increasing this to 30% by 2025. This leads to increased quality, reduced waste and less time on site.
Timber framing is one of the most frequent uses that is being seen, saving 7 tonnes of C02 emissions over its lifetime.
There have been concerns over build quality in recent times, although improved laser technologies have minimised defects.
Simplifying the manufacturing process and prefabricating off site will lead to a reduction in housing shortage, whilst also reducing the price if building taller.
90
How do you keep up to date with topical issues?
I am on the mailing list for several CPD providers.
I follow updates on the RICS website and Construction Journals.
91
What are the requirements regarding Professional Indemnity
Insurance set by the RICS?
The policy cover must be made on an ‘each and every’ claim basis.
The RICS sets out the minimum levels of indemnity.
The RICS sets out the maximum levels of uninsured excess.
Run off cover must be in place for at least 6 years.
The policy should include cover for past and present employees, directors and partners.
92
What measures should be taken to try and avoid PI claims?
Keep full and detailed records of meetings and conversations.
Record recommendations and advice given.
Use proper letters of engagement, scope of services and terms of engagement.
Don’t advise on a specialism outside your field of experience.
Use RICS guidelines.
Avoid poor management and excessive workloads.
93
If you made a mistake in your cost plan what would your insurance company expect?
For you to notify them and comply with any conditions & procedures set out in the insurance policy.
94
If an estimate prepared by a QS is incorrect can the client claim damages?
An estimate that is incorrect in itself will not provide the client with a right of redress.
The client must demonstrate that the QS warranted the accuracy of the estimate or that it was incorrect due to a lack of reasonable skill and care.
It could have been incorrect due to reasons outside their control for example market conditions or an item referred to in their exclusions.
95
How can you limit your liability when agreeing terms of appointment
with a client?
Base the appointment on reasonable care and skill rather than fitness for purpose which is more onerous.
If the client’s requirements are performance based, this may imply fitness for purpose. It is advisable to request a clause limiting the appointment to reasonable skill and care only.
Run off cover must be in place.
Execution of the appointment under hand will result in a reduced liability period of 6 years instead of 12.
96
What are the main elements included within a fee proposal?
Terms and conditions.
Scope of services.
Exclusions.
Assumptions.
97
If you put together a fee proposal, but a couple of months into the job
you realise that you have under forecasted your resources, would you
go back to the client and ask for more money?
If project requirements such as the services, scope or value of the project has increased then I would go back to client and request a fee increase.
If the scope of works had remained the same, this highlights a mistake within our fee bid and the additional work would need to be carried out without reducing the level of service being offered and without requesting additional fees from the client.
98
Once you and your client agreed the services that are to be provided
verbally what would you do next?
Follow up with a formal letter which includes the terms and conditions, fees and scope of services that are to be provided.
99
If the client gives you a lump sum fee before going on holiday, what
would you do?
I would place the funds in a separately identified client account and agree a drawdown of monies against the services being provided with the client.
100
Tell me what you understand about conflicts of interest?
A conflict of interest is where someone in a position of trust has competing personal or professional interests making it difficult for them to fulfil their duties impartially.
101
If the client was insistent that you worked for them despite an existing
conflict of interest, how would you proceed?
I would check the clients understanding around the conflict of interest.
I would then make the client aware of the potential for reduced impartiality.
If they were still insistent on the appointment, I would seek a letter of instruction from the client to continue.
Following the appointment I would agree working procedures to manage the conflict of interest with the client and the teams involved.
102
What are the Main Principles of the Bribery Act?
The offences are:-
- Making a bribe.
- Receiving a bribe.
- Bribery of a foreign public official.
- Failure of a corporate entity to prevent bribery on its behalf.
It also holds UK companies accountable for it's employees working abroad.
If you commit an act of bribery you will be excluded from RICS and could face up to 10 years in prison.
103
What is a bribe?
A reward offered or provided to gain any commercial, contractual or personal advantage.
104
What are the 6 principles of the Bribery Act?
1. Proportionality.
2. Top Level Commitment.
3. Risk Assessments.
4. Due Diligence.
5. Communication.
6. Monitoring & Review.
105
Under the Bribery Act, under what circumstance is a facilitation
payment permitted?
