Ethics Flashcards
What information do Registered Firms need to send annually to RICS
Called annual return carried out online.
Includes:
- Type of business and staffing
- Nature of clients
- Training provision
- PI insurance details
- Whether the firm holds client monies
Procedures for setting up a practice
- contact RICS for guidance and obtain a company start up pack
- Inform the RICS and register for regulation
- appoint a contact officer for all RICS communication
- Prepare a complaints handling procedure
- Obtain PII
- Abide by Rules of Conduct
- Use designation ‘Regulated by RICS’ on practice material
Who is the president, president elect and chief executive of RICS?
President - Tina Paillet (Jan 2024)
President Elect - Justin Sullivan
Vice President - Nicholas Maclean
CEO - Justin Young
Head of building surveying faculty - Cliff L-Aimable
What is the RICS’ mission statement?
To qualify and equipt their members to offer the highest standards of professional service.
Promote and enforce standards
To lead solutions to the major challenges facing the built environment through professional expertise
What are the purpose of the RICS Bye-Laws?
Bye-laws determin how the RICS is regulated, cover membership, regularisation, definitions, management etc.
Explain your understanding of the RICS inclusive employer quality mark
The RICS is launching a scheme known as the Inclusive Employer Quality Mark.
This is designed to improve diversity and inclusion within the property and construction sector.
The scheme requires employers to pledge their commitment to adopting and continually
improving against the following six principles:
o Leadership and Vision.
o Recruitment.
o Staff development.
o Staff retention.
o Staff engagement.
o Continuous improvement.
Participating firms will be required to assess their performance against the criteria on a bi-annual
basis.
RICS will use the assessment information to document the outcomes and trends for the profession as a whole.
Participating firms are able to use the branding of, ‘Signatory to the RICS Inclusive Employer Quality Mark’.
What are the 5 Principles of better regulation (PACTT)
- Proportionality
- Accountability
- Consistency
- Transparency
- Targetting
Explain your understanding of Hart vs Large case law
This was a high court case relating to a dispute between the purchasers, Mr & Mrs Hart, and their
surveyor, Mr Large.
Large had carried out a Level 2 Home Buyer Report on a property based in Devon.
Mr & Mrs Hart experienced problems with damp and water ingress resulting in a claim against
Large.
The court ruled that Large was negligent as he:
o Failed to identify the issues relating to damp.
o Failed to advise the purchaser to obtain a Professional Consultants Certificate.
o Failed to recommend further investigations were undertaken regarding the condition of
the property.
This case is important for surveyors as it highlights the need to:
o Report on any building elements that have not been inspected, including an explanation
as to why this is the case.
o Recommend further investigations are carried out if the surveyor has a suspicion that a
visible defect may affect other concealed building elements. -“Where there is a trail of
suspicion, a surveyor must take reasonable steps to follow that trail, which may include
recommending further investigations.
o The need to strongly recommend that a Professional Consultants Certificate should be
obtained prior to purchase on recently refurbished properties to protect the property
purchaser from concealed defects.
Please explain your understanding of the Bichard Review
The Birchard Review was an independent review commissioned by the RICS Governing Board in December 2021 into the purpose, governance and strategy of the RICS.
This was commissioned following the Levitt Review and aimed to create a new sense of purpose and direction of the RICS.
The review advised on 36 recommendations that are currently being implemented which include:
o Commercial Activity will now be separated from other activities within the RICS and led by a suitable qualified executive with strong commercial experience who reports to the Commercial Committee.
o RICS Matrics should give younger members a stronger voice through an improved governance structure with an appropriately selected representative from the community of younger members to sit on the Governing Council.
o A Diversity and Inclusion Panel will be setup to provide advice to the RICS Board and Standards and Regulation Board.
o Improvement of Technology within the RICS.
o A Public Interest Panel will be setup to advise the Governing Council.
The Governance Structure will be updated to include a Public Interest Panel, Sustainability Panel, Diversity & Inclusion Panel, Commercial Committee and Audit, Risk, Finance & Assurance Committee.
What is RICS doing to improve DEI?
The RICS has setup ‘Diversity & Inclusion leadership’ which is a knowledge hub allowing the RICS to share ideas on how and why diversity & inclusion is so important to the RICS.
This has included initiatives such as:
o International Women’s Days celebrating the achievement of Women in our profession.
o Pride 2023: LGBTQ+ equality pledge focusing on the importance of LGBTQ+ representation in the profession.
o The McGregor-Smith Review – aiming to develop black and ethnic minority talent within the profession.
Please explain your understanding of how the RICS define Professional Standards vs Practice Information
Following the Birchard Review and its recommendations the RICS have introduced two new
definitions for Professional guidance which are now split into Professional Standards and Practice
Information.
These supersede the former definitions including Professional Statements, Guidance Notes and
Codes of Practice etc.