The only circumstance in which it is OK to make a facilitation payment is when you are under duress.
For example if there is a real and present risk or danger to "life, limb or liberty".
106
You are attending a Main Contractor organised business conference
where it is announced the you have been randomly selected as the
winner of this months prize draw. Its an i-pad air. How would you act
in this scenario?
I would be extremely uncomfortable accepting the prize in this scenario.
The prize is of a significant value and could be interpreted as a bribe.
Furthermore due to working on a project with the Main Contractor at the time of this scenario, accepting the prize would have been highly inappropriate and could be interpreted as having an affect on my business conduct during the project.
I would politely decline.
107
You receive an invite to attend the Theatre with some members ofyour Project Team but they dropped out due to illness at the last
minute, would you still attend?
In the first instance I would declare this hospitality on my companies’ gifts and hospitality register.
Assuming the invite was approved and I was authorised to attend, I would need to decline the invite
due to the Project Team dropping out.
Since they won't be present, this will not be a genuine business event.
108
A contractor invites you to lunch to a restaurant and advises they've got two Michelin stars and a wine list second to none. They say they are keen to discuss the details of their tender they are about to submit for the project you are working on. How would you respond?
Going to what sounds like a lavish lunch paid for by a bidder in the middle of a tender process is against Company policy and could be an offence under the UK Bribery Act.
If this were the first time, it would be OK just to decline and explain that such an invitation is inappropriate.
However if this supplier is persistent, there is a red flag in that he wants to discuss things that he cannot put in writing, so we should report this infringement
109
A junior surveyor in your team incorrectly over-certifies an interim valuation - what do you do?
Check the facts and find out if it is actually over-certified.
Check if the valuation has been processed.
Withdraw and re-certify if not.
If already certified, explain to the parties and rectify next time.
Ensure there are procedures in place for it not to happen again.
If within correct timeframes issue a pay less notice to amend the error.
110
What are the RICS requirements regarding professional indemnity insurance?
It provides minimum wording.
It sets out minimum levels of indemnity.
It sets out the maximum levels of uninsured excess.
Run off cover must be in place for at least 6 years.
It should include for past and present employees, directors and partners.
111
What happens if the loss suffered exceeds the level of cover provided by the PI insurance?
The professional / firm is liable for the difference.
112
Are you familiar with the term limit of liability? If so where would it be used?
It is the maximum value an insurance policy will pay out in the event of a claim.
113
What is a net contribution clause?
It seeks to ensure that the consultant's liability is only for the loss they caused If another party is also responsible, the client will have to sue them separately.
114
If you are a sole trader, what should you have in place should you be unable to perform your duties?
You should have employed the services of a locum practitioner.
115
What is locum?
A firm which has a sole principal must have appropriate arrangements in the event of that principal's death or incapacity.
Another professional who is appointed to 'stand in' for the surveyor if they are unable to work.
116
If you have declared a conflict of interest to your client and they state that they are happy for you to continue working on the project, what else do you need from them?
'Informed Consent' RICS provide a template.
117
What is the ethical standards coalition?
They create international ethical standards.
118
Who is RICS preferred PI provider?
I would refer to RICS published list of approved suppliers.
119
What is Pledge 150?
In light of the 150th anniversary of RICS, they have pledged to try and eliminate youth homelessness.
120
When did the Money Laundering Regulations come into affect?
2017
The update to this was the sanctions and anti-money laundering Act 2019, into force Jan 2020.
They make individuals and firms responsible for preventing money laundering by using similar principles to the Bribery Act.
They also cover the funding of terrorism.
121
What are facilitation payments?
They are a payment made to a government official to expediate an admin process such as getting a visa overseas, common in Africa - Usually illegal unless it is totally above board. Can be seen as Bribery.
122
How is the RICS governed?
It is self governed by the governing council.
This is chaired by the president and includes members from all world regions.
123
What is NDA?
Non-Disclosure Agreement
Legal contract between at least two parties that outlines confidential material.
124
What are Quality Assurance system standards?
ISO 9001
125
What would you do if your firm was holding client's money that you couldn't account for?
Try and locate owner.
Hold for 6 years in a suspended account.
If no-one comes forward you give it to a charity and obtain a receipt.
RICS's Lionheart do receipts.
If the client comes forward they can reclaim their money from Lionheart.
126
What does ISO stand for?
International Organisation for Standardisation
127
Why are gifts considered bribery?
Depends what is it and if it is proportionate & reasonable.
Could sway judgement.
What would others think.
May suggest improper obligation.
128
Responsibility of a principle?
Ensure that all the RICS requirements are met - annual return, training, that all professional, technical & ethical standards are met.
129
What else do you need if setting up a business?
1. Notify Companies House
2. Obtain PII & employers liability
3. Inform the RICS of your intentions
4. Prepare a complaints handling procedure
5. Set up financial accounts
6. Set up client's money account
7. Abide by Rules of Conduct
8. Use appropriate RICS designations
130
When can you divulge confidential information?
1. If a Court orders.
2. If you receive informed consent.
131
What is confidential?
Information that is not in the public domain.
132
When is a firm required to be registered for regulation (mandatory)?
1. If undertaking surveying services to public.
2. Operates in UK.
3. If 50% or more of directors are RICS members.
133
When is a firm eligible to register?
1. If undertaking surveying services to public.
2. If 25% or more of principles are RICS members.
134
How would you determine time period run off cover would be required?
Underhand (signed by parties - simple contract) - 6 years
Under seal (signed by parties & witnesses & executed as a deed) - 12 years
Latent defects - 15 years
135
Impact of Covid & Brexit on Ethics?
Brexit saw changes to GDPR Uk rules that members need to be aware of.
Covid forced everyone online and brought new requirements for security of personal and confidential information.
Covid put more pressure on businesses to act responsibly around staff safety. As well as respect individual opinions around working remotely and vaccinations.
Importance of remaining solvent & provide required level of PII.
Increase PII premiums.
136
What are Bye-Laws?
A law or rule governing the internal affairs of an organisation.
A secondary law.
137
What needs to be in place if a business is to cease trading?
PII run off cover.
Return any client money.
Hold client files for min 6 years.
Hand over work to another company to ensure continuity of work.
138
What is test for bribery?
Would a reasonable person in UK deem actions reasonable and proportionate.
139
What would you do if you suspected money laundering?
1. Report to line manager /money laundering officer.
2. Report to national crime agency and complete a suspicious activity report (SAR).
140
What sort of things must a regulated firm do in relation to money laundering & terrorism financing?
1. Not facilitate or be complicit.
2. Have training in place.
3. Report suspicions.
4. Understand client and purpose of transactions.
5. Verify client & basic identity checks.
6. Record & retain how the firm met the requirements of the RICS.
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Chair of governing council?
Ann Gray
142
Chair of management board?
Martin Samworth
143
Interim CEO?
Richard Collins
144
How does PII cover relate to locums?
It should be under their own cover or the firm's PII policy?
145
When is a firm also eligible to register for regulation?
Firm is implementing an appropriate plan to secure compliance.
Firm is appropriately supported and supervised by another RICS registered firm.
146
How is CPD recorded?
Can be recorded on RICS' website or by the app.
147
How do you define between formal and informal CPD?
Formal - Structured learning that has clear learning objectives and outcomes.
Informal - Self managed learning that is relevant or related to your professional role.
148
What sort of professional development have you done during your training period?
In house training courses.
External training courses.
Personal reading.
Mock final assessments.
149
You receive an invite to attend the Theatre with some members of your Project Team but they dropped out due to illness at the last
minute, would you still attend?
In the first instance I would declare this hospitality on my companies’ gifts and hospitality register.
Assuming the invite was approved and I was authorised to attend, I would need to decline the invite
due to the Project Team dropping out.
Since they won't be present, this will not be a genuine business event.
150
Is Conflicts of Interest, 1st Edition, March 2017 a guidance note or professional statement?
Professional Statement.
151
Name 3 types of conflict?