Professional Standards - set out requirements or expectations for RICS members and regulated
firms with a focus on baseline expectations for competence and ethical behavior. They contain
mandatory requirements that surveyors must follow, where the word ‘must’ is used with best
practice that surveyors should follow, where the word ‘should’ is used.
Practice Information – set out supporting guidance to advise surveyors in delivering specific
services or working in specific areas of practice. The guidance is not mandatory and does not
provide explicit recommendations. Practice Information can refer to processes, toolkits,
checklists, insights, research and technical information or advice.
What is IPMS?
IPMS stands for the International Property Measurement Standards.
The IPMS is a coalition of 80 global professional organisations that was first formed in 2013
when it produced its first version of its measurement standards.
There were various versions of the standards that are targeted at industry specific sectors such as:-
o IPMS Office.
o IPMS Residential.
o IPMS Retail.
IPMS All Buildings was introduced in January 2023 and now supersedes all previous standards.
The RICS has been a pivotal member of the coalition since its inception and provided
consultation and advice to its members.
What are different volumes of the IPMS?
IPMS 1 – External Measurements for Whole or Part of a Building.
IPMS 2 – Internal Measurements for Whole or Part of a Building.
IPMS 3.1 – External Measurements for Exclusive Occupation.
IPMS 3.2 – Internal Measurements for Exclusive Occupation.
IPMS 4.1 – Internal Measurements for Selected Areas including Internal Walls and Columns.
IPMS 4.2 - Internal Measurements for Selected Areas excluding Internal Walls and Columns.
Are you aware of any RICS guidance notes on Brexit?
The RICS has provided a number of position statements highlighting its concerns and issues with
Brexit on a sector-by-sector basis.
This also outline what the RICS think the UK government should be doing to make Brexit work
for a post-EU UK.
The position statement highlights:-
Encouragement of growth and diversity of the construction workforce as potential loss of non
UK works could create significant issues as this currently account for 12.6% of workers.
EU membership provides access to a number of EU funding streams such as the European
Investment Bank (EIB). The loss of EU led funding streams could have a significant impact on
project delivery in the UK.
The RICS is calling for the UK Government to act to keep EIB funding or introduce a new
lending mechanism, to plug the gap which could result in a lack of infrastructure investment.
Following the Grenfell Disaster are you aware of any guidance the RICS has published to support fire safety?
I am aware that the RICS has published the Guidance note ‘Cladding for Surveyors 1st Edition March 2021’ to support surveyors working on Multi-storey and multi occupancy residential buildings.
The document aims to improve surveyors knowledge of external wall cladding systems that may
be considered within the External Wall Fire Review.
Whilst the document is useful and provides illustrated examples of cladding systems, I appreciate
that fire safety is of great importance and ultimately falls outside my area of expertise. If my
clients do ask for advice on first safety I would always recommend that they seek advice via a
professional fire risk assessment.
What is the significance of ACM in relation to Grenfell?
The ACM cladding in use was thought to contain combustible materials that contributed towards
the spread of fire across the external elevation of the building.
As a result the UK government has now banned the use of combustible materials on high rise
homes from 29th November 2018.
The ban means that combustible materials are not permitted on the external walls of new
buildings above 18m.
Local authorities also need to undertake remediation works to replace dangerous ACM cladding
on existing buildings.
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.
This was to provide a single document to enable greater clarity for RICS members and firms.
There is now a greater focus on clearer example behaviors, understanding evolving technology
and tackling climate change.
What is COP26?
COP26 is the most recent annual UN climate change conference. COP stands for Conference
of the Parties, and the summit was attended by the countries that signed the United Nations
Framework Convention on Climate Change (UNFCCC) – a treaty that came into force in 1994.
The two-week meeting was seen as a critical moment for commitments and action after richer
nations had failed to raise the $100bn annual climate funding they had promised to vulnerable
countries and the gap to staying below 1.5C loomed large.
What was agreed at COP26?
For the first time at a COP conference there was an explicit plan to reduce use of coal which is
responsible for 40% of annual CO2 emissions.
There was a commitment to ‘phase down’ rather than ‘phase out’ coal after a late intervention by
China and India.
The agreement pledged to significantly increase money to help developing countries cope with
the effects of climate change and make the switch to clean energy.
There’s was also the prospect of a trillion dollar a year fund from 2025 onwards after a previous
pledge for richer countries to provide $100bn (£72bn) a year by 2020 was missed.
While some observers say the COP26 agreement represented the “start of a breakthrough”, some
African and Latin American countries felt not enough progress was made.
What is the Levitt Report?
The Levitt Report was commissioned by the RICS following a Treasury management audit in
2018.
Prior to the Audit the RICS had to extend its overdraft facility by circa £3m due to inaccurate
cashflow forecasting.
The treasury management audit offered a ‘no assurance verdict’ on RICS internal financial
control procedures and following this the Levitt report was commissioned as an independent
review.