1. Party Conflict - Conflicts with a duty owed to another client or party in relation to the same professional assignment.
2. Own Interest Conflict - Conflicts with the interests of the same RICS member/firm.
3. Confidential Information Conflict - Keeping the information confidential between one client and another.
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Can you provide working examples of a conflict, or potential conflict of interest?
Acting for both the developer and the contractor on the same project.
Acting as an expert witness where you/your firm has an interest in the outcome.
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What action should you take if a Conflict of Interest arises?
Disclose to the client in writing.
154
What is your position for compliance with the Bribery Act?
My company has an anti-bribery and corruption policy that applies to me as an employee. I strictly follow the procedures.
I would report any crime to the Serious Fraud Office or NCA.
155
What is Money Laundering?
Process by which criminals disguise the original ownership of money by making such proceeds appear to have derived from a legitimate source.
156
A client gives you £500k in cash to make interim payments, what would you do?
Not accept cash and ask the client to pay into a bank account (Responsibility rests with the bank to check the legitimacy.)
If I had concerns about the source of the money I would report to the NCA.
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What is corruption?
The abuse of entrusted power for private gain.
158
What is a price fixing cartel?
Collection of otherwise independent businesses or countries that act together to fix prices for the goods they produce.
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What is terrorist financing?
The collection or provision of funds to support terrorist acts.
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What is modern slavery?
Illegal exploitation of people for personal or commercial gain. Modern Slavery Act 2015.
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Examples of Modern slavery?
1. Forced labour
2. Human trafficking
3. Child slavery
Forced marriage
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How would you report modern slavery?
Modern slavery helpline or police
163
Difference between any one claim and aggregate policies?
Any one claim provides cover up to the full limit for each individual claim.
Aggregate policy provides cover up to the full limit for all claims.
164
What is a fully retroactive PII policy?
If the retroactive date is stated as none, then the policy is retroactive and all former work carried out by the firm will be covered.
165
L1 - Can you explain the general overview of the New Rules of Conduct (February 2022)?
The new Rules replace the previous version which had been in place for members and firms since 2007. We have introduced the following changes to bring our ethical standards into once clear framework.
1. A simpler structure.
2. Clear examples.
3. Focusing on respect, diversity and inclusion.
4. Understanding evolving technology.
5. Tackling global challenges.
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L1 - There are 5 New Rules of Conduct, can you pick one and explain what it is?
Members and firms must treat others with respect and encourage diversity and
inclusion.
Members and firms treat everyone fairly and do not discriminate against anyone.
Members and firms do not bully, victimise or harass anyone.
Members and firms develop an inclusive culture in their workplaces.
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L1 - Give an example of one Rule that you comply with every day?
Members and firms must be honest, act with integrity and comply with their
professional obligations, including obligations to RICS.
I remain trustworthy in all that I do, as well as being open and transparent with colleagues and clients.
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L1 - What is included in Appendix A (Professional Obligations) in the New Rules of Conduct
Appendix A sets out the core professional obligations for members and firms.
These include items such as:
1. Members must comply with the CPD requirements set by RICS.
2. Members and firms must cooperate with the RICS.
3. Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS, and maintain a complaints log.
4. Firms must ensure that all previous and current professional work is covered by adequate and appropriate
professional indemnity cover that meets the standards approved by RICS.
5. Firms with a sole principal must make appropriate arrangements for their professional work to
continue in the event of their incapacity, death, absence from or inability to work.
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L1 - What are the CPD requirements for a chartered surveyor? What about ethics?
20 hours for a chartered surveyor. Chartered surveyors are required to keep up to date with ethical updates and undertake any relevant CPD.
170
L1 - Why would you require Professional Indemnity Insurance (PII) if you were to set up in private practice?
You would require PII as it covers the policyholder for costs of legal action made against them in respect of financial loss due to negligence.
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L1 - How would you assess the level of PII you would need when setting up in private practice?
The level of PII would be determined by the firms turnover.
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L1 - Would the PII indemnity levels increase as your business expanded?
I would assume so, but only if the turnover of the company increased.
173
L1 - When would you arrange PII run off cover and why and how long is it held for?
PII run off cover would be arranged for a company that has ceased to trade. It should be maintained for a minimum period of 6 years.
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L1 - How would you protect your client’s interests if you decided to give up practice?
Deal with client money outstanding in your client account in accordance with the Client Money Handling professional statement.
Notify your professional indemnity insurers and arrange run off cover.
Make arrangements in respect of files and digital records you are holding to keep them safe. and confidential for as long as required.
Notify former clients for whom you are holding leases or other original documents.
Confidentially destroy any documents you do not need to keep.
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L1 - How would you determine the time period that run off cover would need to be provided?
6 years under hand
12 years as a deed
176
L1 - With regards to client's money, how should you name the bank account you are required to set up for this purpose?
You should ensure that all client money accounts include the word ‘client’ (written in full) and the name of the firm in the title of the account.
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L1 - How would you advise your client to give assurance as to how you were going to hold their money, so that it would be securely kept and accounted for?
I would advise my client that the money would be stored in a separate client bank account, with the word 'client' in the name, as well as the name of the firm.
We would keep records and accounts that show all dealings with the client money.
We would have appropriate procedures in place to ensure payments, transfers and withdrawals are in accordance with agreed client instructions.
Regular client bank account reconciliations will be undertaken by a senior member of staff.
Overdrawn balances are prevented by my firms systems.
Client data and accounting systems will be adequately protected.
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L1 - Why do we ring-fence Clients’ Money placed in our trust?
Ring fencing client money is a way of protecting client funds from being used elsewhere in the business.
179
L1 - What would be your approach of the client wished to pay you in advance for your services?
I would hold the money in a client account and draw it down appropriately.
180
L1 - What would happen if your employer’s rules conflicted with the RICS rules? Which takes precedence?
Follow the RICS rules and report your employer, assuming they're a RICS Regulated firm.
If they are not an RICS Regulated firm then there may be a perceived conflict of interest. You would have to make a decision on whether you should remain.
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L1 - If a conflict of interest arose within your business what advice would you give to colleagues or clients on how to deal with it?
I would advise my colleague to inform the client as soon as possible, detailing the nature of the conflict.
182
L1 - If you carried out work for a client and he decided to pay you in cash what advice would you give to them and would you readily accept it?
I would not accept the cash and I would advise the client to pay it into the appropriate bank account.
183
L1 - Can you explain the process for safeguarding clients’ interests in the event of death or prolonged illness of a sole trader Chartered Surveyor?
The sole trader would have appropriate arrangements in place in the event of their death. This would include a locum who is an appointed professional to stand in for the surveyor if they are unable to work.
Run off cover also required due to claims of negligence that could come about.
184
L1 - When does a firm have to register with the RICS?
A firm is required to register if they provide surveying services to the public and the firm is operating in the UK. At least 50% of the firms principals are RICS members.
185
L1 - What is a Locum employed for?
A locum is employed to stand in for a sole trader if they are unable to work.
186
L1 - Who can take on the role of a Locum?
They would typically be another chartered surveyor, although they could be another trusted professional.
187
L1 - If you received a complaint about the service you had provided how would you deal with it and what are the timescales for responding ?
I would follow my company's complaint handling procedure. Firstly, I would inform the nominated complaint handler and they would request a written summary.
This will be acknowledged within 2 days.
We will aim to find a resolution within 5 days.
If dissatisfied this will be referred to a director with the aim of responding within 28 days.
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L1 - Discuss a relevant third party redress mechanism and their role?
The Centre for Effective Dispute Resolution (CEDR) are used by my company.
CEDR provides a range of options for disputes of any commercial nature, through its
express, select and direct commercial mediation services.
189
L1 - If a friend asked you for an opinion on a project they were considering carrying out what advice would you give them?
My firms PII insurance would not cover me for private advice, therefore I would politely decline to provide.
190
L1 - If you and a colleague were invited to a consultants Christmas Party what advice would you give to your colleague, what are the guidelines for dealing with an offer of a gift or hospitality and when may acceptance be appropriate?
I would advise my colleague to not accept a gift if it suggested improper obligation.