The conclusion of the Levitt report illuded to an internal power struggle due to its two board
structure made up of a Management Board and Executive Board.
Following the report, the RICS accepted each of Levitt’s recommendations including:
The RICS Governing Council are to have more oversight over internal dealings of the RICS.
The RICS Governing Council are to be briefed by the Management Board as opposed to a single
CEO.
The RICS Governing Council are to oversee executive management bonuses.
The report called for greater transparency as the CEO could have involved the management
board in order to rectify the treasury issues.
No evidence of improper or illegal conduct was discovered.
Explain your understanding of Reinforced Autoclave Aerated Concrete
RAAC is reinforced lightweight concrete which is used to form panels or planks.
It has no aggregate unlike regular concrete and was mainly used in flat roofs, floor panels and wall
panels.
It was commonly used in the UK from the mid-1950s to the mid-1990s in schools, hospitals and
public buildings.
There have been recent concerns about RAAC due to the risk of structural failure in particular
due to the following factors:
o Damage due to water ingress.
o Corrosion of reinforcement.
o Excessive thermal degradation.
o Poor original installation.
How would you identify RAAC?
To identify whether a building has RAAC a suitably qualified professional should be appointed
such as an RICS Chartered Building Surveyor or Structural Engineer.
Key indicators of RAAC include:
o Light-grey or white panels in appearance.
o Underside of panels appears smooth.
o Inside of planks appear bubbly unlike traditional concrete,
o There will be no visible stones (aggregate) in the panels.
What recommendations would you advice to a client about whether a building contains RAAC?
RAAC planks were mainly used from the 1950s until the 1990s so this advice would typically apply to buildings dated from around this time.
I would enquire whether the building owner or local authority holds any similar buildings within their portfolio which are known to have RAAC.
I would also review any records available about the construction of the building to identify if RAAC is mentioned.
If I could not identify the construction type of a roof and suspect it could be formed from RAAC, I would advise that the Roof must be inspected by a qualified RICS Chartered Building Surveyor or Structural Engineer.
Following inspection and identification I would advise that the client puts provisions in place to manage risks within their building for example:
o Use of temporary propping.
o Isolation of areas of the building at risk.
The remedial works would be advised in order of priority depending on areas most at risk.
What is the Lionheart foundation?
- LionHeart is an independent charity specifically designed for past, present and future RICS professionals and their families.
- Their aim is to support members through difficult times, whether personal or professional, from the beginning of their career as an APC candidate or apprentice, right through to retirement.
The support is global and ranges from:
- Finance
- Health & Wellbeing
- Family related support
- Work-related support and many more.
What is the RICS DE&I Strategy?
- actively encourage member firms to take part in the Action Sustainability DEI Survey
- set benchmarks across demographic groups and levels of membership to better understand gaps in representation and prioritise efforts to improve diversity
- establish a framework to track and improve representation of speakers and experts taking part in RICS events, working groups, panels, etc.
- establish a clear baseline for representation across RICS governance and leadership roles for members, and develop an action plan to improve representation over time; this action plan will be delivered by the end of 2024 and
- increase individual response rates from members to strengthen demographic data on representation and inclusion metrics specific to the surveying profession
Published a gender pay gap report, joined the RACE Equality Code – a marker of best practice and accountability framework designed to address racial equity and improve overall inclusion in the workplace.
What does claims made basis mean?
The insurance policy that is in place at the time the breach is discovered is responsible for providing
the indemnity, not the insurance policy in place when the breach was made.
What is the correct complaints handling procedure?
- 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.
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.
What is the Client Monies Procedure?
- Set clear segregation of duties for employees.
A Principal oversees the client money accounting functions. - Principles cannot override controls.
- 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.
What is the RICS Client 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.
What are the professional obligations for Firms?
- Firms must publish a complaints handling procedure, which includes an alternative dispute
resolution provider approved by RICS, and maintain a complaints log - 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 - 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 - Firms must cooperate with RICS
- Firms must promptly provide all information reasonably requested by the Standards and
Regulation Board, or those exercising delegated authority on its behalf - Firms must display on their business literature, in accordance with RICS’ published policy on
designations, a designation to denote that they are regulated by RICS - Firms must report to RICS any matter that they are required to report under the Rules for the
Registration of Firms
Why did the Code 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. - This was to provide a single document to enable greater clarity for RICS members and firms.
- I also understand there is now a greater focus on clearer example behaviours , understanding evolving technology and tackling climate change.
What must Firms provide RICS annually?
Type of business and staffing.
Nature of clients.
Training provision.
Complaints handling procedures
details and records.
PI insurance details.
Whether the firm holds clients’ money.
What is a bribe?
- The act of giving, offering, promising or receiving of a financial or other advantage in order to prompt or reward improper performance.
- The improper performance will result in a commercial or personal advantage.