Gifts can be accepted in certain circumstances, but it should be proportionate. I would advise my colleague to consult the ethics decision tree if unsure.
191
L1 - What would you advise if a client approached you and asked if you would work for them directly instead of your employer to reduce their cost?
I would advise my client that I could not work for them directly. I would not be covered by my firms PII insurance.
192
L1 - How would you describe ‘conduct befitting’ a Chartered Surveyor?
Under Bye-Law B5.2.1(a) - ‘Every member shall conduct himself in a manner befitting membership of RICS.’
They should remain competent, respectful and approachable at all times.
193
L1 - What Laws and regulations govern the formation and workings of RICS?
The RICS Bye Laws, Rules of Conduct, and Royal Charter.
194
L1 - What is a Money Laundering Redflag? Example?
If a client was to pay you a large sum of money in cash to make payments.
195
L1 - What current challenges is Covid and/or Brexit bringing to Conduct & Ethics?
Brexit saw changes to the GDPR rules.
Covid brought everyone online and changed requirements for security of personal and confidential information.
Covid saw an increase in PII premiums.
196
L2 - Please explain the process for producing a fee quote and ensuring value for money?
When producing a fee quote I would outline the client's scope of service and their budget.
I would highlight seniority of resource and number of people required to deliver the service.
I would assess the duration required to complete the activities and apply a rate to give me a total fee.
To ensure value for money I would ensure that the appropriate level of staff seniority is assigned to each relevant task.
For example, you wouldn't have a director undertaking a BQ.
197
L2 - Explain how you would check terms of appointment for compliance with RICS rules.
The RICS has produced RICS Standard Form of Consultant's Appointment documents. I would cross reference against this to ensure compliance.
198
L2 - Have you ever checked your employer’s compliance with RICS Rules of Conduct?
Yes. I have reviewed my employers compliance against Appendix A of the Rules of Conduct.
For example, our CHP is in line with the RICS. We also follow the RICS rules for firm designations. We also cooperate with the RICS where required.
199
How can you become a Fellow of the RICS?
All Chartered Members (MRICS) are eligible to apply for fellowship, subject to the rules of conduct for members. To qualify as an RICS Fellow, you’ll need to show how your career experience demonstrates four out of twelve professional characteristics.
For example;
1. Service to RICS
2. Teaching
3. Leadership
4. Client care
200
What are the Global Professional and Ethical standards?
Act with integrity.
Always provide a high standard of service.
Act in a way that promotes trust in the profession.
Treat others with respect.
Take responsibility.
201
What are the RICS Help Sheets produced for?
Guidance on maintaining Professional and Ethical Standards.
202
In what circumstances might a member receive a Regulatory Compliance Orders?
The decision-maker considers that the rule breach concerned is not so serious that a public disciplinary hearing is necessary, and the Regulated Member admits the breach and is willing to cooperate with RICS to rectify the matter.
203
If a member didn’t complete their CPD requirements for a year, what kind of disciplinary would they likely receive?
Failure to comply with the rules on CPD will be treated in the same way as any other rule breach under RICS Disciplinary Rules. The range of sanctions includes censure, fines, publication of disciplinary findings and expulsion from membership.
204
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.
205
Potentially in weeks’ time you will be chartered and in a months’ time you decide to set up your own business. There’s no one else in the business other than yourself, how would a complaints handling procedure be handled then?
You would have to appoint a complaint handler outside your firm to carry out the duties.
206
If you set up as a new business with no trading history, how would you determine your level of PII?
You would estimate your turnover for the year which would allow you to calculate your required level of PII.
207
How many signatories are typically required when withdrawing or processing Client’s money?
Either a sole signatory who would be a principal, or a second signatory that had been agreed by that principal.
208
How often should a cost reconciliation be undertaken?
Once every month, and no later than 6 weeks after the date of the previous reconciliation.
209
How would a client get a copy of your complaints handling procedure?
This will be supplied to the client, along with the other appointment documents.
210
When is the deadline for submitting your CPD for the year on to the RICS website?
31st December.
211
What compliance do the RICS enforce when setting up your own firm?
Inform RICS of your new practice by completing a Firms Detail Form.
Arrange Professional Indemnity Insurance and send details to RICS.
Set up procedures for Members Account Regulations for handling client’s money.
Obtain RICS approval for CHP.
Appoint a Complaints Handling Officer (or elect a surveyor in another practice if a sole practitioner).
Obtain a logo kit from the RICS to use for the production of all practice material to ensure compliance with the designation “Regulated by RICS”.
Ensure insurance compliance for employer and public liability.
Inform the HMRC for VAT and Tax registration.
Bribery Act 2010 compliance.
Appoint a Money Laundering Reporting Officer.
212
Why do RICS have Rules of Conduct?
To provide confidence to clients and the public that RICS members and firms act competently and ethically.
213
What is the RICS CHP?
This is in 2 Stages:
1 - Request details of the complaint in writing. This will be acknowledged as quickly as possible, but no later than 7 days. If unable to provide a full response an update will be given within 28 days.
2 - Will be taken to a 3rd party redress company if the complaint can't be resolved.
Examples include Centre for Effective Dispute Resolution (CEDR), The Property Ombudsmen (TPO), The Property Redress Scheme (PRS).
214
Can you explain the structure of the RICS to me?
Updated in September 2022
Privy Council
Governing Council
Regulatory Tribunal, Standards & Regulations Board, RICS Board,
Audit Risk Assurance & Finance Committee, Nominations & Remuneration Committee
World Regional Boards & Market Advisory Panels
215
What is included in an annual return to the RICS?
Type of business and staffing.
Nature of clients.
Training provisions.
CHP details and records.
PI insurance details.
Whether the firm holds client money.
216
What is the Bichard Review?
The Bichard Review is an independent review of the RICS’ purpose, governance and strategy. It was commissioned by RICS Governing Council in December 2021 following the Levitt Review.
The Levitt Review was another independent review, but into treasury management issues at RICS during 2018 and 2019.
217
Why was the Bichard Review commissioned?
The Bichard RICS Review was commissioned by the Governing Council in December 2021, following a recommendation in the Levitt Review that a “wide-ranging examination of purpose, governance and strategy” should be conducted by an external reviewer.
218
What were some of the recommendations of the Bichard Review?
36 separate recommendations in total:
RICS Matrics should be re-invigorated to give younger members a stronger voice in the Institution.
A Diversity and Inclusion Panel should be established to provide advice to the RICS Board and Standards and Regulation Board.
RICS need to significantly improve its technology by RICS technology strategy, updating the RICS strategy plan, Appointing a member of the broad with technology experience.
219
Why were the Rules of Conduct updated?
Provide a simpler structure.
Clear examples.
Focusing on respect, diversity and inclusion.
Understanding evolving Technology.
220
What are the 5 principals of better regulation?
Proportionality – Must be proportionate to breach
Accountability – Must be accountable for actions
Consistency – Must be consistent with other cases
Transparency – Must be open
Target – Must target offenders
221
How do you record your CPD?
CPD can be recorded via the RICS website.
222
How do you decide what CPD to attend?
1. Consider your knowledge weakness.
2. Consider hot topics in industry.
3. Consider future projects/ work.
223
When must you inform your insurance of a potential claim and what would you need to do?
As soon as it becomes apparent there may be a claim made inform the insurance.
Comply with the conditions and procedures set out in the insurance policy.
Advise the client of the error (if they are not aware).
Assess the level of error and make steps for correcting.
224
You mention the ethical principles, can you advise on what these are?
* Act with Integrity
* Provide a high standard of service
* Promote trust in the profession
* Take responsibility
* Treat others with respect
225
Where can you find guidelines for individuals and firms?
* Appendix A of the Rules of Conduct.
Members:
Must cooperate with RICS
Must undertake CPD requirements
Must cooperate with SRB
Firms:
Must cooperate with RICS
Produce CHP
Appropriate PI in place
Sole practionioner has a locum in place
226
Can you provide some examples of modern slavery?
* Forced labour
* Child labour
* Forced marriage
* Human Trafficking
227
Do you know of any documents which provide guidance on modern slavery?
* Modern Slavery Act 2015.
228
Do you know of any documents which provide guidance on anti-bribery?
Countering bribery and corruption, money laundering and terrorist financing 2019.
The Bribery Act 2010.
229
What is classed as bribery?
The offer or acceptance of an advantage as an inducement for an action that is illegal.
230
What should you do if you suspect bribery?
Inform your manager or report it to the National Crime Agency.
231
What is the structure of the RICS?
Privvy Council
Governing Council
Regulatory Tribunal, Standards & Regulation Board, RICS Board
Audit Risk Assurance and Finance Committee, Nominations & Remuneration Committee, Market Advisory Panels, World Regional Boards
232
What is the Golden Thread?
In her report on the Grenfell Tower Fire, Dame Judith Hackitt highlighted the lack of information in relation to fire safety provisions, emergency access details etc for occupiers.
This proposed redress to this is to have a golden thread of information. This will include information and documents, as well as management steps and processes to support building fire safety.
All relevant information will need to be collated and kept up to date in one location by the responsible person.
The responsible person will be required to show that the information complies with building regulations, prove that it meets the requirements of building control, as well as identify, understand, manage and mitigate safety risks. This is to prevent the severity of the consequences of fire spread.
This will be managed by the Building Safety Regulator (BSR), who will be based at the HSE. This role was introduced as part of the Building Safety Act 2022.
Information in the golden thread should be stored in a structured digital fashion and managed in line with defined principles, including; accurate and trusted, supports residents to feel safe at home, keep information secure and ensure that the information is accessible.
The golden thread will be available at three different gateways; Early in design stage, ahead of construction and before occupation
233
How can you relate the five Rules of Conduct to your duties?
Rule 1 – I am always open and transparent with client’s regarding fees
Rule 2 – I always ensure that I act within my scope of competence and advise client’s when I am not qualified to undertake a task
Rule 3 – I always use the appropriate appointment documents and work in a timely manner
Rule 4 – I do not bully anyone within my workplace and try to be as inclusive as possible
Rule 5 – I follow my firms CHP and report and breaches of conduct to the RICS
234
You mention that you completed a tender opening at St Wilfrid’s, were you the only person present and why?
In line with the tendering strategies guidance note, this was done in the presence of other members of the design team to avoid any potential collusion.
235
What is the purpose of having your work quality assurance checked?
To ensure that it is of the highest standard and free of errors.
236
If you become chartered and were to set up your own company, what would you be required to do?
* Notify companies house
* Notify RICS
* Set up a complaints handling procedure
* Take out employers liability insurance
* Take out public liability insurance
* Take out PII
* Arrange a locum if a sole practitioner
* Arrange run off cover
* Produce a diversity and inclusion policy
* Produce a H&S policy
* Set up a control process for client money
* Appoint a complaint handler
237
Why should tender submit on time? What will you do if the tender is submitted later than the designated deadline?
A late tender may suggest improper practice, such as collusion.
If it were a public project, the tender would be rejected.
If it were a private project, it would be discussed with the client, but the safest option would be rejection to avoid the possibility of collusion.
238
You mention that on Project Zeta you highlighted errors in the contractor’s payment application and offered them the opportunity to amend them, why would you do this? Is that not the contractor’s mistake?
This was undertaken as a matter of maintaining my integrity and affording the contractor payment for the correct amount.
It also maintains my relationship with the contractor and forms strong working relationships.
239
How do you act with integrity?
* I do not mislead others.
* I am open and transparent.
240
If a client asked you provide advice on VAT related matters, how would you proceed with this?
I would advise that this was outside my area of expertise and that different clients pay differing levels of VAT.
241
A Contractor offers you a bottle of wine at Christmas. Do you accept it? How about if you were offered tickets to your favourite band?
The decision would be based on proportionality and whether it was in line with my company’s gifts policy. Any gift above the value of £20 should be rejected.
Therefore, it would be most likely that I would accept the bottle of wine, dependent on the value and after registering it on my gifts policy.
The value of the tickets to my favourite band would probably pass this threshold and I would therefore likely reject the offer.
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